-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KRn5tKOo4/oti5ajzctS23SWYi9U7zDvayngSy9Baj+q4i3ykz9RT6/tgARla6O0 wan++7byq7d/7w2veWrdCg== 0000089024-08-000238.txt : 20080423 0000089024-08-000238.hdr.sgml : 20080423 20080423132836 ACCESSION NUMBER: 0000089024-08-000238 CONFORMED SUBMISSION TYPE: POS AM PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 20080423 DATE AS OF CHANGE: 20080423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AXA EQUITABLE LIFE INSURANCE CO CENTRAL INDEX KEY: 0000727920 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 135570651 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: POS AM SEC ACT: 1933 Act SEC FILE NUMBER: 333-142408 FILM NUMBER: 08771304 BUSINESS ADDRESS: STREET 1: 1290 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10104 BUSINESS PHONE: 2125541234 MAIL ADDRESS: STREET 1: 1290 AVENUE OF AMERICAS CITY: NEW YORK STATE: NY ZIP: 10104 FORMER COMPANY: FORMER CONFORMED NAME: AXA-EQUITABLE LIFE INSURANCE CO DATE OF NAME CHANGE: 20040928 FORMER COMPANY: FORMER CONFORMED NAME: EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES /NY/ DATE OF NAME CHANGE: 19920703 POS AM 1 e9924.txt Registration No. 333-142408 - -------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 - -------------------------------------------------------------------------- POST-EFFECTIVE AMENDMENT NO. 1 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 AXA EQUITABLE LIFE INSURANCE COMPANY (Exact name of registrant as specified in its charter) NEW YORK (State or other jurisdiction of incorporation or organization) 13-5570651 (I.R.S. Employer Identification No.) 1290 AVENUE OF THE AMERICAS, NEW YORK, NEW YORK 10104 (212) 554-1234 (Address, including zip code, and telephone number, including area code, of registrant's principal executive offices) DODIE KENT VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL AXA EQUITABLE LIFE INSURANCE COMPANY 1290 AVENUE OF THE AMERICAS, NEW YORK, NEW YORK 10104 (212) 554-1234 (Name, address, including zip code, and telephone number, including area code, of agent for service) Please send copies of all communications to: CHRISTOPHER E. PALMER, ESQ. GOODWIN PROCTER LLP 901 NEW YORK AVENUE, N.W. WASHINGTON, D.C. 20001 - ------------------------------------------------------------------------------- Approximate date of commencement of proposed sale to the public: As soon after the effective date of this Registration Statement as is practicable. If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. [ ] If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box: [X] If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act Registration statement number of the earlier effective registration statement for the same offering. [ ] If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [ ]
CALCULATION OF REGISTRATION FEE - ------------------------------------------------------------------------------------------------------------ Title of each class Proposed maximum Proposed maximum of securities to be Amount to be offering price per aggregate offering Amount of registered registered unit price registration fee - ------------------------------------------------------------------------------------------------------------ Market value $500,000,000(2) (1) $500,000,000 $15,350(2) Adjustment Interests under Flexible Premium Annuity Contracts - ------------------------------------------------------------------------------------------------------------
(1) The securities are not issued in predetermined amounts or units. (2) Prior to the filing of this Registration Statement, $77,000,000 of securities of the registrant remained registered and unsold, pursuant to Registration Statement File No. 333-104713, which was filed with the Commission on April 23, 2003. The registration fee of $6,229.30 associated with the unsold securities was offset from the registration fee of $15,350 associated with the securities registered pursuant to Rule 457(p) and such unsold securities were deemed deregistered. A payment of $9,120.70, which accounts for the remainder of the registration fee, has been previously paid. ACCUMULATOR(R) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before taking any action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R)? Accumulator(R) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options or fixed maturity options ("investment options"). This contract is no longer available for new purchasers. This Prospectus is designed for current contract owners. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value(4) o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street o EQ/Ariel Appreciation II Small Cap o EQ/BlackRock Basic Value Equity o EQ/PIMCO Real Return o EQ/BlackRock International Value o EQ/Short Duration Bond o EQ/Boston Advisors Equity Income o EQ/Small Company Index o EQ/Calvert Socially Responsible o EQ/T. Rowe Price Growth Stock o EQ/Capital Guardian Growth o EQ/Templeton Growth o EQ/Capital Guardian Research o EQ/UBS Growth and Income o EQ/Caywood-Scholl High Yield Bond o EQ/Van Kampen Comstock o EQ/Davis New York Venture o EQ/Van Kampen Emerging Markets o EQ/Equity 500 Index Equity o EQ/Evergreen International Bond o EQ/Van Kampen Mid Cap Growth o EQ/Evergreen Omega o Multimanager Aggressive Equity o EQ/FI Mid Cap o Multimanager Core Bond o EQ/Franklin Income o Multimanager Health Care o EQ/Franklin Small Cap Value o Multimanager High Yield o EQ/Franklin Templeton Founding o Multimanager International Equity Strategy o Multimanager Large Cap Core Equity o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Growth o EQ/GAMCO Small Company Value o Multimanager Large Cap Value o EQ/International Core PLUS(1) o Multimanager Mid Cap Growth o EQ/International Growth o Multimanager Mid Cap Value o EQ/JPMorgan Core Bond o Multimanager Small Cap Growth o EQ/JPMorgan Value Opportunities o Multimanager Small Cap Value o EQ/Large Cap Core PLUS(2) o Multimanager Technology - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 45 and Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the fixed maturity options, which is discussed later in this Prospectus. TYPES OF CONTRACTS. Contracts were offered for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA or Roth IRA. We also offered "Rollover IRA" and "Roth Conversion IRA." o An annuity that is an investment vehicle for a qualified defined contribution plan ("QP") (Rollover and direct transfer contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required.) A contribution of at least $5,000 was required to purchase an NQ, Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is a part of one of the registration statements. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01906 Oregon only Contents of this Prospectus - -------------------------------------------------------------------------------- ACCUMULATOR(R) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 5 How to reach us 6 Accumulator(R) at a glance -- key features 8 - -------------------------------------------------------------------------------- FEE TABLE 10 - -------------------------------------------------------------------------------- Example 13 Condensed financial Information 16 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 17 - -------------------------------------------------------------------------------- How you can contribute to your contract 17 Owner and annuitant requirements 20 How you can make your contributions 20 What are your investment options under the contract? 20 Portfolios of the Trusts 21 Allocating your contributions 26 Your benefit base 28 Annuity purchase factors 28 Our baseBUILDER option 28 Guaranteed minimum death benefit 30 Your right to cancel within a certain number of days 31 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 32 - -------------------------------------------------------------------------------- Your account value and cash value 32 Your contract's value in the variable investment options 32 Your contract's value in the fixed maturity options 32 Insufficient account value 32 - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 33 - -------------------------------------------------------------------------------- Transferring your account value 33 Disruptive transfer activity 33 Rebalancing your account value 34 - ----------------- "We," "our," and "us" refer to AXA Equitable. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 35 - -------------------------------------------------------------------------------- Withdrawing your account value 35 How withdrawals are taken from your account value 36 How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit 36 Loans under Rollover TSA contracts 37 Surrendering your contract to receive its cash value 37 When to expect payments 37 Your annuity payout options 38 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 40 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 40 Charges that the Trusts deduct 41 Group or sponsored arrangements 42 Other distribution arrangements 42 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 43 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 43 How death benefit payment is made 44 Beneficiary continuation option 44 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 46 - -------------------------------------------------------------------------------- Overview 46 Contracts that fund a retirement arrangement 46 Transfers among investment options 46 Taxation of nonqualified annuities 46 Individual retirement arrangements (IRAs) 48 Tax-sheltered annuity contracts (TSAs) 57 Federal and state income tax withholding and information reporting 61 Special rules for contracts funding qualified plans 62 Impact of taxes to AXA Equitable 62 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 63 - -------------------------------------------------------------------------------- About Separate Account No. 45 and Separate Account No. 49 63 About the Trusts 63 About our fixed maturity options 63 About the general account 64 About other methods of payment 65 Dates and prices at which contract events occur 65 About your voting rights 66 About legal proceedings 66 Financial statements 66 Transfers of ownership, collateral assignments, loans and borrowing 66 Distribution of the contracts 67 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 69 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Guaranteed minimum death benefit example D-1 V -- Hypothetical illustrations E-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Term Page in Prospectus 5% Roll-Up to age 80 30 12 month dollar cost averaging 27 account value 32 administrative charge 40 annual Ratchet to age 80 30 annuitant 17 annuitization 38 annuity maturity date 39 annuity payout options 38 annuity purchase factors 28 automatic investment program 65 baseBUILDER 28 baseBUILDER Benefit charge 41 beneficiary 43 Beneficiary Continuation Option ("BCO") 44 business day 65 cash value 32 charges for state premium and other applicable taxes 41 contract date 9 contract date anniversary 9 contract year 9 contributions to Roth IRAs 54 regular contributions 54 rollover and direct transfers 54 conversion contributions 55 contributions to traditional IRAs 48 regular contributions 48 rollovers and transfers 50 disability, terminal illness or confinement to nursing home 41 disruptive transfer activity 33 EQAccess 6 ERISA 42 fixed maturity options 26 free look 31 free withdrawal amount 40 general account 64 Guaranteed minimum death benefit 29 Guaranteed minimum income benefit 28 IRA cover IRS cover investment options cover lifetime required minimum distribution withdrawals 36 loan reserve account 37 loans under Rollover TSA contracts 37 market adjusted amount 26 market value adjustment 26 market timing 33 maturity dates 26 maturity value 26 Mortality and expense risks charge 40 NQ cover partial withdrawals 35 Portfolio cover principal assurance allocation 27 processing office 6 Protection Plus(SM) 31 Protection Plus(SM) charge 41 QP cover rate to maturity 26 Rebalancing 34 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 27 Separate Account No. 45 and Separate Account No. 49 63 substantially equal withdrawals 35 successor owner and annuitant 44 systematic withdrawals 35 TOPS 6 TSA cover traditional IRA cover Trusts 63 unit 32 variable investment options 20 wire transmittals and electronic applications 65 withdrawal charge 40 To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract or supplemental materials. Your financial professional can provide further explanation about your contract. - -------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - -------------------------------------------------------------------------------- fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit baseBUILDER Guaranteed Minimum Income Benefit - -------------------------------------------------------------------------------- 4 Index of key words and phrases Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. Who is AXA Equitable? 5 HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility to exercise the guaranteed minimum income benefit, if applicable. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options; o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain contract statements electronically; o elect the rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); o access Frequently Asked Questions and Service Forms (not available through TOPS); and o change your EQAccess password (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of your transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or will- 6 Who is AXA Equitable? ful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA; (3) election of the automatic investment program; (4) election of the rebalancing program; (5) requests for loans under Rollover TSA contracts (employer or plan approval required); (6) spousal consent for loans under Rollover TSA contracts; (7) requests for withdrawals or surrenders from Rollover TSA contracts; (8) tax withholding elections; (9) election of the beneficiary continuation option; (10) IRA contribution recharacterizations; (11) Section 1035 exchanges; (12) direct transfers and rollovers; (13) purchase by, or change of ownership to, a non natural owner; (14) exercise of the Guaranteed minimum income benefit; and (15) death claims. WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) address changes; (2) beneficiary changes; (3) transfers between investment options; (4) contract surrender and withdrawal requests; (5) general dollar cost averaging; and (6) 12 month dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging; (3) rebalancing; (4) 12 month dollar cost averaging; (5) substantially equal withdrawals; (6) systematic withdrawals and; (7) the date annuity payments are to begin. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners, both must sign. Who is AXA Equitable? 7 Accumulator(R) at a glance -- key features - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ Professional investment Accumulator(R)'s variable investment options invest in different Portfolios managed by management professional investment advisers. - ------------------------------------------------------------------------------------------------------------------------------------ Fixed maturity options o 10 fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. -------------------------------------------------------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ------------------------------------------------------------------------------------------------------------------------------------ Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among investment options inside the contract. -------------------------------------------------------------------------------------------------------- Annuity contracts that were purchased as an Individual Retirement Annuity (IRA), Tax Sheltered Annuity (TSA) or to fund an employer retirement plan (QP or Qualified Plan) do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before you purchased your contract, you should have considered its features and benefits beyond tax deferral, as well as its features, benefits and costs relative to any other investment that you may have chosen in connection with your retirement plan or arrangement, to determine whether it would meet your needs and goals. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ------------------------------------------------------------------------------------------------------------------------------------ baseBUILDER(R) protection baseBUILDER combines a guaranteed minimum income benefit with a guaranteed minimum death benefit provided under the contract. The guaranteed minimum income benefit provides income protection for you during the annuitant's life once you elect to annuitize the contract. The guaranteed minimum death benefit provides a death benefit for the beneficiary should the annuitant die. - ------------------------------------------------------------------------------------------------------------------------------------ Contribution amounts o Additional minimum: $1,000 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $50 (IRA contracts) Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million. Under all Accumulator(R) series contracts with the same owner or annuitant. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We currently impose that limitation except in certain circumstances, which are identified in "How you can contribute to your contract" in "Contract features and benefits" later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------ Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ------------------------------------------------------------------------------------------------------------------------------------ Payout alternative o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(SM) payout options (described in a separate prospectus for that option) - ------------------------------------------------------------------------------------------------------------------------------------
8 Accumulator(R) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------ Additional features o Guaranteed minimum death benefit even if you do not elect baseBUILDER o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually and annually) o Free transfers o Waiver of withdrawal charge for disability, terminal illness or confinement to a nursing home o Protection Plus(SM), an optional death benefit available under certain contracts (subject to state availability) - ------------------------------------------------------------------------------------------------------------------------------------ Fees and charges o Daily charges on amounts invested in variable investment options for mortality and expense risks at a current annual rate of 1.35%. o Annual 0.30% benefit base charge for the optional baseBUILDER benefit until you exercise your guaranteed minimum income benefit, elect another annuity payout or the contract date anniversary after the annuitant reaches age 83, whichever occurs first. The annual benefit base charge is 0.15% if the 5% Roll-Up to age 70, if available, is elected. The benefit base is described under "Your benefit base" in "Contract features and benefits" later in this Prospectus. If you do not elect baseBUILDER, you still receive a guaranteed minimum death benefit under your contract at no additional charge. o An annual charge of 0.20% of the account value for the Protection Plus(SM) optional death benefit. o No sales charge deducted at the time you make contributions. During the first seven contract years following a contribution, a charge will be deducted from amounts that you withdraw that exceed 15% of your account value. We use the account value at the beginning of each contract year to calculate the 15% amount available. The charge begins at 7% in the first contract year following a contribution. It declines by 1% each year to 1% in the seventh contract year. There is no withdrawal charge in the eighth and later contract years following a contribution. ------------------------------------------------------------------------------------------------------ The "contract date" is the effective date of a contract. This usually is the business day we received the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date appears in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. ------------------------------------------------------------------------------------------------------ o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. This charge is generally deducted from the amount applied to an annuity payout option. o We currently deduct a $350 annuity administrative fee from amounts applied to purchase the variable immediate annuitization payout option. This option is described in a separate prospectus that is available from your financial professional. o Annual expenses of the Trusts' Portfolios are calculated as a percentage of the average daily net assets invested in each Portfolio. Please see "Fee table" later in this Prospectus for details. - ------------------------------------------------------------------------------------------------------------------------------------ Annuitant issue ages NQ: 0-83 Rollover IRA, Roth Conversion IRA, and Rollover TSA: 20-83 QP: 20-75 - ------------------------------------------------------------------------------------------------------------------------------------
THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE CONTRACT. IN SOME CASES, RESTRICTIONS OR EXCEPTIONS APPLY. ALSO, ALL FEATURES OF THE CONTRACT ARE NOT NECESSARILY AVAILABLE IN YOUR STATE OR AT CERTAIN AGES. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. OTHER CONTRACTS We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. A similar variable annuity may be available to eligible employees of AXA Equitable and their spouses with modified optional benefits and/or reduced fees and charges. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts, based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. Accumulator(R) at a glance -- key features 9 Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you pay when owning and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay at the time that you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity payout option. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply.
- ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value at the time you request certain transactions - ------------------------------------------------------------------------------------------------------------------------------------ Maximum withdrawal charge as a percentage of contributions with- drawn (deducted if you surrender your contract, make certain withdrawals or apply your cash value to certain payout options).(1) 7.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - ------------------------------------------------------------------------------------------------------------------------------------ The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses. - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ SEPARATE ACCOUNT ANNUAL EXPENSES: Mortality and expense risks 1.10%(2) Administrative 0.25% ------- Total Separate account annual expenses 1.35% - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value each year if you elect the optional benefit - ------------------------------------------------------------------------------------------------------------------------------------ baseBUILDER benefit charge(3) (calculated as a percentage of the applicable benefit base. Deducted annually on each contract date anniversary for which the benefit is in effect) 0.30% - ------------------------------------------------------------------------------------------------------------------------------------ Protection Plus(SM) benefit charge (calculated as a percentage of the account value. Deducted annually on each contract date anniver- sary for which the benefit is in effect) 0.20%
10 Fee table You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------ Portfolio operating expenses expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, ------ ------- and/or other expenses) (4) 0.63% 1.72%
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- --------------------------------------------------------------------------------------- Manage- Other Portfolio Name ment Fees(5) 12b-1 Fees(6) Expenses(7) - --------------------------------------------------------------------------------------- AXA Premier VIP Trust: - --------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.10% 0.25% 0.17% AXA Conservative Allocation 0.10% 0.25% 0.21% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% AXA Moderate Allocation 0.10% 0.25% 0.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - --------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Gov- ernment Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% - ------------------------------------------------------------------------------------------------------------ Acquired Fund Fees Total Annual and Expenses Fee Waivers Net Expenses (Before and/or Expense Annual Expenses (Underlying Expense Reimburse- After Expense Portfolio Name Portfolios)(8) Limitations) ments(9) Limitations - ------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - ------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Gov- ernment Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(10)
Fee table 11 This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------- Manage- Other Portfolio Name ment Fees(5) 12b-1 Fees(6) Expenses(7) - ------------------------------------------------------------------------------------- EQ Advisors Trust: - ------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% - ------------------------------------------------------------------------------------------------------------ Acquired Fund Fees Total Annual and Expenses Fee Waivers Net Expenses (Before and/or Expense Annual Expenses (Underlying Expense Reimburse- After Expense Portfolio Name Portfolios)(8) Limitations) ments(9) Limitations - ------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05%
Notes: (1) Deducted upon a withdrawal of amounts in excess of the 15% free withdrawal amount, if applicable: The withdrawal charge percentage we use is Contract determined by the contract year in which you Year make the withdrawal or surrender your contract. 1 .........7.00% For each contribution, we consider the 2 .........6.00% contract year in which we receive that 3 .........5.00% contribution to be "contract year 1") 4 .........4.00% 5 .........3.00% 6 .........2.00% 7 .........1.00% 8+.........0.00% (2) These charges compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. (3) The baseBUILDER benefit charge is 0.15% if the 5% Roll-Up to age 70 was elected. (4) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (5) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (9) and (10) for any expense limitation agreement information. (6) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. For the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust, the 12b-1 fees will not be increased for the life of the contract. (7) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (9) and (10) for any expense limitation agreement information. (8) Each of these variable investment options invest in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios (the "underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (9) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this agreement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the 12 Fee table operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: --------------------------------------------- Portfolio Name --------------------------------------------- Multimanager Aggressive Equity 0.97% Multimanager Health Care 1.67% Multimanager Large Cap Core Equity 1.34% Multimanager Large Cap Growth 1.29% Multimanager Large Cap Value 1.26% Multimanager Mid Cap Growth 1.52% Multimanager Mid Cap Value 1.53% Multimanager Small Cap Growth 1.35% Multimanager Small Cap Value 1.45% Multimanager Technology 1.67% EQ/AllianceBernstein Common Stock 0.84% EQ/AllianceBernstein Large Cap Growth 1.03% EQ/AllianceBernstein Small Cap Growth 1.11% EQ/AllianceBernstein Value 0.87% EQ/Ariel Appreciation II 1.09% EQ/BlackRock Basic Value Equity 0.92% EQ/Davis New York Venture 1.25% EQ/Evergreen Omega 1.12% EQ/GAMCO Mergers and Acquisitions 1.33% EQ/GAMCO Small Company Value 1.10% EQ/International Core PLUS 1.05% EQ/Large Cap Core PLUS 0.83% EQ/Large Cap Growth PLUS 0.82% EQ/Legg Mason Value Equity 0.97% EQ/Lord Abbett Growth and Income 0.98% EQ/Lord Abbett Large Cap Core 0.99% EQ/Lord Abbett Mid Cap Value 1.04% EQ/Mid Cap Value PLUS 0.81% EQ/Montag & Caldwell Growth 1.13% EQ/T. Rowe Price Growth Stock 0.87% EQ/UBS Growth and Income 1.04% EQ/Van Kampen Comstock 0.99% EQ/Van Kampen Mid Cap Growth 1.04% --------------------------------------------- (10) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and administration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner, who has elected baseBUILDER and Protection Plus(SM) would pay in the situations illustrated. Since the Protection Plus(SM) feature only applies under certain contracts, expenses would be lower for contracts that do not have Protection Plus(SM). The fixed maturity options and the 12 month dollar cost averaging program are not covered by the example. However, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated and that your investment has a 5% return each year. The example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Fee table 13
If you surrender your contract at the end of the applicable time period -------------------------------------------------------------------- 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------------------ AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation $ 1,045.00 $ 1,556.00 $ 2,093.00 $ 3,759.00 AXA Conservative Allocation $ 1,026.00 $ 1,497.00 $ 1,996.00 $ 3,574.00 AXA Conservative-Plus Allocation $ 1,031.00 $ 1,512.00 $ 2,021.00 $ 3,623.00 AXA Moderate Allocation $ 1,035.00 $ 1,525.00 $ 2,042.00 $ 3,662.00 AXA Moderate-Plus Allocation $ 1,039.00 $ 1,537.00 $ 2,062.00 $ 3,701.00 Multimanager Aggressive Equity $ 1,003.00 $ 1,431.00 $ 1,888.00 $ 3,366.00 Multimanager Core Bond $ 1,000.00 $ 1,422.00 $ 1,873.00 $ 3,335.00 Multimanager Health Care $ 1,071.00 $ 1,630.00 $ 2,214.00 $ 3,987.00 Multimanager High Yield $ 1,000.00 $ 1,422.00 $ 1,873.00 $ 3,335.00 Multimanager International Equity $ 1,050.00 $ 1,568.00 $ 2,113.00 $ 3,797.00 Multimanager Large Cap Core Equity $ 1,036.00 $ 1,528.00 $ 2,047.00 $ 3,672.00 Multimanager Large Cap Growth $ 1,038.00 $ 1,534.00 $ 2,057.00 $ 3,691.00 Multimanager Large Cap Value $ 1,033.00 $ 1,519.00 $ 2,032.00 $ 3,642.00 Multimanager Mid Cap Growth $ 1,057.00 $ 1,590.00 $ 2,148.00 $ 3,864.00 Multimanager Mid Cap Value $ 1,056.00 $ 1,587.00 $ 2,143.00 $ 3,854.00 Multimanager Small Cap Growth $ 1,059.00 $ 1,596.00 $ 2,158.00 $ 3,883.00 Multimanager Small Cap Value $ 1,048.00 $ 1,562.00 $ 2,103.00 $ 3,778.00 Multimanager Technology $ 1,071.00 $ 1,630.00 $ 2,214.00 $ 3,987.00 - ------------------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock $ 983.00 $ 1,372.00 $ 1,790.00 $ 3,173.00 EQ/AllianceBernstein Intermediate Government Securities $ 987.00 $ 1,381.00 $ 1,805.00 $ 3,204.00 EQ/AllianceBernstein International $ 1,014.00 $ 1,462.00 $ 1,940.00 $ 3,465.00 EQ/AllianceBernstein Large Cap Growth $ 1,029.00 $ 1,506.00 $ 2,011.00 $ 3,603.00 EQ/AllianceBernstein Quality Bond $ 988.00 $ 1,384.00 $ 1,810.00 $ 3,214.00 EQ/AllianceBernstein Small Cap Growth $ 1,012.00 $ 1,456.00 $ 1,929.00 $ 3,446.00 EQ/AllianceBernstein Value $ 995.00 $ 1,406.00 $ 1,847.00 $ 3,285.00 EQ/Ariel Appreciation II $ 1,027.00 $ 1,500.00 $ 2,001.00 $ 3,584.00 EQ/BlackRock Basic Value Equity $ 992.00 $ 1,397.00 $ 1,831.00 $ 3,255.00 EQ/BlackRock International Value $ 1,026.00 $ 1,497.00 $ 1,996.00 $ 3,574.00 EQ/Boston Advisors Equity Income $ 1,014.00 $ 1,462.00 $ 1,940.00 $ 3,465.00 EQ/Calvert Socially Responsible $ 1,013.00 $ 1,459.00 $ 1,934.00 $ 3,455.00 EQ/Capital Guardian Growth $ 1,005.00 $ 1,434.00 $ 1,893.00 $ 3,376.00 EQ/Capital Guardian Research $ 1,000.00 $ 1,422.00 $ 1,873.00 $ 3,335.00 EQ/Caywood-Scholl High Yield Bond $ 1,000.00 $ 1,422.00 $ 1,873.00 $ 3,335.00 EQ/Davis New York Venture $ 1,029.00 $ 1,506.00 $ 2,011.00 $ 3,603.00 EQ/Equity 500 Index $ 960.00 $ 1,303.00 $ 1,675.00 $ 2,946.00 EQ/Evergreen International Bond $ 1,012.00 $ 1,456.00 $ 1,929.00 $ 3,446.00 EQ/Evergreen Omega $ 1,015.00 $ 1,466.00 $ 1,945.00 $ 3,475.00 EQ/FI Mid Cap $ 1,006.00 $ 1,438.00 $ 1,898.00 $ 3,386.00 EQ/Franklin Income $ 1,031.00 $ 1,512.00 $ 2,021.00 $ 3,623.00 If you annuitize at the end of the applicable time If you do not surrender period and select a non-life contingent period certain your contract at the end of annuity option with less than five years the applicable time period ----------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years 1 year 3 years - --------------------------------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - --------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 1,556.00 $ 2,093.00 $ 3,759.00 $ 345.00 $ 1,056.00 AXA Conservative Allocation N/A $ 1,497.00 $ 1,996.00 $ 3,574.00 $ 326.00 $ 997.00 AXA Conservative-Plus Allocation N/A $ 1,512.00 $ 2,021.00 $ 3,623.00 $ 331.00 $ 1,012.00 AXA Moderate Allocation N/A $ 1,525.00 $ 2,042.00 $ 3,662.00 $ 335.00 $ 1,025.00 AXA Moderate-Plus Allocation N/A $ 1,537.00 $ 2,062.00 $ 3,701.00 $ 339.00 $ 1,037.00 Multimanager Aggressive Equity N/A $ 1,431.00 $ 1,888.00 $ 3,366.00 $ 303.00 $ 931.00 Multimanager Core Bond N/A $ 1,422.00 $ 1,873.00 $ 3,335.00 $ 300.00 $ 922.00 Multimanager Health Care N/A $ 1,630.00 $ 2,214.00 $ 3,987.00 $ 371.00 $ 1,130.00 Multimanager High Yield N/A $ 1,422.00 $ 1,873.00 $ 3,335.00 $ 300.00 $ 922.00 Multimanager International Equity N/A $ 1,568.00 $ 2,113.00 $ 3,797.00 $ 350.00 $ 1,068.00 Multimanager Large Cap Core Equity N/A $ 1,528.00 $ 2,047.00 $ 3,672.00 $ 336.00 $ 1,028.00 Multimanager Large Cap Growth N/A $ 1,534.00 $ 2,057.00 $ 3,691.00 $ 338.00 $ 1,034.00 Multimanager Large Cap Value N/A $ 1,519.00 $ 2,032.00 $ 3,642.00 $ 333.00 $ 1,019.00 Multimanager Mid Cap Growth N/A $ 1,590.00 $ 2,148.00 $ 3,864.00 $ 357.00 $ 1,090.00 Multimanager Mid Cap Value N/A $ 1,587.00 $ 2,143.00 $ 3,854.00 $ 356.00 $ 1,087.00 Multimanager Small Cap Growth N/A $ 1,596.00 $ 2,158.00 $ 3,883.00 $ 359.00 $ 1,096.00 Multimanager Small Cap Value N/A $ 1,562.00 $ 2,103.00 $ 3,778.00 $ 348.00 $ 1,062.00 Multimanager Technology N/A $ 1,630.00 $ 2,214.00 $ 3,987.00 $ 371.00 $ 1,130.00 - ------------------------------------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock N/A $ 1,372.00 $ 1,790.00 $ 3,173.00 $ 283.00 $ 872.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,381.00 $ 1,805.00 $ 3,204.00 $ 287.00 $ 881.00 EQ/AllianceBernstein International N/A $ 1,462.00 $ 1,940.00 $ 3,465.00 $ 314.00 $ 962.00 EQ/AllianceBernstein Large Cap Growth N/A $ 1,506.00 $ 2,011.00 $ 3,603.00 $ 329.00 $ 1,006.00 EQ/AllianceBernstein Quality Bond N/A $ 1,384.00 $ 1,810.00 $ 3,214.00 $ 288.00 $ 884.00 EQ/AllianceBernstein Small Cap Growth N/A $ 1,456.00 $ 1,929.00 $ 3,446.00 $ 312.00 $ 956.00 EQ/AllianceBernstein Value N/A $ 1,406.00 $ 1,847.00 $ 3,285.00 $ 295.00 $ 906.00 EQ/Ariel Appreciation II N/A $ 1,500.00 $ 2,001.00 $ 3,584.00 $ 327.00 $ 1,000.00 EQ/BlackRock Basic Value Equity N/A $ 1,397.00 $ 1,831.00 $ 3,255.00 $ 292.00 $ 897.00 EQ/BlackRock International Value N/A $ 1,497.00 $ 1,996.00 $ 3,574.00 $ 326.00 $ 997.00 EQ/Boston Advisors Equity Income N/A $ 1,462.00 $ 1,940.00 $ 3,465.00 $ 314.00 $ 962.00 EQ/Calvert Socially Responsible N/A $ 1,459.00 $ 1,934.00 $ 3,455.00 $ 313.00 $ 959.00 EQ/Capital Guardian Growth N/A $ 1,434.00 $ 1,893.00 $ 3,376.00 $ 304.00 $ 934.00 EQ/Capital Guardian Research N/A $ 1,422.00 $ 1,873.00 $ 3,335.00 $ 300.00 $ 922.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,422.00 $ 1,873.00 $ 3,335.00 $ 300.00 $ 922.00 EQ/Davis New York Venture N/A $ 1,506.00 $ 2,011.00 $ 3,603.00 $ 329.00 $ 1,006.00 EQ/Equity 500 Index N/A $ 1,303.00 $ 1,675.00 $ 2,946.00 $ 260.00 $ 803.00 EQ/Evergreen International Bond N/A $ 1,456.00 $ 1,929.00 $ 3,446.00 $ 312.00 $ 956.00 EQ/Evergreen Omega N/A $ 1,466.00 $ 1,945.00 $ 3,475.00 $ 315.00 $ 966.00 EQ/FI Mid Cap N/A $ 1,438.00 $ 1,898.00 $ 3,386.00 $ 306.00 $ 938.00 EQ/Franklin Income N/A $ 1,512.00 $ 2,021.00 $ 3,623.00 $ 331.00 $ 1,012.00 If you do not surrender your contract at the end of the applicable time period ------------------------------ 5 years 10 years - ---------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ---------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,793.00 $ 3,759.00 AXA Conservative Allocation $ 1,696.00 $ 3,574.00 AXA Conservative-Plus Allocation $ 1,721.00 $ 3,623.00 AXA Moderate Allocation $ 1,742.00 $ 3,662.00 AXA Moderate-Plus Allocation $ 1,762.00 $ 3,701.00 Multimanager Aggressive Equity $ 1,588.00 $ 3,366.00 Multimanager Core Bond $ 1,573.00 $ 3,335.00 Multimanager Health Care $ 1,914.00 $ 3,987.00 Multimanager High Yield $ 1,573.00 $ 3,335.00 Multimanager International Equity $ 1,813.00 $ 3,797.00 Multimanager Large Cap Core Equity $ 1,747.00 $ 3,672.00 Multimanager Large Cap Growth $ 1,757.00 $ 3,691.00 Multimanager Large Cap Value $ 1,732.00 $ 3,642.00 Multimanager Mid Cap Growth $ 1,848.00 $ 3,864.00 Multimanager Mid Cap Value $ 1,843.00 $ 3,854.00 Multimanager Small Cap Growth $ 1,858.00 $ 3,883.00 Multimanager Small Cap Value $ 1,803.00 $ 3,778.00 Multimanager Technology $ 1,914.00 $ 3,987.00 - ---------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,490.00 $ 3,173.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,505.00 $ 3,204.00 EQ/AllianceBernstein International $ 1,640.00 $ 3,465.00 EQ/AllianceBernstein Large Cap Growth $ 1,711.00 $ 3,603.00 EQ/AllianceBernstein Quality Bond $ 1,510.00 $ 3,214.00 EQ/AllianceBernstein Small Cap Growth $ 1,629.00 $ 3,446.00 EQ/AllianceBernstein Value $ 1,547.00 $ 3,285.00 EQ/Ariel Appreciation II $ 1,701.00 $ 3,584.00 EQ/BlackRock Basic Value Equity $ 1,531.00 $ 3,255.00 EQ/BlackRock International Value $ 1,696.00 $ 3,574.00 EQ/Boston Advisors Equity Income $ 1,640.00 $ 3,465.00 EQ/Calvert Socially Responsible $ 1,634.00 $ 3,455.00 EQ/Capital Guardian Growth $ 1,593.00 $ 3,376.00 EQ/Capital Guardian Research $ 1,573.00 $ 3,335.00 EQ/Caywood-Scholl High Yield Bond $ 1,573.00 $ 3,335.00 EQ/Davis New York Venture $ 1,711.00 $ 3,603.00 EQ/Equity 500 Index $ 1,375.00 $ 2,946.00 EQ/Evergreen International Bond $ 1,629.00 $ 3,446.00 EQ/Evergreen Omega $ 1,645.00 $ 3,475.00 EQ/FI Mid Cap $ 1,598.00 $ 3,386.00 EQ/Franklin Income $ 1,721.00 $ 3,623.00 - ----------------------------------------------------------------------------
14 Fee table
If you surrender your contract at the end of the applicable time period ------------------------------------------------------------ 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value $ 1,034.00 $ 1,522.00 $ 2,037.00 $ 3,652.00 EQ/Franklin Templeton Founding Strategy $ 1,059.00 $ 1,596.00 $ 2,158.00 $ 3,883.00 EQ/GAMCO Mergers and Acquisitions $ 1,035.00 $ 1,525.00 $ 2,042.00 $ 3,662.00 EQ/GAMCO Small Company Value $ 1,013.00 $ 1,459.00 $ 1,934.00 $ 3,455.00 EQ/International Core PLUS $ 1,019.00 $ 1,478.00 $ 1,965.00 $ 3,515.00 EQ/International Growth $ 1,038.00 $ 1,534.00 $ 2,057.00 $ 3,691.00 EQ/JPMorgan Core Bond $ 979.00 $ 1,359.00 $ 1,769.00 $ 3,132.00 EQ/JPMorgan Value Opportunities $ 998.00 $ 1,416.00 $ 1,862.00 $ 3,315.00 EQ/Large Cap Core PLUS $ 1,001.00 $ 1,425.00 $ 1,878.00 $ 3,346.00 EQ/Large Cap Growth PLUS $ 1,000.00 $ 1,422.00 $ 1,873.00 $ 3,335.00 EQ/Legg Mason Value Equity $ 1,007.00 $ 1,441.00 $ 1,904.00 $ 3,396.00 EQ/Long Term Bond $ 976.00 $ 1,350.00 $ 1,753.00 $ 3,101.00 EQ/Lord Abbett Growth and Income $ 1,006.00 $ 1,438.00 $ 1,898.00 $ 3,386.00 EQ/Lord Abbett Large Cap Core $ 1,011.00 $ 1,453.00 $ 1,924.00 $ 3,436.00 EQ/Lord Abbett Mid Cap Value $ 1,010.00 $ 1,450.00 $ 1,919.00 $ 3,426.00 EQ/Marsico Focus $ 1,023.00 $ 1,491.00 $ 1,986.00 $ 3,554.00 EQ/Mid Cap Value PLUS $ 1,006.00 $ 1,438.00 $ 1,898.00 $ 3,386.00 EQ/Money Market $ 968.00 $ 1,325.00 $ 1,711.00 $ 3,019.00 EQ/Montag & Caldwell Growth $ 1,015.00 $ 1,466.00 $ 1,945.00 $ 3,475.00 EQ/Mutual Shares $ 1,037.00 $ 1,531.00 $ 2,052.00 $ 3,681.00 EQ/Oppenheimer Global $ 1,075.00 $ 1,642.00 $ 2,234.00 $ 4,024.00 EQ/Oppenheimer Main Street Opportunity $ 1,058.00 $ 1,593.00 $ 2,153.00 $ 3,873.00 EQ/Oppenheimer Main Street Small Cap $ 1,066.00 $ 1,618.00 $ 2,194.00 $ 3,949.00 EQ/PIMCO Real Return $ 993.00 $ 1,400.00 $ 1,836.00 $ 3,265.00 EQ/Short Duration Bond $ 981.00 $ 1,365.00 $ 1,779.00 $ 3,153.00 EQ/Small Company Index $ 961.00 $ 1,306.00 $ 1,680.00 $ 2,956.00 EQ/T. Rowe Price Growth Stock $ 1,018.00 $ 1,475.00 $ 1,960.00 $ 3,505.00 EQ/Templeton Growth $ 1,041.00 $ 1,543.00 $ 2,072.00 $ 3,720.00 EQ/UBS Growth and Income $ 1,016.00 $ 1,469.00 $ 1,950.00 $ 3,485.00 EQ/Van Kampen Comstock $ 1,005.00 $ 1,434.00 $ 1,893.00 $ 3,376.00 EQ/Van Kampen Emerging Markets Equity $ 1,066.00 $ 1,618.00 $ 2,194.00 $ 3,949.00 EQ/Van Kampen Mid Cap Growth $ 1,010.00 $ 1,450.00 $ 1,919.00 $ 3,426.00 If you annuitize at the end of the applicable time If you do not surrender period and select a non-life contingent period certain your contract at the end of annuity option with less than five years the applicable time period ----------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years 1 year 3 years - ----------------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value N/A $ 1,522.00 $ 2,037.00 $ 3,652.00 $ 334.00 $ 1,022.00 EQ/Franklin Templeton Founding Strategy N/A $ 1,596.00 $ 2,158.00 $ 3,883.00 $ 359.00 $ 1,096.00 EQ/GAMCO Mergers and Acquisitions N/A $ 1,525.00 $ 2,042.00 $ 3,662.00 $ 335.00 $ 1,025.00 EQ/GAMCO Small Company Value N/A $ 1,459.00 $ 1,934.00 $ 3,455.00 $ 313.00 $ 959.00 EQ/International Core PLUS N/A $ 1,478.00 $ 1,965.00 $ 3,515.00 $ 319.00 $ 978.00 EQ/International Growth N/A $ 1,534.00 $ 2,057.00 $ 3,691.00 $ 338.00 $ 1,034.00 EQ/JPMorgan Core Bond N/A $ 1,359.00 $ 1,769.00 $ 3,132.00 $ 279.00 $ 859.00 EQ/JPMorgan Value Opportunities N/A $ 1,416.00 $ 1,862.00 $ 3,315.00 $ 298.00 $ 916.00 EQ/Large Cap Core PLUS N/A $ 1,425.00 $ 1,878.00 $ 3,346.00 $ 301.00 $ 925.00 EQ/Large Cap Growth PLUS N/A $ 1,422.00 $ 1,873.00 $ 3,335.00 $ 300.00 $ 922.00 EQ/Legg Mason Value Equity N/A $ 1,441.00 $ 1,904.00 $ 3,396.00 $ 307.00 $ 941.00 EQ/Long Term Bond N/A $ 1,350.00 $ 1,753.00 $ 3,101.00 $ 276.00 $ 850.00 EQ/Lord Abbett Growth and Income N/A $ 1,438.00 $ 1,898.00 $ 3,386.00 $ 306.00 $ 938.00 EQ/Lord Abbett Large Cap Core N/A $ 1,453.00 $ 1,924.00 $ 3,436.00 $ 311.00 $ 953.00 EQ/Lord Abbett Mid Cap Value N/A $ 1,450.00 $ 1,919.00 $ 3,426.00 $ 310.00 $ 950.00 EQ/Marsico Focus N/A $ 1,491.00 $ 1,986.00 $ 3,554.00 $ 323.00 $ 991.00 EQ/Mid Cap Value PLUS N/A $ 1,438.00 $ 1,898.00 $ 3,386.00 $ 306.00 $ 938.00 EQ/Money Market N/A $ 1,325.00 $ 1,711.00 $ 3,019.00 $ 268.00 $ 825.00 EQ/Montag & Caldwell Growth N/A $ 1,466.00 $ 1,945.00 $ 3,475.00 $ 315.00 $ 966.00 EQ/Mutual Shares N/A $ 1,531.00 $ 2,052.00 $ 3,681.00 $ 337.00 $ 1,031.00 EQ/Oppenheimer Global N/A $ 1,642.00 $ 2,234.00 $ 4,024.00 $ 375.00 $ 1,142.00 EQ/Oppenheimer Main Street Opportunity N/A $ 1,593.00 $ 2,153.00 $ 3,873.00 $ 358.00 $ 1,093.00 EQ/Oppenheimer Main Street Small Cap N/A $ 1,618.00 $ 2,194.00 $ 3,949.00 $ 366.00 $ 1,118.00 EQ/PIMCO Real Return N/A $ 1,400.00 $ 1,836.00 $ 3,265.00 $ 293.00 $ 900.00 EQ/Short Duration Bond N/A $ 1,365.00 $ 1,779.00 $ 3,153.00 $ 281.00 $ 865.00 EQ/Small Company Index N/A $ 1,306.00 $ 1,680.00 $ 2,956.00 $ 261.00 $ 806.00 EQ/T. Rowe Price Growth Stock N/A $ 1,475.00 $ 1,960.00 $ 3,505.00 $ 318.00 $ 975.00 EQ/Templeton Growth N/A $ 1,543.00 $ 2,072.00 $ 3,720.00 $ 341.00 $ 1,043.00 EQ/UBS Growth and Income N/A $ 1,469.00 $ 1,950.00 $ 3,485.00 $ 316.00 $ 969.00 EQ/Van Kampen Comstock N/A $ 1,434.00 $ 1,893.00 $ 3,376.00 $ 304.00 $ 934.00 EQ/Van Kampen Emerging Markets Equity N/A $ 1,618.00 $ 2,194.00 $ 3,949.00 $ 366.00 $ 1,118.00 EQ/Van Kampen Mid Cap Growth N/A $ 1,450.00 $ 1,919.00 $ 3,426.00 $ 310.00 $ 950.00 If you do not surrender your contract at the end of the applicable time period ------------------------------- 5 years 10 years - ------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------ EQ/Franklin Small Cap Value $ 1,737.00 $ 3,652.00 EQ/Franklin Templeton Founding Strategy $ 1,858.00 $ 3,883.00 EQ/GAMCO Mergers and Acquisitions $ 1,742.00 $ 3,662.00 EQ/GAMCO Small Company Value $ 1,634.00 $ 3,455.00 EQ/International Core PLUS $ 1,665.00 $ 3,515.00 EQ/International Growth $ 1,757.00 $ 3,691.00 EQ/JPMorgan Core Bond $ 1,469.00 $ 3,132.00 EQ/JPMorgan Value Opportunities $ 1,562.00 $ 3,315.00 EQ/Large Cap Core PLUS $ 1,578.00 $ 3,346.00 EQ/Large Cap Growth PLUS $ 1,573.00 $ 3,335.00 EQ/Legg Mason Value Equity $ 1,604.00 $ 3,396.00 EQ/Long Term Bond $ 1,453.00 $ 3,101.00 EQ/Lord Abbett Growth and Income $ 1,598.00 $ 3,386.00 EQ/Lord Abbett Large Cap Core $ 1,624.00 $ 3,436.00 EQ/Lord Abbett Mid Cap Value $ 1,619.00 $ 3,426.00 EQ/Marsico Focus $ 1,686.00 $ 3,554.00 EQ/Mid Cap Value PLUS $ 1,598.00 $ 3,386.00 EQ/Money Market $ 1,411.00 $ 3,019.00 EQ/Montag & Caldwell Growth $ 1,645.00 $ 3,475.00 EQ/Mutual Shares $ 1,752.00 $ 3,681.00 EQ/Oppenheimer Global $ 1,934.00 $ 4,024.00 EQ/Oppenheimer Main Street Opportunity $ 1,853.00 $ 3,873.00 EQ/Oppenheimer Main Street Small Cap $ 1,894.00 $ 3,949.00 EQ/PIMCO Real Return $ 1,536.00 $ 3,265.00 EQ/Short Duration Bond $ 1,479.00 $ 3,153.00 EQ/Small Company Index $ 1,380.00 $ 2,956.00 EQ/T. Rowe Price Growth Stock $ 1,660.00 $ 3,505.00 EQ/Templeton Growth $ 1,772.00 $ 3,720.00 EQ/UBS Growth and Income $ 1,650.00 $ 3,485.00 EQ/Van Kampen Comstock $ 1,593.00 $ 3,376.00 EQ/Van Kampen Emerging Markets Equity $ 1,894.00 $ 3,949.00 EQ/Van Kampen Mid Cap Growth $ 1,619.00 $ 3,426.00
For information on how your contract works under certain hypothetical circumstances, please see Appendix V at the end of this Prospectus. Fee table 15 CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. 16 Fee table 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT The following table summarizes our rules regarding contributions to your contract. All ages in the table refer to the age of the annuitant named in the contract. Initial contribution amounts are provided for informational purposes only. This contract is no longer available to new purchasers. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts that you own would then total more than $2,500,000. - -------------------------------------------------------------------------------- The "annuitant" is the person who is the measuring life for determining contract benefits. The annuitant is not necessarily the contract owner. - --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------- Annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions - ----------------------------------------------------------------------------------------------------------------------------------- NQ 0 through 83 o $1,000 (additional) o After-tax money. o No additional contributions o $100 monthly and $300 o Paid to us by check may be made after attain- quarterly under our auto- or transfer of ment of age 84, or, if later, matic investment program contract value in a the first contract date anni- (additional) tax-deferred exchange versary. under Section 1035 of the Internal Revenue Code - ----------------------------------------------------------------------------------------------------------------------------------- Rollover IRA 20 through 83 o $50 (additional) o Eligible rollover distribu- o No additional contributions tions from 403(b) plans, may be made after attain- qualified plans, and govern- ment of age 84, or, if later, mental employer 457(b) the first contract date plans. anniversary. o Rollovers from another o Contributions after age 70-1/2 traditional individual retire must be net of required ment arrangement. minimum distributions. o Direct custodian-to- o Although we accept regular custodian transfers from IRA contributions (limited to another traditional indi- $5,000) under rollover IRA vidual retirement contracts, we intend that arrangement. this contract be used pri- marily for rollover and direct o Regular IRA contributions. transfer contributions. o Additional catch-up o Additional catch-up contri- contributions. butions of up to $1,000 can be made where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 17
- ----------------------------------------------------------------------------------------------------------------------------------- Annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions - ----------------------------------------------------------------------------------------------------------------------------------- Roth Conversion 20 through 83 o $50 (additional) o Rollovers from another o No additional contributions IRA Roth IRA. may be made after attain- ment of age 84, or, if later, o Rollovers from a "desig- the first contract date nated Roth contribution anniversary. account" under a 401(k) plan or 403(b) plan. o Conversion rollovers after age 70-1/2 must be net of o Conversion rollovers from required minimum distribu- a traditional IRA or other tions for the traditional IRA eligible retirement plan. or other eligible retirement plan which is the source of o Direct transfers from the conversion rollover. another Roth IRA. o You cannot roll over funds o Regular Roth IRA from a traditional IRA or contributions. other eligible retirement plan if your adjusted gross o Additional catch-up contri- income is $100,000 or more. bution o Although we accept regular Roth IRA contributions (lim- ited to $5,000) under Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contri- butions of up to $1,000 can be made where the owner is at least age 50 at any time during the calendar year for which the contribution is made. - ----------------------------------------------------------------------------------------------------------------------------------- Rollover TSA 20 through 83 o $1,000 (additional) o With documentation of o No additional contributions employer or plan approval, may be made after attain- and limited to pre-tax ment of age 84, or, if later, funds, direct plan-to-plan the first contract date transfers from another anniversary. 403(b) plan or contract exchanges from another o Rollover or direct transfer 403(b) contract under the contributions after age 70-1/2 same plan. must be net of any required minimum distributions. o With documentation of employer or plan approval, o We do not accept employer- and limited to pre-tax remitted contributions. funds, eligible rollover distributions from other o We do not accept after-tax 403(b) plans, qualified contributions, including des- plans, governmental ignated Roth contributions. employer 457(b) plans or traditional IRAs. - -----------------------------------------------------------------------------------------------------------------------------------
18 Contract features and benefits
- ----------------------------------------------------------------------------------------------------------------------------------- Annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions - ----------------------------------------------------------------------------------------------------------------------------------- QP 20 through 75 o $1,000 (additional) o Only transfer contribu- o A separate QP contract must tions from other invest- be established for each plan ments within an existing participant. defined contribution qualified plan trust. o We do not accept regular ongoing payroll contribu- o The plan must be qualified tions or contributions under Section 401(a) of the directly from the employer. Internal Revenue Code. o Only one additional transfer o For 401(k) plans, trans- contribution may be made ferred contributions may during a contract year. not include any after-tax contributions, including o No additional transfer con- designated Roth contribu- tributions may be made after tions. attainment of age 76, or, if later, the first contract date anniversary. o Contributions after age 70-1/2 must be net of any required minimum distributions.
See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. Contract features and benefits 19 OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. In general, we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your state. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II at the end of this Prospectus for more information on QP contracts. PURCHASE CONSIDERATIONS FOR A CHARITABLE REMAINDER TRUST If you purchased this contract to fund a charitable remainder trust, the Guaranteed minimum income benefit, generally, was not available to you. Subject to our rules, the baseBUILDER benefit may have been available. You should strongly consider "split-funding"; that is, the trust holds investments in addition to this Accumulator(R) contract. Charitable remainder trusts are required to take specific distributions. The charitable remainder trust annual withdrawal requirement may be equal to a percentage of the donated amount or a percentage of the current value of the donated amount. If your Accumulator(R) contract is the only source for such distributions, the payments you need to take may significantly reduce the value of your guaranteed benefits. See the discussion of these benefits later in this section. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealers. Additional contributions may also be made under our automatic investment program. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain this information. These methods of payment are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options and the fixed maturity options. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. 20 Contract features and benefits PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- ------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s) Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable ALLOCATION greater emphasis on current income. - ------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable ALLOCATION with a greater emphasis on capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital o BlackRock Financial Management, Inc. appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company LLC - ------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current o Pacific Investment Management Company income and capital appreciation. LLC o Post Advisory Group, LLC - ------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - -------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
- ------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s) Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o TCW Investment Management Company - ------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - ------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - -------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - --------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s) Portfolio Name Objective applicable) - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ---------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - ---------------------------------------------------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - ---------------------------------------------------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, o BlackRock Investment Management, LLC EQUITY income. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of o BlackRock Investment Management VALUE income, accompanied by growth of capital. International Limited - -----------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s) Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to o Boston Advisors, LLC INCOME achieve an above-average and consistent total return. - -------------------------------------------------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - --------------------------------------------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company - --------------------------------------------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Caywood-Scholl Capital Management RESEARCH - --------------------------------------------------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Davis Selected Advisers, L.P. YIELD BOND - --------------------------------------------------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - --------------------------------------------------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - --------------------------------------------------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. o Evergreen Investment Management Company, LLC - --------------------------------------------------------------------------------------------------------------------------------- EQ/FI MID CAP Seeks to achieve long-term growth of capital. o Fidelity Management & Research Company - --------------------------------------------------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects o Franklin Advisers, Inc. for capital appreciation. - --------------------------------------------------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. o Franklin Advisory Services, LLC - --------------------------------------------------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily seeks o AXA Equitable FOUNDING STRATEGY income. - --------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. o GAMCO Asset Management Inc. ACQUISITIONS - --------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. o GAMCO Asset Management Inc. VALUE - --------------------------------------------------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - --------------------------------------------------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o MFS Investment Management - --------------------------------------------------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with mod- o JPMorgan Investment Management Inc. erate risk to capital and maintenance of liquidity. - --------------------------------------------------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. o JPMorgan Investment Management Inc. OPPORTUNITIES - --------------------------------------------------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- o AXA Equitable ondary objective to seek reasonable current income. For o Institutional Capital LLC purposes of this Portfolio, the words "reasonable current o Mellon Capital Management Corporation income" mean moderate income. - ---------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
- ------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s) Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. o Legg Mason Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC INCOME income without excessive fluctuation in market value. - ------------------------------------------------------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC CORE income with reasonable risk. - ------------------------------------------------------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. o Lord, Abbett & Co. LLC - ------------------------------------------------------------------------------------------------------------------------------- EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ------------------------------------------------------------------------------------------------------------------------------- EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o The Drefus Corporation its assets and maintain liquidity. - ------------------------------------------------------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Cadwell, Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------- EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- o Franklin Mutual Advisers, LLC sionally be short-term, and secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. - ------------------------------------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. o OppenheimerFunds, Inc. OPPORTUNITY - ------------------------------------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. SMALL CAP - ------------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with o Pacific Investment Management Company, preservation of real capital and prudent investment LLC management. - ------------------------------------------------------------------------------------------------------------------------------- EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility o BlackRock Financial Management Inc. of principal. - ------------------------------------------------------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o AllianceBernstein L.P. deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ------------------------------------------------------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and o T. Rowe Price Associates, Inc. STOCK secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. o Templeton Global Advisors Limited - ------------------------------------------------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital o USB Global Asset Management appreciation with income as a secondary consideration. (Americas) Inc. - ------------------------------------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. o Morgan Stanley Investment Management Inc. - ------------------------------------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. o Morgan Stanley Investment Management MARKETS EQUITY Inc. - -------------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s) Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. o Morgan Stanley Investment Management GROWTH Inc. - --------------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. Contract features and benefits 25 FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied: (i) the fixed maturity option's maturity date is within the current calendar year; or (ii) the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options. These amounts become part of a non-unitized Separate Account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options generally range from one to ten years to maturity. - -------------------------------------------------------------------------------- The rate to maturity you will receive for each fixed maturity option is the rate to maturity in effect for new contributions allocated to that fixed maturity option on the date we apply your contribution. On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity options ending on February 15th for each of the maturity years 2009 through 2018. Not all of these fixed maturity options will be available for annuitant ages 76 and older. See "Allocating your contributions" below. As fixed maturity options expire, we expect to add maturity years so that generally 10 fixed maturity options are available at any time. YOUR CHOICES AT THE MATURITY DATE. We will notify you on or before December 31st of the year before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed above or in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option or into any of the variable investment options; or (b) withdraw the maturity value (there may be a withdrawal charge). If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the next available fixed maturity option with the earliest maturity date. As of February 15, 2008 the next available maturity date is February 15, 2009. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract, or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate to maturity in effect at that time for new allocations to that same fixed maturity option, and (b) the length of time remaining until the maturity date. If fixed maturity options interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity options interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ALLOCATING YOUR CONTRIBUTIONS You may choose from among three ways to allocate your contributions under your contract: self-directed, principal assurance (at contract issue only), or dollar cost averaging. We allocate subsequent contributions according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial 26 Contract features and benefits professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. The total of your allocations must equal 100%. If the annuitant is age 76 or older, you may allocate contributions to fixed maturity options if their maturities are five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the February 15th immediately following the date annuity payments are to begin. PRINCIPAL ASSURANCE ALLOCATION Principal assurance allocation is only available at contract issue. If you chose this allocation program, you selected a fixed maturity option. We specified a portion of your initial contribution and allocated it to that fixed maturity option in an amount that will cause the maturity value to equal the amount of your entire initial contribution on the fixed maturity option's maturity date. The maturity date you selected generally could not be later than 10 years, or earlier than 7 years from your contract date. If you were to make any withdrawals or transfers from the fixed maturity option before the option's maturity date, the amount in the fixed maturity option will be adjusted and may no longer grow to equal your initial contribution under the principal assurance allocation. Principal assurance was not available if none of those maturity dates were available at the time your contract was issued. You allocated the remainder of your initial contribution to the variable investment options however you chose. For example, if your initial contribution is $25,000, and on February 15, 2008 you chose the fixed maturity option with a maturity date of February 15, 2018 since the rate to maturity was 4.63% on February 15, 2008, we would have allocated $6,357 to that fixed maturity option and the balance to your choice of variable investment options. On the maturity date your value in the fixed maturity option would be $10,000. The principal assurance allocation was only available for annuitant ages 75 or younger when the contract was issued. If you anticipated taking required minimum distributions, you should have considered whether your values in the variable investment options would be sufficient to meet your required minimum distributions. See "Tax information" later in this Prospectus. You could not have elected principal assurance if you participated in the 12 month dollar cost averaging program at application. DOLLAR COST AVERAGING We offer two dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to the variable investment options by periodically transferring approximately the same dollar amount to the variable investment options you select. This will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- 12 MONTH DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the EQ/Money Market option into any of the other variable investment options. You may elect to participate in the 12 month dollar cost averaging program at any time subject to the age limitation on contributions described in Section 1 of this Prospectus. Contributions into the account for 12 month dollar cost averaging may not be transfers from other investment options. You must have allocated your entire initial contribution into the EQ/Money Market option if you selected the 12 month dollar cost averaging program at application to purchase an Accumulator(R) contract; thereafter initial allocations to any new 12 month dollar cost averaging program time period must be at least $2,000 and any subsequent contribution to that same time period must be at least $250. You may only have one time period in effect at any time. We will transfer your value in the EQ/Money Market option into the other variable investment options that you select over the next 12 months or such other period we may offer. Once the time period then in effect has run, you may then select to participate in the dollar cost averaging program for an additional time period. At that time, you may also select a different allocation for transfers to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, the transfer date will be the same day of the month as the contract date, but not later than the 28th. For a 12 month dollar cost averaging program selected after application, the first transfer date and each subsequent transfer date for the time period selected will be one month from the date the first contribution is made into the 12 month dollar cost averaging program, but not later than the 28th of the month. All amounts will be transferred out by the end of the time period then in effect. Under this program we will not deduct the mortality and expense risks, administrative, and distribution charges from assets in the EQ/Money Market option. You may not transfer amounts to the EQ/Money Market option established for this program that are not part of the 12 month dollar cost averaging program. The only amounts that should be transferred from the EQ/Money Market option are your regularly scheduled transfers to the other variable investment options. If you request to transfer or withdraw any other amounts from the EQ/Money Market option, we will transfer all of the value that you have remaining in the account for 12 month dollar cost averaging to the investment options according to the allocation percentages we have on file for you. You may ask us to cancel your participation at any time. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value Contract features and benefits 27 transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly, or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. The maximum amount we will transfer is equal to your value in the EQ/Money Market option at the time the program is elected, divided by the number of transfers scheduled to be made. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. ---------------------------------- You may not elect general dollar cost averaging or 12 month dollar cost averaging if you are participating in the rebalancing program. You may only participate in one dollar cost averaging program at a time. See "Transfers among investment options" later in this Prospectus. You could not elect the 12 month dollar cost averaging program if you elected the principal assurance program at application. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits, see "Your benefit base" below. YOUR BENEFIT BASE The benefit base is used to calculate both the guaranteed minimum income benefit and the 5% Roll-Up to age 80 guaranteed minimum death benefit. Your benefit base is not an account value or a cash value. See "Our baseBUILDER option" and "Guaranteed minimum death benefit" below. The benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make. The amount of this deduction is described under "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus; less o a deduction for any withdrawal charge remaining when you exercise your guaranteed minimum income benefit. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to the benefit base is: o 5% or 6%, depending on your contract issue date, for the benefit base with respect to the variable investment options (other than the Multimanager Core Bond, EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/AllianceBernstein Quality Bond and EQ/Short Duration Bond options) and the account for 12 month dollar cost averaging; and o 3% for the benefit base with respect to the Multimanager Core Bond, EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/AllianceBernstein Quality Bond and EQ/Short Duration Bond options, the fixed maturity options and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up after the contract date anniversary following the annuitant's 80th birthday. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the guaranteed minimum income benefit and annuity payout options. The guaranteed minimum income benefit is discussed under "Our baseBUILDER option" and annuity payout options are discussed under "Your annuity payout options" in "Accessing your money" later in this Prospectus. The guaranteed annuity purchase factors are those factors specified in your contract. The current annuity purchase factors are any more favorable factors that may be in effect at any given time. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit and the annuitant's (and any joint annuitant's) age and sex in certain instances. OUR BASEBUILDER OPTION The following section provides information about the baseBUILDER option, which was only available at the time you purchased your contract, if the annuitant was age 20 through 75. The baseBUILDER option combines a guaranteed minimum income benefit with the guaranteed minimum death benefit that was provided under your contract. For Rollover IRA and Rollover TSA contracts where the annuitant was between ages 20 and 60 at contract issue, we offered an additional guaranteed minimum death benefit of a 5% Roll-Up to age 70. If you elected the baseBUILDER option at purchase, you pay an additional charge that is described under "baseBUILDER benefit charge" in "Charges and expenses" later in this Prospectus. If you purchased your contract to fund a Charitable Remainder Trust, the guaranteed minimum income benefit was, generally, not available to you. Subject to our rules, the baseBUILDER benefit might have been available for certain split-funded Charitable Remainder Trusts. The guaranteed minimum income benefit component of the baseBUILDER option is described below. Whether you elected the baseBUILDER option or not, the guaranteed minimum death benefit was provided under the contract. The guaranteed minimum death benefit is described under "Guaranteed minimum death benefit" below in this section. The guaranteed minimum income benefit guarantees you a minimum amount of lifetime income under our Income Manager(R) contract. Only a life with a period certain Income Manager(R) payout annuity contract is available. You choose whether you want the option to be paid on a single or joint life basis at the time you exercise the option. The maximum period certain available under the Income Manager(R) payout option is 10 years. This period may be shorter, depending on the annuitant's age, as follows: 28 Contract features and benefits
- --------------------------------- Level Payments - --------------------------------- Period certain years - --------------------------------- Annuitant's Age at exercise IRAs NQ - ------------------------------ 60 to 75 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 - -------------------------------
We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The guaranteed minimum income benefit, which is also known as a living benefit, should be regarded as a safety net only. It provides income protection if you elect an income payout while the annuitant is alive. - -------------------------------------------------------------------------------- When you exercise the guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your guaranteed minimum income benefit which is calculated by applying your benefit base, less any applicable withdrawal charge remaining, at guaranteed annuity purchase factors or (ii) the income provided by applying your account value at our then current annuity purchase factors. For Rollover TSA only, we will subtract from the benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/2 or 1/4 of the annual payments respectively, due to the effect of interest compounding. The benefit base is applied only to the baseBUILDER guaranteed purchase annuity factors in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of guaranteed minimum income benefit" below. The guaranteed minimum income benefit provides a form of insurance and is based on conservative actuarial factors. The guaranteed annuity purchase factors we use to determine your Income Manager(R) benefit under baseBUILDER are more conservative than the guaranteed annuity purchase factors we use for the Income Manager(R) payout annuity option. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the baseBUILDER Income Manager(R) will be smaller than each periodic payment under the Income Manager(R) payout annuity option. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. The table below illustrates the guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male annuitant age 60 (at issue) on the contract date anniversaries indicated, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to the Multimanager Core Bond, EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/AllianceBernstein Quality Bond or EQ/Short Duration Bond options, or the fixed maturity options. - -------------------------------------------------------------------------------- Guaranteed minimum income benefit -- annual Contract Date income payable for life with Anniversary at exercise 10 year period certain - -------------------------------------------------------------------------------- 7 $ 8,315 10 $10,342 15 $14,925 - -------------------------------------------------------------------------------- EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the guaranteed minimum income benefit. You must return your contract to us along with any required information within 30 days following your contract date anniversary, in order to exercise this benefit. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payout contract is issued. Payments are always made on the 15th of the month and generally begin one payment mode from issue. You may choose to take a withdrawal prior to exercising the guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death. You will be eligible to exercise the guaranteed minimum income benefit during your life and the annuitant's life, as follows: o If the annuitant was at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If the annuitant was at least age 45 and no older than age 53 when the contract was issued, you are eligible to exercise the guaranteed minimum income benefit within 30 days following each contract date anniversary after the annuitant is age 60. o If the annuitant was at least age 54 and no older than age 75 when the contract was issued, you are eligible to exercise the guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 7th contract date anniversary. Contract features and benefits 29 Please note: (i) the latest date you may exercise the guaranteed minimum income benefit is the contract date anniversary following the annuitant's 83rd birthday; (ii) if the annuitant was older than age 63 at the time an IRA, QP or Rollover TSA contract was issued, the baseBUILDER option may not be an appropriate feature because the minimum distributions required by tax law must begin before the guaranteed minimum income benefit can be exercised; (iii) for Accumulator(R) QP contracts, the Plan participant can exercise the baseBUILDER option only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) QP contract into an Accumulator(R) Rollover IRA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for the Plan participant to be eligible to exercise; (iv) for Accumulator(R) Rollover TSA contracts, you may exercise the baseBUILDER option only if you effect a rollover of the TSA contract to an Accumulator(R) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (v) for a successor owner/annuitant the earliest exercise date will be based on the original contract date and the age of the successor owner/annuitant as of the Processing Date successor owner/ annuitant takes effect; and (vi) if you are the owner but not the annuitant and you die prior to exercise, then the following applies: o A successor owner who is not the annuitant may not be able to exercise the baseBUILDER option without causing a tax problem. You should consider naming the annuitant as successor owner, or if you do not name a successor owner, as the sole primary beneficiary. You should carefully review your successor owner and/or beneficiary designations at least one year prior to the first contract date anniversary on which you could exercise the benefit. o If the successor owner is the annuitant, the baseBUILDER option continues only if the benefit could be exercised under the rules described above on a contract date anniversary that is within one year following the owner's death. This would be the only opportunity for the successor owner to exercise. If the baseBUILDER option cannot be exercised within this timeframe, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. o If you designate your surviving spouse as successor owner, the baseBUILDER option continues and your surviving spouse may exercise the benefit according to the rules described above even if your spouse is not the annuitant and even if the benefit is exercised more than one year after your death. If your surviving spouse dies prior to exercise, the rule described in the previous bullet applies. o A successor owner or beneficiary that is a trust or other non-natural person may not exercise the benefit; in this case, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. See "When an NQ contract owner dies before the annuitant" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract's value" and "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" in "Accessing you money" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT A guaranteed minimum death benefit was provided as part of the baseBUILDER benefit. A guaranteed minimum death benefit was also provided under your contract even if you did not elect baseBUILDER. In this case, the baseBUILDER benefit charge does not apply. GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE FOR ANNUITANTS WHO WERE AGES 0 THROUGH 79 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 79 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS. You must have elected either: the "5% Roll-Up to age 80" or the "annual ratchet to age 80" guaranteed minimum death benefit when you applied for a contract. Once you made your election, you cannot change it. 5% ROLL-UP TO AGE 80. This guaranteed minimum death benefit is equal to the benefit base described earlier in "Your benefit base." ANNUAL RATCHET TO AGE 80. On the contract date, your guaranteed minimum death benefit equaled your initial contribution. Then, on each contract date anniversary, we determine your guaranteed minimum death benefit by comparing your current guaranteed minimum death benefit to your account value on that contract date anniversary. If your account value is higher than your guaranteed minimum death benefit, we will increase your guaranteed minimum death benefit to equal your account value. On the other hand, if your account value on the contract date anniversary is less than your guaranteed minimum death benefit, we will not adjust your guaranteed minimum death benefit either up or down. If you make additional contributions, we will increase your current guaranteed minimum death benefit by the dollar amount of the contribution on the date the contribution is allocated to your investment options. If you take a withdrawal from your contract, we will reduce your guaranteed minimum death benefit on the date you take the withdrawal. GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE FOR ANNUITANTS WHO WERE AGES 80 THROUGH 83 AT ISSUE OF NQ, ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS. On the contract date, your guaranteed minimum death benefit equaled your initial contribution. Thereafter, it is increased by the dol- 30 Contract features and benefits lar amount of any additional contributions. We will reduce your guaranteed minimum death benefit if you take any withdrawals. ---------------------------------- Please see both "Insufficient account value" in "Determining your contract's value" and "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for information on these guaranteed benefits. See Appendix IV at the end of this Prospectus for an example of how we calculate the guaranteed minimum death benefit. PROTECTION PLUS(SM) The following section provides information about the Protection Plus(SM) option, which was only available at the time you purchased your contract. If Protection Plus(SM) was not elected when the contract was first issued, neither the owner nor the successor owner/annuitant can add it subsequently. Protection Plus(SM) is an additional death benefit as described below. See the appropriate part of "Tax information" later in this Prospectus for the potential consequences of having purchased the Protection Plus(SM) feature in an NQ or IRA contract. If the annuitant was 69 or younger when we issued your contract (or if the successor owner/annuitant is 69 or younger when he or she becomes the successor owner/annuitant), the death benefit will be: the greater of: o the account value or o any applicable guaranteed minimum death benefit Increased by: 40% of the lesser of: o the total net contributions or o the death benefit less total net contributions For purposes of calculating your Protection Plus(SM) benefit, the following applies: (i) "Net contributions" are the total contributions made (or, if applicable, the total amount that would otherwise have been paid as a death benefit had the successor owner/annuitant election not been made plus any subsequent contributions) reduced on a pro rata basis to reflect withdrawals (including surrender charges and loans). Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce net contributions by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If the contributions aggregated $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and net contributions after the withdrawal would be $24,000 ($40,000-$16,000); (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable guaranteed minimum death benefit as of the date of death. If the annuitant was age 70 through 75 when we issued your contract (or if the successor owner/annuitant is between the ages of 70 and 75 when he or she becomes the successor owner/annuitant under a contract where Protection Plus(SM) had been elected at issue), the death benefit will be: the greater of: o the account value or o any applicable guaranteed minimum death benefit Increased by: 25% of the lesser of: o the total net contributions (as described above) or o the death benefit (as described above) less total net contributions YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS This is provided for informational purposes only. Since this contract is no longer available to new purchasers, this cancellation provision is no longer applicable. If for any reason you are not satisfied with your contract, you may return it to us for a refund of the full amount of your contribution. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law requires, this "free look" period may be longer. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. In addition to the cancellation right described above, if you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office, or your financial professional, can provide you with the cancellation instructions. Contract features and benefits 31 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) market adjusted amounts in the fixed maturity options; and (iii) the loan reserve account (applies for Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less: (i) any applicable withdrawal charges and (ii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option less daily charges for: (i) mortality and expense risks; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, when we deduct the baseBUILDER and/or Protection Plus(SM) benefit charge, the number of units credited to your contract will be reduced. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all of your rights under your contract and any applicable guaranteed benefits. 32 Determining your contract's value 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer to a fixed maturity option that matures in the current calendar year or that has a rate to maturity of 3% or less. o You may not transfer any amount to the 12 month dollar cost averaging program. o If the annuitant is 76 or older, you must limit your transfers to fixed maturity options to those with maturities of five years or less. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied, the rate to maturity is 3%. Also, the maturity dates may be no later than the February 15th immediately following the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date the transfer may cause a market value adjustment. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. Transferring your money among investment options 33 When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We currently offer a rebalancing program that you can use to automatically reallocate your account value among the variable investment options. You must tell us: (a) the percentage you want invested in each variable investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually or annually on a contract year basis). Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. While your rebalancing program is in effect, we will transfer amounts among the variable investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. Your entire account value in the variable investment options must be included in the rebalancing program. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- You may elect the rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while the rebalancing program is in effect we will process the transfer as requested; your rebalancing allocations will not be changed and the rebalancing program will remain in effect unless you request that it be canceled in writing. You may not elect the rebalancing program if you are participating in the general dollar cost averaging or 12 month dollar cost averaging program. Rebalancing is not available for amounts you have allocated in the fixed maturity options. 34 Transferring your money among investment options 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus and "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate.
- -------------------------------------------------------------------------------- Method of withdrawal - -------------------------------------------------------------------------------- Pre-Age 59-1/2 Lifetime substan- required tially minimum Contract Partial Systematic equal distribution - -------------------------------------------------------------------------------- NQ Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Conversion IRA Yes Yes Yes No - -------------------------------------------------------------------------------- QP** Yes No No Yes - -------------------------------------------------------------------------------- Rollover TSA* Yes Yes No Yes - --------------------------------------------------------------------------------
* Employer or plan approval required for all transactions. Your ability to take withdrawals, or loans from, or surrender your TSA contract may be limited. You must provide withdrawal restriction information when you apply for a contract. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. ** All payments are made to the trust, as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Partial withdrawals will be subject to a withdrawal charge if they exceed the 15% free withdrawal amount (see "15% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. SYSTEMATIC WITHDRAWALS (All contracts except QP contracts) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of your account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, the amount or the percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 15% free withdrawal amount. SUBSTANTIALLY EQUAL WITHDRAWALS (All IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After con- Accessing your money 35 sultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information" later in this Prospectus.) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. Currently, we do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our "automatic required minimum distribution (RMD) service" except if when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 15% free withdrawal amount. Under Rollover TSA contracts, you may not elect minimum distribution withdrawals if a loan is outstanding. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options. If there is insufficient value or no value in the variable investment options, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options in order of the earliest maturity date(s) first. A market value adjustment may apply to withdrawals from the fixed maturity options. HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar basis or on a pro rata basis as explained below: INCOME BENEFIT AND DEATH BENEFIT 5% ROLL-UP TO AGE 80 -- If you elected the 5% Roll-Up to age 80 guaranteed minimum death benefit, your benefit base will be reduced on a dollar-for-dollar basis as long as the sum of your withdrawals in a contract year is 5% or less of the benefit base on the most recent contract date anniversary. Once you take a withdrawal that causes the sum of your withdrawals in a contract year to exceed 5% of the benefit base on the most recent contract date anniversary, that withdrawal and any subsequent withdrawals in that same contract year will reduce your benefit base on a pro rata basis. Additional contributions made during the contract year do not affect the amount of withdrawals that can be taken on a dollar-for-dollar basis in that contract year. The timing of your withdrawals and whether they exceed the 5% threshold described above can have a significant impact on your guaranteed minimum income benefit or guaranteed minimum death benefit. ANNUAL RATCHET TO AGE 80 -- If you elected the annual ratchet to age 80 guaranteed minimum death benefit, each withdrawal will reduce your income and death benefit on a pro rata basis. ANNUITANT ISSUE AGES 80 THROUGH 83 -- If your contract was issued when the annuitant was between ages 80 and 83, each withdrawal 36 Accessing your money will always reduce your current guaranteed minimum death benefit on a pro rata basis. ---------------------------------- Reduction on a dollar-for-dollar basis means that your current benefit will be reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by that same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your guaranteed minimum death benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x.40) and your new guaranteed minimum death benefit after the withdrawal would be $24,000 ($40,000 - $16,000). For purposes of calculating the adjustment to your guaranteed benefits, the amount of the withdrawal will include the amount of any applicable withdrawal charge. Using the example above, the $12,000 withdrawal would include the withdrawal amount paid to you and the amount of any applicable withdrawal charge deducted from your account value. For more information on the calculation of the charge, see "Withdrawal charge" later in the Prospectus. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Also, see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the loan reserve account. Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options. If there is insufficient value or no value in the variable investment options, any additional amount of the loan will be subtracted from the fixed maturity options in order of the earliest maturity date(s) first. A market value adjustment may apply. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while the annuitant is living and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of that date. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal charge) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of which sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the fixed maturity options (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. Accessing your money 37 All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the annuitant's age when the contract was issued. In addition, if your are exercising your guaranteed minimum income benefit under baseBUILDER, your choice of payout options are those that are available under the baseBUILDER (see "Our baseBUILDER option" in "Contract features and benefits" earlier in this Prospectus). - -------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------- Income Manager((R)) payout options Life annuity with period certain (available for annuitants age 83 Period certain annuity or less at contract issue) - -------------------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contract that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15 or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER((R)) PAYOUT OPTIONS The Income Manager((R)) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels but do not have all the features of the Income Manager((R)) payout annuity contract. You may request an illustration of the Income Manager((R)) payout annuity contract from your financial professional. Income Manager((R)) payout options are described 38 Accessing your money in a separate prospectus that is available from your financial professional. Before you select an Income Manager((R)) payout option, you should read the prospectus which contains important information that you should know. Income Manager((R)) NQ and IRA payout options provide guaranteed level payments. The Income Manager((R)) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager((R)) payout option without life contingencies unless withdrawal charges are no longer in effect under your Accumulator(R). For QP and Rollover TSA contracts, if you want to elect an Income Manager((R)) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply your account value of your Accumulator(R) contract to an Income Manager((R)) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) and we will deduct any applicable withdrawal charge. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. The Income Manager((R)) payout options are not available in all states. If you purchase an Income Manager((R)) contract in connection with the exercise of the baseBUILDER benefit option, different payout options may apply, as well as other various differences. See "Our baseBUILDER option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager((R)) Prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any withdrawal charges or market value adjustments. If amounts in a fixed maturity option are used to purchase any annuity payout option, prior to the maturity date, a market value adjustment will apply. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. The withdrawal charge applicable under your Accumulator(R) contract is imposed if you select a non-life contingent period certain payout annuity. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For the Income Manager((R)) life contingent payout options, no withdrawal charge is imposed under the Accumulator(R). If the withdrawal charge that otherwise would have been applied to your account value under your Accumulator(R) is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager((R)) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin but it may not be earlier than thirteen months from the Accumulator(R) contract date. Except with respect to the Income Manager((R)) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments, or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. In no event will you ever receive payments under a fixed option or an initial payment under a variable option of less than the minimum amounts guaranteed by the contract. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager((R)) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is generally the contract date anniversary that follows the annuitant's 90th birthday. We will send a notice with the annual statement one year prior to the maturity age. Accessing your money 39 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o A charge for baseBUILDER, if you elect this optional benefit. o A charge for Protection Plus(SM), if you elect this optional benefit. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. To help with your retirement planning, we may offer other annuities with different charges, benefits and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the guaranteed minimum death benefit. The daily charge is equivalent to an annual rate of 1.10% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. Administrative charge. We deduct a daily charge from the net assets in each variable investment option. The charge, together with the annual administrative charge described below, is to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceed the 15% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or apply your cash value to a non-life contingency payout option. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options -- The amount applied to purchase an annuity payout option" in "Accessing your money" earlier in the Prospectus. The withdrawal charge equals a percentage of the contributions withdrawn. The percentage that applies depends on how long each contribution has been invested in the contract. We determine the withdrawal charge separately for each contribution according to the following table: - ------------------------------------------------------------------------------- Contract year - ------------------------------------------------------------------------------- 1 2 3 4 5 6 7 8+ - ------------------------------------------------------------------------------- Percentage of contribution 7% 6% 5% 4% 3% 2% 1% 0% - ------------------------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1." Amounts withdrawn up to the free withdrawal amount are not considered withdrawal of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and the withdrawal charge from your account value. Any amount deducted to pay withdrawal charges is also subject to that same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each investment option. The withdrawal charge helps cover our sales expenses. For purposes of calculating reductions in your guaranteed benefits and associated benefit bases, the withdrawal amount includes both the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information, see "Your benefit base" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier in the Prospectus. 15% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 15% of your account value without paying a withdrawal charge. The 15% free withdrawal amount is determined using your account 40 Charges and expenses value at the beginning of each contract year, or in the case of the first contract year, your initial contribution, minus any other withdrawals made during the contract year. Additional contributions during the contract year do not increase your 15% free withdrawal amount. The 15% free withdrawal amount does not apply if you surrender your contract except where required by law. For NQ contracts issued to a charitable remainder trust, the free withdrawal amount will equal the greater of: (1) the current account value less contributions that have not been withdrawn (earnings in the contract) and (2) the 15% free withdrawal amount defined above. DISABILITY, TERMINAL ILLNESS OR CONFINEMENT TO NURSING HOME. The withdrawal charge does not apply if: (i) The annuitant has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or (ii) We receive proof satisfactory to us (including certification by a licensed physician) that the annuitant's life expectancy is six months or less; or (iii) The annuitant has been confined to a nursing home for more than 90 days (or such other period, as required in your state) as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: - its main function is to provide skilled, intermediate or custodial nursing care; - it provides continuous room and board to three or more persons; - it is supervised by a registered nurse or licensed practical nurse; - it keeps daily medical records of each patient; - it controls and records all medications dispensed; and - its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions described in (i), (ii) and (iii) above existed at the time a contribution was remitted or if the condition began within 12 months of the period following remittance. Some states may not permit us to waive the withdrawal charge in the above circumstances or may limit the circumstances for which the withdrawal charge may be waived. Your financial professional can provide more information or you may contact our processing office. BASEBUILDER BENEFIT CHARGE If you elected the baseBUILDER, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary after the annuitant reaches age 83, whichever occurs first. The charge is equal to 0.30% of the benefit base in effect on the contract date anniversary for the 5% Roll-Up to age 80. The annual benefit base charge is 0.15% if the 5% Roll-Up to age 70 is available and elected. We will deduct this charge from your value in the variable investment options on a pro rata basis. If there is not enough value in the variable investment options, we will deduct all or a portion of the charge first, from the fixed maturity options, in order of the earliest maturity date(s) first. A market value adjustment may apply. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. PROTECTION PLUS(SM) If you elected Protection Plus(SM), we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.20% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options on a pro rata basis. If there is not enough value in the variable investment options, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment may apply. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY ANNUITIZATION PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity annuitization payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.20%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these Charges and expenses 41 fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge, or change the minimum initial contribution requirements. We also may change the guaranteed minimum income benefit and the guaranteed minimum death benefit or offer variable investment options that invest in shares of either Trust that are not subject to the 12b-1 fee. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that result in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. 42 Charges and expenses 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designated your beneficiary when you applied for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the guaranteed minimum death benefit. The guaranteed minimum death benefit is part of your contract, whether you select the baseBUILDER benefit or not. We determine the amount of the death benefit (other than the guaranteed minimum death benefit) and any amount applicable under the Protection Plus(SM) feature, as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the guaranteed minimum death benefit will be the guaranteed minimum death benefit as of the date of the annuitant's death adjusted for any subsequent withdrawals (and any associated withdrawal charges). For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. EFFECT OF THE ANNUITANT'S DEATH If the annuitant dies before the annuity payments begin, we will pay the death benefit to your beneficiary. Generally, the death of the annuitant terminates the contract. However, a surviving spouse of the deceased owner/annuitant can choose to be treated as the successor owner/annuitant and continue the contract. Only a spouse who is the sole primary beneficiary can be a successor owner/annuitant. The successor owner/annuitant feature is only available under NQ and individually owned IRA contracts. For individually owned IRA contracts, a beneficiary may be able to have limited ownership as discussed under "Beneficiary continuation option" below. WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT Under certain conditions the owner changes after the original owner's death for purpose of receiving federal tax law required distributions from the contract. When you are the annuitant under an NQ contract and you die before annuity payments begin, unless you specify otherwise, the beneficiary named to receive the death benefit upon the annuitant's death will become the successor owner. If you do not want this beneficiary to be the successor owner, you should name a specific successor owner. You may name a successor owner at any time during your life by sending satisfactory notice to our processing office. If the contract is jointly owned and the first owner to die is not the annuitant, the surviving owner becomes the sole contract owner. This person will be considered the successor owner for purposes of the distribution rules described in this section. The surviving owner automatically takes the place of any other beneficiary designation. You should carefully consider the following if you have elected the guaranteed minimum income benefit and you are the owner, but not the annuitant. Because the payments under the guaranteed minimum income benefit are based on the life of the annuitant, and the federal tax law required distributions described below are based on the life of the successor owner, a successor owner who is not also the annuitant may not be able to exercise the guaranteed minimum income benefit, if you die before annuity payments begin. Therefore, one year before you become eligible to exercise the guaranteed minimum income benefit, you should consider the effect of your beneficiary designations on potential payments after your death. For more information, see "Exercise of guaranteed minimum income benefit" under "Our baseBUILDER option" in "Contract features and benefits" earlier in this Prospectus. Unless the surviving spouse of the owner who has died (or in the case of a joint ownership situation, the surviving spouse of the first owner to die) is the successor owner for this purpose, the entire interest in the contract must be distributed under the following rules: o The cash value of the contract must be fully paid to the successor owner (new owner) within five years after your death (or in a joint ownership situation, the death of the first owner to die). Payment of death benefit 43 o The successor owner may instead elect to receive the cash value as a life annuity (or payments for a period certain of not longer than the successor owner's life expectancy). Payments must begin within one year after the non-annuitant owner's death. Unless this alternative is elected, we will pay any cash value five years after your death (or the death of the first owner to die). o A successor owner should name a new beneficiary. If the surviving spouse is the successor owner or joint owner, the spouse may elect to continue the contract and no distributions are required as long as the surviving spouse and annuitant are living. HOW DEATH BENEFIT PAYMENT IS MADE We will pay the death benefit to the beneficiary in the form of the annuity payout option you have chosen. If you have not chosen an annuity payout option as of the time of the annuitant's death, the beneficiary will receive the death benefit in a single sum. However, subject to any exceptions in the contract, our rules and any applicable requirements under federal income tax rules, the beneficiary may elect to apply the death benefit to one or more annuity payout options we offer at the time. See "Your annuity payout options" in "Accessing your money" earlier in this Prospectus. Please note that any annuity payout option chosen may not extend beyond the life expectancy of the beneficiary. SUCCESSOR OWNER AND ANNUITANT If you are both the contract owner and the annuitant, and your spouse is the sole primary beneficiary or the joint owner, then your spouse may elect to receive the death benefit or continue the contract as successor owner/annuitant. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state rules, we will follow federal rules. If your surviving spouse decides to continue the contract, then as of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary to effect the successor owner/annuitant feature, we will increase the account value to equal your guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. Thereafter, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. These additional contributions will be considered to be withdrawn only after all other amounts have been withdrawn. In determining whether the guaranteed minimum death benefit will continue to grow, we will use your surviving spouse's age (as of the date we receive satisfactory proof of your death, any required instructions and the information and forms necessary to effect the successor owner/annuitant feature). Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, upon the contract owner's death, to maintain the contract in the deceased contract owner's name and receive distributions under the contract instead of receiving the death benefit in a single sum. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value plus any amount applicable under the Protection Plus(SM) feature and adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the ben eficiary continuation option is $5,000 for each beneficiary. 44 Payment of death benefit The beneficiary may make transfers among the investment o options but no additional contributions will be permitted. o If you had elected the guaranteed minimum income benefit or Protection Plus(SM) feature under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a por tion of the account value and no withdrawal charges, if any, will apply. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. Payment of death benefit 45 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the Prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Therefore, you should consider the annuity's features and benefits, such as Accumulator's(R) choice of death benefits and baseBUILDER guaranteed minimum income benefit, 12 month dollar cost averaging, selection of investment funds and fixed maturity options and choices of pay-out options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase, the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, the guaranteed minimum income benefit and enhanced death benefits. You should consider the potential implication of these Regulations before you make additional contributions or decide how to take required minimum distribution payments. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. 46 Tax information ANNUITY PAYMENTS Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your "investment in the contract." Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. PROTECTION PLUS(SM) FEATURE In order to enhance the amount of the death benefit to be paid at the annuitant's death, you may have purchased a Protection Plus(SM) rider for your NQ contract. Although we regard this benefit as an investment protection feature which is part of the contract and which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Protection Plus(SM) rider is not part of the contract. In such a case the charges for the Protection Plus(SM) rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable and, for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, AXA Equitable would take all reasonable steps to attempt to avoid this result, which would include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES The following information applies if you purchased your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange was not taxable under Section 1035 of the Internal Revenue Code if: o the contract that was the source of the funds you used to purchase the NQ contract was another nonqualified deferred annuity contract or life insurance or endowment contract. o the owner and the annuitant were the same under the source contract and the Accumulator(R) NQ contract. If you used a life insurance or endowment contract, the owner and the insured must have been the same on both sides of the exchange transaction. Section 1035 exchanges are generally not available after the death of the owner (or the annuitant in a non-natural owner contract). The tax basis, also referred to as your investment in the contract, of the source contract carried over to the Accumulator(R) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between the carriers and provision of cost basis information may be required to process this type of an exchange. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2, a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Accounts 45 and 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right Tax information 47 only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Accounts 45 and 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Accounts 45 and 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets funding the account for the benefit of the IRA owner. The assets typically include mutual funds and/or individual stocks and securities in a custodial account, and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral, regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may have purchased the contract as either a traditional IRA or Roth IRA. We offered traditional IRAs in the Rollover IRA contracts. We offered Roth IRAs in the Roth Conversion IRA contracts. We currently do not offer traditional IRA contracts for use as employer-funded SEP-IRA or SIMPLE IRA plans, although we may do so in the future. The first part of this section covers some of the special tax rules that apply to traditional IRAs. The next part of this section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We have received an opinion letter from the IRS approving the respective forms of the Accumulator(R) traditional and Roth IRA contracts for use as a traditional IRA and a Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) traditional and Roth IRA contracts. Your right to cancel within a certain number of days This is provided for informational purposes only. Since this contract is no longer available to new purchasers, this cancellation provision is no longer applicable. You can cancel any version of the Accumulator(R) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel within a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. Traditional individual retirement annuities (traditional IRAs) Contributions to traditional IRAs. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). Regular contributions to traditional IRAs Limits on contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs.) When your earnings are below $4,000 your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch-up contributions" of up to $1,000 to your traditional IRA. Special rules for spouses. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are 48 Tax information permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. "Catch-up" contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. Deductibility of contributions. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions". That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits to deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted ------------------ x regular = deductible divided by $10,000 contribution contribution for the year limit Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return and your adjusted gross income cannot exceed $50,000 ($53,000 after cost of living indexing adjustment for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. Nondeductible regular contributions. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000, for people eligible to make age 50-70-1/2 "catch-up" contributions. See "Excess contributions" later in this section. You must keep your Tax information 49 own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. When you can make regular contributions. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. Rollover and transfer contributions to traditional IRAs Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. Rollovers from "eligible retirement plans" other than traditional IRAs Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a 403(b) plan, qualified plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan, such as a traditional IRA, and subsequently take a premature distribution. Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Rollovers from traditional IRAs to traditional IRAs You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only 50 Tax information once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA plan under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Excess contributions Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contri bution amount for the applicable taxable year; or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. Recharacterizations Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. Withdrawals, payments and transfers of funds out of traditional IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Taxation of payments. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, TSA or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You Tax information 51 should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. Required minimum distributions Background on Regulations--Required Minimum Distributions. Distributions must be made from traditional IRAs according to the rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing. Please consult your tax adviser concerning applicability of these complex rules to your situation. Lifetime required minimum distributions. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. When you have to take the first lifetime required minimum distribution. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1-April 1). Distributions must start no later than your Required Beginning Date, which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year -- the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. How you can calculate required minimum distributions. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. Do you have to pick the same method to calculate your required minimum distributions for all of your traditional IRAs and other retirement plans? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. Will we pay you the annual amount every year from your traditional IRA based on the method you choose? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. What if you take more than you need to for any year? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. What if you take less than you need to for any year? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, 52 Tax information we will assume you are taking your required minimum distribution from another traditional IRA that you own. What are the required minimum distribution payments after you die? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. Individual beneficiary. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owners death. No distribution is required before that fifth year. Spousal beneficiary. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. Non-individual beneficiary. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. Successor owner and annuitant If your spouse is the sole primary beneficiary and elects to become the successor owner and annuitant, no death benefit is payable until your surviving spouse's death. The required minimum distribution rules are applied as if your surviving spouse is the contract owner. Payments to a beneficiary after your death IRA death benefits are taxed the same as IRA distributions. Borrowing and loans are prohibited transactions You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. Early distribution penalty tax A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special fed eral income tax definition); or o used to pay medical insurance premiums for unemployed indi viduals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special fed eral income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method. To meet the substantially equal periodic payment exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments, using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" earlier in this Tax information 53 section. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under either option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. Roth individual retirement annuities (Roth IRAs) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Roth IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. Contributions to Roth IRAs Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs ("conversion rollover" contributions); or o tax-free rollover contributions from other Roth individual retire ment arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA or a Flexible Premium Roth IRA contract. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. Regular contributions to Roth IRAs Limits on regular contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable years. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. When you can make contributions. Same as traditional IRAs. Deductibility of contributions. Roth IRA contributions are not tax deductible. Rollovers and direct transfers What is the difference between rollover and direct transfer transactions? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make a rollover between different plan types (for example, traditional IRA to Roth IRA). 54 Tax information You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Conversion rollover contributions to Roth IRAs In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting -- a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. How to recharacterize. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated Tax information 55 as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. Distributions from Roth IRAs Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to the special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o Rollovers from a Roth IRA to another Roth IRA; o Direct transfers from a Roth IRA to another Roth IRA; o Qualified distributions from a Roth IRA; and o Return of excess contributions or amounts recharacterized to a traditional IRA. Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped and added together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contribu tions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. 56 Tax information Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. Required minimum distributions during life Lifetime required minimum distributions do not apply. Required minimum distributions at death Same as traditional IRA under "What are the required minimum distribution payments after you die?" assuming death before the Required Beginning Date. Payments to a beneficiary after your death Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. Borrowing and loans are prohibited transactions Same as traditional IRA. Excess contributions Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. Early distribution penalty tax Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) General This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) TSA CONTRACT Because the Accumulator(R) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) TSA contract are extremely limited as described below. Accumulator(R) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax Tax information 57 consequences to the owner unless the contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata por- 58 Tax information tion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. If you elect an annuity payout option, you will recover any investment in the contract as each payment is received by dividing the investment in the contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Tax information 59 EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous twelve months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Rollover TSA contracts have a term limit of 10 years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the 60 Tax information participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Rollover TSA by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribu tion from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However, we may require additional documentation in the case of payments made to non-United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. Tax information 61 Federal income tax withholding on periodic annuity payments Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. Federal income tax withholding on non-periodic annuity payments (withdrawals) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. Mandatory withholding from TSA and qualified plan distributions Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 45 and Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. 62 Tax information 8. More information - -------------------------------------------------------------------------------- ABOUT SEPARATE ACCOUNT NO. 45 AND SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 45 and in Separate Account No. 49. We established Separate Account No. 45 in 1994 and Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 45 and in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 45 and Separate Account No. 49 that represent our investments in Separate Account No. 45 and Separate Account No. 49 or that represent fees and charges under the contracts that we have earned, respectively. The results of Separate Accounts' operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 45 and Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 45 and Separate Account No. 49 are registered under the Investment Company Act of 1940 and are registered and classified under that act as "unit investment trusts." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 45 or Separate Account No. 49. Although Separate Account No. 45 and Separate Account No. 49 are registered, the SEC does not monitor the activity of Separate Account No. 45 or Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each Separate Account is registered under the Investment Company Act of 1940 and is classified by that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or the Separate Accounts. Each subaccount (variable investment option) within the Separate Accounts invests solely in Class IB/B shares issued by the corresponding Portfolio of either Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from either Separate Account, or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate each Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against each Separate Account or a variable investment option directly); (5) to deregister the Separate Accounts under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Accounts; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS AXA Premier VIP Trust and EQ Advisors Trust are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. AXA Equitable serves as the investment manager of the Trusts. As such, AXA Equitable oversees the activities of the investment advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those advisers. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan and other aspects of its operations, appear in the prospectuses for each Trust, which are generally attached at the end of this Prospectus, or in the respective SAIs, which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. More information 63 FMO rates are determined daily. The rates in the table are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008, and the related price per $100 of maturity value were as shown below: - ------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Maturity Price Maturity Date of as of Per $100 of Maturity Year February 15, 2008 Maturity Value - ------------------------------------------------------------------------------- 2009 3.00%* $97.08 2010 3.00%* $94.25 2011 3.00%* $91.51 2012 3.00%* $88.84 2013 3.05% $86.04 2014 3.52% $81.24 2015 4.05% $75.72 2016 4.30% $71.39 2017 4.50% $67.27 2018 4.63% $63.57 - -------------------------------------------------------------------------------- * Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw all of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity that applies on the withdrawal date to new allocations to the same fixed maturity option. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. - -------------------------------------------------------------------------------- Your market adjusted amount is the present value of the maturity value discounted at the rate to maturity in effect for new contributions to that same fixed maturity option on the date of the calculation. - -------------------------------------------------------------------------------- If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. Any withdrawal charges that are deducted from a fixed maturity option will result in a market value adjustment calculated in the same way. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined in accordance with our procedures then in effect. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We have no specific formula for establishing the rates to maturity for the fixed maturity options. We expect the rates to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the fixed maturity options, as well as our general obligations. 64 More information The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" in "Contract features and benefits" earlier in this Prospectus. Even if we accepted the wire order and essential information, a contract generally was not issued until we received and accepted a properly completed application. In certain cases, we may have issued a contract based on information provided through certain broker-dealers with whom we have established electronic facilities. In any such case, you must have signed our Acknowledgement of Receipt form. Where we required a signed application, the above procedures did not apply and no financial transactions were permitted until we received the signed application and issued the contract. Where we issued a contract based on information provided though electronic facilities, we required an Acknowledgement of Receipt form. Financial transactions were only permitted if you requested them in writing, signed the request and had it signature guaranteed, until we received the signed Acknowledgement of Receipt form. After a contract is issued, additional contributions are allowed by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account or credit union checking account and contributed as an additional contribution into an NQ contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts. For NQ contracts, the minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer More information 65 order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4 p.m., Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day. o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. ABOUT YOUR VOTING RIGHTS As the owner of shares of the Trusts, we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; o the formal approval of independent public accounting firm selected for each Trust; or o any other matters described in each prospectus for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. VOTING RIGHTS OF OTHERS Currently, we control the Trusts. Its shares are sold to our separate accounts and an affiliated qualified plan trust. In addition, shares of the Trusts are held by separate accounts of insurance companies both affiliated and unaffiliated with us. Shares held by these separate accounts will probably be voted according to the instructions of the owners of insurance policies and contracts issued by those insurance companies. While this will dilute the effect of the voting instructions of the contract owners, we currently do not foresee any disadvantages because of this. The Board of Trustees of each Trust intends to monitor events in order to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a response to any of those events insufficiently protects our contract owners, we will see to it that appropriate action is taken. SEPARATE ACCOUNT NO. 45 AND SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Accounts require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Accounts Nos. 45 and 49, respectively, nor would any of these proceedings be likely to have a material adverse effect upon either Separate Account, our ability to meet our obligations under the contracts, or the distribution of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 45 and Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the applicable SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive notification of any change at our processing office. You cannot assign your NQ contract as collateral or security for a loan. Loans are also not available under your NQ contract. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. 66 More information You cannot assign or transfer ownership of an IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available and you cannot assign IRA and QP contracts as security for a loan or other obligation. If the employer that provided the funds does not restrict them, loans are available under a Rollover TSA contract. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your IRA, QP or Rollover TSA contract to another similar arrangement under federal income tax rules. In the case of such a transfer, which involves a surrender of your contract, we will impose a withdrawal charge, if one applies. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). AXA Advisors serves as the principal underwriter of Separate Account No. 45, and AXA Distributors serves as the principal underwriter of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 0.60% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 7.50% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker- dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for More information 67 sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. 68 More information 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa-equitable.com. Incorporation of certain documents by reference 69 Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Accounts 45 and 49 with the daily asset charge of 1.35%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ----------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------------- 2007 2006 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.79 $ 13.16 $ 11.32 $ 10.62 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 603 595 286 51 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,649 1,595 1,278 688 -- - ----------------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.39 $ 10.92 $ 10.40 $ 10.29 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 434 343 285 131 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,016 438 492 237 -- - ----------------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.82 $ 11.36 $ 10.59 $ 10.39 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 636 456 367 150 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 974 946 948 426 -- - ----------------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 52.19 $ 49.78 $ 45.74 $ 44.24 $ 41.25 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2,239 2,505 2,919 3,361 3,674 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,500 1,399 1,314 1,132 732 - ----------------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.27 $ 12.64 $ 11.19 $ 10.63 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2,958 1,913 711 256 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,731 6,975 4,170 1,617 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 272.69 $ 267.14 $ 244.64 $ 237.75 $ 211.19 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 529 687 900 1,044 1,145 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 670 876 1,138 1,384 1,588 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.97 $ 18.95 $ 18.62 $ 18.65 $ 18.54 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,014 1,287 1,772 2,322 2,993 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 579 773 1,100 1,348 1,651 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 20.30 $ 18.42 $ 15.12 $ 13.29 $ 11.40 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2,628 3,112 3,477 3,816 4,111 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,872 2,019 2,553 2,475 2,639 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.86 $ 6.99 $ 7.13 $ 6.28 $ 5.88 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 3,381 4,248 5,346 6,276 7,382 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,849 6,383 8,379 9,271 10,777 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.89 $ 16.38 $ 15.99 $ 15.89 $ 15.53 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 293 353 490 460 434 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 436 459 574 603 631 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 20.92 $ 18.17 $ 16.90 $ 15.36 $ 13.66 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 916 1,201 1,468 1,733 2,001 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,476 3,532 4,499 5,465 6,324 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------------- 2002 2001 2000 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 35.10 $ 40.77 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 3,926 2,511 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 407 289 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 143.14 $ 217.65 $ 247.21 $ 292.20 $ 237.18 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,240 1,555 1,775 1,434 550 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,770 2,160 2,453 2,344 1,542 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.40 $ 17.18 $ 16.14 $ 15.03 $ 15.25 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 4,099 3,288 2,333 2,057 929 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,739 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.55 $ 9.64 $ 12.74 $ 16.81 $ 12.40 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 3,907 737 839 591 166 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 208 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 4.84 $ 7.12 $ 9.49 $ 11.79 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 8,409 10,884 12,132 6,304 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 12,339 15,780 17,298 8,614 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.20 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 430 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 552 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth Unit value $ 9.83 $ 14.28 $ 16.68 $ 14.88 $ 11.82 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2,020 2,115 2,156 1,264 775 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,943 8,170 9,189 6,912 6,101 - -----------------------------------------------------------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ----------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------------- 2007 2006 2005 2004 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.90 $ 17.95 $ 14.99 $ 14.41 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 7,503 2,657 3,058 3,317 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 5,583 6,430 8,002 9,491 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.22 $ 11.50 $ 10.49 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 34 28 12 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 51 19 2 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 24.14 $ 24.18 $ 20.27 $ 19.96 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,752 2,213 2,721 3,230 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,291 2,960 3,782 4,699 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 24.89 $ 22.90 $ 18.47 $ 16.89 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,077 1,280 1,346 1,244 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,966 6,421 7,759 9,124 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.93 $ 6.78 $ 5.92 $ 5.66 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 588 886 767 87 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 535 720 983 345 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.00 $ 9.04 $ 8.71 $ 8.12 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 44 46 54 55 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 126 157 557 258 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth Unit value $ 13.64 $ 13.11 $ 12.38 $ 11.94 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 85 74 45 19 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 5,042 6,381 8,004 9,529 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.11 $ 13.08 $ 11.83 $ 11.30 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2,094 1,987 2,382 2,835 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 10,718 10,352 13,004 15,697 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.23 $ 11.07 $ 10.40 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 164 165 56 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 76 112 18 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.10 $ 10.85 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 168 49 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 369 94 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 31.03 $ 29.97 $ 26.40 $ 25.63 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,714 2,138 2,703 3,163 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,648 6,213 8,100 9,685 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.80 $ 10.02 $ 9.82 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 225 104 8 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 227 125 16 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.80 $ 8.92 $ 8.54 $ 8.33 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 239 292 365 431 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 351 275 431 573 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------------- 2003 2002 2001 2000 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.88 $ 10.14 $ 11.90 $ 11.70 $ 12.10 $ 11.84 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 3,362 3,350 2,847 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 10,036 10,473 10,569 10,105 9,428 5,696 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.30 $ 14.14 $ 17.20 $ 16.52 $ 14.98 $ 12.76 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 3,348 3,538 3,681 3,305 2,567 1,009 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,955 5,160 5,603 5,888 5,766 4,389 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.08 $ 11.14 $ 13.55 $ 17.50 $ 20.23 $ 12.80 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,181 1,196 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 10,329 12,054 14,032 15,833 13,783 10,607 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.94 $ 6.29 $ 8.67 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 39 29 10 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 189 89 6 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.46 $ 9.38 $ 12.90 $ 17.32 $ 21.35 $ 16.61 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 20 13 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 11,360 13,307 16,512 19,069 17,154 10,072 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.33 $ 7.97 $ 10.72 $ 11.09 $ 10.61 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 3,037 3,265 231 174 72 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 17,536 18,971 2,208 2,064 982 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ----------------------------------------------------------------------------------------------------------------------------------- Unit value - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 23.57 $ 18.69 $ 24.41 $ 28.18 $ 31.67 $ 26.73 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 3,443 3,683 4,413 4,923 16 2 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 10,779 11,356 12,941 14,537 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.89 $ 5.79 $ 7.72 $ 9.43 $ 10.82 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 286 184 161 164 139 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 552 243 140 136 91 -- - -----------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ----------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------------- 2007 2006 2005 2004 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.70 $ 12.86 $ 11.69 $ 11.14 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,100 1,330 1,652 1,605 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,295 1,862 2,752 2,883 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.50 $ 10.43 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 609 222 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 444 141 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.75 $ 10.82 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 33 8 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 47 14 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.52 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 245 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 308 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.86 $ 11.63 $ 10.50 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 178 114 54 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 77 74 17 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 29.65 $ 27.50 $ 23.46 $ 22.79 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 267 191 183 31 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 311 141 170 72 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.51 $ 14.52 $ 12.35 $ 10.68 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 388 502 525 425 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,344 3,119 3,695 4,078 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.34 $ 14.25 $ 11.50 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 138 82 31 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 264 78 28 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.57 $ 14.33 $ 13.96 $ 13.84 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,111 1,273 1,222 1,021 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 5,253 6,838 8,972 10,774 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.66 $ 16.07 $ 13.53 $ 13.20 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 769 978 1,142 1,375 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 8,143 10,415 13,350 16,352 - ----------------------------------------------------------------------------------------------------------------------------------- EQ Large Cap Core PLUS - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.84 $ 10.58 $ 9.49 $ 8.98 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 332 411 551 635 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,567 3,675 4,802 5,835 - ----------------------------------------------------------------------------------------------------------------------------------- EQ Large Cap Growth PLUS - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.21 $ 15.09 $ 14.19 $ 13.19 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2,262 2,809 3,663 4,453 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,084 5,280 6,697 8,228 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.56 $ 11.38 $ 10.80 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 159 136 28 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 156 182 41 -- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------------- 2003 2002 2001 2000 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.73 $ 6.87 $ 8.54 $ 10.00 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,435 951 493 82 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,874 2,717 2,307 638 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.53 $ 7.29 $ 8.69 $ 11.14 $ 13.96 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 279 133 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,761 3,093 3,210 3,230 1,477 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.48 $ 13.22 $ 12.23 $ 11.48 $ 10.44 $ 10.76 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 985 903 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 12,484 14,961 14,916 13,606 12,838 8,661 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.07 $ 9.64 $ 12.08 $ 13.14 $ 12.47 $ 12.82 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,530 1,663 1,936 2,045 2,057 867 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 18,895 21,846 25,574 28,008 29,522 24,343 - ----------------------------------------------------------------------------------------------------------------------------------- EQ Large Cap Core PLUS - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.17 $ 6.79 $ 8.71 $ 10.51 $ 10.72 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 715 776 948 1,014 550 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,684 6,910 8,228 8,940 6,033 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ Large Cap Growth PLUS - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.88 $ 9.31 $ 14.37 $ 22.09 $ 27.59 $ 16.10 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 5,082 5,638 7,229 8,254 6,114 1,942 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 9,491 10,806 13,726 16,073 13,671 9,117 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ----------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------------- 2007 2006 2005 2004 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.64 $ 10.04 $ 10.00 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 149 121 93 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 246 287 55 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.51 $ 12.25 $ 10.60 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 87 119 26 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 356 490 93 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.82 $ 11.74 $ 10.56 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 48 49 25 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 86 80 74 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.27 $ 12.36 $ 11.15 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 211 193 240 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 259 214 210 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.49 $ 16.44 $ 15.24 $ 13.95 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,298 1,541 1,644 1,467 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,429 1,821 2,123 2,102 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.04 $ 17.55 $ 15.82 $ 14.40 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,472 1,921 2,356 2,500 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,031 1,465 2,388 2,481 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 30.37 $ 29.41 $ 28.53 $ 28.18 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 949 1,040 1,076 1,221 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,271 2,410 2,619 2,938 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.85 $ 4.91 $ 4.61 $ 4.43 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 270 136 143 3 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 441 28 47 20 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.74 $ 10.71 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 225 50 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 210 92 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.57 $ 11.09 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 80 8 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 146 34 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.15 $ 10.93 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 36 17 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 67 10 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.75 $ 11.10 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 26 12 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 51 9 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.82 $ 9.84 $ 9.93 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 393 330 253 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 444 431 308 -- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------------- 2003 2002 2001 2000 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.80 $ 9.89 $ 11.34 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1.522 767 14 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,058 1,041 155 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.39 $ 9.42 $ 11.20 $ 10.92 $ 10.53 $ 10.48 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2,709 2,863 2,091 1,080 972 560 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,639 3,169 2,256 223 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 28.34 $ 28.57 $ 28.61 $ 28.00 $ 26.78 $ 25.92 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,537 2,299 2,501 1,860 2,900 1,566 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,834 5,633 6,273 5,065 7,278 5,158 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ----------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------------- 2007 2006 2005 2004 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.63 $ 10.23 $ 9.98 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 125 174 76 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 189 185 57 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.60 $ 17.14 $ 14.76 $ 14.35 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 662 793 914 1,073 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,203 1,660 2,139 2,622 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.46 $ 16.51 $ 17.43 $ 16.99 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 173 45 46 10 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 415 145 160 17 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.83 $ 10.76 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 136 61 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 228 98 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.24 $ 6.25 $ 5.55 $ 5.16 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 214 193 114 14 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 129 177 169 41 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.47 $ 11.92 $ 10.43 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 159 251 156 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 298 350 250 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 26.41 $ 18.85 $ 13.94 $ 10.64 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,728 1,993 2,131 1,948 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,238 2,967 3,667 3,845 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.10 $ 13.34 $ 12.37 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 175 74 68 -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 336 109 49 -- - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 65.53 $ 59.65 $ 57.52 $ 53.88 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 170 220 284 334 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 364 467 585 710 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.06 $ 11.50 $ 11.24 $ 11.19 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 685 797 1,030 1,247 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 622 738 919 1,011 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.99 $ 12.08 $ 11.65 $ 11.04 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 261 346 460 484 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 273 360 464 567 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 33.05 $ 32.49 $ 29.95 $ 29.46 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 727 911 1,125 1,318 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,569 2,099 2,710 3,408 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.79 $ 16.94 $ 13.70 $ 12.03 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 453 524 462 456 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 652 762 657 704 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------------- 2003 2002 2001 2000 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.36 $ 8.59 $ 11.01 $ 10.94 $ 11.48 $ 9.64 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,030 859 899 989 756 284 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,320 2,817 3,131 3,340 2,922 1,610 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.72 $ 5.67 $ 6.11 $ 6.53 $ 11.04 $ 5.72 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,871 1,807 1,765 2,063 1,267 177 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,287 3,992 4,501 4,990 3,859 1,805 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 48.73 $ 35.92 $ 51.19 $ 69.35 $ 81.12 $ 69.37 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 375 404 513 595 553 293 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 812 899 1,101 1,253 1,163 939 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.92 $ 10.67 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,242 1,119 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,187 1,217 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.98 $ 7.90 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 378 205 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 383 235 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 27.48 $ 22.73 $ 23.74 $ 23.90 $ 26.59 $ 27.96 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,384 1,316 1,516 1,616 1,539 801 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,959 3,827 4,307 4,697 5,048 4,521 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.34 $ 7.81 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 377 183 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 494 118 -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------------
A-5 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ----------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------------- 2007 2006 2005 2004 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.77 $ 12.33 $ 11.00 $ 10.45 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 154 160 181 201 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 233 294 268 253 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.58 $ 9.64 $ 9.76 $ 9.20 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 253 336 424 449 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 486 568 759 801 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.68 $ 14.36 $ 12.20 $ 11.54 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 440 512 544 503 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 700 1,027 1,404 1,102 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.07 $ 10.93 $ 10.11 $ 9.45 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 387 519 629 806 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 492 721 863 1,078 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.75 $ 13.92 $ 12.30 $ 11.62 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 339 535 605 904 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 587 779 911 1,203 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.99 $ 8.79 $ 8.09 $ 7.63 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 412 286 189 68 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 347 259 287 29 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.49 $ 19.67 $ 17.17 $ 16.63 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 554 761 919 986 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,770 3,861 5,204 6,654 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.36 $ 10.60 $ 10.01 $ 9.12 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 513 609 854 1,028 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 647 737 1,024 1,493 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------------- 2003 2002 2001 2002 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.66 $ 7.64 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 230 166 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 248 169 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.74 $ 6.79 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 410 275 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 802 305 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.23 $ 7.91 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 429 344 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 698 384 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.58 $ 6.20 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 761 429 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,104 369 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.22 $ 7.37 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 765 486 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 820 388 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.39 $ 10.62 $ 12.50 $ 10.76 $ 9.20 $ 9.17 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 840 665 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 7,289 7,825 7,755 7,215 6,774 4,733 - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.81 $ 5.66 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 278 44 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 571 264 -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-6 Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- Trustees who purchased an Accumulator(R) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the Guaranteed minimum income benefit under baseBUILDER and other guaranteed benefits and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) QP contract to fund a plan for the contract's features and benefits other than tax deferral, after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. We will not accept defined benefit plans. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or other contributions from the employer. For 401(k) plans no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge and/or market value adjustment may apply. AXA Equitable will not perform or provide any plan recordkeeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for participants after age 70-1/2, trustees should consider that: o the QP contract may not be an appropriate purchase for partcipants approaching or over age 70-1/2; o provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed; o Contributions after age 70-1/2 must be net of any required minimum distributions; and o the guaranteed minimum income benefit under baseBUILDER may not be an appropriate feature for participants who are older than age 60-1/2 when the contract is issued. Finally, because the method of purchasing the QP contract, including the large initial contribution, and the features of the QP contract may appeal more to plan participants who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisors whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. B-1 Appendix II: Purchase considerations for QP contracts Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00% ("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a).
- ----------------------------------------------------------------------------------------------------------------------------------- Hypothetical assumed rate to maturity("j" in the calculations below) February 15, 2012 - ----------------------------------------------------------------------------------------------------------------------------------- 5.00% 9.00% - ----------------------------------------------------------------------------------------------------------------------------------- As of February 15, 2012 before withdrawal - ----------------------------------------------------------------------------------------------------------------------------------- (1) Market adjusted amount(b) $141,389 $121,737 - ----------------------------------------------------------------------------------------------------------------------------------- (2) Fixed maturity amount(c) $131,104 $131,104 - ----------------------------------------------------------------------------------------------------------------------------------- (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ----------------------------------------------------------------------------------------------------------------------------------- On February 15, 2012 after $50,000 withdrawal - ----------------------------------------------------------------------------------------------------------------------------------- (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ----------------------------------------------------------------------------------------------------------------------------------- (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ----------------------------------------------------------------------------------------------------------------------------------- (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ----------------------------------------------------------------------------------------------------------------------------------- (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ----------------------------------------------------------------------------------------------------------------------------------- (8) Maturity value(d) $111,099 $101,287 - -----------------------------------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 -------------- = -------- where j is either 5% or 9% (1+j)(D/365) (1+j)(1,461/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 -------------- = -------- (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) x (1+0.07)(1,461/365)
Appendix III: Market value adjustment example C-1 Appendix IV: Guaranteed minimum death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the guaranteed minimum death benefit. The following illustrates the guaranteed minimum death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the Multimanager Core Bond, EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/AllianceBernstein Quality Bond or EQ/Short Duration Bond options or the fixed maturity options), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the guaranteed minimum death benefit for an annuitant age 45 would be calculated as follows:
- --------------------------------------------------------------------------------------- End of 5% Roll-Up to age 80 Annual ratchet to age 80 contract guaranteed minimum guaranteed minimum year Account value death benefit(1) death benefit - --------------------------------------------------------------------------------------- 1 $105,000 $ 105,000(1) $ 105,000(3) - --------------------------------------------------------------------------------------- 2 $115,500 $ 110,250(2) $ 115,500(3) - --------------------------------------------------------------------------------------- 3 $129,360 $ 115,763 (2) $ 129,360(3) - --------------------------------------------------------------------------------------- 4 $103,488 $ 121,551(1) $ 129,360(4) - --------------------------------------------------------------------------------------- 5 $113,837 $ 127,628 (1) $ 129,360(4) - --------------------------------------------------------------------------------------- 6 $127,497 $ 134,010(1) $ 129,360(4) - --------------------------------------------------------------------------------------- 7 $127,497 $ 140,710 (1) $ 129,360(4) - ---------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. 5% ROLL-UP TO AGE 80 (1) At the end of contract year 1, and again at the end of contract years 4 through 7, the death benefit will be the guaranteed minimum death benefit. (2) At the end of contract years 2 and 3, the death benefit will be the current account value since it is higher than the current guaranteed minimum death benefit. ANNUAL RATCHET TO AGE 80 (3) At the end of contract years 1 through 3, the guaranteed minimum death benefit is the current account value. (4) At the end of contract years 4 through 7, the guaranteed minimum death benefit is the guaranteed minimum death benefit at the end of the prior year since it is equal to or higher than the current account value. - ---------- D-1 Appendix IV: Guaranteed minimum death benefit example Appendix V: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "the 5% Roll-Up to age 80" guaranteed minimum death benefit, the Protection Plus(SM) benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying portfolios (as described below), the corresponding net annual rates of return would be (2.54)% and 3.46% for the Accumulator(R) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges, but they do not reflect the charges we deduct from your account value annually for the 5% Roll-Up to age 80 guaranteed minimum death benefit, Protection Plus(SM) benefit, and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return shown would be lower; however, the values shown in the following tables reflect the following contract charges: "the 5% Roll-Up to age 80" Guaranteed minimum death benefit charge, the Protection Plus(SM) benefit charge, the Guaranteed minimum income benefit charge and any applicable administrative charge and withdrawal charge. The values shown under "Lifetime Annual Guaranteed Minimum Income Benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime Annual Guaranteed Minimum Income Benefit" columns indicates that the contract has terminated due to insufficient account value and, consequently, the guaranteed benefit has no value. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.67%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.27% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. Appendix V: Hypothetical illustrations E-1 Variable deferred annuity Accumulator(R) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: 5% Roll-Up to age 80 Guaranteed minimum death benefit Protection Plus Guaranteed minimum income benefit
5% Roll-Up to age 80 Lifetime Annual Guaranteed Total Death Benefit Guaranteed Minimum Death with Protection Minimum Account Value Cash Value Benefit Plus(SM) Income Benefit Contract ------------------- ------------------ ------------------- ------------------- ---------------- Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% Age --------- --------- --------- -------- --------- --------- --------- --------- --------- -------- ------- 60 1 100,000 100,000 93,000 93,000 100,000 100,000 100,000 100,000 N/A N/A 61 2 96,950 102,938 90,950 96,938 105,000 105,000 107,000 107,000 N/A N/A 62 3 93,968 105,956 88,968 100,956 110,250 110,250 114,350 114,350 N/A N/A 63 4 91,051 109,056 87,051 105,056 115,763 115,763 122,068 122,068 N/A N/A 64 5 88,196 112,239 85,196 109,239 121,551 121,551 130,171 130,171 N/A N/A 65 6 85,401 115,507 83,401 113,507 127,628 127,628 138,679 138,679 N/A N/A 66 7 82,663 118,862 81,663 117,862 134,010 134,010 147,613 147,613 N/A N/A 67 8 79,980 122,307 79,980 122,307 140,710 140,710 156,994 156,994 N/A N/A 68 9 77,350 125,842 77,350 125,842 147,746 147,746 166,844 166,844 N/A N/A 69 10 74,769 129,471 74,769 129,471 155,133 155,133 177,186 177,186 N/A N/A 74 15 62,525 149,072 62,525 149,072 197,993 197,993 237,190 237,190 13,860 13,860 79 20 51,159 171,283 51,159 171,283 252,695 252,695 313,773 313,773 21,201 21,201 84 25 40,767 196,768 40,767 196,768 265,330 265,330 331,462 331,462 26,560 26,560 89 30 34,777 230,020 34,777 230,020 265,330 265,330 331,462 331,462 N/A N/A 94 35 30,274 269,948 30,274 269,948 265,330 265,330 331,462 331,462 N/A N/A 95 36 29,446 278,729 29,446 278,729 265,330 265,330 331,462 331,462 N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a policy would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual policy years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. E-2 Appendix V: Hypothetical illustrations Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to Obtain an Accumulator(R) Statement of Additional Information for Separate Account No. 45 and Separate Account No. 49 Send this request form to: Accumulator(R) P.O. Box 1547 Secaucus, NJ 07096-1547 - - Please send me a combined Accumulator(R) SAI for Separate Account No. 45 and Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip x01888/Core '02/'04, OR, '04(NY), '06/'06.5 and '07 Series Accumulator(R) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing or taking any other action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS ACCUMULATOR(R)? Accumulator(R) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option, fixed maturity options, or the account for special dollar cost averaging ("investment options"). Certain features and benefits described in this Prospectus may vary in your state; all features and benefits may not be available in all contracts, in all states or from all selling broker-dealers. Please see Appendix VIII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street o EQ/Ariel Appreciation II Small Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS MId Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option, the fixed maturity options, and the account for special dollar cost averaging, which are discussed later in this Prospectus. TYPES OF CONTRACTS. Contracts were offered for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA or Roth IRA. o Two versions of the traditional IRA were offered: "Rollover IRA" and "Flexible Premium IRA." Two versions of the Roth IRA were offered: "Roth Conversion IRA" and "Flexible Premium Roth IRA." o Traditional and Roth Inherited IRA beneficiary continuation contract ("Inherited IRA") (direct transfer contributions only). o An annuity that is an investment vehicle for a qualified defined contribution plan ("QP") (Rollover and direct transfer contributions only). o An Internal Revenue Code Section 403(b)Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $5,000 was required to purchase an NQ, Rollover IRA, Roth Conversion IRA, Inherited IRA, QP, or Rollover TSA contract. A contribution of $2,000 was required to purchase a Flexible Premium IRA and Flexible Premium Roth IRA contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. Core 02/04 Series X01893 This contract is no longer available for new purchasers. This contract is no longer being sold. This Prospectus is designed for current contract owners. In addition to the possible state variations noted above, you should note that your contract features and charges may vary depending on the date on which you purchased your contract. For more information about the particular features, charges and options applicable to you, please contact your financial professional or refer to your contract, as well as review Appendix IX later in this Prospectus for contract variation information and timing. You may not change your contract or its features as issued. Contents of this Prospectus - ------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (Not all of the features listed are available under all contracts or in all states.) - -------------------------------------------------------------------------------- ACCUMULATOR(R) - -------------------------------------------------------------------------------- Index of key words and phrases 5 Who is AXA Equitable? 7 How to reach us 8 Accumulator(R) at a glance -- key features 12 - -------------------------------------------------------------------------------- FEE TABLE 14 - -------------------------------------------------------------------------------- Example 18 Condensed financial information 21 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 22 - -------------------------------------------------------------------------------- How you can contribute to your contract 22 Owner and annuitant requirements 29 How you can make your contributions 29 What are your investment options under the contract? 29 Portfolios of the Trusts 30 Allocating your contributions 36 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 39 Annuity purchase factors 40 Guaranteed minimum income benefit option* 41 Guaranteed minimum death benefit 43 Principal Protector(SM) 45 Inherited IRA beneficiary continuation contract 48 Your right to cancel within a certain number of days 49 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 50 - -------------------------------------------------------------------------------- Your account value and cash value 50 Your contract's value in the variable investment options 50 Your contract's value in the guaranteed interest option 50 Your contract's value in the fixed maturity options 50 Your contract's value in the account for special dollar cost averaging 50 Insufficient account value 50 - ---------------------- * Depending on when you purchased your contract, this benefit may be called the "Living Benefit." Accordingly, if applicable, all references to the Guaranteed minimum income benefit in this Prospectus and any related registration statement documents are references to the Living Benefit. "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the Prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. Contents of this Prospectus 3 - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 52 - -------------------------------------------------------------------------------- Transferring your account value 52 Disruptive transfer activity 52 Rebalancing your account value 53 - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 55 - -------------------------------------------------------------------------------- Withdrawing your account value 55 How withdrawals are taken from your account value 56 How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2 57 How withdrawals affect Principal Protector(SM) 57 Withdrawals treated as surrenders 57 Loans under Rollover TSA contracts 58 Surrendering your contract to receive its cash value 58 When to expect payments 58 Your annuity payout options 59 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 62 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 62 Charges that the Trusts deduct 66 Group or sponsored arrangements 66 Other distribution arrangements 66 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 67 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 67 How death benefit payment is made 68 Beneficiary continuation option 69 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 73 - -------------------------------------------------------------------------------- Overview 73 Contracts that fund a retirement arrangement 73 Transfers among investment options 73 Taxation of nonqualified annuities 73 Individual retirement arrangements (IRAs) 75 Tax-sheltered annuity contracts (TSAs) 84 Federal and state income tax withholding and information reporting 89 Special rules for contracts funding qualified plans 90 Impact of taxes to AXA Equitable 90 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 91 - -------------------------------------------------------------------------------- About Separate Account No. 49 91 About the Trusts 91 About our fixed maturity options 91 About the general account 92 About other methods of payment 93 Dates and prices at which contract events occur 93 About your voting rights 94 About legal proceedings 94 Financial statements 94 Transfers of ownership, collateral assignments, loans and borrowing 95 Distribution of the contracts 95 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 97 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Enhanced death benefit example D-1 V -- Hypothetical illustrations E-1 VI -- Guaranteed principal benefit example F-1 VII -- Protection Plus(SM) example G-1 VIII -- State contract availability and/or variations of certain features and benefits H-1 IX -- Contract variations I-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- 4 Contents of this Prospectus Index of key words and phrases - ------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page 6% Roll-Up to age 85 enhanced death benefit 39 account for special dollar cost averaging 36 account value 50 administrative charge 62 annual administrative charge 62 Annual Ratchet to age 85 enhanced death benefit 40 annuitant 22 annuitization 59 annuity maturity date 61 annuity payout options 59 annuity purchase factors 40 automatic investment program 93 beneficiary 67 Beneficiary continuation option ("BCO") 69 business day 93 cash value 50 charges for state premium and other applicable taxes 66 contract date 29 contract date anniversary 29 contract year 29 contributions to Roth IRAs 81 regular contributions 81 rollovers and transfers 82 conversion contributions 82 contributions to traditional IRAs 76 regular contributions 76 rollovers and transfers 77 disability, terminal illness or confinement to nursing home 64 disruptive transfer activity 52 Distribution Charge 62 EQAccess 8 ERISA 66 Fixed-dollar option 38 fixed maturity options 35 Flexible Premium IRA cover Flexible Premium Roth IRA cover free look 49 free withdrawal amount 63 general account 92 General dollar cost averaging 38 guaranteed interest option 35 Guaranteed minimum death benefit 43 Guaranteed minimum death benefit charge 64 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 39 Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset option 43 Guaranteed minimum income benefit 41 Guaranteed minimum income benefit charge 64 Guaranteed minimum income benefit "no lapse guarantee" 42 Guaranteed principal benefits 36 IRA cover IRS 73 Inherited IRA cover Investment simplifier 38 investment options cover lifetime required minimum distribution withdrawals 56 loan reserve account 58 loans under Rollover TSA 58 market adjusted amount 35 market value adjustment 35 market timing 52 maturity dates 35 maturity value 35 Mortality and expense risks charge 62 NQ cover Optional step up charge 66 partial withdrawals 55 Portfolio cover Principal assurance 37 Principal Protector(SM) 45 Principal Protector(SM) charge 65 processing office 8 Protection Plus(SM) 44 Protection Plus(SM) charge 65 QP cover rate to maturity 35 Rebalancing 53 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 36 Separate Account No. 49 91 special dollar cost averaging 38 Spousal protection 69 standard death benefit 39 substantially equal withdrawals 56 Successor owner and annuitant 68 systematic withdrawals 55 TOPS 8 TSA cover traditional IRA cover Trusts 86 unit 50 variable investment options 29 wire transmittals and electronic applications 93 withdrawal charge 63 Index of key words and phrases 5 To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract or supplemental materials. Also, depending on when you purchased your contract, some of these may not apply to you or may be named differently under your contract. Your financial professional can provide further explanation about your contract. - -------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - -------------------------------------------------------------------------------- fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guaranteed minimum income benefit Guaranteed Income Benefit or Living Benefit Guaranteed interest option Guaranteed Interest Account Principal Protector(SM) Guaranteed withdrawal benefit GWB benefit base Principal Protector(SM) benefit base GWB Annual withdrawal amount Principal Protector(SM) Annual withdrawal amount GWB Annual withdrawal option Principal Protector(SM) Annual withdrawal option GWB Excess withdrawal Principal Protector(SM) Excess withdrawal - -------------------------------------------------------------------------------- 6 Index of key words and phrases Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. Who is AXA Equitable? 7 HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year, and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility to exercise the Guaranteed minimum income benefit and/or the Roll-Up benefit base reset option. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options; o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain contract statements electronically; o enroll in , modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of any transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money 8 Who is AXA Equitable? among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA or Flex ible Premium Roth IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts; (7) tax withholding elections; (8) election of the beneficiary continuation option; (9) IRA contribution recharacterizations; (10) Section 1035 exchanges; (11) direct transfers and rollovers; (12) exercise of the Guaranteed minimum income benefit; (13) requests to reset your Roll-Up benefit base (for certain contracts with both the Guaranteed minimum income benefit and the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit); (14) requests to step up your Guaranteed withdrawal benefit ("GWB") benefit base, if applicable, under the Optional step up provision; (15) requests to terminate or reinstate your GWB, if applicable, under the Beneficiary continuation option, if applicable; (16) death claims; (17) purchase by, or change of ownership to, a non-natural person; (18) change in ownership (NQ only if available under your contract); and (19) enrollment in our "automatic required minimum distribution (RMD) service." WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; (3) general dollar cost averaging (including the fixed dollar and interest sweep options); and (4) special dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging (including the fixed dollar and interest sweep options); (3) special dollar cost averaging; (4) substantially equal withdrawals; (5) systematic withdrawals; and (6) the date annuity payments are to begin. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners, both must sign. Who is AXA Equitable? 9 Accumulator(R) at a glance -- key features - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (Not all of the features listed are available under all contracts or in all states.) - -------------------------------------------------------------------------------- Professional investment Accumulator's(R) variable investment options invest management in different Portfolios managed by professional investment advisers. - -------------------------------------------------------------------------------- Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2 only). --------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - -------------------------------------------------------------------------------- Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - -------------------------------------------------------------------------------- Account for special dollar Available for dollar cost averaging all or a cost averaging portion of any eligible contribution to your contract. - -------------------------------------------------------------------------------- Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. --------------------------------------------------- o No tax on transfers among investment options inside the contract. --------------------------------------------------- You should be aware that annuity contracts that were purchased as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before you purchased your contract, you should have considered its features and benefits beyond tax deferral, as well as its features, benefits and costs relative to any other investment that you may have chosen in connection with your retirement plan or arrangement, to determine whether it would meet your needs and goals. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - -------------------------------------------------------------------------------- Guaranteed minimum The Guaranteed minimum income benefit provides income benefit (or "Living income protection for you during the annuitant's Benefit") life once you elect to annuitize the contract. - -------------------------------------------------------------------------------- Principal Protector(SM) Principal Protector(SM) is our optional Guaranteed withdrawal benefit ("GWB"), which provides for recovery of your total contributions through withdrawals, even if your account value falls to zero, provided that during each contract year, your total withdrawals do not exceed a specified amount. This feature may not have been available under your contract. - --------------------------------------------------------------------------------
10 Accumulator(R) at a glance -- key features - ------------------------------------------------------------------------------------------------------------------------------------ Contribution amounts NQ, Rollover IRA, Roth Conversion IRA, Inherited IRA, QP and Rollover TSA contracts o Initial minimum: $5,000 o Additional minimum: $500 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $50 (IRA contracts) $1,000 (Inherited IRA contracts) ------------------------------------------------------------------------------------------------------------- Flexible Premium IRA and Flexible Premium Roth IRA contracts o Initial minimum: $2,000 o Additional minimum: $ 50 ------------------------------------------------------------------------------------------------------------- Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million ($500,000 for certain owners or annuitants who are age 81 and older at contract issue). See "How you can contribute to your contract" in "Contract features and benefits" later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------ Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ------------------------------------------------------------------------------------------------------------------------------------ Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - ------------------------------------------------------------------------------------------------------------------------------------ Additional features* o Guaranteed minimum death benefit options o Guaranteed principal benefit options (including Principal assurance) o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semi-annually, and annually) o Free transfers o Waiver of withdrawal charge for certain withdrawals, disability, terminal illness, or confinement to a nursing home o Protection Plus(SM), an optional death benefit available under certain contracts (subject to state availability) o Spousal protection (not available under certain contracts) o Successor owner/annuitant o Beneficiary continuation option o Guaranteed minimum income benefit no lapse guarantee (available under contracts with applications that were signed and submitted on or after January 1, 2005 subject to state availability) o Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset (available under contracts with applications that were signed and submitted on or after October 1, 2005 subject to state availability) - ------------------------------------------------------------------------------------------------------------------------------------
* Not all features are available under all contracts. Please see Appendix IX \ later in this Prospectus for more information. Accumulator(R) at a glance -- key features 11 - -------------------------------------------------------------------------------- Fees and charges(+) o Daily charges on amounts invested in variable investment options for mortality and expense risks, administrative charges and distribution charges at an annual rate of 1.25%. o The charges for the Guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the applicable benefit base. The benefit base is described under "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" in "Contract features and benefits" later in this Prospectus. o An annual charge of 0.65% of the applicable benefit base charge for the optional Guaranteed minimum income benefit until you exercise the benefit, elect another annuity payout or the contract date anniversary after the annuitant reaches age 85, whichever occurs first. The benefit base is described under "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" in "Contract features and benefits" later in this Prospectus. o An annual charge for the optional Guaranteed principal benefit option 2 (if available) deducted on the first ten contract date anniversaries equal to 0.50% of the account value. o If your account value at the end of the contract year is less than $50,000, we deduct an annual administrative charge equal to $30, or during the first two contract years, 2% of your account value, if less. If your account value on the contract date anniversary is $50,000 or more, we will not deduct the charge. o An annual charge of 0.35% of your account value for the Protection Plus(SM) optional death benefit. o An annual charge of 0.35% of your account value for the 5% GWB Annual withdrawal option (if available) or 0.50% of your account value for the 7% GWB Annual withdrawal option (if available) for the Principal Protector(SM) benefit. If you "step up" your GWB benefit base, we reserve the right to raise the charge up to 0.60% and 0.80%, respectively. See "Principal Protector(SM)" in "Contract features and benefits" later in this Prospectus. o No sales charge is deducted at the time you make contributions. o During the first seven contract years following a contribution, a charge of up to 7% will be deducted from amounts that you withdraw that exceed 10% of your account value. We use your account value at the beginning of each contract year to calculate the 10% amount available. There is no withdrawal charge in the eighth and later contract years following a contribution. Certain other exemptions may apply. Certain contracts may provide for a higher free withdrawal amount. See Appendix IX later in this Prospectus for the free withdrawal amount that applies to your contract. ----------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we received the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date appears in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. ----------------------------------------------- o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. This charge is generally deducted from the amount applied to an annuity payout option. o We currently deduct a $350 annuity administrative fee from amounts applied to purchase the variable immediate annuitization payout option. This option is described in a separate prospectus that is available from your financial professional. o Annual expenses of the Trusts' Portfolios are calculated as a percentage of the average daily net assets invested in each Portfolio. Please see "Fee table" later in this Prospectus for details. + The fees and charges shown in this section are the maximum charges a contract owner will pay. Please see your contract for the fees and charges that apply to you. Also, some of the optional benefits may not be available under your contract. - -------------------------------------------------------------------------------- Annuitant issue ages* NQ: 0-85 Rollover IRA, Roth Conversion IRA, Flexible Premium Roth IRA and Rollover TSA: 20-85 Flexible Premium IRA: 20-70 Inherited IRA: 0-70 QP: 20-75 * If you are an existing contract owner, you may have purchased your contract at an older issue age. - --------------------------------------------------------------------------------
12 Accumulator(R) at a glance -- key features The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available in your state or at certain ages. Please see Appendix VIII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. OTHER CONTRACTS We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. Accumulator(R) at a glance -- key features 13 Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you pay when owning and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The fees and charges shown in this section are the maximum fees and charges that a contract owner will pay. Please see your contract and/or Appendix IX later in this Prospectus for the fees and charges that apply under your contract. All features listed below may not have been available at the time you purchased your contract. See Appendix IX later in this Prospectus for more information. The first table describes fees and expenses that you will pay at the time that you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity payout option. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply.
- ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value at the time you request certain transactions - ------------------------------------------------------------------------------------------------------------------------------------ Maximum withdrawal charge as a percentage of contributions with- drawn (deducted if you surrender your contract or make certain withdrawals or apply your cash value to certain payout options).(1) 7.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value on each contract date anniversary - ------------------------------------------------------------------------------------------------------------------------------------ Maximum annual administrative charge(2) If your account value on a contract date anniversary is less than $50,000(3) $ 30 If your account value on a contract date anniversary is $50,000 or more $ 0 Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks 0.75%(4) Administrative 0.30% Distribution 0.20% ----- Total Separate account annual expenses 1.25% - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value each year if you elect any of the following optional benefits - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect). Standard death benefit 0.00% Annual Ratchet to age 85 0.30% of the Annual Ratchet to age 85 benefit base (maximum); 0.25% (current) 6% Roll-Up to age 85 0.45% of the 6% Roll-Up to age 85 benefit base Greater of 5% Roll-Up to age 85 or Annual Ratchet to age 85 0.50% of the greater of 5% Roll-Up to age 85 benefit base of the Annual Ratchet to age 85 benefit base, as applicable. Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 0.60% of the greater of 6% Roll-Up to age 85 benefit base or the Annual Ratchet to age 85 benefit base, as applicable - ------------------------------------------------------------------------------------------------------------------------------------
14 Fee table - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed principal benefit charge for option 2 (calculated as a percentage of the account value. Deducted annually(2) on the first 10 contract date anniversaries) 0.50% - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum income benefit (or "Living Benefit") charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect) 0.65% - ------------------------------------------------------------------------------------------------------------------------------------ Protection Plus(SM) benefit charge (calculated as a percentage of the account value. Deducted annually(2) on each contract date anniver- sary for which the benefit is in effect) 0.35% - ------------------------------------------------------------------------------------------------------------------------------------ Principal Protector(SM) benefit charge (calculated as a percentage 0.35% for the 5% GWB of the account value. Deducted annually(2) on each contract date anni- Annual withdrawal option versary, provided your GWB benefit base is greater than zero.) 0.50% for the 7% GWB Annual withdrawal option If you "step up" your GWB benefit base, we reserve the right to 0.60% for the 5% GWB increase your charge up to: Annual withdrawal option 0.80% for the 7% GWB Annual withdrawal option Please see "Principal Protector(SM)" in "Contract features and benefits" for more information about this feature, including its benefit base and the optional step up provision, and "Principal Protector(SM) charge" in "Charges and expenses," both later in this Prospectus, for more information about when the charge applies. - ------------------------------------------------------------------------------------------------------------------------------------ Net loan interest charge - Rollover TSA contracts only (calcu- lated and deducted daily as a percentage of the outstanding loan amount) 2.00%(5) - ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio. - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio operating expenses expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ ------- other expenses)(6) 0.63% 3.56%
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------ Acquired Fund Fees Total and Annual Expenses Expenses Fee Waiv- Net Annual (Underly- (Before ers and/or Expenses Manage- ing Expense Expense (After ment 12b-1 Other Portfo- Limita- Reimburse- Expense Portfolio Name Fees(7) Fees(8) Expenses(9) lios)(10) tions) ments(11) Limitations) - ------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation 0.10% 0.25% 0.17% 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.10% 0.25% 0.21% 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.10% 0.25% 0.17% 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity 0.60% 0.25% 0.19% -- 1.04% -- 1.04% Multimanager Core Bond 0.58% 0.25% 0.18% -- 1.01% (0.01)% 1.00% Multimanager Health Care 1.20% 0.25% 0.23% -- 1.68% 0.00% 1.68% Multimanager High Yield 0.57% 0.25% 0.19% -- 1.01% -- 1.01% - ------------------------------------------------------------------------------------------------------------------------
Fee table 15 This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- --------------------------------------------------------------------------------------------- Manage- ment 12b-1 Other Portfolio Name Fees(7) Fees(8) Expenses(9) - --------------------------------------------------------------------------------------------- Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - --------------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% - --------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------- Acquired Fund Fees Total and Annual Expenses Expenses Fee Waiv- Net Annual (Underly- (Before ers and/or Expenses ing Expense Expense (After Portfo- Limita- Reimburse- Expense Portfolio Name lios)(10) tions) ments(11) Limitations) - ------------------------------------------------------------------------------------------------------------- Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - ------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(12) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% - -------------------------------------------------------------------------------------------------------------
16 Fee table This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- ----------------------------------------------------------------------------------------------------------------------------- Acquired Fund Fees Total and Annual Expenses Expenses Fee Waiv- Net Annual (Underly- (Before ers and/or Expenses Manage- ing Expense Expense (After ment 12b-1 Other Portfo- Limita- Reimburse- Expense Portfolio Name Fees(7) Fees(8) Expenses(9) lios)(10) tions) ments(11) Limitations) - ----------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ----------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond 0.43% 0.25% 0.15% -- 0.83% 0.00% 0.83% EQ/Small Company Index 0.25% 0.25% 0.14% -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% -- 1.18% (0.03)% 1.15% EQ/Templeton Growth 0.95% 0.25% 0.20% -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% -- 1.36% (0.10)% 1.26% - -----------------------------------------------------------------------------------------------------------------------------
Notes: (1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal amount, if applicable: The withdrawal charge percentage we use is Contract determined by the contract year in which Year you make the withdrawal or surrender your 1 ...............7.00% contract. For each contribution, we consider 2 ...............7.00% the contract year in which we receive that 3 ...............6.00% contribution to be "contract year 1") 4 ...............6.00% 5 ...............5.00% 6 ...............3.00% 7 ...............1.00% 8+ ..............0.00% (2) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. If you are an existing contract owner, this pro rata deduction may not apply under your contract. See Appendix IX later in this Prospectus for more information. For Principal Protector(SM) only (if available), if the contract and benefit are continued under the Beneficiary continuation option with Principal Protector(SM), the pro rata deduction for the Principal Protector(SM) charge is waived. (3) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, the charge, if applicable , is $30 for each con tract year. (4) These charges compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. (5) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (6) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (7) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (11) and (12) for any expense limitation agreement information. (8) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. For the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust, the 12b-1 fees will not be increased for the life of the contract. (9) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (11) and (12) for any expense limitation agreement information. (10) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (11) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolio in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: Fee table 17 --------------------------------------------- Portfolio Name --------------------------------------------- Multimanager Aggressive Equity 0.97% --------------------------------------------- Multimanager Health Care 1.67% --------------------------------------------- Multimanager Large Cap Core Equity 1.34% --------------------------------------------- Multimanager Large Cap Growth 1.29% --------------------------------------------- Multimanager Large Cap Value 1.26% --------------------------------------------- Multimanager Mid Cap Growth 1.52% --------------------------------------------- Multimanager Mid Cap Value 1.53% --------------------------------------------- Multimanager Small Cap Growth 1.35% --------------------------------------------- Multimanager Small Cap Value 1.45% --------------------------------------------- Multimanager Technology 1.67% --------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% --------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% --------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% --------------------------------------------- EQ/AllianceBernstein Value 0.87% --------------------------------------------- EQ/Ariel Appreciation II 1.09% --------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% --------------------------------------------- EQ/Davis New York Venture 1.25% --------------------------------------------- EQ/Evergreen Omega 1.12% --------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% --------------------------------------------- EQ/GAMCO Small Company Value 1.10% --------------------------------------------- EQ/International Core PLUS 1.05% --------------------------------------------- EQ/Large Cap Core PLUS 0.83% --------------------------------------------- EQ/Large Cap Growth PLUS 0.82% --------------------------------------------- EQ/Legg Mason Value Equity 0.97% --------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% --------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% --------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% --------------------------------------------- EQ/Mid Cap Value PLUS 0.81% --------------------------------------------- EQ/Montag & Caldwell Growth 1.13% --------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% --------------------------------------------- EQ/UBS Growth and Income 1.04% --------------------------------------------- EQ/Van Kampen Comstock 0.99% --------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% --------------------------------------------- (12) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and adminis tration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the Guaranteed minimum income benefit with the enhanced death benefit that provides for the greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 and Protection Plus(SM)) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.009% of contract value. The fixed maturity options, guaranteed interest option and the account for special dollar cost averaging are not covered by the example. However, the annual administrative charge, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options, guaranteed interest option and the account for special dollar cost averaging. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 18 Fee table
- ---------------------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period ----------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST - ---------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,153.00 $ 1,986.00 $ 2,860.00 $ 4,984.00 AXA Conservative Allocation $ 1,133.00 $ 1,928.00 $ 2,766.00 $ 4,811.00 AXA Conservative-Plus Allocation $ 1,138.00 $ 1,944.00 $ 2,791.00 $ 4,857.00 AXA Moderate Allocation $ 1,142.00 $ 1,956.00 $ 2,811.00 $ 4,894.00 AXA Moderate-Plus Allocation $ 1,146.00 $ 1,968.00 $ 2,831.00 $ 4,930.00 Multimanager Aggressive Equity $ 1,111.00 $ 1,863.00 $ 2,661.00 $ 4,616.00 Multimanager Core Bond $ 1,107.00 $ 1,854.00 $ 2,646.00 $ 4,587.00 Multimanager Health Care $ 1,178.00 $ 2,060.00 $ 2,978.00 $ 5,198.00 Multimanager High Yield $ 1,107.00 $ 1,854.00 $ 2,646.00 $ 4,587.00 Multimanager International Equity $ 1,157.00 $ 1,999.00 $ 2,880.00 $ 5,020.00 Multimanager Large Cap Core Equity $ 1,143.00 $ 1,959.00 $ 2,816.00 $ 4,903.00 Multimanager Large Cap Growth $ 1,145.00 $ 1,965.00 $ 2,826.00 $ 4,921.00 Multimanager Large Cap Value $ 1,140.00 $ 1,950.00 $ 2,801.00 $ 4,875.00 Multimanager Mid Cap Growth $ 1,164.00 $ 2,020.00 $ 2,915.00 $ 5,083.00 Multimanager Mid Cap Value $ 1,163.00 $ 2,017.00 $ 2,910.00 $ 5,074.00 Multimanager Small Cap Growth $ 1,166.00 $ 2,026.00 $ 2,924.00 $ 5,101.00 Multimanager Small Cap Value $ 1,155.00 $ 1,993.00 $ 2,870.00 $ 5,002.00 Multimanager Technology $ 1,178.00 $ 2,060.00 $ 2,978.00 $ 5,198.00 - ---------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,091.00 $ 1,805.00 $ 2,565.00 $ 4,435.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,094.00 $ 1,814.00 $ 2,580.00 $ 4,464.00 EQ/AllianceBernstein International $ 1,121.00 $ 1,894.00 $ 2,711.00 $ 4,709.00 EQ/AllianceBernstein Large Cap Growth $ 1,136.00 $ 1,937.00 $ 2,781.00 $ 4,839.00 EQ/AllianceBernstein Quality Bond $ 1,095.00 $ 1,817.00 $ 2,585.00 $ 4,473.00 EQ/AllianceBernstein Small Cap Growth $ 1,119.00 $ 1,888.00 $ 2,701.00 $ 4,691.00 EQ/AllianceBernstein Value $ 1,102.00 $ 1,839.00 $ 2,620.00 $ 4,540.00 EQ/Ariel Appreciation II $ 1,134.00 $ 1,931.00 $ 2,771.00 $ 4,820.00 EQ/AXA Rosenberg Value Long/Short Equity $ 1,375.00 $ 2,621.00 $ 3,861.00 $ 6,693.00 EQ/BlackRock Basic Value Equity $ 1,099.00 $ 1,829.00 $ 2,605.00 $ 4,512.00 EQ/BlackRock International Value $ 1,133.00 $ 1,928.00 $ 2,766.00 $ 4,811.00 EQ/Boston Advisors Equity Income $ 1,121.00 $ 1,894.00 $ 2,711.00 $ 4,709.00 EQ/Calvert Socially Responsible $ 1,120.00 $ 1,891.00 $ 2,706.00 $ 4,700.00 EQ/Capital Guardian Growth $ 1,112.00 $ 1,867.00 $ 2,666.00 $ 4,625.00 EQ/Capital Guardian Research $ 1,107.00 $ 1,854.00 $ 2,646.00 $ 4,587.00 EQ/Caywood-Scholl High Yield Bond $ 1,107.00 $ 1,854.00 $ 2,646.00 $ 4,587.00 EQ/Davis New York Venture $ 1,136.00 $ 1,937.00 $ 2,781.00 $ 4,839.00 EQ/Equity 500 Index $ 1,068.00 $ 1,736.00 $ 2,452.00 $ 4,222.00 EQ/Evergreen International Bond $ 1,119.00 $ 1,888.00 $ 2,701.00 $ 4,691.00 EQ/Evergreen Omega $ 1,122.00 $ 1,897.00 $ 2,716.00 $ 4,719.00 EQ/FI Mid Cap $ 1,113.00 $ 1,870.00 $ 2,671.00 $ 4,635.00 - ------------------------------------------------------------------------------------------------------------------------------ If you do not surrender your contract at the end If you annuitize at the end of the applicable time of the period, and select a non-life contingent period applicable certain annuity option with less than five years time period ------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years 1 year - ------------------------------------------------------------------------------------------------------------------------------ AXA PREMIER VIP TRUST - ------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation N/A $ 1,986.00 $ 2,860.00 $ 4,984.00 $ 453.00 AXA Conservative Allocation N/A $ 1,928.00 $ 2,766.00 $ 4,811.00 $ 433.00 AXA Conservative-Plus Allocation N/A $ 1,944.00 $ 2,791.00 $ 4,857.00 $ 438.00 AXA Moderate Allocation N/A $ 1,956.00 $ 2,811.00 $ 4,894.00 $ 442.00 AXA Moderate-Plus Allocation N/A $ 1,968.00 $ 2,831.00 $ 4,930.00 $ 446.00 Multimanager Aggressive Equity N/A $ 1,863.00 $ 2,661.00 $ 4,616.00 $ 411.00 Multimanager Core Bond N/A $ 1,854.00 $ 2,646.00 $ 4,587.00 $ 407.00 Multimanager Health Care N/A $ 2,060.00 $ 2,978.00 $ 5,198.00 $ 478.00 Multimanager High Yield N/A $ 1,854.00 $ 2,646.00 $ 4,587.00 $ 407.00 Multimanager International Equity N/A $ 1,999.00 $ 2,880.00 $ 5,020.00 $ 457.00 Multimanager Large Cap Core Equity N/A $ 1,959.00 $ 2,816.00 $ 4,903.00 $ 443.00 Multimanager Large Cap Growth N/A $ 1,965.00 $ 2,826.00 $ 4,921.00 $ 445.00 Multimanager Large Cap Value N/A $ 1,950.00 $ 2,801.00 $ 4,875.00 $ 440.00 Multimanager Mid Cap Growth N/A $ 2,020.00 $ 2,915.00 $ 5,083.00 $ 464.00 Multimanager Mid Cap Value N/A $ 2,017.00 $ 2,910.00 $ 5,074.00 $ 463.00 Multimanager Small Cap Growth N/A $ 2,026.00 $ 2,924.00 $ 5,101.00 $ 466.00 Multimanager Small Cap Value N/A $ 1,993.00 $ 2,870.00 $ 5,002.00 $ 455.00 Multimanager Technology N/A $ 2,060.00 $ 2,978.00 $ 5,198.00 $ 478.00 - ------------------------------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock N/A $ 1,805.00 $ 2,565.00 $ 4,435.00 $ 391.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,814.00 $ 2,580.00 $ 4,464.00 $ 394.00 EQ/AllianceBernstein International N/A $ 1,894.00 $ 2,711.00 $ 4,709.00 $ 421.00 EQ/AllianceBernstein Large Cap Growth N/A $ 1,937.00 $ 2,781.00 $ 4,839.00 $ 436.00 EQ/AllianceBernstein Quality Bond N/A $ 1,817.00 $ 2,585.00 $ 4,473.00 $ 395.00 EQ/AllianceBernstein Small Cap Growth N/A $ 1,888.00 $ 2,701.00 $ 4,691.00 $ 419.00 EQ/AllianceBernstein Value N/A $ 1,839.00 $ 2,620.00 $ 4,540.00 $ 402.00 EQ/Ariel Appreciation II N/A $ 1,931.00 $ 2,771.00 $ 4,820.00 $ 434.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,621.00 $ 3,861.00 $ 6,693.00 $ 675.00 EQ/BlackRock Basic Value Equity N/A $ 1,829.00 $ 2,605.00 $ 4,512.00 $ 399.00 EQ/BlackRock International Value N/A $ 1,928.00 $ 2,766.00 $ 4,811.00 $ 433.00 EQ/Boston Advisors Equity Income N/A $ 1,894.00 $ 2,711.00 $ 4,709.00 $ 421.00 EQ/Calvert Socially Responsible N/A $ 1,891.00 $ 2,706.00 $ 4,700.00 $ 420.00 EQ/Capital Guardian Growth N/A $ 1,867.00 $ 2,666.00 $ 4,625.00 $ 412.00 EQ/Capital Guardian Research N/A $ 1,854.00 $ 2,646.00 $ 4,587.00 $ 407.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,854.00 $ 2,646.00 $ 4,587.00 $ 407.00 EQ/Davis New York Venture N/A $ 1,937.00 $ 2,781.00 $ 4,839.00 $ 436.00 EQ/Equity 500 Index N/A $ 1,736.00 $ 2,452.00 $ 4,222.00 $ 368.00 EQ/Evergreen International Bond N/A $ 1,888.00 $ 2,701.00 $ 4,691.00 $ 419.00 EQ/Evergreen Omega N/A $ 1,897.00 $ 2,716.00 $ 4,719.00 $ 422.00 EQ/FI Mid Cap N/A $ 1,870.00 $ 2,671.00 $ 4,635.00 $ 413.00 If you do not surrender your contract at the end of the applicable time period -------------------------------------------- Portfolio Name 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST - ------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,386.00 $ 2,360.00 $ 4,984.00 AXA Conservative Allocation $ 1,328.00 $ 2,266.00 $ 4,811.00 AXA Conservative-Plus Allocation $ 1,344.00 $ 2,291.00 $ 4,857.00 AXA Moderate Allocation $ 1,356.00 $ 2,311.00 $ 4,894.00 AXA Moderate-Plus Allocation $ 1,368.00 $ 2,331.00 $ 4,930.00 Multimanager Aggressive Equity $ 1,263.00 $ 2,161.00 $ 4,616.00 Multimanager Core Bond $ 1,254.00 $ 2,146.00 $ 4,587.00 Multimanager Health Care $ 1,460.00 $ 2,478.00 $ 5,198.00 Multimanager High Yield $ 1,254.00 $ 2,146.00 $ 4,587.00 Multimanager International Equity $ 1,399.00 $ 2,380.00 $ 5,020.00 Multimanager Large Cap Core Equity $ 1,359.00 $ 2,316.00 $ 4,903.00 Multimanager Large Cap Growth $ 1,365.00 $ 2,326.00 $ 4,921.00 Multimanager Large Cap Value $ 1,350.00 $ 2,301.00 $ 4,875.00 Multimanager Mid Cap Growth $ 1,420.00 $ 2,415.00 $ 5,083.00 Multimanager Mid Cap Value $ 1,417.00 $ 2,410.00 $ 5,074.00 Multimanager Small Cap Growth $ 1,426.00 $ 2,424.00 $ 5,101.00 Multimanager Small Cap Value $ 1,393.00 $ 2,370.00 $ 5,002.00 Multimanager Technology $ 1,460.00 $ 2,478.00 $ 5,198.00 - ------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,205.00 $ 2,065.00 $ 4,435.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,214.00 $ 2,080.00 $ 4,464.00 EQ/AllianceBernstein International $ 1,294.00 $ 2,211.00 $ 4,709.00 EQ/AllianceBernstein Large Cap Growth $ 1,337.00 $ 2,281.00 $ 4,839.00 EQ/AllianceBernstein Quality Bond $ 1,217.00 $ 2,085.00 $ 4,473.00 EQ/AllianceBernstein Small Cap Growth $ 1,288.00 $ 2,201.00 $ 4,691.00 EQ/AllianceBernstein Value $ 1,239.00 $ 2,120.00 $ 4,540.00 EQ/Ariel Appreciation II $ 1,331.00 $ 2,271.00 $ 4,820.00 EQ/AXA Rosenberg Value Long/Short Equity $ 2,021.00 $ 3,361.00 $ 6,693.00 EQ/BlackRock Basic Value Equity $ 1,229.00 $ 2,105.00 $ 4,512.00 EQ/BlackRock International Value $ 1,328.00 $ 2,266.00 $ 4,811.00 EQ/Boston Advisors Equity Income $ 1,294.00 $ 2,211.00 $ 4,709.00 EQ/Calvert Socially Responsible $ 1,291.00 $ 2,206.00 $ 4,700.00 EQ/Capital Guardian Growth $ 1,267.00 $ 2,166.00 $ 4,625.00 EQ/Capital Guardian Research $ 1,254.00 $ 2,146.00 $ 4,587.00 EQ/Caywood-Scholl High Yield Bond $ 1,254.00 $ 2,146.00 $ 4,587.00 EQ/Davis New York Venture $ 1,337.00 $ 2,281.00 $ 4,839.00 EQ/Equity 500 Index $ 1,136.00 $ 1,952.00 $ 4,222.00 EQ/Evergreen International Bond $ 1,288.00 $ 2,201.00 $ 4,691.00 EQ/Evergreen Omega $ 1,297.00 $ 2,216.00 $ 4,719.00 EQ/FI Mid Cap $ 1,270.00 $ 2,171.00 $ 4,635.00 - -------------------------------------------------------------------------------------------------------
Fee table 19
If you surrender your contract at the end of the applicable time period ----------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------ EQ/Franklin Income $ 1,138.00 $ 1,944.00 $ 2,791.00 $ 4,857.00 EQ/Franklin Small Cap Value $ 1,141.00 $ 1,953.00 $ 2,806.00 $ 4,884.00 EQ/Franklin Templeton Founding Strategy $ 1,166.00 $ 2,026.00 $ 2,924.00 $ 5,101.00 EQ/GAMCO Mergers and Acquisitions $ 1,142.00 $ 1,956.00 $ 2,811.00 $ 4,894.00 EQ/GAMCO Small Company Value $ 1,120.00 $ 1,891.00 $ 2,706.00 $ 4,700.00 EQ/International Core PLUS $ 1,126.00 $ 1,910.00 $ 2,736.00 $ 4,756.00 EQ/International Growth $ 1,145.00 $ 1,965.00 $ 2,826.00 $ 4,921.00 EQ/JPMorgan Core Bond $ 1,086.00 $ 1,792.00 $ 2,544.00 $ 4,397.00 EQ/JPMorgan Value Opportunities $ 1,105.00 $ 1,848.00 $ 2,635.00 $ 4,569.00 EQ/Large Cap Core PLUS $ 1,109.00 $ 1,857.00 $ 2,651.00 $ 4,597.00 EQ/Large Cap Growth PLUS $ 1,107.00 $ 1,854.00 $ 2,646.00 $ 4,587.00 EQ/Legg Mason Value Equity $ 1,114.00 $ 1,873.00 $ 2,676.00 $ 4,644.00 EQ/Long Term Bond $ 1,083.00 $ 1,783.00 $ 2,529.00 $ 4,368.00 EQ/Lord Abbett Growth and Income $ 1,113.00 $ 1,870.00 $ 2,671.00 $ 4,635.00 EQ/Lord Abbett Large Cap Core $ 1,118.00 $ 1,885.00 $ 2,696.00 $ 4,681.00 EQ/Lord Abbett Mid Cap Value $ 1,117.00 $ 1,882.00 $ 2,691.00 $ 4,672.00 EQ/Marsico Focus $ 1,131.00 $ 1,922.00 $ 2,756.00 $ 4,793.00 EQ/Mid Cap Value PLUS $ 1,113.00 $ 1,870.00 $ 2,671.00 $ 4,635.00 EQ/Money Market $ 1,075.00 $ 1,758.00 $ 2,488.00 $ 4,290.00 EQ/Montag & Caldwell Growth $ 1,122.00 $ 1,897.00 $ 2,716.00 $ 4,719.00 EQ/Mutual Shares $ 1,144.00 $ 1,962.00 $ 2,821.00 $ 4,912.00 EQ/Oppenheimer Global $ 1,182.00 $ 2,072.00 $ 2,998.00 $ 5,233.00 EQ/Oppenheimer Main Street Opportunity $ 1,165.00 $ 2,023.00 $ 2,920.00 $ 5,092.00 EQ/Oppenheimer Main Street Small Cap $ 1,174.00 $ 2,048.00 $ 2,959.00 $ 5,163.00 EQ/PIMCO Real Return $ 1,100.00 $ 1,833.00 $ 2,610.00 $ 4,521.00 EQ/Short Duration Bond $ 1,089.00 $ 1,798.00 $ 2,554.00 $ 4,416.00 EQ/Small Company Index $ 1,069.00 $ 1,739.00 $ 2,457.00 $ 4,231.00 EQ/T. Rowe Price Growth Stock $ 1,125.00 $ 1,907.00 $ 2,731.00 $ 4,746.00 EQ/Templeton Growth $ 1,148.00 $ 1,974.00 $ 2,840.00 $ 4,948.00 EQ/UBS Growth and Income $ 1,123.00 $ 1,900.00 $ 2,721.00 $ 4,728.00 EQ/Van Kampen Comstock $ 1,112.00 $ 1,867.00 $ 2,666.00 $ 4,625.00 EQ/Van Kampen Emerging Markets Equity $ 1,174.00 $ 2,048.00 $ 2,959.00 $ 5,163.00 EQ/Van Kampen Mid Cap Growth $ 1,117.00 $ 1,882.00 $ 2,691.00 $ 4,672.00 EQ/Van Kampen Real Estate $ 1,144.00 $ 1,962.00 $ 2,821.00 $ 4,912.00 - ------------------------------------------------------------------------------------------------------ If you do not surrender If you annuitize at the end of the applicable time your contract at the end period, and select a non-life contingent period of the applicable time certain annuity option with less than five years period ------------------------------------------------------ ---------------------------- Portfolio Name 1 year 3 years 5 years 10 years 1 year 3 years - ----------------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income N/A $ 1,944.00 $ 2,791.00 $ 4,857.00 $ 438.00 $ 1,344.00 EQ/Franklin Small Cap Value N/A $ 1,953.00 $ 2,806.00 $ 4,884.00 $ 441.00 $ 1,353.00 EQ/Franklin Templeton Founding Strategy N/A $ 2,026.00 $ 2,924.00 $ 5,101.00 $ 466.00 $ 1,426.00 EQ/GAMCO Mergers and Acquisitions N/A $ 1,956.00 $ 2,811.00 $ 4,894.00 $ 442.00 $ 1,356.00 EQ/GAMCO Small Company Value N/A $ 1,891.00 $ 2,706.00 $ 4,700.00 $ 420.00 $ 1,291.00 EQ/International Core PLUS N/A $ 1,910.00 $ 2,736.00 $ 4,756.00 $ 426.00 $ 1,310.00 EQ/International Growth N/A $ 1,965.00 $ 2,826.00 $ 4,921.00 $ 445.00 $ 1,365.00 EQ/JPMorgan Core Bond N/A $ 1,792.00 $ 2,544.00 $ 4,397.00 $ 386.00 $ 1,192.00 EQ/JPMorgan Value Opportunities N/A $ 1,848.00 $ 2,635.00 $ 4,569.00 $ 405.00 $ 1,248.00 EQ/Large Cap Core PLUS N/A $ 1,857.00 $ 2,651.00 $ 4,597.00 $ 409.00 $ 1,257.00 EQ/Large Cap Growth PLUS N/A $ 1,854.00 $ 2,646.00 $ 4,587.00 $ 407.00 $ 1,254.00 EQ/Legg Mason Value Equity N/A $ 1,873.00 $ 2,676.00 $ 4,644.00 $ 414.00 $ 1,273.00 EQ/Long Term Bond N/A $ 1,783.00 $ 2,529.00 $ 4,368.00 $ 383.00 $ 1,183.00 EQ/Lord Abbett Growth and Income N/A $ 1,870.00 $ 2,671.00 $ 4,635.00 $ 413.00 $ 1,270.00 EQ/Lord Abbett Large Cap Core N/A $ 1,885.00 $ 2,696.00 $ 4,681.00 $ 418.00 $ 1,285.00 EQ/Lord Abbett Mid Cap Value N/A $ 1,882.00 $ 2,691.00 $ 4,672.00 $ 417.00 $ 1,282.00 EQ/Marsico Focus N/A $ 1,922.00 $ 2,756.00 $ 4,793.00 $ 431.00 $ 1,322.00 EQ/Mid Cap Value PLUS N/A $ 1,870.00 $ 2,671.00 $ 4,635.00 $ 413.00 $ 1,270.00 EQ/Money Market N/A $ 1,758.00 $ 2,488.00 $ 4,290.00 $ 375.00 $ 1,158.00 EQ/Montag & Caldwell Growth N/A $ 1,897.00 $ 2,716.00 $ 4,719.00 $ 422.00 $ 1,297.00 EQ/Mutual Shares N/A $ 1,962.00 $ 2,821.00 $ 4,912.00 $ 444.00 $ 1,362.00 EQ/Oppenheimer Global N/A $ 2,072.00 $ 2,998.00 $ 5,233.00 $ 482.00 $ 1,472.00 EQ/Oppenheimer Main Street Opportunity N/A $ 2,023.00 $ 2,920.00 $ 5,092.00 $ 465.00 $ 1,423.00 EQ/Oppenheimer Main Street Small Cap N/A $ 2,048.00 $ 2,959.00 $ 5,163.00 $ 474.00 $ 1,448.00 EQ/PIMCO Real Return N/A $ 1,833.00 $ 2,610.00 $ 4,521.00 $ 400.00 $ 1,233.00 EQ/Short Duration Bond N/A $ 1,798.00 $ 2,554.00 $ 4,416.00 $ 389.00 $ 1,198.00 EQ/Small Company Index N/A $ 1,739.00 $ 2,457.00 $ 4,231.00 $ 369.00 $ 1,139.00 EQ/T. Rowe Price Growth Stock N/A $ 1,907.00 $ 2,731.00 $ 4,746.00 $ 425.00 $ 1,307.00 EQ/Templeton Growth N/A $ 1,974.00 $ 2,840.00 $ 4,948.00 $ 448.00 $ 1,374.00 EQ/UBS Growth and Income N/A $ 1,900.00 $ 2,721.00 $ 4,728.00 $ 423.00 $ 1,300.00 EQ/Van Kampen Comstock N/A $ 1,867.00 $ 2,666.00 $ 4,625.00 $ 412.00 $ 1,267.00 EQ/Van Kampen Emerging Markets Equity N/A $ 2,048.00 $ 2,959.00 $ 5,163.00 $ 474.00 $ 1,448.00 EQ/Van Kampen Mid Cap Growth N/A $ 1,882.00 $ 2,691.00 $ 4,672.00 $ 417.00 $ 1,282.00 EQ/Van Kampen Real Estate N/A $ 1,962.00 $ 2,821.00 $ 4,912.00 $ 444.00 $ 1,362.00 - ----------------------------------------------------------------------------------------------------------------------------- If you do not surrender your contract at of the applicable time period ----------------------------- Portfolio Name 5 years 10 years - ------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------ EQ/Franklin Income $ 2,291.00 $ 4,857.00 EQ/Franklin Small Cap Value $ 2,306.00 $ 4,884.00 EQ/Franklin Templeton Founding Strategy $ 2,424.00 $ 5,101.00 EQ/GAMCO Mergers and Acquisitions $ 2,311.00 $ 4,894.00 EQ/GAMCO Small Company Value $ 2,206.00 $ 4,700.00 EQ/International Core PLUS $ 2,236.00 $ 4,756.00 EQ/International Growth $ 2,326.00 $ 4,921.00 EQ/JPMorgan Core Bond $ 2,044.00 $ 4,397.00 EQ/JPMorgan Value Opportunities $ 2,135.00 $ 4,569.00 EQ/Large Cap Core PLUS $ 2,151.00 $ 4,597.00 EQ/Large Cap Growth PLUS $ 2,146.00 $ 4,587.00 EQ/Legg Mason Value Equity $ 2,176.00 $ 4,644.00 EQ/Long Term Bond $ 2,029.00 $ 4,368.00 EQ/Lord Abbett Growth and Income $ 2,171.00 $ 4,635.00 EQ/Lord Abbett Large Cap Core $ 2,196.00 $ 4,681.00 EQ/Lord Abbett Mid Cap Value $ 2,191.00 $ 4,672.00 EQ/Marsico Focus $ 2,256.00 $ 4,793.00 EQ/Mid Cap Value PLUS $ 2,171.00 $ 4,635.00 EQ/Money Market $ 1,988.00 $ 4,290.00 EQ/Montag & Caldwell Growth $ 2,216.00 $ 4,719.00 EQ/Mutual Shares $ 2,321.00 $ 4,912.00 EQ/Oppenheimer Global $ 2,498.00 $ 5,233.00 EQ/Oppenheimer Main Street Opportunity $ 2,420.00 $ 5,092.00 EQ/Oppenheimer Main Street Small Cap $ 2,459.00 $ 5,163.00 EQ/PIMCO Real Return $ 2,110.00 $ 4,521.00 EQ/Short Duration Bond $ 2,054.00 $ 4,416.00 EQ/Small Company Index $ 1,957.00 $ 4,231.00 EQ/T. Rowe Price Growth Stock $ 2,231.00 $ 4,746.00 EQ/Templeton Growth $ 2,340.00 $ 4,948.00 EQ/UBS Growth and Income $ 2,221.00 $ 4,728.00 EQ/Van Kampen Comstock $ 2,166.00 $ 4,625.00 EQ/Van Kampen Emerging Markets Equity $ 2,459.00 $ 5,163.00 EQ/Van Kampen Mid Cap Growth $ 2,191.00 $ 4,672.00 EQ/Van Kampen Real Estate $ 2,321.00 $ 4,912.00
For information on how your contract works under hypothetical circumstances, please see Appendix V at the end of this Prospectus. 20 Fee table CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. Fee table 21 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT The following table summarizes our rules regarding contributions to your contract. In some states, our rules may vary. All ages in the table refer to the age of the annuitant named in the contract. Initial contribution amounts are provided for informational purposes only. This contract is no longer available to new purchasers. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000 ($500,000 for owners or annuitants who are ages 81 and older at contract issue -- depending on your contract, this restriction may not apply to you. See Appendix IX later in this Prospectus for more information). We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. - -------------------------------------------------------------------------------- The "annuitant" is the person who is the measuring life for determining contract benefits. The annuitant is not necessarily the contract owner. - --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------- Available for annuitant Minimum Contract type issue ages* contributions Source of contributions Limitations on contributions+ - ---------------------------------------------------------------------------------------------------------------------------------- NQ 0 through 85 o $5,000 (initial) o After-tax money. o For annuitants up to age 83 at contract issue, no addi- o $500 (additional) o Paid to us by check or tional contributions may be transfer of contract value made after attainment of o $100 monthly and $300 in a tax-deferred exchange age 84, or, if later, the first quarterly under our auto- under Section 1035 of the contract date anniversary.* matic investment program Internal Revenue Code. (additional) o For annuitants age 84 or older at contract issue, additional contributions may be made up to one year from contract issue.* - ----------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
- ---------------------------------------------------------------------------------------------------------------------------- Available for annuitant Minimum Contract type issue ages* contributions Source of contributions Limitations on contributions+ - ---------------------------------------------------------------------------------------------------------------------------- Rollover IRA 20 through 85 o $5,000 (initial) o Eligible rollover distribu- o For annuitants up to age 83 tions from 403(b) plans, at contract issue, no addi- o $50 (additional) qualified plans, and govern- tional contributions may be mental employer 457(b) made after attainment of plans. age 84, or, if later, the first contract date anniversary.* o Rollovers from another traditional individual o For annuitants age 84 or retirement arrangement. older at contract issue, addi- tional contributions may be o Direct custodian-to- made up to one year from custodian transfers from contract issue.* another traditional indi- vidual retirement o Contributions after age 70-1/2 arrangement. must be net of required minimum distributions. o Regular IRA contributions. o Although we accept regular o Additional catch-up IRA contributions (limited to contributions. $5,000) under rollover IRA contracts, we intend that this contract be used prima- rily for rollover and direct transfer contributions. o Additional catch-up contri- butions of up to $1,000 per calendar year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - ----------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
- ---------------------------------------------------------------------------------------------------------------------------- Available for annuitant Minimum Contract type issue ages* contributions Source of contributions Limitations on contributions+ - ---------------------------------------------------------------------------------------------------------------------------- Roth Conversion 20 through 85 o $5,000 (initial) o Rollovers from another o For annuitants up to age 83 IRA Roth IRA. at contract issue, no addi- o $50 (additional) tional contributions may be o Rollovers from a "desig- made after attainment of nated Roth contribution age 84, or, if later, the first account" under a 401(k) contract date anniversary.* plan or 403(b) plan. o For annuitants age 84 or o Conversion rollovers from older at contract issue, addi- a traditional IRA or other tional contributions may be eligible retirement plan. made up to one year from contract issue.* o Direct transfers from another Roth IRA. o Conversion rollovers after age 70-1/2 must be net of o Regular Roth IRA contribu- required minimum distribu- tions. tions for the traditional IRA or other eligible retirement o Additional catch-up plan which is the source of contributions. the conversion rollover. o You cannot roll over funds from a traditional IRA or other eligible retirement plan if your adjusted gross income is $100,000 or more. o Although we accept regular Roth IRA contributions (lim- ited to $5,000) under Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contri- butions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribu- tion is made. - ----------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
- ---------------------------------------------------------------------------------------------------------------------------- Available for annuitant Minimum Contract type issue ages* contributions Source of contributions Limitations on contributions+ - ---------------------------------------------------------------------------------------------------------------------------- Rollover TSA 20 through 85 o $5,000 (initial) o With documentation of o For annuitants up to age 83 employer or plan approval, at contract issue, no addi- o $500 (additional) and limited to pre-tax tional contributions may be funds, direct plan-to-plan made after attainment of transfers from another age 84, or, if later, the first 403(b) plan or contract contract date anniversary.* exchanges from another 403(b) contract under the o For annuitants age 84 or same plan. older at contract issue, addi- tional contributions may be o With documentation of made up to one year from employer or plan approval, contract issue.* and limited to pre-tax funds, eligible rollover o Contributions after age 70-1/2 distributions from other must be net of any required 403(b)plans, qualified plans, minimum distributions. governmental employer 457(b) plans or traditional IRAs. o We do not accept employer- remitted contributions. o We do not accept after tax contributions, including designated Roth contributions. - ---------------------------------------------------------------------------------------------------------------------------- QP 20 through 75 o $5,000 (initial) o Only transfer contributions o A separate QP contract must from other investments be established for each plan o $500 (additional) within an existing defined participant. contribution qualified plan trust. o We do not accept regular ongoing payroll contribu- o The plan must be qualified tions or contributions under Section 401(a) of the directly from the employer. Internal Revenue Code. o Only one additional transfer o For 401(k) plans, trans- contribution may be made ferred contributions may during a contract year. not include any after-tax contributions, including o No additional transfer con- designated Roth contribu- tributions after participant's tions. attainment of age 76 or, if later, the first contract date anniversary. o Contributions after age 70-1/2 must be net of any required minimum distributions. o We do not accept contributions from defined benefit plans. See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. - ----------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 25
- ---------------------------------------------------------------------------------------------------------------------------- Available for annuitant Minimum Contract type issue ages* contributions Source of contributions Limitations on contributions+ - ---------------------------------------------------------------------------------------------------------------------------- Flexible Premium 20 through 70 o $2,000 (initial) o Regular traditional IRA o No regular IRA contributions IRA contributions. in the calendar year you turn o $50 (additional) age 70-1/2 and thereafter. o Additional catch-up o $50 under our contributions. o Regular contributions may automatic investment not exceed $5,000. program (additional) o Eligible rollover distribu- tions from other 403(b) o Additional catch-up contri- plans, qualified plans, and butions of up to $1,000 per governmental employer calendar year where the 457(b) plans. owner is at least age 50 but under age 70-1/2 at any time o Rollovers from another during the calendar year for traditional individual retire- which the contribution is ment arrangement. made. o Direct custodian-to-custodian o Although we accept rollover transfers from another tra- and direct transfer contribu- ditional individual tions under the Flexible retirement arrangement. Premium IRA contract, we intend that this contract be used for ongoing regular contributions. o Rollover and direct transfer contributions may be made up to attainment of age 84.* o Rollover and direct transfer contributions after age 70-1/2 must be net of required minimum distributions. - ----------------------------------------------------------------------------------------------------------------------------
26 Contract features and benefits
- ---------------------------------------------------------------------------------------------------------------------------- Available for annuitant Minimum Contract type issue ages* contributions Source of contributions Limitations on contributions+ - ---------------------------------------------------------------------------------------------------------------------------- Flexible Premium 20 through 85 o $2,000 (initial) o Regular Roth IRA o For annuitants up to age 83 Roth IRA contributions. at contract issue, no addi- o $50 (additional) tional contributions may be o Additional catch-up made after the attainment o $50 under our contributions. of age 84, or, if later, the automatic investment first contract date anniversary.* program (additional) o Rollovers from another o Contributions are subject to Roth IRA. income limits and other tax rules. o Rollovers from a "desig- nated Roth contribution o Regular Roth IRA contributions account" under a 401(k) may not exceed $5,000. plan or 403(b) plan. o Additional catch-up contri- o Conversion rollovers from butions of up to $1,000 per a traditional IRA or other calendar year where the eligible retirement plan. owner is at least age 50 at any time during the calendar o Direct transfers from year for which the contribu- another Roth IRA. tion is made. o Although we accept rollover and direct transfer contribu- tions under the Flexible Premium Roth IRA contract, we intend that this contract be used for ongoing regular Roth IRA contributions. o For annuitants age 84 and older at contract issue, addi- tional contributions may be made up to one year from contract issue.* - ----------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 27
- ---------------------------------------------------------------------------------------------------------------------------- Available for annuitant Minimum Contract type issue ages* contributions Source of contributions Limitations on contributions+ - ---------------------------------------------------------------------------------------------------------------------------- Inherited IRA 0-70 o $5,000 (initial) o Direct custodian-to- o Any additional contributions Beneficiary custodian transfers of your must be from the same type Continuation o $1,000 (additional) interest as a death benefi- of IRA of the same deceased Contract (tradi- ciary of the deceased owner. tional IRA or owner's traditional indi- Roth IRA) vidual retirement o Non-spousal beneficiary arrangement or Roth IRA to direct rollover contribution an IRA of the same type. from qualified plans, 403(b) plans and governmental employer 457(b) plans may be made to a traditional Inherited IRA contract under specified circumstances. - ----------------------------------------------------------------------------------------------------------------------------
+ Additional contributions may not be permitted under certain conditions in your state. If you purchase Guaranteed principal benefit option 2, no contributions are permitted after the six month period beginning on the contract date. Please see Appendix VIII later in the Prospectus to see if additional contributions are permitted in your state. * Please see Appendix IX for variations that may apply to your contract. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. 28 Contract features and benefits OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. If the Spousal protection feature is available under your contract and is elected, the spouses must be joint owners, one of the spouses must be the annuitant, and both must be named as the only primary beneficiaries. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. In general, we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your state. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. See "Inherited IRA beneficiary continuation contract" later in this section for Inherited IRA owner and annuitant requirements. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II later in this Prospectus for more information on QP contracts. PURCHASE CONSIDERATIONS FOR A CHARITABLE REMAINDER TRUST. If you purchased this contract to fund a charitable remainder trust and elected either the Guaranteed minimum income benefit ("GMIB") or an enhanced death benefit, you should strongly consider "split-funding": that is, the trust holds investments in addition to this Accumulator(R) contract. Charitable remainder trusts are required to take specific distributions. The charitable remainder trust annual withdrawal requirement may be equal to a percentage of the donated amount or a percentage of the current value of the donated amount. If your Accumulator(R) contract is the only source for such distributions, the payments you need to take may significantly reduce the value of those guaranteed benefits. Such amount may be greater than the annual increase in the GMIB and/or the enhanced death benefit base. See the discussion of these benefits later in this section. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealers. Additional contributions may also be made under our automatic investment program. These methods of payment are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option, the fixed maturity options and the account for special dollar cost averaging. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. Contract features and benefits 29 PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable ALLOCATION greater emphasis on current income. - ------------------------------------------------------------------------------------------------------------------------------------ AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable ALLOCATION with a greater emphasis on capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER AGGRESSIVE Long-term growth of capital. o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER CORE BOND To seek a balance of high current income and capital o BlackRock Financial Management, Inc. appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER HEALTH CARE Long-term growth of capital. o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER HIGH YIELD High total return through a combination of current o Pacific Investment Management Company income and capital appreciation. LLC o Post Advisory Group, LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER INTERNATIONAL Long-term growth of capital. o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------
30 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGE LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY markets using strategies that are designed to limit expo- sure to general equity market risk. - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 31
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, o BlackRock Investment Management, LLC EQUITY income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of o BlackRock Investment Management VALUE income, accompanied by growth of capital. International Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to o Boston Advisors, LLC INCOME achieve an above-average and consistent total return. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company RESEARCH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management YIELD BOND - ------------------------------------------------------------------------------------------------------------------------------------ EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. o Davis Selected Advisers, L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that o AllianceBernstein L.P. approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. o Evergreen Investment Management Company, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI MID CAP Seeks to achieve long-term growth of capital. o Fidelity Management & Research Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects o Franklin Advisers, Inc. for capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. o Franklin Advisory Services, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily o AXA Equitable FOUNDING STRATEGY seeks income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. o GAMCO Asset Management Inc. ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. o GAMCO Asset Management Inc. VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with mod- o JPMorgan Investment Management Inc. erate risk to capital and maintenance of liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. o JPMorgan Investment Management Inc. OPPORTUNITIES - ------------------------------------------------------------------------------------------------------------------------------------
32 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- o AXA Equitable ondary objective to seek reasonable current income. For o Institutional Capital LLC purposes of this Portfolio, the words "reasonable current o Mellon Capital Management Corporation income" mean moderate income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. o Legg Mason Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o BlackRock Financial Management, Inc. through investment in long-maturity debt obligations. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC INCOME income without excessive fluctuation in market value. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC CORE income with reasonable risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. o Lord, Abbett & Co. LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o The Dreyfus Corporation its assets and maintain liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- o Franklin Mutual Advisers, LLC sionally be short-term, and secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. o OppenheimerFunds, Inc. OPPORTUNITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. SMALL CAP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with o Pacific Investment Management Company, preservation of real capital and prudent investment man- LLC agement. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility of o BlackRock Financial Management, Inc. principal. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o AllianceBernstein L.P. deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and o T. Rowe Price Associates, Inc. STOCK secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. o Templeton Global Advisors Limited - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 33
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation o UBS Global Asset Management with income as a secondary consideration. (Americas) Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. o Morgan Stanley Investment Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. o Morgan Stanley Investment Management Inc. MARKETS EQUITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. o Morgan Stanley Investment Management Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- o Morgan Stanley Investment Management Inc. term capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks, and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. 34 Contract features and benefits GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges, any withdrawal charges and any optional benefit charges. See Appendix VIII later in this Prospectus for state variations. Depending on the state where your contract was issued, your lifetime minimum rate ranges from 1.50% to 3.00%. The data page for your contract shows the lifetime minimum rate. Check with your financial professional as to which rate applies in your state. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75% or 3.00%, depending on your lifetime minimum rate. Current interest rates will never be less than the yearly guaranteed interest rate. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfers from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if, on the date the contribution or transfer is to be applied, the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional or see Appendix VIII later in this Prospectus to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options generally range from one to ten years to maturity. - -------------------------------------------------------------------------------- Under the Special 10 year fixed maturity option (which is available only under contracts that offer GPB Option 2), additional contributions will have the same maturity date as your initial contribution (see "The guaranteed principal benefits" below). The rate to maturity you will receive for each additional contribution is the rate to maturity in effect for new contributions allocated to that fixed maturity option on the date we apply your contribution. On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you applied for an Accumulator(R) contract, a 60-day rate lock-in was applied from the date the application was signed. Any contributions received and designated for a fixed maturity option during that period received the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever had been greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from any of the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value (there may be a withdrawal charge). If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008, the next available maturity date was February 15, 2015. If no fixed maturity options are available, we will transfer your maturity value to the EQ/Money Market option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract, or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value Contract features and benefits 35 adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for withdrawal charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options (adjusted to reflect a similar maturity date), and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amounts of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING The account for special dollar cost averaging is part of our general account. We pay interest at guaranteed rates in this account. We will credit interest to the amounts that you have in the account for special dollar cost averaging every day. We set the interest rates periodically, according to procedures that we have. We reserve the right to change these procedures. We guarantee to pay our current interest rate that is in effect on the date that your contribution is allocated to this account. Your guaranteed interest rate for the time period you selected was shown in your contract for an initial contribution. The rate will never be less than the lifetime minimum rate for the guaranteed interest option. See "Allocating your contributions" below for rules and restrictions that apply to the special dollar cost averaging program. ALLOCATING YOUR CONTRIBUTIONS You may choose from among three ways to allocate your contributions under your contract: self-directed, the guaranteed principal benefits (at contract issue only) or dollar cost averaging. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, the guaranteed interest option (subject to restrictions in certain states-See Appendix VIII later in this Prospectus for state variations) and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. The total of your allocations into all available investment options must equal 100%. If the annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. THE GUARANTEED PRINCIPAL BENEFITS (INCLUDING PRINCIPAL ASSURANCE) We offered a guaranteed principal benefit ("GPB") with two options. See Appendix VIII later in this Prospectus for more information on state availability and Appendix IX for contract variation and/or availability of these benefits. You could only elect one of the GPBs. Neither GPB was available under Inherited IRA contracts. We did not offer either GPB when the rate to maturity for the applicable fixed maturity option was 3%. Both GPB options allow you to allocate a portion of your total contributions to the variable investment options, while ensuring that your account value will at least equal your contributions adjusted for withdrawals and transfers on a specified date. GPB Option 2 generally provides you with the ability to allocate more of your contributions to the variable investment options than could be allocated using GPB Option 1 (also known as Principal assurance). If you elected either GPB, you could not elect the Guaranteed minimum income benefit, Principal Protector(SM), the systematic withdrawals option or the substantially equal withdrawals option. However, certain contract owners who elected GPB are not subject to these restrictions. See Appendix IX for information on what applies under your contract. You could elect GPB Option 1 only if the annuitant was age 80 or younger when the contract was issued (after age 75, only the 7-year fixed maturity option was available). You could elect GPB Option 2 only if the annuitant was age 75 or younger when the contract was issued. GPB Option 2 is not available for purchase with any Flexible 36 Contract features and benefits Premium IRA contract whether traditional or Roth. If you purchased an IRA, QP or Rollover TSA contract, before you either purchased GPB Option 2 or elected GPB Option 1 with a maturity year that would extend beyond the year in which you will reach age 70-1/2, you should have considered whether your value in the variable investment options, guaranteed interest option and permissible funds outside this contract were sufficient to meet your required minimum distributions. See "Tax information" later in this Prospectus. If you elected GPB Option 2 and change ownership of the contract, GPB Option 2 will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information" later in this Prospectus for more information. GUARANTEED PRINCIPAL BENEFIT OPTION 1 (UNDER CERTAIN CONTRACTS, THIS FEATURE IS CALLED "PRINCIPAL ASSURANCE"). GPB Option 1 was available at contract issue only. Under GPB Option 1, you selected a fixed maturity option at the time you signed your application. We specified a portion of your initial contribution and allocated it to that fixed maturity option in an amount that will cause the maturity value to equal the amount of your entire initial contribution on the fixed maturity option's maturity date. The percentage of your contribution allocated to the fixed maturity option was calculated based upon the rate to maturity then in effect for the fixed maturity option you chose. Your contract contains information on the amount of your contribution allocated to the fixed maturity option. The maturity date you selected generally could not be later than 10 years, or earlier than 7 years from your contract date. If you were to make any withdrawals or transfers from the fixed maturity option before the option's maturity date, the amount in the fixed maturity option will be adjusted and may no longer grow to equal your initial contribution under GPB Option 1. You allocated the remainder of your initial contribution to the investment options and guaranteed interest option however you chose (unless you elected a dollar cost averaging program, in which case the remainder of your initial contribution was allocated to the dollar cost averaging program). Upon the maturity date of the fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." There is no charge for GPB Option 1. GUARANTEED PRINCIPAL BENEFIT OPTION 2. GPB Option 2 was only available at contract issue. IF YOU PURCHASED GPB OPTION 2, YOU MAY NOT MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE RATE TO MATURITY ON THE SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore, any discussion in this Prospectus that involves any additional contributions after the first six months will be inapplicable. This feature was not available under all contracts. We have specified the portion of your initial contribution, and any additional permitted contributions, to be allocated to a Special 10 year fixed maturity option. Your contract contains information on the percentage of applicable contributions allocated to the Special 10 year fixed maturity option. You may allocate the rest of your contributions among the investment options (other than the Special 10 year fixed maturity option) however you choose, as permitted under your contract (unless you elect a dollar cost averaging program, in which case all contributions, other than amounts allocated to the Special 10 year fixed maturity option, must be allocated to the dollar cost averaging program). The Special 10 year fixed maturity option will earn interest at the specified rate to maturity then in effect. If on the 10th contract date anniversary, your annuity account value is less than the amount that is guaranteed under GPB Option 2, we will increase your annuity account value to be equal to the guaranteed amount under GPB Option 2. Any such additional amounts added to your annuity account value will be allocated to the EQ/Money Market investment option. After the maturity date of the Special 10 year fixed maturity option, the guarantee under GPB Option 2 will terminate. Upon the maturity date of the Special 10 year fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." The guaranteed amount under GPB Option 2 is equal to your initial contribution adjusted for any additional permitted contributions, transfers out of the Special 10 year fixed maturity option and withdrawals from the contract (see "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus). Any transfers or withdrawals from the Special 10 year fixed maturity option will also be subject to a market value adjustment (see "Market value adjustment" under "Fixed maturity options" above in this section). If you purchased the Guaranteed principal benefit option 2, you can not voluntarily terminate this benefit. GPB Option 2 will terminate if the contract terminates before the maturity date of the Special 10 year fixed maturity option. If the owner and the annuitant are different people and the owner dies before the maturity date of the Special 10 year fixed maturity option, we will continue GPB Option 2 only if the contract can continue through the maturity date of the Special 10 year fixed maturity option. If the contract cannot so continue, we will terminate GPB Option 2. GPB Option 2 will continue where there is a successor owner/annuitant. GPB Option 2 will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a fee associated with GPB Option 2 (see "Charges and expenses" later in this Prospectus). You should note that the purchase of GPB Option 2 would not have been appropriate if you wanted to make additional contributions to your contract beyond the first six months after your contract was issued. If you later decide that you would like to make additional contributions to the Accumulator(R) contract, we may permit you to purchase another contract. If we do, however, you should note that we do not reduce or waive any of the charges on the new contract, nor do we guarantee that the features available under this contract will be available under the new contract. This means that you might end up paying more with respect to certain charges than if you had simply purchased a single contract (for example, the administrative charge). The purchase of GPB Option 2 also would not have been appropriate if you planned on terminating your contract before the maturity date of Contract features and benefits 37 the Special 10 year fixed maturity option. In addition, because we prohibit contributions to your contract after the first six months, certain contract benefits that are dependent upon contributions or account value will be limited (for example, the guaranteed death benefits and Protection Plus(SM)). You should also note that if you intended to allocate a large percentage of your contributions to the guaranteed interest option or other fixed maturity options, the purchase of GPB Option 2 would not have been appropriate because of the guarantees already provided by these options. An example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract is included in Appendix VI later in this Prospectus. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- SPECIAL DOLLAR COST AVERAGING PROGRAM. Under the special dollar cost averaging program, you may choose to allocate all or a portion of any eligible contribution to the account for special dollar cost averaging. Contributions into the account for special dollar cost averaging may not be transfers from other investment options. Your initial allocation to any special dollar cost averaging program time period must be at least $2,000 and any subsequent contribution to that same time period must be at least $250. You may only have one time period in effect at any time and once you select a time period, you may not change it. In Pennsylvania, we refer to this program as "enhanced rate dollar cost averaging." If you elect Principal Protector(SM), you may not participate in the special dollar cost averaging program. You may have your account value transferred to any of the variable investment options. We will transfer amounts from the account for special dollar cost averaging into the variable investment options over an available time period that you select. We offer time periods of 3, 6 or 12 months, during which you will receive an enhanced interest rate. We may also offer other time periods. Your financial professional can provide information on the time periods and interest rates currently available in your state, or you may contact our processing office. If the special dollar cost averaging program was selected at the time you applied to purchase the Accumulator(R) contract, a 60 day rate lock was applied from the date of application. Any contribution(s) received during that 60 day period were credited with the interest rate offered on the date of application for the remainder of the time period selected at application. Any contribution(s) received after the 60 day rate lock period ended will be credited with the then current interest rate for the remainder of the time period selected at application. Contribution(s) made to a special dollar cost averaging program selected after the Accumulator(R) contract has been issued will be credited with the then current interest rate on the date the contribution is received by AXA Equitable for the time period initially selected by you. Once the time period you selected has run, you may then select another time period for future contributions. At that time, you may also select a different allocation for transfers to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, your account value will be transferred from the account for special dollar cost averaging into the variable investment options on a monthly basis. We may offer this program in the future with transfers on a different basis. We will transfer all amounts out of the account for special dollar cost averaging by the end of the chosen time period. The transfer date will be the same day of the month as the contract date, but not later than the 28th day of the month. For a special dollar cost averaging program selected after application, the first transfer date and each subsequent transfer date for the time period selected will be one month from the date the first contribution is made into the special dollar cost averaging program, but not later than the 28th day of the month. If you choose to allocate only a portion of an eligible contribution to the account for special dollar cost averaging, the remaining balance of that contribution will be allocated to the variable investment options, guaranteed interest option or fixed maturity options according to your instructions. The only transfers that will be made from the account for special dollar cost averaging are your regularly scheduled transfers to the variable investment options. No amounts may be transferred from the account for special dollar cost averaging to the guaranteed interest option or the fixed maturity options. If you request to transfer or withdraw any other amounts from the account for special dollar averaging, we will transfer all of the value that you have remaining in the account for special dollar cost averaging to the investment options according to the allocation percentages for special dollar cost averaging we have on file for you. You may ask us to cancel your participation at any time. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. INVESTMENT SIMPLIFIER Fixed-dollar option. Under this option you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option 38 Contract features and benefits and into the variable investment options of your choice. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. Unlike the account for special dollar cost averaging, this option does not offer enhanced rates. Also, the option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date, your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. INTEREST SWEEP OPTION. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. On the last day of each month, we check to see whether you have at least $7,500 in the guaranteed interest option. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not currently participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Under the Option I rebalancing program you may participate in any of the dollar cost averaging programs except general dollar cost averaging. If you elect a GPB and a dollar cost averaging program, 100% of your contributions not allocated to the fixed maturity option under the GPB must be allocated to the dollar cost averaging program you elect. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" immediately below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. Not all dollar cost averaging programs are available in every state. See Appendix VIII later in this Prospectus for more information on state availability. GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit (known as the "Living Benefit" under certain existing contracts) and the death benefits, as described in this section. The benefit base for the Guaranteed minimum income benefit and an enhanced death benefit will be calculated as described below in this section whether these options are elected individually or in combination. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 6% (OR 5%) ROLL-UP TO AGE 85 (USED FOR THE 6% ROLL-UP TO AGE 85 ENHANCED DEATH BENEFIT AND THE GREATER OF 6% (OR 5%) ROLL-UP TO AGE 85 ENHANCED DEATH BENEFIT OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to the benefit base is: o 6% (or 5%) with respect to the variable investment options (other than EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market and EQ/Short Duration Bond), and the account Contract features and benefits 39 for special dollar cost averaging; the effective annual rate is 4% in Washington. Please see Appendix VIII later in this Prospectus to see what roll-up rate applies in your state or Appendix IX for what applies to your contract; and o 3% with respect to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond, the fixed maturity options, the Special 10 year fixed maturity option, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up after the contract date anniversary following the annuitant's 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND THE GREATER OF 6% (OR 5%) ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: o your initial contribution to the contract (plus any additional contributions), or o your highest account value on any contract date anniversary up to the contract date anniversary following the annuitant's 85th birthday, plus any contributions made since the most recent Annual Ratchet less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of the deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. GREATER OF 6% (OR 5%) ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6% (or 5%) Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. For the Guaranteed minimum income benefit, the benefit base is reduced by any applicable withdrawal charge remaining when the option is exercised. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. GUARANTEED MINIMUM DEATH BENEFIT/GUARANTEED MINIMUM INCOME BENEFIT ROLL-UP BENEFIT BASE RESET. If both the Guaranteed minimum income benefit AND the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit (the "Greater of enhanced death benefit") are elected, you may reset the Roll-Up benefit base for these guaranteed benefits to equal the account value as of the 5th or later contract date anniversary. The reset amount would equal the account value as of the contract date anniversary on which you reset your Roll-Up benefit base. The 6% Roll-Up continues to age 85 on any reset benefit base. We will send you a notice in each year that the Roll-Up benefit base is eligible to be reset, and you will have 30 days from your contract date anniversary to reset your Roll-Up benefit base. Each time you reset the Roll-Up benefit base, your Roll-Up benefit will not be eligible for another reset for five years. If after your death your spouse continues this contract as Successor owner/annuitant, the benefit base will be eligible to be reset either five years from the contract date or from the last reset date, if applicable. The last age at which the benefit base is eligible to be reset is annuitant age 75. It is important to note that once you have reset your Roll-Up benefit base a new waiting period to exercise the Guaranteed minimum income benefit will apply from the date of reset; you may not exercise until the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. See "Exercise rules" under "Guaranteed minimum income benefit option" below for more information. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the exercise waiting period. Also, even when there is no additional charge when you reset your Roll-Up benefit base, the total dollar amount charged on future contract date anniversaries may increase as a result of the reset since the charges may be applied to a higher benefit base than would have been otherwise applied. See "Charges and expenses" in the Prospectus. The Roll-Up benefit base for both the Greater of enhanced death benefit and the Guaranteed minimum income benefit are reset simultaneously when you request a Roll-Up benefit base reset. You cannot elect a Roll-Up benefit base reset for one benefit and not the other. For information about whether the Guaranteed death benefit/ Guaranteed minimum income benefit roll-up benefit base reset is available under your contract, please see Appendix IX later in this Prospectus. The availability of the Guaranteed minimum death benefit/ guaranteed minimum income benefit roll-up benefit base reset is also subject to state approval. Please contact your financial professional for more information about availability in your state. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed under "Guaranteed minimum income benefit option" below and annuity payout options are discussed under "Your annuity payout options" in "Accessing your money" later in this Prospectus. Your contract specifies different guaranteed annuity purchase factors for the Guaranteed minimum income benefit and the annuity payout options. We may provide more favorable current annuity purchase factors for the annuity payout options. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in certain instances. 40 Contract features and benefits GUARANTEED MINIMUM INCOME BENEFIT OPTION (DEPENDING ON WHEN YOU PURCHASED YOUR CONTRACT, THIS BENEFIT MAY BE CALLED THE "LIVING BENEFIT." SEE APPENDIX IX LATER IN THIS PROSPECTUS FOR MORE INFORMATION.) The Guaranteed minimum income benefit was available at issue if the annuitant was age 20 through 75 at the time the contract was issued. If you elected the Guaranteed minimum income benefit at purchase, you pay an additional charge that is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. If you purchased this contract as an Inherited IRA or if you elected a GPB option or Principal Protector(SM), the Guaranteed minimum income benefit is not available. Depending on when you purchased your contract, the Guaranteed minimum income benefit may have been available with Principal assurance. See Appendix IX later in this Prospectus for more information. If you purchased this contract to fund a charitable remainder trust, you must take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your guaranteed minimum income benefit. See "Owner and annuitant requirements" earlier in this section. If the annuitant was older than age 60 at the time an IRA, QP or Rollover TSA contract was issued, the Guaranteed minimum income benefit may not be an appropriate feature because the minimum distributions required by tax law generally must begin before the Guaranteed minimum income benefit can be exercised. If the owner and annuitant are different in an NQ contract, there may be circumstances where the benefit may not be exercisable after an owner's death. Depending on when you purchased your contract, if you elected the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Please see Appendix IX later in this Prospectus. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option. Depending on when you purchased your contract, your options may be different. See Appendix IX later in this Prospectus for more information. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the annuitant's age, as follows: - -------------------------------------------------------------------------------- Level payments - -------------------------------------------------------------------------------- Period certain years Annuitant's -------------------------------------------------- age at exercise IRAs NQ - -------------------------------------------------------------------------------- 75 and younger 10 10 76 9 10 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Level payments - -------------------------------------------------------------------------------- Period certain years Annuitant's -------------------------------------------------- age at exercise IRAs NQ - -------------------------------------------------------------------------------- 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - -------------------------------------------------------------------------------- We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit should be regarded as a safety net only. It provides income protection if you elect an income payout while the annuitant is alive. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base, less any applicable withdrawal charge remaining, to guaranteed annuity purchase factors, or (ii) the income provided by applying your account value to our then current annuity purchase factors. For Rollover TSA only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. The Guaranteed minimum income benefit provides a form of insurance and is based on conservative actuarial factors. The guaranteed annuity purchase factors we use to determine your payout annuity benefit under the Guaranteed minimum income benefit are more conservative than the guaranteed annuity purchase factors we use for our standard payout annuity options. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the Guaranteed minimum income benefit payout annuity will be smaller than each periodic payment under our standard payout annuity options. Therefore, even if your account value is less than your Contract features and benefits 41 benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. GUARANTEED MINIMUM INCOME BENEFIT "NO LAPSE GUARANTEE". Subject to availability, in general, if your account value falls to zero (except, as discussed below, if your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base as of the beginning of the contract year), the Guaranteed minimum income benefit will be exercised automatically, based on the annuitant's current age and benefit base, as follows: o You will be issued a supplementary contract based on a single life with a maximum 10 year period certain. Payments will be made annually starting one year from the date the account value fell to zero. o You will have 30 days from when we notify you to change the payout option and/or the payment frequency. Please note that we will not automatically exercise the Guaranteed minimum income benefit, as described above, if you have a TSA contract and withdrawal restrictions apply. The no lapse guarantee will terminate under the following circumstances: o If your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year); o If your aggregate withdrawals during any contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year); o On the contract date anniversary following the annuitant's 85th birthday. For information about whether the Guaranteed minimum income benefit no lapse guarantee is available under your contract, please see Appendix IX later in this Prospectus. The availability of the Guaranteed minimum income benefit no lapse guarantee is dependent on when, and in what state, you purchased your contract. Please see Appendices VIII and IX, later in this Prospectus. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the Guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male annuitant age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals, or loans under Rollover TSA contracts, and assuming there were no allocations to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options (including the Special 10 year fixed maturity option, if available) or the loan reserve account under Rollover TSA contracts. - -------------------------------------------------------------------------------- Guaranteed minimum Contract date income benefit -- annual anniversary at exercise income payable for life - -------------------------------------------------------------------------------- 10 $11,891 15 $18,597 - -------------------------------------------------------------------------------- EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us, along with all required information within 30 days following your contract date anniversary, in order to exercise this benefit. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payout contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death or, if later, the end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income benefit during your life and the annuitant's life, as follows: o If the annuitant was at least age 20 and not older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If the annuitant was at least age 45 and not older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after the annuitant is age 60. o If the annuitant was at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's 85th birthday; (ii) if the annuitant was age 75 when the contract was issued or the Roll-Up benefit base was reset, if applicable, the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's attainment of age 85. 42 Contract features and benefits (iii) for Accumulator(R) QP contracts, the Plan participant can exercise the Guaranteed minimum income benefit only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) QP contract into an Accumulator(R) Rollover IRA. This process must be completed within the 30-day time frame following the contract date anniversary in order for the Plan participant to be eligible to exercise. However, if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee (if available), a rollover into an IRA will not be effected and payments will be made directly to the trustee; (iv) for Accumulator(R) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (v) if you reset the Roll-Up benefit base (if available and as described earlier in this section), your new exercise date will be the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the waiting period; (vi) a successor owner/annuitant may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original annuitant could have exercised the benefit. In addition, the successor owner/annuitant must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The successor owner/annuitant's age on the date of the annuitant's death replaces the annuitant's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules. If Spousal Protection is available under your contract and is elected, and the spouse who is the annuitant dies, the above rules apply if the contract is continued by the surviving spouse as the successor owner/annuitant; and (vii) if you are the owner but not the annuitant and you die prior to exercise, then the following applies: o A successor owner who is not the annuitant may not be able to exercise the Guaranteed minimum income benefit without causing a tax problem. You should consider naming the annuitant as successor owner, or if you do not name a successor owner, as the sole primary beneficiary. You should carefully review your successor owner and/or beneficiary designations at least one year prior to the first contract date anniversary on which you could exercise the benefit. o If the successor owner is the annuitant, the Guaranteed minimum income benefit continues only if the benefit could be exercised under the rules described above on a contract date anniversary that is within one year following the owner's death. This would be the only opportunity for the successor owner to exercise. If the Guaranteed minimum income benefit cannot be exercised within this timeframe, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. o If you designate your surviving spouse as successor owner, the Guaranteed minimum income benefit continues and your surviving spouse may exercise the benefit according to the rules described above, even if your spouse is not the annuitant and even if the benefit is exercised more than one year after your death. If your surviving spouse dies prior to exercise, the rule described in the previous bullet applies. o A successor owner or beneficiary that is a trust or other non-natural person may not exercise the benefit; in this case, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. See "When an NQ contract owner dies before the annuitant" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT Your contract provides a standard death benefit. If you did not elect one of the enhanced death benefits described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions, adjusted for withdrawals (and any associated withdrawal charges), and any taxes that apply. The standard death benefit was the only death benefit available for annuitants who were ages 76 through 85 at issue. The applicable issue ages may be different for certain contract owners, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus for more information. Once your contract has been issued, you may not change or voluntarily terminate your death benefit. If you elected one of the enhanced death benefits, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment, OR your elected enhanced death benefit on the date of the annuitant's death, adjusted for subsequent withdrawals (and associated withdrawal charges) and taxes that apply, whichever Contract features and benefits 43 provides the higher amount. If you elected the Spousal protection option, if available, the Guaranteed minimum death benefit is based on the age of the older spouse, who may or may not be the annuitant, for the life of the contract. See "Spousal protection" in "Payment of death benefit" later in this Prospectus for more information. If you elected one of the enhanced death benefit options described below and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, any enhanced death benefit elected will be replaced with the standard death benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information" later in this Prospectus for more information. Any of the enhanced death benefits or the standard death benefit can be elected by themselves or with the Guaranteed minimum income benefit. OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANTS AGES 0 THROUGH 75 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA, FLEXIBLE PREMIUM ROTH IRA, AND ROLLOVER TSA CONTRACTS; 20 THROUGH 70 AT ISSUE OF FLEXIBLE PREMIUM IRA CONTRACTS; 0 THROUGH 70 AT ISSUE FOR INHERITED IRA CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS. DEPENDING ON WHEN YOU PURCHASED YOUR CONTRACT, YOUR AVAILABLE ISSUE AGES MAY HAVE BEEN OLDER AT THE TIME YOU PURCHASED YOUR CONTRACT. Subject to state and contract availability (please see Appendix VIII for state availability of these benefits and Appendix IX for contract variations later in this Prospectus), the following enhanced death benefits were available: o ANNUAL RATCHET TO AGE 85. o 6% ROLL-UP TO AGE 85. o THE GREATER OF THE 5% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85. o THE GREATER OF THE 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85. Each enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Once you have made your enhanced death benefit election, you may not change it. If you elected Principal Protector(SM), only the standard death benefit and the Annual Ratchet to Age 85 enhanced death benefit were available. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. If you are using this contract to fund a charitable remainder trust, you must take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your enhanced death benefit. See "Owner and annuitant requirements" earlier in this section. See Appendix IV later in this Prospectus for an example of how we calculate an enhanced death benefit. PROTECTION PLUS(SM) The following section provides information about the Protection Plus(SM) option, which was only available at the time you purchased your contract. If Protection Plus(SM) was not elected when your contract was first issued, neither the owner nor the successor owner/annuitant can add it subsequently. Protection Plus(SM) is an additional death benefit as described below. See "Tax information" later in this Prospectus for the potential tax consequences of having purchased the Protection Plus(SM) feature in an NQ, IRA or Rollover TSA contract. If you purchased the Protection Plus(SM) feature, you may not voluntarily terminate this feature. If you elected Principal Protector(SM), the Protection Plus(SM) feature is not available. Depending on when you purchased your contract, if you elected the Protection Plus(SM) option described below and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the annuitant was 70 or younger when we issued your contract (or if the successor owner/annuitant is 70 or younger when he or she becomes the successor owner/annuitant and Protection Plus(SM) had been elected at issue), the death benefit will be: the greater of: o the account value or o any applicable death benefit Increased by: o such death benefit less total net contributions, multiplied by 40%. For purposes of calculating your Protection Plus(SM) benefit, the following applies: (i) "Net contributions" are the total contributions made (or if applicable, the total amount that would otherwise have been paid as a death benefit had the successor owner/annuitant election not been made plus any subsequent contributions) adjusted for each withdrawal that exceeds your Protection Plus(SM) earnings. "Net contributions" are reduced by the amount of that excess. Protection Plus(SM) earnings are equal to (a) minus (b) where (a) is the greater of the account value and the death benefit immediately prior to the withdrawal and (b) is the net contributions as adjusted by any prior withdrawals; and (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable Guaranteed minimum death benefit as of the date of death. If you are an existing contract owner, your net contributions may be reduced on a pro rata basis to reflect withdrawals (including withdrawal charges and any TSA loans). For information about what applies to your contract, see Appendix IX later in this Prospectus. If the annuitant was age 71 through 75 (this age may be higher for certain contract owners, depending on when you purchased your con- 44 Contract features and benefits tract) when we issued your contract (or if the successor owner/ annuitant is between the ages of 71 and 75 when he or she becomes the successor owner/annuitant under a contract where Protection Plus(SM) had been elected at issue), the death benefit will be: the greater of: o the account value or o any applicable death benefit Increased by: o such death benefit (as described above) less total net contributions, multiplied by 25% The value of the Protection Plus(SM) death benefit is frozen on the first contract date anniversary after the annuitant turns age 80, except that the benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce the benefit by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If the benefit is $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and the benefit after the withdrawal would be $24,000 ($40,000 - $16,000). For an example of how the Protection Plus(SM) death benefit is calculated, please see Appendix VII. If you elected Spousal protection, the Protection Plus(SM) benefit is based on the age of the older spouse, who may or may not be the annuitant. Upon the death of the non-annuitant spouse, the account value will be increased by the value of the Protection Plus(SM) benefit as of the date we receive due proof of death. Upon the death of the annuitant, the value of the Protection Plus(SM) benefit is either added to the death benefit payment or to the account value if Successor owner/annuitant is elected. If the surviving spouse elects to continue the contract, the benefit will be based on the age of the surviving spouse as of the date of the deceased spouse's death for the remainder of the contract. If the surviving spouse is age 76 or older, the benefit will terminate and the charge will no longer be in effect. See "Spousal protection" in "Payment of death benefit" later in this Prospectus for more information. Ask your financial professional or see Appendix VIII later in this Prospectus to see if this feature was available in your state. PRINCIPAL PROTECTOR(SM) The following section provides information about the Principal Protector(SM) option, which was only available at the time you purchased your contract. If Principal Protector(SM) was not elected when your contract was first issued, neither the owner nor the successor owner/annuitant can add it subsequently. As described below, Principal Protector(SM) provides for recovery of your total contributions through withdrawals, even if your account value falls to zero, provided that during each contract year, your total withdrawals do not exceed your GWB Annual withdrawal amount. Principal Protector(SM) is not an automated withdrawal program. You may request a withdrawal through any of our available withdrawal methods. See "Withdrawing your account value" in "Accessing your money" later in this Prospectus. All withdrawals reduce your account value and the guaranteed minimum death benefit. Principal Protector(SM) could be elected at contract issue, for an additional charge, if the annuitant was age 0 through 85 for NQ contracts or age 20 through 75 for all IRA contracts. Please see "Principal Protector(SM) charge" in "Charges and expenses" later in this Prospectus for a description of the charge and when it applies. If you elected this benefit, you cannot terminate it. Depending on when you purchased your contract, this feature may not have been available. See Appendix IX later in this Prospectus for more information. If you die, and your beneficiary elects the Beneficiary continuation option, if available, your beneficiary may continue Principal Protector(SM) provided that the beneficiary was 75 or younger on the original contract date. If the beneficiary was older, Principal Protector(SM) will terminate without value even if the GWB benefit base is greater than zero. In the case of multiple beneficiaries, any beneficiary older than 75 may not continue Principal Protector(SM) and that beneficiary's portion of the GWB benefit base will terminate without value, even if it was greater than zero. The ability to continue Principal Protector(SM) under the Beneficiary continuation option is subject to state availability. If it was approved in your state, it was added to your contract if you had already elected GWB. See "Beneficiary continuation option" under "Payment of death benefit" later in the Prospectus for more information on continuing Principal Protector(SM) under the Beneficiary continuation option. If you purchased this contract as a TSA, QP or Inherited IRA, Principal Protector(SM) was not available. This benefit was also not available if you elected the Guaranteed minimum income benefit, the Greater of 6% Roll-Up to age 85 and Annual Ratchet to Age 85 enhanced death benefit, Protection Plus(SM), GPB Option 1 or GPB Option 2 or the special dollar cost averaging program. This benefit may not have been available under your contract. For more information, please see Appendix IX later in this Prospectus. If you elected the Principal Protector(SM) option and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Withdrawals in excess of your GWB Annual withdrawal amount significantly reduce or eliminate the value of the benefit. See "Effect of GWB Excess withdrawals" below. For traditional IRAs, the Principal Protector(SM) makes provision for you to take lifetime required minimum distributions ("RMDs") without losing the value of the Principal Protector(SM) guarantee, provided you comply with the conditions under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, including utilization of our Automatic RMD service, this benefit may have limited usefulness for you. Please consult your tax adviser. YOUR GWB BENEFIT BASE At issue, your GWB benefit base is equal to your initial contribution and will increase or decrease, as follows: Contract features and benefits 45 o Your GWB benefit base increases by any additional contributions. o Your GWB benefit base decreases by the dollar amount of withdrawals. o Your GWB benefit base may be further decreased if a withdrawal is taken in excess of your GWB Annual withdrawal amount. o Your GWB benefit base may also be increased under the Optional step up provision. o Your GWB benefit base may also be increased under the one time step up applicable with the Beneficiary continuation option. Each of these events is described in detail below. Once your GWB benefit base is depleted, you may continue to make withdrawals from your account value, but they are not guaranteed under Principal Protector(SM). YOUR GWB ANNUAL WITHDRAWAL AMOUNT Your GWB Annual withdrawal amount is equal to either 5% or 7% ("Applicable percentage"), as applicable, of your initial GWB benefit base, and is the maximum amount that you can withdraw each year without making a GWB Excess withdrawal, as described below. When you purchased your contract, you chose between two available GWB Annual withdrawal options: o 7% GWB Annual withdrawal option o 5% GWB Annual withdrawal option The GWB Annual withdrawal amount may decrease as a result of a GWB Excess withdrawal and may increase as a result of an Automatic reset, additional contributions or a "step up" of the GWB benefit base; each of these transactions are discussed below in detail. Once you elect a GWB Annual withdrawal option, it cannot be changed. Your GWB Annual withdrawal amounts are not cumulative. If you withdraw less than the GWB Annual withdrawal amount in any contract year, you may not add the remainder to your GWB Annual withdrawal amount in any subsequent year. The withdrawal charge, if applicable, is waived for withdrawals up to the GWB Annual withdrawal amount, but all withdrawals are counted toward your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. EFFECT OF GWB EXCESS WITHDRAWALS A GWB Excess withdrawal is caused when you withdraw more than your GWB Annual withdrawal amount in any contract year. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your GWB Annual withdrawal amount, the entire amount of the withdrawal and each subsequent withdrawal in that contract year are GWB Excess withdrawals. A GWB Excess withdrawal can cause a significant reduction in both your GWB benefit base and your GWB Annual withdrawal amount. If you make a GWB Excess withdrawal, we will recalculate your GWB benefit base and the GWB Annual withdrawal amount. As of the date of the GWB Excess withdrawal, the GWB benefit base is first reduced by the dollar amount of the withdrawal (including any applicable withdrawal charge), and the reduced GWB benefit base and the GWB Annual withdrawal amount are then further adjusted, as follows: o If the account value after the deduction of the withdrawal is less than the GWB benefit base, then the GWB benefit base is reset equal to the account value. o If the account value after the deduction of the withdrawal is greater than or equal to the GWB benefit base, then the GWB benefit base is not adjusted further. o The GWB Annual withdrawal amount equals the lesser of: (i) the Applicable percentage of the adjusted GWB benefit base and (ii) the GWB Annual withdrawal amount prior to the GWB Excess withdrawal. Withdrawals in excess of your GWB Annual withdrawal amount significantly reduce or eliminate the value of Principal Protector(SM). If your account value is less than your GWB benefit base (due, for example, to negative market performance), a GWB Excess withdrawal, even one that is only slightly more than your GWB Annual withdrawal amount, can significantly reduce your GWB benefit base and the GWB Annual withdrawal amount. For example, if you contribute $100,000 at contract issue, your initial GWB benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option, your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume in contract year four that your account value is $80,000, you have not made any prior withdrawals, and you request an $8,000 withdrawal. Your $100,000 benefit base is first reduced by $8,000 to now equal $92,000. Your GWB benefit base is then further reduced to equal the new account value: $72,000 ($80,000 minus $8,000). In addition, your GWB Annual withdrawal amount is reduced to $5,040 (7% of $72,000), instead of the original $7,000. Withdrawal charges, if applicable, are applied to the amount of the withdrawal exceeding the Guaranteed annual withdrawal amount, assuming the Guaranteed annual withdrawal amount is greater than the 10% free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. Using the example above, if the $8,000 withdrawal is a withdrawal of contributions subject to the withdrawal charge, the withdrawal charge would apply to the $3,000 (the amount of the withdrawal charge above the Guaranteed annual withdrawal amount of $5,000). See "Certain withdrawals" in "Charges and expenses" later in this Prospectus. You should further note that a GWB Excess withdrawal that reduces your account value to zero eliminates any remaining value in your GWB benefit base. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA and participate in our Automatic RMD service, and you do not take any other withdrawals, an automatic withdrawal under that program will not cause a GWB Excess withdrawal, even if it exceeds your GWB Annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. If you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, and chooses scheduled payments, such payments will not cause a GWB Excess withdrawal, provided no 46 Contract features and benefits additional withdrawals are taken. If your beneficiary chooses the "5-year rule" instead of scheduled payments, this waiver does not apply and a GWB Excess withdrawal may occur if withdrawals exceed the GWB Annual withdrawal amounts. EFFECT OF AUTOMATIC RESET If you take no withdrawals in the first five contract years, the Applicable percentage to determine your GWB Annual withdrawal amount will be automatically reset at no additional charge. The Applicable percentage under the 7% GWB Annual withdrawal option will be increased to 10%, and the Applicable percentage under the 5% GWB Annual withdrawal option will be increased to 7%. The Applicable percentage is automatically reset on your fifth contract date anniversary, and your GWB Annual withdrawal amount will be recalculated. If you die before the fifth contract date anniversary, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, if available, the Automatic reset will apply on the fifth contract date anniversary if you have not taken any withdrawals and: (1) your beneficiary chooses scheduled payments and payments have not yet started; or, (2) if your beneficiary chooses the "5-year rule" option and has not taken withdrawals. See "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. EFFECT OF ADDITIONAL CONTRIBUTIONS Anytime you make an additional contribution, we will recalculate your GWB benefit base and your GWB Annual withdrawal amount. Your GWB benefit base will be increased by the amount of the contribution and your GWB Annual withdrawal amount will be equal to the greater of (i) the Applicable percentage of the new GWB benefit base, or (ii) the GWB Annual withdrawal amount in effect immediately prior to the additional contribution. If you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, no additional contributions will be permitted. THE OPTIONAL STEP UP PROVISION Except as stated below, any time after the fifth contract date anniversary, you may request a step up in the GWB benefit base to equal your account value. If your GWB benefit base is higher than the account value as of the date we receive your step up request, no step up will be made. If a step up is made, we may increase the charge for the benefit. For a description of the charge increase, see "Principal Protector(SM) charge" in "Charges and expenses" later in this Prospectus. Once you elect to step up the GWB benefit base, you may not do so again for five complete contract years from the next contract date anniversary. Under both the Spousal protection and the successor owner annuitant features, upon the first death, the surviving spouse must wait five complete contract years from the last step up or from contract issue, whichever is later, to be eligible for a step up. As of the date of your GWB benefit base step up, your GWB Annual withdrawal amount will be equal to the greater of (i) your GWB Annual withdrawal amount before the step up, and (ii) your GWB Applicable percentage applied to your stepped up GWB benefit base. It is important to note that a step up in your GWB benefit base may not increase your GWB Annual withdrawal amount. In that situation, the effect of the step up is only to increase your GWB benefit base and support future withdrawals. We will process your step up request even if it does not increase your GWB Annual withdrawal amount, and we will increase the Principal Protector(SM) charge, if applicable. In addition, you will not be eligible to request another step up for five complete contract years. After processing your request, we will send you a confirmation showing the amount of your GWB benefit base and your GWB Annual withdrawal amount. For example, if you contribute $100,000 at contract issue, your initial GWB benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option, your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume you take withdrawals of $7,000 in each of the first five contract years, reducing the GWB benefit base to $65,000. After five contract years, further assume that your account value is $92,000, and you elect to step up the GWB benefit base from $65,000 to $92,000. The GWB Annual withdrawal amount is recalculated to equal the greater of 7% of the new GWB benefit base, which is $6,440 (7% of $92,000), or the current GWB Annual withdrawal amount, $7,000. Therefore, following the step up, even though your GWB benefit base has increased, your GWB Annual withdrawal amount does not increase and remains $7,000. The Optional step up provision is not available once your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option. However, if you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, the GWB benefit base will be stepped up to equal the account value, if higher, as of the transaction date that we receive the Beneficiary continuation option election. As of the date of the GWB benefit base step up, your beneficiary's GWB Annual withdrawal amount will be equal to the greater of (i) your GWB Annual withdrawal amount before the step up, and (ii) your GWB Applicable percentage applied to the stepped up GWB benefit base. This is a one-time step up at no additional charge. OTHER IMPORTANT CONSIDERATIONS o Principal Protector(SM) protects your principal only through withdrawals. Your account value may be less than your total contributions. o You can take withdrawals under your contract without purchasing Principal Protector(SM). In other words, you do not need this benefit to make withdrawals. o Amounts withdrawn in excess of your GWB Annual withdrawal amount may be subject to a withdrawal charge, if applicable, as described in "Charges and expenses" later in the Prospectus. In addition, all withdrawals count toward your free withdrawal amount for that contract year. o Withdrawals made under Principal Protector(SM) will be treated, for tax purposes, in the same way as other withdrawals under your contract. o All withdrawals are subject to all of the terms and conditions of the contract. Principal Protector(SM) does not change the effect of withdrawals on your account value or guaranteed minimum death benefit; both are reduced by withdrawals whether or not you elect Contract features and benefits 47 Principal Protector(SM). See "How withdrawals are taken from your account value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. o If you withdraw less than the GWB Annual withdrawal amount in any contract year, you may not add the remainder to your GWB Annual withdrawal amount in any subsequent year. o GWB Excess withdrawals can significantly reduce or completely eliminate the value of this benefit. See "Effect of GWB Excess withdrawals" above in this section and "Withdrawing your account value" in "Accessing your money" later in this Prospectus. o If you surrender your contract to receive its cash value, all benefits under the contract will terminate, including Principal Protector(SM) if your cash value is greater than your GWB Annual withdrawal amount. Therefore, when surrendering your contract, you should seriously consider the impact on Principal Protector(SM) when you have a GWB benefit base that is greater than zero. o If you die and your beneficiary elects the Beneficiary continuation option, then your beneficiary should consult with a tax adviser before choosing to use the "5-year rule." The "5-year rule" is described in "Payment of death benefit" under "Beneficiary continuation option" later in this Prospectus. The GWB benefit base may be adversely affected if the beneficiary makes any withdrawals that cause a GWB Excess withdrawal. Also, when the contract terminates at the end of 5 years, any remaining GWB benefit base would be lost. INHERITED IRA BENEFICIARY CONTINUATION CONTRACT This contract was available to an individual beneficiary of a traditional IRA or a Roth IRA where the deceased owner held the individual retirement account or annuity (or Roth individual retirement account or annuity) with an insurance company or financial institution other than AXA Equitable. The purpose of the inherited IRA beneficiary continuation contract is to permit the beneficiary to change the funding vehicle that the deceased owner selected ("original IRA") while taking the required minimum distribution payments that must be made to the beneficiary after the deceased owner's death. See the discussion of required minimum distributions under "Tax information." This contract is intended only for beneficiaries who want to take payments at least annually over their life expectancy. These payments generally must begin (or must have begun) no later than December 31 of the calendar year following the year the deceased owner died. This contract is not suitable for beneficiaries electing the "5-year rule." See "Beneficiary continuation option for IRA and Roth IRA contracts" under "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. You should discuss with your tax adviser your own personal situation. This contract may not have been available in all states. Please speak with your financial professional for further information. Depending on when you purchased your contract, this contract may not have been available. See Appendix IX later in this Prospectus for more information. The inherited IRA beneficiary continuation contract could only have been purchased by a direct transfer of the beneficiary's interest under the deceased owner's original IRA. The owner of the inherited IRA beneficiary continuation contract is the individual who is the beneficiary of the original IRA. (Certain trusts with only individual beneficiaries are treated as individuals for this purpose). The contract must also contain the name of the deceased owner. In this discussion, "you" refers to the owner of the inherited IRA beneficiary continuation contract. The inherited IRA beneficiary continuation contract could have been purchased whether or not the deceased owner had begun taking required minimum distribution payments during his or her life from the original IRA or whether you had already begun taking required minimum distribution payments of your interest as a beneficiary from the deceased owner's original IRA. You should discuss with your own tax adviser when payments must begin or must be made. Under the inherited IRA beneficiary continuation contract: o You must receive payments at least annually (but may have elected to receive payments monthly or quarterly). Payments are generally made over your life expectancy determined in the calendar year after the deceased owner's death and determined on a term certain basis. o You must receive payments from this contract even if you are receiving payments from another IRA of the deceased owner in an amount that would otherwise satisfy the amount required to be distributed from this contract. o The beneficiary of the original IRA is the annuitant under the inherited IRA beneficiary continuation contract. In the case where the beneficiary is a "see-through trust," the oldest beneficiary of the trust is the annuitant. o An inherited IRA beneficiary continuation contract was not avail able for annuitants over age 70. o The initial contribution had to be a direct transfer from the deceased owner's original IRA and was subject to minimum contribution amounts. See "How you can contribute to your contract" earlier in this section. o Subsequent contributions of at least $1,000 are permitted but must be direct transfers of your interest as a beneficiary from another IRA with a financial institution other than AXA Equitable, where the deceased owner is the same as under the original IRA contract. o You may make transfers among the investment options. o You may choose at any time to withdraw all or a portion of the account value. Any partial withdrawal must be at least $300. Withdrawal charges will apply as described in "Charges and expenses" later in this Prospectus. o The Guaranteed minimum income benefit, successor owner/ annuitant feature, special dollar cost averaging program, automatic investment program, GPB Options 1 and 2, Principal Protector(SM) and systematic withdrawals are not available under the Inherited IRA beneficiary continuation contract. o If you die, we will pay to a beneficiary that you choose the greater of the annuity account value or the applicable death benefit. 48 Contract features and benefits o Upon your death, your beneficiary has the option to continue tak ing required minimum distributions based on your remaining life expectancy or to receive any remaining interest in the contract in a single sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If your beneficiary elects to continue to take distributions, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value as of the date we receive satisfactory proof of death and any required instructions, information and forms. Thereafter, withdrawal charges will no longer apply. If you had elected any enhanced death benefits, they will no longer be in effect and charges for such benefits will stop. The Guaranteed minimum death benefit will also no longer be in effect. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS This is provided for informational purposes only. Since these contracts are no longer available to new purchasers, this cancellation provision is no longer applicable. If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law requires, this "free look" period may be longer. Other state variations may apply. Please contact your financial professional to find out what applies in your state. Generally, your refund will equal your account value (less loan reserve account under Rollover TSA contracts) under the contract on the day we receive notification of your decision to cancel the contract and will reflect (i) any investment gain or loss in the variable investment options (less the daily charges we deduct), (ii) any guaranteed interest in the guaranteed interest option, (iii) any positive or negative market value adjustments in the fixed maturity options, and (iv) any interest in the account for special dollar cost averaging, through the date we receive your contract. Some states require that we refund the full amount of your contribution (not reflecting (i), (ii), (iii) or (iv) above). For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract, whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. In addition to the cancellation right described above, if you fully convert an existing traditional IRA contract to a Roth Conversion IRA or Flexible Premium Roth IRA contract, you may cancel your Roth Conversion IRA or Flexible Premium Roth IRA contract and return to a Rollover IRA or Flexible Premium IRA contract, whichever applies. Our processing office, or your financial professional, can provide you with the cancellation instructions. Contract features and benefits 49 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; (iv) the account for special dollar cost averaging; and (v) the loan reserve account (applies for Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less: (i) the total amount or a pro rata portion of the annual administrative charge, as well as optional benefit charges*; (ii) any applicable withdrawal charges; and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. ---------------------------------- * Depending on when you purchased your contract, your account value will be reduced by a pro rata portion of the administrative charge only. See Appendix IX later in this Prospectus for more information. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option less daily charges for: (i) mortality and expense risks; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, if applicable, when we deduct the enhanced death benefit, Guaranteed minimum income benefit, GPB Option 2, Principal Protector(SM) and/or Protection Plus(SM) benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest option at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING Your value in the account for special dollar cost averaging at any time will equal your contribution allocated to that option, plus interest, less the sum of all amounts that have been transferred to the variable investment options you have selected. INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all your rights under your contract and any applicable guaranteed benefits, except as discussed below. See Appendix VIII later in this Prospectus for any state variations with regard to the termination of your contract. GUARANTEED MINIMUM INCOME BENEFIT NO LAPSE GUARANTEE (not available under all contracts). In certain circumstances, even if your account value falls to zero, your Guaranteed minimum income benefit will still have value. Please see "Contract features and benefits" earlier in this Prospectus for information on this feature. PRINCIPAL PROTECTOR(SM) (NOT AVAILABLE UNDER ALL CONTRACTS). If you elected Principal Protector(SM) and your account value falls to zero due to 50 Determining your contract's value a GWB Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary annuity contract, as discussed below, even if your GWB benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not a GWB Excess withdrawal or due to a deduction of charges, please note the following: o If your GWB benefit base equals zero, we will terminate your contract and make no payment. o If your GWB benefit base is greater than zero but less than or equal to the balance of your GWB Annual withdrawal amount, if any, for that contract year, we will terminate your contract and pay you any remaining GWB benefit base. o If your GWB benefit base is greater than the balance of your remaining GWB Annual withdrawal amount, if any, for that contract year, we will pay you your GWB Annual withdrawal amount balance and terminate your contract, and we will pay you your remaining GWB benefit base as an annuity benefit, as described below. o If the Beneficiary continuation option is elected (not available in all states), and the account value falls to zero while there is a remaining GWB benefit base, we will make payments to the beneficiary as follows: o If the beneficiary had elected scheduled payments we will continue to make scheduled payments over remaining life expectancy until the GWB benefit base is zero, and the Principal Protector(SM) charge will no longer apply. o If the beneficiary had elected the "5-year rule" and the GWB benefit base is greater than the remaining GWB Annual withdrawal amount, if any, for that contract year, we will pay the beneficiary the GWB Annual withdrawal amount balance. We will continue to pay the beneficiary the remaining GWB Annual withdrawal amount each year until the GWB benefit base equals zero, or the contract terminates at the end of the fifth contract year, whichever comes first. Any remaining GWB benefit base at the end of the fifth contract year will terminate without value. ANNUITY BENEFIT. If the contract terminates and the remaining GWB benefit base is to be paid in installments, we will issue you an annuity benefit contract and make annual payments equal to your GWB Annual withdrawal amount on your contract date anniversary beginning on the next contract date anniversary, until the cumulative amount of such payments equals the remaining GWB benefit base (as of the date the contract terminates). The last installment payment may be smaller than the previous installment payments in order for the total of such payments to equal the remaining GWB benefit base. The annuity benefit supplemental contract will carry over the same owner, annuitant and beneficiary as under your contract. If you die before receiving all of your payments, we will make any remaining payments to your beneficiary. The charge for Principal Protector(SM) will no longer apply. If at the time of your death the GWB Annual withdrawal amount was being paid to you as an annuity benefit, your beneficiary may not elect the Beneficiary continuation option. Determining your contract's value 51 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer any amount to the account for special dollar cost averaging. o You may not transfer to a fixed maturity option that has a rate to maturity of 3% or less. o If the annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied, the rate to maturity is 3%. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment and affect your GPB. o No transfers are permitted into the Special 10 year fixed maturity option. New York has additional transfer restrictions. Please see Appendix VIII later in this Prospectus. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option, the interest sweep option and dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the Investment options in the prior contract year; or (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies 52 Transferring your money among investment options present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We offer rebalancing, which you can use to automatically reallocate your account value among your investment options. We currently offer two options: "Option I" and "Option II." Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers from the guaranteed interest option to the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer out of the guaranteed interest option to initiate the rebalancing program will not be permit- Transferring your money among investment options 53 ted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. For New York contracts, please see Appendix VIII for differences in your state. You may not elect Option II if you are participating in any dollar cost averaging program. You may not elect Option I if you are participating in general dollar cost averaging. 54 Transferring your money among investment options 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. If you withdraw more than 90% of your contract's current cash value, we will treat it as a request to surrender your contract for its cash value. See "Surrendering your contract to receive its cash value" below. For the potential tax consequences of withdrawals, see "Tax information" later in this Prospectus. Please see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2," below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. - -------------------------------------------------------------------------------- Method of withdrawal ---------------------------------------------------------------- Pre-age Lifetime 59-1/2 required substantially minimum Contract Partial Systematic equal distribution - -------------------------------------------------------------------------------- NQ Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes - -------------------------------------------------------------------------------- Flexible Premium IRA Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Conversion IRA Yes Yes Yes No - -------------------------------------------------------------------------------- Flexible Premium Roth IRA Yes Yes Yes No - -------------------------------------------------------------------------------- Inherited IRA No No No *** - -------------------------------------------------------------------------------- QP* Yes No No Yes - -------------------------------------------------------------------------------- Rollover TSA** Yes Yes No Yes - -------------------------------------------------------------------------------- * All payments are made to the trust, as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. ** Employer or plan approval is required for all transactions. Your ability to take withdrawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. *** This contract pays out post-death required minimum distributions. See "Inherited IRA beneficiary continuation contract" in "Contract features and benefits" earlier in this Prospectus. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Partial withdrawals will be subject to a withdrawal charge if they exceed the 10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). If you already own your contract, the applicable free withdrawal percentage may be higher. See Appendix IX later in this Prospectus for the free withdrawal amount that applies to your contract. Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. SYSTEMATIC WITHDRAWALS (All contracts except Inherited IRA and QP contracts) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If you already own your contract, the applicable percentages may be higher. See Appendix IX later in this Prospectus for information on what applies to your contract. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of your account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 10% free withdrawal amount. This option is not available if you have elected a Guaranteed principal benefit. This restriction may not apply Accessing your money 55 to certain contract owners, depending on when you purchased your contract. See Appendix IX later in this Prospectus for more information. SUBSTANTIALLY EQUAL WITHDRAWALS (Rollover IRA, Roth Conversion IRA, Flexible Premium IRA and Flexible Premium Roth IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one-time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals that we calculate for you are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Depending on when you purchased your contract, this option may not be available if you have elected a guaranteed principal benefit. This restriction may not apply to all contract owners. See Appendix IX later in this Prospectus for more information. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA, Flexible Premium IRA, QP and Rollover TSA contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA, Flexible Premium IRA, and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- We do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our automatic RMD service except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 10% free withdrawal amount. Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH PRINCIPAL PROTECTOR(SM). If you elected Principal Protector(SM), provided no other withdrawals are taken during a contract year in which you participate in our Automatic RMD service, an automatic withdrawal using our service will not cause a GWB Excess withdrawal, even if it exceeds your GWB Annual withdrawal amount. If you take any other withdrawal while you participate in the service, however, this GWB Excess withdrawal exception terminates permanently. In order to take advantage of this exception, you must elect and maintain participation in our Automatic RMD service at your required beginning date, or the contract date, if your required beginning date has occurred before the contract was purchased. See "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus for further information. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options and guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options 56 Accessing your money (other than the Special 10 year fixed maturity option, if applicable) in the order of the earliest maturity date(s) first. If the FMO amounts are insufficient, we will deduct all or a portion of the withdrawal from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option). HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2 In general, withdrawals will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000 - $16,000). Transfers out of the Special 10 year fixed maturity option will reduce the GPB Option 2 amount on a pro rata basis. In addition, if you make a contract withdrawal from the Special 10 year fixed maturity option, we will reduce your GPB Option 2 in a similar manner; however, the reduction will reflect both a transfer out of the Special 10 year fixed maturity option and a withdrawal from the contract. Therefore, the reduction in GPB Option 2 is greater when you take a contract withdrawal from the Special 10 year fixed maturity option than it would be if you took the withdrawal from another investment option. Similar to the example above, if your account value is $30,000 and you withdraw $12,000 from the Special 10 year fixed maturity option, you have withdrawn 40% of your account value. If your GPB Option 2 benefit was $40,000 before the withdrawal, the reduction to reflect the transfer out of the Special 10 year fixed maturity option would equal $16,000 ($40,000 x .40). The amount used to calculate the reduction to reflect the withdrawal from the contract is $24,000 ($40,000 - $16,000). The reduction to reflect the withdrawal would equal $9,600 ($24,000 x .40), and your new benefit after the withdrawal would be $14,400 ($24,000 - $9,600). For purposes of calculating the adjustment to your guaranteed benefits, the amount of the withdrawal will include the amount of any applicable withdrawal charge. Using the example above, the $12,000 withdrawal would include the withdrawal amount paid to you and the amount of any applicable withdrawal charge deducted from your account value. For more information on the calculation of the charge, see "Withdrawal charge" later in the Prospectus. With respect to the Guaranteed minimum income benefit and the Greater of 6% (or 5%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' 6% (or 5%) Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6% (or 5%) or less of the 6% (or 5%) Roll-Up benefit base on the most recent contract date anniversary. Additional contributions made during a contract year do not affect the amount of withdrawals that can be taken on a dollar-for-dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6% (or 5%) of the benefit base on the most recent anniversary, that entire withdrawal and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6% (or 5%) Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for each Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. The effect of withdrawals on your Guaranteed minimum income benefit and Guaranteed minimum death benefit (including the Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit) may be different. See Appendix IX later in this Prospectus for information on what applies to your contract. HOW WITHDRAWALS AFFECT PRINCIPAL PROTECTOR(SM) If you elected Principal Protector(SM), any withdrawal reduces your GWB benefit base by the amount of the withdrawal. In addition, a GWB Excess withdrawal can significantly reduce your GWB Annual withdrawal amount and further reduce your GWB benefit base. For more information, see "Effect of GWB Excess withdrawals" and "Other important considerations" under "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. WITHDRAWALS TREATED AS SURRENDERS If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. Also, under certain contracts, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. If you are an existing contract owner, the rules in the preceding sentence may not apply under your contract or if the Guaranteed minimum income benefit no lapse guarantee is available and in effect on your contract. See Appendix IX later in this Prospectus for information. See also "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR PRINCIPAL PROTECTOR(SM). If you elected Principal Protector(SM), all withdrawal methods described above can be used. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is a GWB Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to a GWB Excess withdrawal. In other words, if you take a GWB Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWB benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please Accessing your money 57 also see "Principal Protector(SM)" in "Contract features and benefits," earlier in this Prospectus, for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see Appendix VIII later in this Prospectus for any state restrictions you may be subject to if you take a loan from a Rollover TSA contract. Also, see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan including any accrued and unpaid loan interest, will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the loan reserve account. Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If FMO amounts are insufficient, we will deduct all or a portion of the loan from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option). If amounts are withdrawn from the Special 10 year fixed maturity option, the guaranteed benefit will be adversely affected. See "Guaranteed principal benefit option 2" in "Contract features and benefits" earlier in this Prospectus. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while the annuitant is living and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of the date we receive the required information, including Principal Protector(SM) (if applicable) if your cash value is greater than your GWB Annual withdrawal amount. If you have a GWB benefit base greater than zero, you should consider the impact of a contract surrender on the Principal Protector(SM) benefit. If your surrender request does not constitute a GWB Excess withdrawal, you may be eligible for additional benefits. If, however, your surrender request constitutes a GWB Excess withdrawal, you will lose those benefits. Also, if the Guaranteed minimum income benefit no lapse guarantee is in effect under your contract, the Guaranteed minimum income benefit will terminate without value if your cash value plus any other withdrawals taken in the contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year). For more information, please see "Annuity benefit" under "Insufficient account value" in "Determining your contract value" and "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal charge) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, 58 Accessing your money (2) the SEC determines that an emergency exists as a result of which sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option, fixed maturity options and the account for special dollar cost averaging (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. Please see Appendix VIII later in this Prospectus for variations that may apply in your state. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the annuitant's age when the contract was issued. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect Principal Protector(SM) and choose to annuitize your contract, Principal Protector(SM) will terminate without value even if your GWB benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under Principal Protector(SM). See "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus for further information. - -------------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------------- Income Manager(R) payout options Life annuity with period certain (available for annuitants age 83 Period certain annuity or less at contract issue) - -------------------------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contract that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life, and after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. Accessing your money 59 VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable income annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager(R) payout option without life contingencies unless withdrawal charges are no longer in effect under your Accumulator(R). For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply your account value of your Accumulator(R) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) and we will deduct any applicable withdrawal charge. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income option (or "Living Benefit" option), different payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any withdrawal charges or market value adjustments. If amounts in a fixed maturity option are used to purchase any annuity payout option, prior to the maturity date, a market value adjustment will apply. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. The withdrawal charge applicable under your Accumulator(R) contract is imposed if you select a non-life contingent period certain payout annuity. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For the Income Manager(R) life contingent payout options, no withdrawal charge is imposed under the Accumulator(R). If the withdrawal charge that otherwise would have been applied to your account value under your Accumulator(R) is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager(R) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin. In most states, it may not be earlier than thirteen months from the Accumulator(R) contract date. Please see Appendix VIII later in this Prospectus for information on state variations. Except with respect to the Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments, or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less 60 Accessing your money than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elected Principal Protector(SM) and your contract is annuitized at maturity, we will offer an annuity payout option for life that guarantees you will receive payments that are at least equal to what you would have received under Principal Protector until the point at which your GWB Benefit Base is depleted. After your GWB Benefit Base is depleted, you will continue to receive periodic payments while you are living. The amount of each payment will be the same as the payment amount that you would have received if you had applied your account value on the maturity date to purchase a life annuity at the annuity purchase rate guaranteed in your contract; this payment amount may be more or less than your GWB Annual Withdrawal amount. Please see Appendix VIII later in this Prospectus for variations that may apply in your state. Accessing your money 61 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o On each contract date anniversary, a charge for each optional benefit that you have elected: a death benefit (other than the Standard death benefit); the Guaranteed minimum income benefit; Principal Protector(SM); and Protection Plus(SM). o On the first 10 contract date anniversaries -- a charge for GPB Option 2, if you have elected this optional benefit. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. The fees and charges described are the maximum fees and charges that a contract owner will pay. Please see your contract and/or Appendix IX for the fees and charges that apply under your contract. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits, and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 0.75% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the Guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. ADMINISTRATIVE CHARGE. We deduct a daily charge from the net assets in each variable investment option. The charge, together with the annual administrative charge described below, is to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.30% of the net assets in each variable investment option. DISTRIBUTION CHARGE. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.20% of the net assets in each variable investment option. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed 62 Charges and expenses interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option, if applicable,) in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceed the 10% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or apply your cash value to a non-life contingent payout option. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options--The amount applied to purchase an annuity payout option" in "Accessing your money" earlier in the Prospectus. The withdrawal charge equals a percentage of the contributions withdrawn. The percentage that applies depends on how long each contribution has been invested in the contract. We determine the withdrawal charge separately for each contribution according to the following table: - -------------------------------------------------------------------------------- Contract year - -------------------------------------------------------------------------------- 1 2 3 4 5 6 7 8+ - -------------------------------------------------------------------------------- Percentage of contribution 7% 7% 6% 6% 5% 3% 1% 0% - -------------------------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1" and the withdrawal charge is reduced or expires on each applicable contract date anniversary. Amounts withdrawn up to the free withdrawal amount are not considered withdrawal of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. For contracts issued in New York, please see Appendix VIII later in this Prospectus for the New York withdrawal charge schedule applicable to monies withdrawn from and transferred among the fixed maturity options. For Pennsylvania contracts for annuitants who are age 84 or 85 at issue, please see Appendix VIII later in this Prospectus for possible withdrawal charge schedule variations. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and the withdrawal charge from your account value. Any amount deducted to pay withdrawal charges is also subject to that same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each investment option. The withdrawal charge helps cover our sales expenses. For purposes of calculating reductions in your guaranteed benefits and associated benefit bases, the withdrawal amount includes both the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information, see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier in the Prospectus. The withdrawal charge does not apply in the circumstances described below. 10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10% of your account value without paying a withdrawal charge. The 10% free withdrawal amount is determined using your account value at the beginning of each contract year. In the first contract year, the 10% free withdrawal amount is determined using all contributions received in the first 90 days of the contract year. Additional contributions during the contract year do not increase your 10% free withdrawal amount. The 10% free withdrawal amount does not apply if you surrender your contract except where required by law. For NQ contracts issued to a charitable remainder trust, the free withdrawal amount will equal the greater of: (1) the current account value less contributions that have not been withdrawn (earnings in the contract) and (2) the 10% free withdrawal amount defined above. If you elected Principal Protector(SM), we will waive any withdrawal charge for any withdrawal during the contract year up to the GWB Annual withdrawal amount, even if such withdrawals exceed the free withdrawal amount. However, each withdrawal reduces the free withdrawal amount for that contract year by the amount of the withdrawal. Withdrawal charges, are applied to the amount of the withdrawal that exceeds the GWB Annual withdrawal amount. The applicable free withdrawal percentage may be higher for certain contract holders, depending on when you purchased your contract. See Appendix IX later in this Prospectus for the free withdrawal amount that applies under your contract. CERTAIN WITHDRAWALS. If you elected the Guaranteed minimum income benefit and/or the Greater of 6% Roll-Up to age 85 or the annual ratchet to age 85 enhanced death benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6% of the beginning of contract year 6% to age 85 Roll-Up benefit base, even if such withdrawals exceed the free withdrawal amount. Also, a withdrawal charge does not apply to a withdrawal that exceeds 6% of the beginning of contract year 6% to age 85 Roll-Up benefit base as long as it does not exceed the free withdrawal amount. If your withdrawals exceed the amount described above, this waiver is not applicable to that withdrawal nor to any subsequent withdrawal for the life of the contract. Charges and expenses 63 See Appendix IX later in this Prospectus to see if this waiver of the withdrawal charge applies under your contract. DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal charge also does not apply if: (i) The annuitant has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or (ii) We receive proof satisfactory to us (including certification by a licensed physician) that the annuitant's life expectancy is six months or less; or (iii) The annuitant has been confined to a nursing home for more than 90 days (or such other period, as required in your state) as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: -- its main function is to provide skilled, intermediate, or custodial nursing care; -- it provides continuous room and board to three or more persons; -- it is supervised by a registered nurse or licensed practical nurse; -- it keeps daily medical records of each patient; -- it controls and records all medications dispensed; and -- its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions described in (i), (ii) or (iii) above existed at the time a contribution was remitted or if the condition began within 12 months of the period following remittance. Some states may not permit us to waive the withdrawal charge in the above circumstances, or may limit the circumstances for which the withdrawal charge may be waived. Your financial professional can provide more information or you may contact our processing office. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elected the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. If you already own your contract, the charge may be as much as 0.30% of the Annual Ratchet to age 85 benefit base. Please see Appendix IX later in this Prospectus or your contract for more information. GREATER OF 5% ROLL-UP TO AGE 85. If you elected this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.50% of the greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elected this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.60% of the greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. For contract owners, your charge may be less, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus or your contract for more information. 6% ROLL-UP TO AGE 85. If you elected the 6% Roll-Up to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.45% of the 6% Roll-Up to age 85 benefit base. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If these amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. There is no charge if you exercise the Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset option. STANDARD DEATH BENEFIT. There is no additional charge for the standard death benefit. GUARANTEED PRINCIPAL BENEFIT OPTION 2 If you purchased GPB Option 2, we deduct a charge annually from your account value on the first 10 contract date anniversaries. The charge is equal to 0.50% of the account value. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct any remaining portion of the charge from amounts in any fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are insufficient, we will deduct all or a portion from 64 Charges and expenses the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. GUARANTEED MINIMUM INCOME BENEFIT (THE "LIVING BENEFIT") CHARGE If you elected the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary after the annuitant reaches age 85, whichever occurs first. The charge is equal to 0.65% of the applicable benefit base in effect on the contract date anniversary. For certain contract owners, your charge may be less, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus or your Prospectus for the charge that applies under your contract. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are still insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply under your contract, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option, if available). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. There is no charge if you exercise the Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset option or for the Guaranteed minimum income benefit no lapse guarantee. This option is not available under all contracts. PROTECTION PLUS(SM) CHARGE If you elected Protection Plus(SM), we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.35% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply under your contract, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. PRINCIPAL PROTECTOR(SM) CHARGE If you elected Principal Protector(SM), we deduct a charge annually as a percentage of your account value on each contract date anniversary. If you elect the 5% GWB Annual withdrawal option, the charge is equal to 0.35%. If you elect the 7% GWB Annual withdrawal option, the charge is equal to 0.50%. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply under your contract, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus. If you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, we will not deduct a pro rata portion of the charge upon your death. However, the Principal Protector(SM) charge will continue. A market value adjustment will apply to deductions from the fixed maturity options. If your GWB benefit base falls to zero but your contract is still in force, the charge will be suspended as of the next contract date anniversary. The charge will be reinstated, as follows: (i) if you make a subsequent contribution, we will reinstate the charge that was in effect at the time your GWB benefit base became depleted, (ii) if you elect to exercise the Optional step up provision, we will reinstate a charge, as discussed immediately below, and (iii) if your beneficiary elects the Beneficiary continuation option and reinstates the Principal Protector(SM) benefit with a one time step up, we will reinstate the charge that was in effect when the GWB benefit base fell to zero. Charges and expenses 65 If your beneficiary elects the Beneficiary continuation option, and is eligible to continue Principal Protector(SM), the benefit and the charge will continue unless your beneficiary tells us to terminate the benefit at the time of election. OPTIONAL STEP UP CHARGE. Every time you elect the Optional step up, we reserve the right to raise the benefit charge at the time of the step up. The maximum charge for Principal Protector(SM) with a 5% GWB Annual withdrawal option is 0.60%. The maximum charge for Principal Protector(SM) with a 7% GWB Annual withdrawal amount option is 0.80%. The increased charge, if any, will apply as of the next contract date anniversary following the step up and on all contract anniversaries thereafter. If you die and your beneficiary elects the Beneficiary continuation option, if available, a one time step up only (at no additional charge) is applicable. For more information on the Optional step up, one time step up and Automatic reset provisions, see "Principal Protector(SM)" in "Contract features and benefits." If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY ANNUITIZATION PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity annuitization payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge, or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to 12b-1 fees. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. 66 Charges and expenses 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designated your beneficiary when you applied for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) and any amount applicable under the Protection Plus(SM) feature, as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the annuitant's death adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. EFFECT OF THE ANNUITANT'S DEATH If the annuitant dies before the annuity payments begin, we will pay the death benefit to your beneficiary. Generally, the death of the annuitant terminates the contract. However, a surviving spouse who is the sole primary beneficiary of the deceased owner/annuitant can choose to be treated as the successor owner/annuitant and continue the contract. The Successor owner/ annuitant feature is only available under NQ and individually owned IRA contracts (other than Inherited IRAs). For NQ and all types of IRA contracts, a beneficiary may be able to have limited ownership as discussed under "Beneficiary continuation option" below. WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT Under certain conditions the owner changes after the original owner's death for purposes of receiving required distributions from the contract. When you are not the annuitant under an NQ contract and you die before annuity payments begin, unless you specify otherwise, the beneficiary named to receive the death benefit upon the annuitant's death will become the successor owner. If you do not want this beneficiary to be the successor owner, you should name a specific successor owner. You may name a successor owner at any time during your life by sending satisfactory notice to our processing office. If the contract is jointly owned and the first owner to die is not the annuitant, the surviving owner becomes the sole contract owner. This person will be considered the successor owner for purposes of the distribution rules described in this section. The surviving owner automatically takes the place of any other beneficiary designation. You should carefully consider the following if you have elected the Guaranteed minimum income benefit and you are the owner, but not the annuitant. Because the payments under the Guaranteed minimum income benefit are based on the life of the annuitant, and the federal tax law required distributions described below are based on the life of the successor owner, a successor owner who is not also the annuitant may not be able to exercise the Guaranteed minimum income benefit if you die before annuity payments begin. Therefore, one year before you become eligible to exercise the Guaranteed minimum income benefit you should consider the effect of your beneficiary designations on potential payments after your death. For more information, see "Exercise rules" under "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus. Unless the surviving spouse of the owner who has died (or in the case of a joint ownership situation, the surviving spouse of the first owner to die) is the successor owner for this purpose, the entire interest in the contract must be distributed under the following rules: o The cash value of the contract must be fully paid to the successor owner (new owner) within five years after your death (the "5-year rule"), or in a joint ownership situation, the death of the first owner to die. o If Principal Protector(SM) was elected and if the "5-year rule" is elected and the successor owner dies prior to the end of the fifth year, we will pay any remaining account value in a lump sum and the con- Payment of death benefit 67 tract and any remaining GWB benefit base will terminate without value. The successor owner should consult with a tax adviser before choosing to use the "5-year rule." The GWB benefit base may be adversely affected if the successor owner makes any withdrawals that cause a GWB Excess withdrawal. Also, when the contract terminates at the end of 5 years, any remaining GWB benefit base would be lost. If you elected Principal Protector(SM), the successor owner has the option to terminate the benefit and charge upon receipt by us of due proof of death and notice to discontinue the benefit; otherwise, the benefit and charge will automatically continue. o The successor owner may instead elect to receive the cash value as a life annuity (or payments for a period certain of not longer than the successor owner's life expectancy). Payments must begin within one year after the non-annuitant owner's death. Unless this alternative is elected, we will pay any cash value five years after your death (or the death of the first owner to die). o A successor owner should consider naming a new beneficiary. If the surviving spouse is the successor owner or joint owner, the spouse may elect to continue the contract. No distributions are required as long as the surviving spouse and annuitant are living. An eligible successor owner, including a surviving joint owner after the first owner dies, may elect the beneficiary continuation option for NQ contracts discussed in "Beneficiary continuation option" below. HOW DEATH BENEFIT PAYMENT IS MADE We will pay the death benefit to the beneficiary in the form of the annuity payout option you have chosen. If you have not chosen an annuity payout option as of the time of the annuitant's death, the beneficiary will receive the death benefit in a single sum. Payment of the death benefit in a lump sum terminates all rights and any applicable guarantees under the contract, including Guaranteed minimum income benefit, GPB Options 1 and 2 and Principal Protector(SM). However, subject to any exceptions in the contract, our rules and any applicable requirements under federal income tax rules, the beneficiary may elect to apply the death benefit to one or more annuity payout options we offer at the time. See "Your annuity payout options" in "Accessing your money" earlier in this Prospectus. Please note that any annuity payout option chosen may not extend beyond the life expectancy of the beneficiary. SUCCESSOR OWNER AND ANNUITANT If you are both the contract owner and the annuitant, and your spouse is the sole primary beneficiary or the joint owner, then your spouse may elect to receive the death benefit or continue the contract as successor owner/annuitant. The successor owner/annuitant must be 85 or younger as of the date of the non-surviving spouse's death. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. If your surviving spouse decides to continue the contract, then as of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary to effect the Successor owner/annuitant feature, we will increase the account value to equal your elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature, and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. Thereafter, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. These additional contributions will be considered to be withdrawn only after all other amounts have been withdrawn. In determining whether your applicable Guaranteed minimum death benefit option will continue to grow, we will use your surviving spouse's age as of the date we receive satisfactory proof of your death, any required instructions and the information and forms necessary to effect the successor owner/annuitant feature. We will determine whether your applicable Guaranteed minimum death benefit option will continue as follows: o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 84 or younger at death, the Guaranteed minimum death benefit continues based upon the option that was elected by the original owner/annuitant and will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 85 or older at death, we will reinstate the Guaranteed minimum death benefit that was elected by the original owner/annuitant. The benefit will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 76 or over on the date of the original owner/annuitant's death, the Guaranteed minimum death benefit will no longer grow, and we will no longer charge for the benefit. If you elected Principal Protector(SM), the benefit and charge will remain in effect. If the GWB benefit base is zero at the time of your death, and the charge had been suspended, the charge will be reinstated if any of the events, described in "Principal Protector(SM) charge" in "Charges and expenses" earlier in this Prospectus, occur. The GWB benefit base will not automatically be stepped up to equal the account value, if higher, upon your death. Your spouse must wait five complete years from the prior step up or from contract issue, whichever is later, in order to be eligible for the Optional step up. For more information, see "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. 68 Payment of death benefit Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For information on the operation of the successor owner/annuitant feature with the Guaranteed minimum income benefit, see "Exercise of Guaranteed minimum income benefit" under "Guaranteed minimum income benefit option" in "Contract features and benefits," earlier in this Prospectus. For information on the operation of this feature with Protection Plus(SM), see "Protection Plus(SM)" in "Guaranteed minimum death benefit" under "Contract features and benefits," earlier in this Prospectus. SPOUSAL PROTECTION SPOUSAL PROTECTION OPTION FOR NQ CONTRACTS ONLY. This feature permits spouses who are joint contract owners to increase the account value to equal the guaranteed minimum death benefit, if higher, and by the value of any Protection Plus(SM) benefit, if elected, upon the death of either spouse. This account value "step up" occurs even if the surviving spouse was the named annuitant. If you and your spouse jointly own the contract and one of you is the named annuitant, you had the right to elect the Spousal protection option at the time you purchased your contract at no additional charge. Both spouses must have been between the ages of 20 and 70 at the time the contract was issued and must each have been named the primary beneficiary in the event of the other's death. The annuitant's age is generally used for the purpose of determining contract benefits. However, for the Annual Ratchet to age 85 and the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 guaranteed minimum death benefits and the Protection Plus(SM) benefit, the benefit is based on the older spouse's age. The older spouse may or may not be the annuitant. However, for purposes of the Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset option, the last age at which the benefit base may be reset is based on the annuitant's age, not the older spouse's age. If the annuitant dies prior to annuitization, the surviving spouse may elect to receive the death benefit, including the value of the Protection Plus(SM) benefit, or, if eligible, continue the contract as the sole owner/ annuitant by electing the successor owner/annuitant option. If the non-annuitant spouse dies prior to annuitization, the surviving spouse continues the contract automatically as the sole owner/annuitant. In either case, the contract would continue, as follows: o As of the date we receive due proof of the spouse's death, the account value will be reset to equal the Guaranteed minimum death benefit as of the date of the non-surviving spouse's death, if higher, increased by the value of the Protection Plus(SM) benefit. o The Guaranteed minimum death benefit continues to be based on the older spouse's age for the life of the contract, even if the younger spouse is originally or becomes the sole owner/annuitant. o The Protection Plus(SM) benefit will now be based on the surviving spouse's age at the date of the non-surviving spouse's death for the remainder of the life of the contract. If the benefit had been previously frozen because the older spouse had attained age 80, it will be reinstated if the surviving spouse is age 75 or younger. The benefit is then frozen on the contract date anniversary after the surviving spouse reaches age 80. If the surviving spouse is age 76 or older, the benefit will be discontinued even if the surviving spouse is the older spouse (upon whose age the benefit was originally based). o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the successor owner/annuitant, if applicable. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If the annuitant dies first, withdrawal charges will no longer apply to any contributions made prior to the annuitant's death. If the non-annuitant spouse dies first, the withdrawal charge schedule remains in effect with regard to all contributions. o If you elected Principal Protector(SM), the benefit and charge will remain in effect. If your GWB benefit base is zero at the time of your death, and the charge had been suspended, the charge will be reinstated if any of the events, described in "Principal Protector(SM) charge" in "Charges and expenses" earlier in this Prospectus, occur. The GWB benefit base will not automatically be stepped up to equal the account value, if higher, upon your death. Your spouse must wait five complete years from the prior step up or from contract issue, whichever is later, in order to be eligible for the Optional step up. For more information, see "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. We will not allow Spousal protection to be added after contract issue. If there is a change in owner or primary beneficiary, the Spousal protection benefit will be terminated. If you divorce but do not change the owner or primary beneficiary, Spousal protection continues. Depending on when you purchased your contract, this feature may not be available to you. See Appendix IX later in this Prospectus for more information about your contract. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state availability. Please speak with your financial professional or see Appendix VIII later in this Prospectus for further information. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of Payment of death benefit 69 death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature, adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain circumstances) under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. See below for certain circumstances where Principal Protector(SM) may continue to apply. o The beneficiary may choose at any time to withdraw all or a portion of the account value and no withdrawal charges, if any, will apply. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. o If you had elected Principal Protector(SM), your spousal beneficiary may not continue Principal Protector(SM), and the benefit will terminate without value, even if the GWB benefit base is greater than zero. In general, spousal beneficiaries who wish to continue Principal Protector(SM) should consider continuing the contract under the Successor owner and annuitant feature, if eligible. In general, eligibility requires that your spouse must be the sole primary beneficiary. Please see "Successor owner and annuitant" in "How death benefit payment is made" under "Payment of death benefit" earlier in this Prospectus for further details. If there are multiple beneficiaries who elect the Beneficiary continuation option, the spousal beneficiary may continue the contract without Principal Protector(SM) and non-spousal beneficiaries may continue with Principal Protector(SM). In this case, the spouse's portion of the GWB benefit base will terminate without value. o If you had elected Principal Protector(SM), your non-spousal beneficiary may continue the benefit, as follows: o The beneficiary was 75 or younger on the original contract date. o The benefit and charge will remain in effect unless your benefi ciary tells us to terminate the benefit at the time of the Beneficiary continuation option election. o One time step up: Upon your death, if your account value is greater than the GWB benefit base, the GWB benefit base will be automatically stepped up to equal the account value, at no additional charge. If Principal Protector(SM) is not in effect at the time of your death because the GWB benefit base is zero, the beneficiary may reinstate the benefit (at the charge that was last in effect) with the one time step up. If the beneficiary chooses not to reinstate the Principal Protector(SM) at the time the Beneficiary continuation option is elected, Principal Protector(SM) will terminate. o If there are multiple beneficiaries each beneficiary's interest in the GWB benefit base will be separately accounted for. o As long as the GWB benefit base is $5,000 or greater, the benefi ciary may elect the Beneficiary continuation option and continue Principal Protector(SM) even if the account value is less than $5,000. o If scheduled payments are elected, the beneficiary's scheduled payments will be calculated, using the greater of the account value or the GWB benefit base, as of each December 31. If the beneficiary dies prior to receiving all payments, we will make the remaining payments to the person designated by the deceased non-spousal beneficiary, unless that person elects to take any remaining account value in a lump sum, in which case any remaining GWB benefit base will terminate without value. o If the "5-year rule" is elected and the beneficiary dies prior to the end of the fifth year, we will pay any remaining account value in 70 Payment of death benefit a lump sum and the contract and any remaining GWB benefit base will terminate without value. o Provided no other withdrawals are taken during a contract year while the beneficiary receives scheduled payments, the scheduled payments will not cause a GWB Excess withdrawal, even if they exceed the GWB Annual withdrawal amount. If the beneficiary takes any other withdrawals while the Beneficiary continuation option scheduled payments are in effect, the GWB Excess withdrawal exception terminates permanently. In order to take advantage of this exception, the beneficiary must elect the scheduled payments rather than the "5-year rule." If the beneficiary elects the "5-year rule," there is no exception. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. If the owner and annuitant are different and the owner dies before the annuitant, for purposes of this discussion, "beneficiary" refers to the successor owner. For a discussion of successor owner, see "When an NQ contract owner dies before the annuitant" earlier in this section. This feature must be elected within 9 months following the date of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts (regardless of whether the owner and annuitant are the same person): o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain circumstances) under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. See below for certain circumstances where Principal Protector(SM) may continue to apply. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. o If you had elected Principal Protector(SM), your spousal beneficiary may not continue Principal Protector(SM), and the benefit will terminate without value, even if the GWB benefit base is greater than zero. In general, spousal beneficiaries who wish to continue Principal Protector(SM) should consider continuing the contract under the Successor owner and annuitant feature, if eligible. In general, eligibility requires that you must be the owner and annuitant and your spouse must be the sole primary beneficiary. Please see "Successor owner and annuitant" in "How death benefit payment is made" under "Payment of death benefit" earlier in this Prospectus for further details. If there are multiple beneficiaries who elect the Beneficiary continuation option, the spousal beneficiary may continue the contract without Principal Protector(SM) and non-spousal beneficiaries may continue with Principal Protector(SM). In this case, the spouse's portion of the GWB benefit base will terminate without value. o If the non-spousal beneficiary chooses scheduled payments under "Withdrawal Option 1," as discussed above in this section, Principal Protector(SM) may not be continued and will automatically terminate without value even if the GWB benefit base is greater than zero. o If you had elected Principal Protector(SM), your non-spousal beneficiary may continue the benefit, as follows: o The beneficiary was 75 or younger on the original contract date. o The benefit and charge will remain in effect unless your benefi Payment of death benefit 71 ciary tells us to terminate the benefit at the time of the Beneficiary continuation option election. o One time step up: Upon your death, if your account value is greater than the GWB benefit base, the GWB benefit base will be automatically stepped up to equal the account value, at no additional charge. If Principal Protector(SM) is not in effect at the time of your death because the GWB benefit base is zero, the beneficiary may reinstate the benefit (at the charge that was last in effect) with the one time step up. If the beneficiary chooses not to reinstate the Principal Protector(SM) at the time the Beneficiary continuation option is elected, Principal Protector(SM) will terminate. o If there are multiple beneficiaries, each beneficiary's interest in the GWB benefit base will be separately accounted for. o As long as the GWB benefit base is $5,000 or greater, the benefi ciary may elect the Beneficiary continuation option and continue Principal Protector(SM) even if the account value is less than $5,000. o If scheduled payments under "Withdrawal Option 2" is elected, the beneficiary's scheduled payments will be calculated using the greater of the account value or the GWB benefit base, as of each December 31. If the beneficiary dies prior to receiving all payments, we will make the remaining payments to the person designated by the deceased non-spousal beneficiary, unless that person elects to take any remaining account value in a lump sum, in which case any remaining GWB benefit base will terminate without value. o If the "5-year rule" is elected and the beneficiary dies prior to the end of the fifth year, we will pay any remaining account value in a lump sum and the contract and any remaining GWB benefit base will terminate without value. o Provided no other withdrawals are taken during a contract year while the beneficiary receives scheduled payments, the scheduled payments will not cause a GWB Excess withdrawal, even if they exceed the GWB Annual withdrawal amount. If the beneficiary takes any other withdrawals while the Beneficiary continuation option scheduled payments are in effect, the GWB Excess withdrawal exception terminates permanently. In order to take advantage of this exception, the beneficiary must elect scheduled payments under "Withdrawal Option 2" rather than the "5-year rule." If the beneficiary elects the "5-year rule," there is no exception. If you are both the owner and annuitant: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the annuity account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature, adjusted for any subsequent withdrawals. o No withdrawal charges will apply to any withdrawals by the beneficiary. If the owner and annuitant are not the same person: o If the beneficiary continuation option is elected, the beneficiary automatically becomes the new annuitant of the contract, replacing the existing annuitant. o The annuity account value will not be reset to the death benefit amount. o The contract's withdrawal charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments; the contract's free corridor amount will continue to apply to withdrawals but does not apply to surrenders. o We do not impose a withdrawal charge on scheduled payments except if, when added to any withdrawals previously taken in the same contract year, including for this purpose a contract surrender, the total amount of withdrawals and scheduled payments exceed the free corridor amount. See the "Withdrawal charges" in "Charges and expenses" earlier in this Prospectus. If a contract is jointly owned: o The surviving owner supersedes any other named beneficiary and may elect the beneficiary continuation option. o If the deceased joint owner was also the annuitant, see "If you are both the owner and annuitant" earlier in this section. o If the deceased joint owner was not the annuitant, see "If the owner and annuitant are not the same person" earlier in this section. 72 Payment of death benefit 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the Prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator's(R) choice of death benefits, the Principal Protector(SM) benefit, the Guaranteed minimum income benefit, special dollar cost averaging, selection of variable investment options, guaranteed interest option, fixed maturity options and its choices of payout options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, the guaranteed minimum income benefit and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase additional features under this annuity contract. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. Tax information 73 ANNUITY PAYMENTS Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your "investment in the contract." Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. PROTECTION PLUS(SM) FEATURE In order to enhance the amount of the death benefit to be paid at the annuitant's death, you may have purchased a Protection Plus(SM) rider for your NQ contract. Although we regard this benefit as an investment protection feature which is part of the contract and which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Protection Plus(SM) rider is not part of the contract. In such a case the charges for the Protection Plus(SM) rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable, and for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, AXA Equitable would take all reasonable steps to attempt to avoid this result, which could include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES The following information applies if you purchased your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange was not taxable under Section 1035 of the Internal Revenue Code if: o the contract that was the source of the funds you used to purchase the NQ contract was another nonqualified deferred annuity contract or life insurance or endowment contract. o the owner and the annuitant were the same under the source contract and the Accumulator(R) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must have been the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carried over to the Accumulator(R) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between the carriers, and provision of cost basis information may be required to process this type of an exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. BENEFICIARY CONTINUATION OPTION We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for NQ contracts. See the discussion "Beneficiary continuation option for NQ Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2"; o scheduled payments, any additional withdrawals under "Withdrawal Option 2", or contract surrenders under "Withdrawal Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the "Withdrawal Option" selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling specifically does not address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether 74 Tax information scheduled payments or any withdrawal that might be taken). The ruling also does not address the effect of the retention of the Principal Protector(SM) feature discussed earlier in this Prospectus under "Contract features and benefits," which a non-spousal beneficiary may elect under certain conditions. Before electing the beneficiary continuation option feature, the individuals you designate as beneficiary or successor owner should discuss with their tax advisers the consequences of such elections. The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2, a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Accounts 45 and 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Accounts 45 and 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Accounts 45 and 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets funding the account for the benefit of the IRA owner. The assets typically include mutual funds and/or individual stocks and securities in a custodial account, and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral, regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may have purchased the contract as either a traditional IRA or Roth IRA. The traditional IRAs we offered were the Rollover IRA and Flexible Premium IRA. The versions of the Roth IRA available were the Roth Conversion IRA and Flexible Premium Roth IRA. We also offered the Inherited IRA for payment of post-death required minimum distributions from traditional IRAs and Roth IRAs. We currently do not offer traditional IRA contracts for use as employer-funded SEP-IRA or SIMPLE IRA plans, although we may do so in the future. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payment (as opposed to payments from a fixed income annuitization option). For some of the contracts covered by this Prospectus, we have received an opinion letter from the IRS approving the respective forms of the Accumulator(R) traditional and Roth IRA contracts for use as a traditional IRA and a Roth IRA, respectively. For others, we have not applied for an opinion letter from the IRS to approve the respective forms of the Accumulator(R) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. We have submitted the respective Tax information 75 forms of the Accumulator(R) Inherited IRA beneficiary continuation contract to the IRS for approval as to form for use as a traditional IRA or Roth IRA, respectively. We do not know if and when any such approval may be granted. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under any series of Accumulator(R) traditional and Roth IRA contracts. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS This is provided for informational purposes only. Since this contract is no longer available to new purchasers, this cancellation provision is no longer applicable. You can cancel any version of the Accumulator(R) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel with a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS) CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS LIMITS ON CONTRIBUTIONS. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000 your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch-up contributions" of up to $1,000 to your traditional IRA. SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. "Catch-up" contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. IF YOU ARE NOT COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, you can make FULLY DEDUCTIBLE contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions". That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your adjusted gross income (AGI) is BELOW THE LOWER DOLLAR FIGURE IN A PHASE-OUT RANGE, you can make FULLY DEDUCTIBLE contributions to your traditional IRAs. IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your AGI FALLS WITHIN A PHASE-OUT RANGE, you can make PARTIALLY DEDUCTIBLE contributions to your traditional IRAs. IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your AGI falls ABOVE THE HIGHER FIGURE IN THE PHASE-OUT RANGE, you MAY NOT DEDUCT any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits to deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined 76 Tax information independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted x ------------------- X regular = deductible divided by $10,000 contribution contribution for the year limit ADDITIONAL "SAVER'S CREDIT" FOR CONTRIBUTIONS TO A TRADITIONAL IRA OR ROTH IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return and your adjusted gross income cannot exceed $50,000 ($53,000 after cost of living indexing adjustment for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 "catch-up" contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. ROLLOVER AND TRANSFER CONTRIBUTIONS TO TRADITIONAL IRAS Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. ROLLOVERS FROM "ELIGIBLE RETIREMENT PLANS" OTHER THAN TRADITIONAL IRAS Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to Tax information 77 send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan, or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan, such as a traditional IRA, and subsequently take a premature distribution. ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN TRADITIONAL IRAS Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. EXCESS CONTRIBUTIONS Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contribution amount for the applicable taxable year; or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. RECHARACTERIZATIONS Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. 78 Tax information WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. REQUIRED MINIMUM DISTRIBUTIONS BACKGROUND ON REGULATIONS--REQUIRED MINIMUM DISTRIBUTIONS. Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing. Please consult your tax adviser concerning applicability of these complex rules to your situation. LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. WHEN YOU HAVE TO TAKE THE FIRST LIFETIME REQUIRED MINIMUM DISTRIBUTION. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your Required Beginning Date, which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year -- the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially Tax information 79 choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON THE METHOD YOU CHOOSE? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owners death. No distribution is required before that fifth year. SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. HOWEVER, NOTE THAT WE NEED AN INDIVIDUAL ANNUITANT TO KEEP AN ANNUITY CONTRACT IN FORCE. IF THE BENEFICIARY IS NOT AN INDIVIDUAL, WE MUST DISTRIBUTE AMOUNTS REMAINING IN THE ANNUITY CONTRACT AFTER THE DEATH OF THE ANNUITANT. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." PLEASE NOTE THAT WE NEED AN INDIVIDUAL ANNUITANT TO KEEP AN ANNUITY CONTRACT IN FORCE. IF THE BENEFICIARY IS NOT AN INDIVIDUAL, WE MUST DISTRIBUTE AMOUNTS REMAINING IN THE ANNUITY CONTRACT AFTER THE DEATH OF THE ANNUITANT. 80 Tax information SUCCESSOR OWNER AND ANNUITANT If your spouse is the sole primary beneficiary and elects to become the successor owner and annuitant, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH IRA death benefits are taxed the same as IRA distributions. BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special fed eral income tax definition); or o used to pay medical insurance premiums for unemployed indi viduals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special fed eral income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method. To meet the substantially equal periodic payment exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments, using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" earlier in this section. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under either option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Roth IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. CONTRIBUTIONS TO ROTH IRAS Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eli gible retirement plans ("conversion rollover" contributions); or o tax-free rollover contributions from other Roth individual retire ment arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA or a Flexible Premium Roth IRA contract. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. REGULAR CONTRIBUTIONS TO ROTH IRAS LIMITS ON REGULAR CONTRIBUTIONS. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the Tax information 81 amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion under "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment).. If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. WHEN YOU CAN MAKE CONTRIBUTIONS. Same as traditional IRAs. DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible. ROLLOVERS AND DIRECT TRANSFERS WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make a rollover between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two- year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. CONVERSION ROLLOVER CONTRIBUTIONS TO ROTH IRAS In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting -- a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. 82 Tax information The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. RECHARACTERIZATIONS You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. HOW TO RECHARACTERIZE. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. DISTRIBUTIONS FROM ROTH IRAS Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to the special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o Rollovers from a Roth IRA to another Roth IRA; o Direct transfers from a Roth IRA to another Roth IRA; o Qualified distributions from a Roth IRA; and Tax information 83 o Return of excess contributions or amounts recharacterized to a traditional IRA. QUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped and added together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contribu tions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2008, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. REQUIRED MINIMUM DISTRIBUTIONS DURING LIFE Lifetime required minimum distributions do not apply. REQUIRED MINIMUM DISTRIBUTIONS AT DEATH Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the Required Beginning Date. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS Same as traditional IRA. EXCESS CONTRIBUTIONS Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. EARLY DISTRIBUTION PENALTY TAX Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity 84 Tax information contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) TSA CONTRACT Because the Accumulator(R) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) TSA contract are extremely limited as described below. Accumulator(R) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded Tax information 85 through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) annuity contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its 86 Tax information designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal Tax information 87 income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of 88 Tax information your December 31, 1986, account balance that is being transferred to the Accumulator(R) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribu tion from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However, we may require additional documentation in the case of payments made to non-United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the Tax information 89 owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. 90 Tax information 8. More information - -------------------------------------------------------------------------------- ABOUT SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of Separate Account No. 49 operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Account invests solely in class IB/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from, the Separate Account, or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Accounts under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in the prospectuses for each Trust, which generally accompany this Prospectus, or in the respective SAIs, which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below: - -------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 - -------------------------------------------------------- More information 91 - -------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------- 2013 3.00%* $ 86.25 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - -------------------------------------------------------- HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw any of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMO's maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. Any withdrawal charges that are deducted from a fixed maturity option will result in a market value adjustment calculated in the same way. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined by using a widely published index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and the fixed maturity options and the account for special dollar cost averaging, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA 92 More information Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account . The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accepted the wire order and essential information, a contract generally was not issued until we received and accepted a properly completed application. In certain cases, we may have issued a contract based on information provided through certain broker-dealers with whom we have established electronic facilities. In any such cases, you must have signed our Acknowledgement of Receipt form. Where we required a signed application, the above procedures did not apply and no financial transactions were permitted until we received the signed application and issued the contract. Where we issued a contract based on information provided through electronic facilities, we required an Acknowledgement of Receipt form. Financial transactions were only permitted if you requested them in writing, signed the request and had its signature guaranteed, until we received the signed Acknowledgement of Receipt form. After a contract is issued, additional contributions are allowed by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, FLEXIBLE PREMIUM IRA AND FLEXIBLE PREMIUM ROTH IRA CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ, Flexible Premium IRA or Flexible Premium Roth IRA contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, QP, Inherited IRA Beneficiary Continuation (traditional IRA or Roth IRA) or Rollover TSA contracts, nor is it available with GPB Option 2. Please see Appendix VIII later in this Prospectus to see if the automatic investment program is available in your state. For NQ contracts, the minimum amounts we will deduct are $100 monthly and $300 quarterly. Under Flexible Premium IRA and Flexible Premium Roth IRA contracts, the minimum amount is $50. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options, but not the account for special dollar cost averaging. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. More information 93 Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Initial contributions allocated to the account for special dollar cost averaging received the interest rate in effect on that business day. At certain times, we may have offered the opportunity to lock in the interest rate for an initial contribution to be received under Section 1035 exchanges and trustee to trustee transfers. Your financial professional can provide information or you can call our processing office. o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of shares of the Trusts, we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in each prospectus for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's annuity and/or variable life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustees or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. One result of proportional voting is that a small number of contract owners may control the outcome of a vote. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or the distribution of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. 94 More information TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive notification of any change at our processing office. You cannot assign your NQ contract as collateral or security for a loan. Loans are also not available under your NQ contract. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. For NQ contracts only, subject to regulatory approval, if you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, Protection Plus(SM), Guaranteed principal benefit option 2, and/or the Principal Protector(SM) ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. For certain contract owners, this restriction may not apply to you, depending on when you purchased your contract. See Appendix IX for more information. However, the Benefit will not terminate if the ownership of the contract is transferred to: (i) a family member (as defined in the contract); (ii) a trust created for the benefit of a family member or members; (iii) a trust qualified under section 501(c) of the Internal Revenue Code; or (iv) a successor by operation of law, such as an executor or guardian. Please speak with your financial professional for further information. See Appendix VIII later in this Prospectus for any state variations with regard to terminating any benefits under your contract. You cannot assign or transfer ownership of an IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available (except for Rollover TSA contracts) and you cannot assign IRA and QP contracts as security for a loan or other obligation. If the employer that provided the funds does not restrict them, loans are available under a Rollover TSA contract. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your IRA, QP or Rollover TSA contract to another similar arrangement under federal income tax rules. In the case of such a transfer, which involves a surrender of your contract, we will impose a withdrawal charge, if one applies. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 0.60% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 7.50% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset- More information 95 based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker-dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. 96 More information 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa- equitable.com. Incorporation of certain documents by reference 97 Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.25%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.35 $ 14.64 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 23,506 22,269 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.00 $ 11.48 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,888 5,079 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.65 $ 12.14 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 14,367 13,188 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.37 $ 12.74 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 69,894 68,613 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.74 $ 14.03 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 104,476 99,167 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.18 $ 13.88 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 10,999 12,334 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.93 $ 10.36 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,207 2,015 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.03 $ 18.16 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,113 8,352 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.91 $ 12.36 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,459 2,328 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.15 $ 10.80 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,076 4,096 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.55 $ 14.37 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,394 3,592 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.42 $ 15.30 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 19,821 13,336 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.10 $ 11.38 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 720 562 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.29 $ 11.07 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,608 2,099 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.58 $ 11.79 $ 10.68 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 12,752 5,189 186 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.93 $ 10.80 $ 10.32 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,564 1,608 153 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.31 $ 11.09 $ 10.42 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,710 3,924 78 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.69 $ 11.30 $ 10.52 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 49,852 22,917 1,082 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.41 $ 11.78 $ 10.68 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 58,275 20,548 815 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.69 $ 12.32 $ 10.94 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,642 5,278 307 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.17 $ 10.17 $ 10.10 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,844 1,271 119 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.88 $ 13.07 $ 11.20 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,355 1,996 93 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.58 $ 11.08 $ 10.36 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,804 829 60 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.54 $ 10.46 $ 10.21 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3.152 1,612 84 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.35 $ 12.12 $ 10.77 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,764 1,487 109 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.77 $ 12.26 $ 10.95 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,974 5,206 329 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.36 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 76 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.05 $ 10.41 $ 10.17 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,352 417 19 - ------------------------------------------------------------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.48 $ 14.49 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,283 7,573 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.73 $ 18.13 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,019 7,280 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.00 $ 6.83 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,851 5,155 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.27 $ 11.99 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 841 860 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.45 $ 11.96 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,847 3,646 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.67 $ 13.62 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 12,780 4,859 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.26 $ 11.09 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,330 2,166 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.12 $ 10.85 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,234 597 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.24 $ 13.74 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 11,374 11,573 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.75 $ 9.96 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,927 1,258 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.34 $ 12.14 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,119 1,943 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.04 $ 15.04 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,656 9,034 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.51 $ 10.43 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,438 1,560 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.77 $ 10.83 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 459 191 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.52 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,777 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.89 $ 11.65 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,654 1,305 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 30.24 $ 28.02 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,364 1,848 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.14 $ 11.94 $ 10.93 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,492 4,028 189 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.61 $ 13.34 $ 11.11 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,025 1,602 73 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.97 $ 5.69 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,884 224 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.53 $ 10.74 $ 10.50 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 679 278 17 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.27 $ 10.86 $ 10.42 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,914 271 34 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.31 $ 11.75 $ 10.73 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,008 2,468 154 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.40 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 732 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.09 $ 11.73 $ 10.77 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 10,047 5,582 374 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.75 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 100 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.61 $ 11.31 $ 10.70 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,920 1,379 85 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.66 $ 13.00 $ 11.35 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,968 3,775 306 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.51 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 475 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 23.87 $ 23.18 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,166 78 -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ EQ International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.45 $ 17.09 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,341 7,928 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.38 $ 14.28 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,672 1,109 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.09 $ 10.89 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 13,997 13,554 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.31 $ 14.67 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,615 1,576 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.10 $ 13.74 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 965 1,098 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.91 $ 13.06 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,842 1,399 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.43 $ 11.23 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,132 2,181 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.67 $ 10.06 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,086 1,819 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.54 $ 12.28 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,737 1,836 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.85 $ 11.76 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 928 841 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.30 $ 12.39 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,081 3,813 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.35 $ 13.64 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 16,822 17,558 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.27 $ 15.71 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,788 7,522 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.73 $ 10.38 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,875 3,721 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.90 $ 4.95 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,019 1,387 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.75 $ 10.71 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,036 1,134 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.58 $ 11.09 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 772 217 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.52 $ 12.55 $ 11.19 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,898 3,195 150 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.51 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 358 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.60 $ 10.50 $ 10.21 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 10,991 4,339 252 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.34 $ 12.02 $ 10.98 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,298 769 63 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.32 $ 11.64 $ 10.58 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,065 679 51 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.27 $ 11.40 $ 10.25 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 992 530 22 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.64 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 386 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.01 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 753 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.61 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 757 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.57 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 415 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.16 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,971 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.63 $ 11.55 $ 10.59 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 12,004 4,974 348 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.15 $ 12.87 $ 11.06 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,055 2,897 148 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.06 $ 9.93 $ 9.98 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,172 1,335 252 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 4.64 $ 4.46 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,014 143 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.16 $ 10.93 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 378 111 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.77 $ 11.10 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 469 122 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.85 $ 9.86 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,128 6,212 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.66 $ 10.25 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,111 1,130 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.46 $ 14.92 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,740 3,972 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.81 $ 16.82 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,733 578 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.85 $ 10.76 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,332 950 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.30 $ 6.30 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,181 2,323 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.50 $ 11.94 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,546 4,735 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 34.95 $ 24.92 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,239 6,367 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.15 $ 13.36 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,890 2,067 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.29 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 10,172 -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.42 $ 13.11 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 861 1,071 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.28 $ 10.75 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,597 5,510 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.85 $ 12.87 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,186 3,336 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.80 $ 12.57 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,564 8,081 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.51 $ 18.47 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,242 4,388 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.94 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,883 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.99 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 333 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.84 $ 12.47 $ 10.73 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,861 1,702 121 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.74 $ 17.28 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 688 53 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.59 $ 5.19 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,420 96 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.44 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,313 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.41 $ 14.04 $ 11.50 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,108 1,431 64 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.38 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 742 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.63 $ 11.82 $ 10.68 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 674 354 14 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.49 $ 10.44 $ 10.18 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,598 2,892 202 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.40 $ 11.74 $ 10.60 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,552 1,325 79 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.58 $ 11.38 $ 10.60 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,661 3,911 371 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.93 $ 13.09 $ 11.25 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,637 1,558 68 - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.06 $ 13.56 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,045 1,032 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.71 $ 11.57 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,651 2,678 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.97 $ 15.61 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,381 4,449 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.89 $ 13.48 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,916 3,239 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.86 $ 15.04 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,709 2,904 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.08 $ 8.87 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,708 3,735 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.36 $ 15.00 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,198 8,534 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.54 $ 12.46 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,424 2,251 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.09 $ 11.47 $ 10.59 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 794 424 26 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.70 $ 11.03 $ 10.47 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,153 1,580 113 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.24 $ 12.52 $ 11.08 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,350 1,540 106 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.45 $ 11.63 $ 10.54 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,543 1,570 142 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.27 $ 12.52 $ 11.01 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,263 1,454 126 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.15 $ 7.67 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,820 59 -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.08 $ 12.66 $ 10.95 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,948 3,850 232 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.76 $ 10.70 $ 10.32 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,745 969 57 - ------------------------------------------------------------------------------------------------------------------------------------
A-5 Appendix I: Condensed financial information The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.20%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.87 $ 13.22 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,160 1,827 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.46 $ 10.96 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,472 1,143 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.89 $ 11.41 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,173 1,249 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 53.95 $ 51.39 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,308 4,475 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.34 $ 12.70 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 10,734 8,825 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 286.24 $ 279.98 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 392 463 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.49 $ 19.41 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,914 3,131 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.70 $ 18.75 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,414 5,626 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.96 $ 7.07 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,750 5,507 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.26 $ 16.71 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,276 3,669 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 21.26 $ 18.44 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,805 3,494 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.16 $ 18.20 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 18,463 13,475 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.12 $ 11.39 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 159 79 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.04 $ 10.82 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 462 691 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 24.53 $ 24.54 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,290 4,984 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 25.30 $ 23.24 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,143 4,607 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.03 $ 6.86 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,373 1,698 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.35 $ 10.63 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,271 728 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.43 $ 10.31 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 397 373 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.62 $ 10.41 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 849 695 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 47.15 $ 45.53 $ 42.39 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,798 5,029 4,208 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.22 $ 10.65 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,795 3,138 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 256.01 $ 248.43 $ 220.33 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 545 613 548 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.05 $ 19.04 $ 18.91 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,491 4,043 4,619 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.37 $ 13.49 $ 11.55 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,792 5,816 5,125 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.20 $ 6.34 $ 5.92 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,789 6,068 5,986 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.29 $ 16.17 $ 15.77 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,057 4,383 4,326 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.12 $ 15.54 $ 13.80 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,815 4,124 4,091 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.17 $ 14.56 $ 12.99 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 14,461 15,533 14,531 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.37 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.79 $ 10.16 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,352 339 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.54 $ 20.19 $ 18.49 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,635 6,364 5,670 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.71 $ 17.09 $ 14.22 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,933 4,781 4,396 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.99 $ 5.71 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,681 216 -- - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 36.01 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,221 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 149.11 $ 226.39 $ 256.74 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 222 154 188 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.73 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,850 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.65 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,285 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 4.86 $ 7.15 $ 9.52 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,292 89 114 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.42 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,432 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.91 $ 14.38 $ 16.78 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,279 105 191 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.22 $ 11.97 $ 11.75 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,578 114 54 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.26 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,591 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.24 $ 13.65 $ 17.60 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,445 154 182 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 303.01 $ 245.58 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 205 230 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.80 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 79 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.94 $ 11.85 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 50 102 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.13 $ 11.86 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 46 22 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.32 $ 12.83 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 199 190 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-6 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 2005 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.13 $ 9.14 $ 8.79 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 554 625 723 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.87 $ 13.31 $ 12.54 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,946 1,982 2,062 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.28 $ 13.23 $ 11.95 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 15,162 6,465 7,166 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.28 $ 11.10 $ 10.41 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 415 436 161 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.12 $ 10.85 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 963 302 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 31.69 $ 30.56 $ 26.88 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,323 7,331 8,383 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.76 $ 9.97 $ 9.75 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,003 493 38 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.93 $ 9.03 $ 8.63 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,978 2,218 2,770 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI /Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.86 $ 12.98 $ 11.78 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,544 11,305 12,783 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.52 $ 10.43 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,628 664 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.77 $ 10.83 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 171 78 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.52 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 863 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.91 $ 11.66 $ 10.51 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 362 321 81 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 30.54 $ 28.28 $ 24.09 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 909 341 297 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.73 $ 14.69 $ 12.47 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,905 6,892 7,621 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.40 $ 14.29 $ 11.51 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 594 240 40 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.80 $ 14.53 $ 14.13 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 10,033 10,809 11,494 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.91 $ 16.31 $ 13.71 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,625 3,079 3,795 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.18 $ 8.00 $ 6.33 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 782 744 182 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.08 $ 11.58 $ 9.46 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,149 2,153 710 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.40 $ 10.41 $ 8.01 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,080 7,741 2,252 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 26.06 $ 23.92 $ 18.94 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,053 8,439 2,393 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.40 $ 7.95 $ 5.82 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,237 2,600 551 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI /Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.21 $ 9.78 $ 6.89 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 13,609 12,491 2,799 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 23.37 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 62 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.78 $ 9.60 $ 7.33 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,017 6,516 1,628 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.99 $ 13.60 $ 13.32 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 11,977 11,974 3,674 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.35 $ 12.19 $ 9.73 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,942 3,680 1,342 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2001 2000 1999 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.70 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.00 $ 17.41 $ 21.43 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 193 235 245 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.76 $ 11.12 $ 10.62 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 17 10 3 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 24.71 $ 28.47 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 71 78 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI /Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.56 $ 10.00 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 19 7 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.73 $ 11.17 $ 13.97 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 26 23 15 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.30 $ 11.04 $ 10.47 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 280 14 139 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.16 $ 13.21 $ 12.52 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 324 341 423 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 1998 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.65 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 160 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI /Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.77 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 98 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.85 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 506 - ------------------------------------------------------------------------------------------------------------------------------------
A-7 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 2005 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.99 $ 10.71 $ 9.60 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,815 3,293 3,821 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.49 $ 15.31 $ 14.38 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,461 1,300 1,516 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.44 $ 11.24 $ 10.64 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 528 605 93 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.68 $ 10.07 $ 10.01 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 549 370 139 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.56 $ 12.29 $ 10.61 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 319 438 94 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.87 $ 11.77 $ 10.57 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 140 117 54 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.32 $ 12.40 $ 11.16 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 722 597 444 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.67 $ 16.57 $ 15.34 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 11,637 13,414 14,341 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.32 $ 17.81 $ 16.03 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,623 8,423 8,724 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 31.62 $ 30.57 $ 29.61 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,791 1,365 1,411 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.93 $ 4.97 $ 4.66 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 871 143 137 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.76 $ 10.71 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 999 372 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.59 $ 11.10 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 315 135 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.17 $ 10.94 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 142 12 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.78 $ 11.10 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 115 20 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.86 $ 9.86 $ 9.94 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,641 1,522 1,269 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.68 $ 10.26 $ 9.99 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 339 356 189 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.85 $ 17.38 $ 14.94 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,937 3,525 3,854 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.06 $ 8.23 $ 6.83 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,211 4,026 993 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.35 $ 12.00 $ 9.39 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,558 1,506 496 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.02 $ 12.84 $ 9.91 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 14,238 13,403 2,875 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.57 $ 12.51 $ 9.51 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,029 8,508 3,161 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 29.20 $ 29.33 $ 29.52 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,417 1,972 1,554 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 4.47 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 13 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.50 $ 12.48 $ 8.66 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,174 3,847 1,053 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2001 2000 1999 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.75 $ 10.54 $ 10.74 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 77 42 31 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.47 $ 22.21 $ 27.70 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 147 214 227 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.35 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.28 $ 10.98 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 37 9 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 29.51 $ 28.84 $ 27.54 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 256 266 360 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.07 $ 10.99 $ 11.51 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 23 18 18 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 1998 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.14 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 176 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 26.62 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 329 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.65 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 18 - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-8 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 2005 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.99 $ 16.98 $ 17.90 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,687 96 88 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.86 $ 10.76 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 775 237 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.32 $ 6.33 $ 5.61 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 498 473 215 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.51 $ 11.95 $ 10.44 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 559 811 393 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 26.83 $ 19.12 $ 14.12 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,820 4,088 4,095 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.17 $ 13.37 $ 12.39 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 936 320 133 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.29 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,897 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 67.76 $ 61.57 $ 59.29 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 185 238 264 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.17 $ 11.59 $ 11.30 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,376 10,117 11,139 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.11 $ 12.18 $ 11.72 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,899 3,342 3,665 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 34.12 $ 33.49 $ 30.83 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,358 3,901 4,366 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.96 $ 17.07 $ 13.79 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,283 3,610 3,367 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.89 $ 12.42 $ 11.07 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,196 2,469 2,709 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.67 $ 9.71 $ 9.82 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,987 4,513 5,006 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.81 $ 14.47 $ 12.27 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,869 5,608 6,137 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.18 $ 11.01 $ 10.17 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,331 6,249 7,050 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.87 $ 14.03 $ 12.38 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,059 4,691 5,098 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Company Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.12 $ 8.90 $ 8.17 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 884 680 554 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.42 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 19 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.21 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 12 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.76 $ 8.81 $ 5.72 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,531 27,090 737 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 55.46 $ 50.07 $ 36.85 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 269 265 161 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.24 $ 10.96 $ 10.69 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 12,384 12,153 4,285 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.09 $ 10.01 $ 7.91 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,994 3,394 929 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 30.28 $ 28.20 $ 23.29 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,900 4,511 903 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.09 $ 10.38 $ 7.82 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,660 3,008 923 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.50 $ 9.69 $ 7.65 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,980 2,952 1,004 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.24 $ 8.77 $ 6.80 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,362 5,953 2,130 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.60 $ 10.26 $ 7.92 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,199 5,210 1,722 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.50 $ 8.60 $ 6.21 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,108 7,657 2,602 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.67 $ 10.25 $ 7.38 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,827 5,443 1,889 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Company Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.70 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 19 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2001 2000 1999 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.15 $ 6.56 $ 11.08 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 43 55 52 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 52.44 $ 70.94 $ 82.86 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 153 185 213 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 24.29 $ 24.42 $ 27.13 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 221 260 329 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Company Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 1998 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.73 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 16 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 70.74 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 266 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 28.48 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 422 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Company Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------
A-9 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 2005 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.76 $ 19.94 $ 17.38 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,608 6,898 7,963 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.47 $ 10.68 $ 10.07 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,575 2,567 2,975 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.80 $ 14.55 $ 10.70 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,796 8,124 2,322 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.16 $ 8.83 $ 5.67 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,498 1,530 306 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2001 2000 1999 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.57 $ 10.81 $ 9.23 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 111 41 20 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 1998 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.18 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 26 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-10 Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- This information is provided for historical purposes only. This contract is no longer available to new purchasers. Trustees who are considering the purchase of an Accumulator(R) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) QP contract to fund a plan for the contract's features and benefits other than tax deferral, after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. We will not accept defined benefit plans. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or other contributions from the employer. For 401(k) plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge and/or market value adjustment may apply. AXA Equitable will not perform or provide any plan recordkeeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for participants after age 70-1/2, trustees should consider: o whether required minimum distributions under QP contracts would cause withdrawals in excess of 6% of the Guaranteed minimum income benefit Roll-Up benefit base; o provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed from the contract; and o that if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, the payments will be made to the trustee. Finally, because the method of purchasing the QP contract, including the large initial contribution, and the features of the QP contract may appeal more to plan participants who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisors whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. B-1 Appendix II: Purchase considerations for QP contracts Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00% ("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a).
- ------------------------------------------------------------------------------------------------------ Hypothetical assumed rate to maturity ("j" in the calculations below) February 15, 2012 ------------------------- 5.00% 9.00% - ------------------------------------------------------------------------------------------------------ As of February 15, 2012 before withdrawal - ------------------------------------------------------------------------------------------------------ (1) Market adjusted amount(b) $141,389 $121,737 - ------------------------------------------------------------------------------------------------------ (2) Fixed maturity amount(c) $131,104 $131,104 - ------------------------------------------------------------------------------------------------------ (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ------------------------------------------------------------------------------------------------------ On February 15, 2012 after $50,000 withdrawal - ------------------------------------------------------------------------------------------------------ (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ------------------------------------------------------------------------------------------------------ (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ------------------------------------------------------------------------------------------------------ (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ------------------------------------------------------------------------------------------------------ (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ------------------------------------------------------------------------------------------------------ (8) Maturity value(d) $111,099 $101,287 - ------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ where j is either 5% or 9% (1+j)(1,461/365) (1+j)(D/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ________________ = __________________ (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) x (1+0.07)(1,461/365)
Appendix III: Market value adjustment example C-1 Appendix IV: Enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the enhanced death benefit, if elected. The following illustrates the enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option or the fixed maturity options or the Special 10 year fixed maturity option), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the enhanced death benefit for an annuitant age 45 would be calculated as follows:
- -------------------------------------------------------------------------------------- End of contract 6% Roll-Up to age 85 Annual Ratchet to age 85 year Account value benefit base(1) benefit base - -------------------------------------------------------------------------------------- 1 $105,000 $ 106,000(1) $ 105,000(3) - -------------------------------------------------------------------------------------- 2 $115,500 $ 112,360(2) $ 115,500(3) - -------------------------------------------------------------------------------------- 3 $129,360 $ 119,102(2) $ 129,360(3) - -------------------------------------------------------------------------------------- 4 $103,488 $ 126,248(1) $ 129,360(4) - -------------------------------------------------------------------------------------- 5 $113,837 $ 133,823(1) $ 129,360(4) - -------------------------------------------------------------------------------------- 6 $127,497 $ 141,852(1) $ 129,360(4) - -------------------------------------------------------------------------------------- 7 $127,497 $ 150,363(1) $ 129,360(4) - --------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. 6% ROLL-UP TO AGE 85 (1) At the end of contract years 1 and 4 through 7, the 6% Roll-Up to age 85 enhanced death benefit is greater than the current account value. (2) At the end of contract years 2 and 3, the 6% Roll-Up to age 85 enhanced death benefit is equal to the current account value. ANNUAL RATCHET TO AGE 85 (3) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (4) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. GREATER OF 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown is the greater of the amounts shown under the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. D-1 Appendix IV: Enhanced death benefit example Appendix V: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85" Guaranteed minimum death benefit, the Protection Plus(SM) benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying portfolios (as described below), the corresponding net annual rates of return would be (2.48)% and 3.52% for the Accumulator(R) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges, but they do not reflect the charges we deduct from your account value annually for the optional Guaranteed minimum death benefit, Protection Plus(SM) benefit, and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return shown would be lower; however, the values shown in the following tables reflect the following contract charges: the "Greater of 6% Roll-Up to age 85 Annual Ratchet to age 85" Guaranteed minimum death benefit charge, the Protection Plus(SM) benefit charge, the Guaranteed minimum income benefit charge and any applicable administrative charge and withdrawal charge. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. Appendix V: Hypothetical illustrations E-1 Variable deferred annuity Accumulator(R) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 Guaranteed minimum death benefit Protection Plus(SM) Guaranteed minimum income benefit
Greater of 6% Roll-Up to age 85 or the Annual Lifetime Annual Ratchet to age 85 Guaranteed Minimum Income Benefit Guaranteed Total Death Benefit ---------------------------------- Minimum Death with Protection Guaranteed Hypothetical Account Value Cash Value Benefit Plus(SM) Income Income Contract ------------------- ------------------ ------------------- ------------------- ----------------- ---------------- Age Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% - ----- --------- --------- --------- -------- --------- --------- --------- --------- --------- -------- -------- -------- ------- 60 1 100,000 100,000 93,000 93,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A 61 2 95,854 101,833 88,854 94,833 106,000 106,000 108,400 108,400 N/A N/A N/A N/A 62 3 91,745 103,644 85,745 97,644 112,360 112,360 117,304 117,304 N/A N/A N/A N/A 63 4 87,668 105,428 81,668 99,428 119,102 119,102 126,742 126,742 N/A N/A N/A N/A 64 5 83,616 107,179 78,616 102,179 126,248 126,248 136,747 136,747 N/A N/A N/A N/A 65 6 79,584 108,890 76,584 105,890 133,823 133,823 147,352 147,352 N/A N/A N/A N/A 66 7 75,566 110,556 74,566 109,556 141,852 141,852 158,593 158,593 N/A N/A N/A N/A 67 8 71,554 112,167 71,554 112,167 150,363 150,363 170,508 170,508 N/A N/A N/A N/A 68 9 67,543 113,717 67,543 113,717 159,385 159,385 183,139 183,139 N/A N/A N/A N/A 69 10 63,526 115,195 63,526 115,195 168,948 168,948 196,527 196,527 N/A N/A N/A N/A 74 15 43,060 121,176 43,060 121,176 226,090 226,090 276,527 276,527 14,266 14,266 14,266 14,266 79 20 21,163 123,632 21,163 123,632 302,560 302,560 383,584 383,584 20,393 20,393 20,393 20,393 84 25 0 120,439 0 120,439 0 404,893 0 493,179 34,821 34,821 34,821 34,821 89 30 0 123,819 0 123,819 0 429,187 0 517,472 N/A N/A N/A N/A 94 35 0 130,928 0 130,928 0 429,187 0 517,472 N/A N/A N/A N/A 95 36 0 132,487 0 132,487 0 429,187 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a policy would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual policy years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. E-2 Appendix V: Hypothetical illustrations Appendix VI: Guaranteed principal benefit example - -------------------------------------------------------------------------------- For purposes of these examples, we assume that there is an initial contribution of $100,000, made to the contract on February 15, 2008. We also assume that no additional contributions, no transfers among options and no withdrawals from the contract are made. For GPB Option 1, the example also assumes that a 10 year fixed maturity option is chosen. The hypothetical gross rates of return with respect to amounts allocated to the variable investment options are 0%, 6% and 10%. The numbers below reflect the deduction of all applicable separate account and contract charges and also reflect the charge for GPB Option 2. Also, for any given performance of your variable investment options, GPB Option 1 produces higher account values than GPB Option 2 unless investment performance has been significantly positive. The examples should not be considered a representation of past or future expenses. Similarly, the annual rates of return assumed in the example are not an estimate or guarantee of future investment performance. GPB Options 1 and 2 were only available at issue. The dates in the example are provided for illustrative purposes only.
- --------------------------------------------------------------------------------------------------------- Assuming 100% in variable Assuming Under GPB Under GPB investment 100% in FMO Option 1 Option 2 options - --------------------------------------------------------------------------------------------------------- Amount allocated to FMO on February 15, 2008 based upon a 4.01% rate to maturity 100,000 67,470 40,000 -- - --------------------------------------------------------------------------------------------------------- Initial account value allocated to the variable investment options on February 15, 2008 0 32,530 60,000 100,000 - --------------------------------------------------------------------------------------------------------- Account value in the fixed maturity option on Feb- ruary 15, 2018 148,215 100,000 59,286 0 - --------------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018 , assuming a 0% gross rate of return) 148,215 125,306 101,468** 77,792 - --------------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018 , assuming a 6% gross rate of return) 148,215 145,976 137,102** 141,333 - --------------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018 , assuming a 10% gross rate of return) 148,215 167,170 173,746** 206,487 - ---------------------------------------------------------------------------------------------------------
** Since the annuity account value is greater than the alternate benefit under GPB Option 2, GPB Option 2 will not affect the annuity account value. Appendix VI: Guaranteed principal benefit example F-1 Appendix VII: Protection Plus(SM) example - -------------------------------------------------------------------------------- The following illustrates the calculation of a death benefit that includes Protection Plus for an annuitant age 45. The example assumes a contribution of $100,000 and no additional contributions. Where noted, a single withdrawal in the amount shown is also assumed. If you purchased your contract after approximately September 2003, the example shown in the second and third columns apply. For all other contract owners, the example in the last two columns apply. The calculation is as follows: ---------------------------------------------------------------------------- A Initial Contribution ---------------------------------------------------------------------------- B Death Benefit: prior to withdrawal.* ---------------------------------------------------------------------------- Protection Plus Earnings: Death Benefit less net C contributions (prior to the withdrawal in D). B minus A. ---------------------------------------------------------------------------- D Withdrawal ---------------------------------------------------------------------------- Withdrawal % as a % of AV (assuming Death E Benefit = AV) greater of D divided by B ---------------------------------------------------------------------------- Excess of the withdrawal over the Protection Plus F earnings greater of D minus C or zero ---------------------------------------------------------------------------- Net Contributions (adjusted for the withdrawal in D) G A reduced for E or F ---------------------------------------------------------------------------- Death Benefit (adjusted for the withdrawal in D) H B minus D ---------------------------------------------------------------------------- Death Benefit less Net Contributions I H minus G ---------------------------------------------------------------------------- J Protection Plus Factor ---------------------------------------------------------------------------- Protection Plus Benefit K I times J ---------------------------------------------------------------------------- Death Benefit: Including Protection Plus L H plus K ----------------------------------------------------------------------------
$3000 $6000 withdrawal - withdrawal - No $3000 $6000 Pro rata Pro rata withdrawal withdrawal withdrawal Treatment Treatment ---------------------------------------------------------------------------- A 100,000 100,000 100,000 100,000 100,000 ---------------------------------------------------------------------------- B 104,000 104,000 104,000 104,000 104,000 ---------------------------------------------------------------------------- C 4,000 4,000 4,000 N/A N/A ---------------------------------------------------------------------------- D 0 3,000 6,000 3,000 6,000 ---------------------------------------------------------------------------- E 0.00% N/A N/A 2.88% 5.77% ---------------------------------------------------------------------------- F 0 0 2,000 N/A N/A ---------------------------------------------------------------------------- G 100,000 100,000 98,000 97,115 94,231 ---------------------------------------------------------------------------- H 104,000 101,000 98,000 101,000 98,000 ---------------------------------------------------------------------------- I 4,000 1,000 0 3,885 3,769 ---------------------------------------------------------------------------- J 40% 40% 40% 40% 40% ---------------------------------------------------------------------------- K 1,600 400 0 1,554 1,508 ---------------------------------------------------------------------------- L 105,600 101,400 98,000 102,554 99,508 ----------------------------------------------------------------------------
* The Death Benefit is the greater of the Account Value or any applicable death benefit. G-1 Appendix VII: Protection Plus(SM) example Appendix VIII: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- Certain information is provided for historical purpose only. This contract is no longer available to new purchasers. The following information is a summary of the states where the Accumulator(R) contract or certain features and/or benefits are either not available or vary from the contract's features and benefits as previously described in this Prospectus. Certain features and/or benefits may have been approved in your state after your contract was issued and cannot be added. Please contact your financial professional for more information about availability in your state. See also the "Contract Variations" appendix later in this Prospectus for information about the availability of certain features and their charges, if applicable, under your contract. STATES WHERE CERTAIN ACCUMULATOR(R) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE OR HAVE CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA See "Contract features and benefits"--"Your right to If you reside in the state of California and you are age cancel within a certain number of days" 60 and older at the time the contract is issued, you may return your vari- able annuity contract within 30 days from the date that you receive it and receive a refund as described below. If you allocate your entire initial contribution to the money market account (and/or guaranteed interest option, if available), the amount of your refund will be equal to your contribution less interest, unless you make a transfer, in which case the amount of your refund will be equal to your account value on the date we receive your request to cancel at our processing office. This amount could be less than your initial contribution. If you allocate any portion of your initial contribution to the variable investment options (other than the money market account) and/or fixed maturity options, your refund will be equal to your account value on the date we receive your request to cancel at our processing office. - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA See "Transfer of ownership, collateral assignments, The second paragraph in this section is deleted. loans and borrowing" in "More information" - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS See "Selecting an annuity payout option" under "Your Annuity payments may be elected twelve months from the annuity payout options" in "Accessing your money" contract date. - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND Fixed maturity options Not Available Guaranteed principal benefit option1 and Guaranteed Not Available principal benefit option 2 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS Automatic investment program Not Available Annual administrative charge The annual administrative charge will not be deducted from amounts allocated to the Guaranteed interest option. See "How you can purchase and contribute to your Additional contributions are limited to the first three contract" in "Contract features and benefits" years after the contract issue date only. See "Disability, terminal illness, or confinement to This section is deleted in its entirety. nursing home" under "Withdrawal charge" in "Charges and expenses" - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA See "Principal Protector(SM)" in "Contract features and Principal Protector(SM) is discontinued if the Beneficiary benefits" and "Beneficiary continuation option" in continuation option is elected. "Payment of death benefit" - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or variations of certain features and benefits H-1
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK Greater of the 6% Roll-Up or Annual Ratchet Not Available (you have a choice of the standard death benefit Guaranteed minimum death benefit or the Annual Ratchet to age 85 guaranteed minimum death benefit), as described earlier in this Prospectus. Guaranteed minimum death benefit/guaranteed Not Available minimum income benefit roll-up benefit base reset Principal Protector(SM) Not Available Protection Plus(SM) Not Available See "Contract features and benefits" -- "Self directed No more than 25% of any contribution may be allocated to the allocation" (for contracts issued from approximately guaranteed interest option. February 2004 to present). See "Insufficient account value" in "Determining your If your account value in the variable investment options and contract's value" the fixed maturity options is insufficient to pay the annual administrative charge, or either enhanced death benefit charge and/or the guaranteed minimum income benefit charge, and you have no account value in the guaranteed interest option, your contract will terminate without value, and you will lose any applicable benefits. See "Charges and expenses" earlier in this Prospectus. See "Transferring your account value" in "Transferring The following information is added as the sixth and seventh your money among investment options" (for contracts bullets in this section: issued from approximately February 2004 to present). o In all contract years, a transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the annuity account value being allocated to the guaranteed interest option, based on the annuity account value as of the previous business day. See "Rebalancing your account value" in "Transferring Under Option II, transfers into the Guaranteed interest option your money among investment options" (for contracts are not permitted if they violate the transfer rules. issued from approximately February 2004 to present). See "The amount applied to purchase an annuity For fixed annuity period certain payout options only, the amount payout option" in "Accessing your money" applied to the annuity benefit is the greater of the cash value or 95% of what the account value would be if no withdrawal charge applied. See "Annuity maturity date" in "Accessing your The maturity date by which you must take a lump sum withdrawal money" or select an annuity payout option is as follows: Maximum Issue age Annuitization age --------- ----------------- 0-80 90 81 91 82 92 83 93 84 94 85 95 Please see this section earlier in this Prospectus for more information. - ------------------------------------------------------------------------------------------------------------------------------------
H-2 Appendix VIII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK, See "Charges and expenses" With regard to the Annual administrative, Annual Ratchet to age CONTINUED 85 death benefit, Guaranteed principal benefit option 2 and Guaranteed minimum income benefit charges, respectively, we will deduct the related charge, as follows for each: we will deduct the charge from your value in the variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging (not available if the Guaranteed principal benefit option is elected). If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). Deductions from the fixed maturity options (including the Special 10 year fixed maturity option) cannot cause the credited net interest for the contract year to fall below 1.5%. With regard to the Annual administrative, either enhanced death benefit and the Guaranteed minimum income benefit charges only, if your account value in the variable investment options and the fixed maturity options is insufficient to pay the applicable charge, and you have no account value in the guaranteed interest option, your contract will terminate without value and you will lose any applicable guaranteed benefits. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. Fixed maturity options -- withdrawal charges The withdrawal charge that applies to withdrawals taken from amounts in the fixed maturity options will never exceed 7% and will be determined by applying the New York Alternate Scale I shown below. If you withdraw amounts that have been transferred from one fixed maturity option to another, we use the New York Alternate Scale II (also shown below) if it produces a higher charge than Alternate Scale I. The withdrawal charge may not exceed the withdrawal charge that would normally apply to the contract. If a contribution has been in the contract for more than 7 years and therefore would have no withdrawal charge, no withdrawal charge will apply. Use of a New York Alternate Scale can only result in a lower charge. We will compare the result of applying Alternate Scale I or II, as the case may be, to the result of applying the normal withdrawal charge, and will charge the lower withdrawal charge. ------------------------------------------------------------------------- NY Alternate Scale I NY Alternate Scale II Year of investment in fixed Year of transfer within fixed maturity option* maturity option* ------------------------------------------------------------------------- Within year 1 7% Within year 1 5% ------------------------------------------------------------------------- 2 6% 2 4% ------------------------------------------------------------------------- 3 5% 3 3% - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or variations of certain features and benefits H-3
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK, NY Alternate Scale I NY Alternate Scale II CONTINUED Year of investment in fixed Year of transfer within fixed maturity option* maturity option* ----------------------------------------------------------------- 4 4% 4 2% ----------------------------------------------------------------- 5 3% 5 1% ----------------------------------------------------------------- 6 2% After year 5 0 ----------------------------------------------------------------- 7 1% ----------------------------------------------------------------- After year 7 0% Not to exceed 1% times the number of years remaining in the fixed maturity option, rounded to the higher number of years. In other words, if 4.3 years remain, it would be a 5% charge. ----------------------------------------------------------------- * Measured from the contract date anniversary prior to the date of the contribution or transfer If you take a withdrawal from an investment option other than the fixed maturity options, the amount available for withdrawal without a withdrawal charge is reduced. It will be reduced by the amount of the contribution in the fixed maturity options to which no withdrawal charge applies. You should consider that on the maturity date of a fixed maturity option if we have not received your instructions for allocation of your maturity value, we will transfer your maturity value to the fixed maturity option with the shortest available maturity. If we are not offering other fixed maturity options, we will transfer your maturity value to the EQ/Money Market option. The potential for lower withdrawal charges for withdrawals from the fixed maturity options and the potential for a lower "free withdrawal amount" than what would normally apply, should be taken into account when deciding whether to allocate amounts to, or transfer amounts to or from, the fixed maturity options. - ------------------------------------------------------------------------------------------------------------------------------------ OREGON Guaranteed minimum death benefit/guaranteed minimum Not Available income benefit roll-up benefit base reset Guaranteed minimum income benefit no lapse Not Available guarantee Fixed maturity options Not Available Guaranteed principal benefit option 1 and Guaranteed Not Available principal benefit option 2 Flexible Premium IRA and Not Available Flexible Premium Roth IRA See "How you can purchase and contribute to your o Subsequent contributions are not permitted. This is a single contract" in "Contract features and benefits" premium product. o Section 1035 exchanges, rollovers, multiple assignments and/or transfers are permitted provided that all documenta- tion is complete and received with the application. - ------------------------------------------------------------------------------------------------------------------------------------
H-4 Appendix VIII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ OREGON, See "Lifetime required minimum distribution We generally will not impose a withdrawal charge on minimum CONTINUED withdrawals" in "Accessing your money" distribution withdrawals even if you are not enrolled in our automatic RMD service except if, when added to a lump sum withdrawal previously taken in the same contract year, the minimum distribution withdrawals exceed the 10% free withdrawal amount. In order to avoid a withdrawal charge in connection with minimum distribution withdrawals outside of our automatic RMD service, you must notify us using our request form. Such minimum distribution withdrawals must be based solely on your contract's account value. See "Selecting an annuity payout option" in The annuity commencement date may not be earlier than seven "Accessing your money" years from the contract issue date. See "Disability, terminal illness, or confinement Item (i) is deleted in its entirety. to nursing home" under "Withdrawal charge" in "Charges and expenses" Automatic Investment Program Not Available See "Special dollar cost averaging program" in The special dollar cost averaging "Contract Features and Benefits" program may only be selected at the time of application. See "We require that the following types of The following is added: communications be on specific forms we provide for (20) requests for required minimum distributions, other than that purpose:" in "Who is AXA Equitable?" pursuant to our automatic RMD service. - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA Contributions Your contract refers to contributions as premiums. Contribution age limitations The following contribution limits apply: Maximum Issue age Contribution age --------- ---------------- 0-75 79 76 80 77 81 78-80 82 81-83 84 84 85 85 86 Special dollar cost averaging program In Pennsylvania, we refer to this program as "enhanced rate dollar cost averaging." Withdrawal charge schedule for issue ages 84 For annuitants that are ages 84 and 85 when the contract is and 85 issued in Pennsylvania, the withdrawal charge will be computed in the same manner as for other contracts as described in "Charges and expenses" under "Withdrawal charge" earlier in this Prospectus, except that the withdrawal charge schedule will be different. For these contracts, the withdrawal charge schedule will be 5% of each contribution made in the first contract year, decreasing by 1% each subsequent contract year to 0% in the sixth and later contract years. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or variations of certain features and benefits H-5
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA, See "Annuity maturity date" in "Accessing your The maturity date by which you must take a lump sum CONTINUED money" withdrawal or select an annuity payout option is as follows: Maximum Issue age annuitization age --------- ----------------- 0-75 85 76 86 77 87 78-80 88 81-85 90 Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code limits may result in adverse tax consequences. Please consult your tax adviser before taking a loan that exceeds the Internal Revenue Code limits. - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO IRA, Roth IRA, Inherited IRA, QP and Rollover TSA Not Available contracts Beneficiary continuation option (IRA) Not Available Tax Information -- Special rules for NQ contracts Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico source income of Puerto Rico residents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable portion of amounts distributed from a contract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S. tax paid. Depending on your personal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS See "Annual administrative charge" in "Charges and The annual administrative charge will not be deducted from expenses" amounts allocated to the Guaranteed interest option. - ------------------------------------------------------------------------------------------------------------------------------------ UTAH See "Transfers of ownership, collateral assignments, The second paragraph in this section is deleted. loans and borrowing" in "More information" - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code limits may result in adverse tax consequences. Please consult your tax adviser before taking a loan that exceeds the Internal Revenue Code limits. - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON Guaranteed interest option (for contracts issued from Not Available approximately December 2004-December 2006) Investment simplifier -- Fixed-dollar option and Not Available Interest sweep option Fixed maturity options Not Available Guaranteed Principal Benefit Options 1 and 2 Not Available Income Manager(R) payout option Not Available Protection Plus(SM) Not Available - ------------------------------------------------------------------------------------------------------------------------------------
H-6 Appendix VIII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON, Special dollar cost averaging program (for contracts o Available only at issue. CONTINUED issued from approximately December 2004-December o Subsequent contributions cannot be used to elect new 2006) programs. You may make subsequent contributions to the initial programs while they are still running. See "Guaranteed minimum death benefit" in You have a choice of the standard death benefit, the Annual "Contract features and benefits" Ratchet to age 85 enhanced death benefit, or the Greater of 4% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. See "Annual administrative charge" in "Charges and The annual administrative charge will be deducted from the expenses" value in the variable investment options on a pro rata basis. See "Withdrawal charge" in "Charges and expenses" The 10% free withdrawal amount applies to full surrenders. See "Disability, terminal illness, or confinement to The annuitant has qualified to receive Social Security nursing home" under "Withdrawal charge" in disability benefits as certified by the Social Security "Charges and expenses" Administration or a statement from an independent U.S. licensed physician stating that the annuitant meets the definition of total disability for at least 6 continuous months prior to the notice of claim. Such disability must be re-certified every 12 months. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or variations of certain features and benefits H-7 Appendix IX: Contract variations - -------------------------------------------------------------------------------- The contract described in this Prospectus is no longer sold. You should note that your contract's options, features and charges may vary from what is described in this Prospectus depending on the approximate date on which you purchased your contract. You may not change your contract or its features after issue. This Appendix reflects contract variations that differ from what is described in this Prospectus but may have been in effect at the time your contract was issued. If you purchased your contract during the "Approximate Time Period" below, the noted variation may apply to you. In addition, options and/or features may vary among states in light of applicable regulations or state approvals. Any such state variations are generally not included here but instead included in Appendix VIII earlier in this section. For more information about state variations applicable to you, as well as particular features, charges and options available under your contract based upon when you purchased it, please contact your financial professional and/or refer to your contract.
- ------------------------------------------------------------------------------------------------------------------------------------ Approximate Time Period Feature/Benefit Variation - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - November 2002 Inherited IRA beneficiary Continuation Unavailable -- accordingly, all references in contract this Prospectus to "Inherited IRA beneficiary Continuation contract" are deleted in their entirety. - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - February 2003 Guaranteed minimum income benefit The fee for this benefit was 0.45%. Annual Ratchet to age 85 The fee for this benefit was 0.20%. 6% Roll-Up to age 85 The fee for this benefit was 0.35%. The Greater of 6% Roll-Up to age 85 of the The fee for this benefit was 0.45%. Annual Ratchet to age 85 - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - September 2003 The guaranteed principal benefits GPB 2 -- unavailable GPB 1 known as Principal assurance. GPB 1 available with both systematic and substantially equal withdrawals. GPB 1 available with the Guaranteed minimum income benefit. Spousal protection Unavailable -- accordingly, all references in this Prospectus to "Spousal protection" are deleted in their entirety. Maximum contributions The maximum contributions permitted under all Accumulator series contracts with the same owner or annuitant is $1,500,000. NQ contract maximum issue age 90 Guaranteed minimum death benefit maximum 84 (not including Flexible Premium IRA and QP issue age contracts) Protection Plus The maximum issue age for this benefit was 79. For issue ages 71-79, the applicable death benefit will be multiplied by 25%. In calculating the death benefit, contributions are decreased for withdrawals on a pro rata basis. - ------------------------------------------------------------------------------------------------------------------------------------
I-1 Appendix IX: Contract variations - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - September 2003, continued Guaranteed option charges Withdrawals treated as surrenders Guaranteed minimum income benefit option Annuitant issue age Partial withdrawals Systematic withdrawals - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - July 2004 Principal Protector(SM) benefit - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - December 2004 Termination of guaranteed benefits Ownership Transfer of NQ - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - January 2005 No lapse guarantee - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - October 2005 Roll-Up benefit base reset - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - current Guaranteed interest option - ------------------------------------------------------------------------------------------------------------------------------------ March 2003 - September 2003 Annual Ratchet to age 85 6% Roll-Up to age 85 Guaranteed minimum income benefit - ------------------------------------------------------------------------------------------------------------------------------------
April 2002 - September 2003, continued If the contract is surrendered or annuitized or the a death benefit is paid on a date other than the contract date anniversary, we will not deduct a pro rata portion of the charge for any applicable guaranteed benefit. We will not treat a withdrawal that results in a cash value of less than $500 as a request for a surrender. We will not terminate your contract if you do not make contributions for three contract years. Subject to state availability, this option guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or an Income Manager level payment life with a period certain payout option Known as the Living Benefit Ages 86-90. For contracts with an annuitant who was age 86-90 at issue, the following apply: (1) standard death benefit only was available, and (2) no withdrawal charge applies. Your free withdrawal amount is 15%. Your systematic withdrawal may not exceed 1.20% (monthly), 3.60% (quarterly) or 15% (annually) of account value. - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - July 2004 Unavailable -- accordingly, all references in this Prospectus to "Principal Protector" are deleted in their entirety. - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - December 2004 Your guaranteed benefits will not automatically terminate if you change ownership of your NQ contract. If you transfer ownership of your NQ contract, your guaranteed benefit options will not be automatically terminated. - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - January 2005 Unavailable. Accordingly, all references to this feature are deleted in their entirety. - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - October 2005 Unavailable. Accordingly, all references to this feature are deleted in their entirety. - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - current Your lifetime minimum interest rate is either 1.5%, 2.25% or 3.0% (depending on the state and time where your contract was issued). - ------------------------------------------------------------------------------------------------------------------------------------ March 2003 - September 2003 The fee for this benefit is 0.30%. The fee for this benefit is 0.45%. The fee for this benefit is 0.60%. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix IX: Contract variations I-2 September 2003 - January 2004 Guaranteed minimum income benefit and Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit: o Benefit base crediting rate o Fee table o Effect of withdrawals on your Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit - ------------------------------------------------------------------------------------------------------------------------------------ September 2003 - February 2004 (for the How withdrawals affect your Guaranteed Guaranteed minimum income benefit) and minimum income benefit and Greater of the January 2004 - February 2005 (for the Greater 6% Roll-Up to age 85 or the Annual Ratchet of the 6% Roll-Up to age 85 or the Annual to age 85 enhanced death benefit: Ratchet to age 85 enhanced death benefit:) - ------------------------------------------------------------------------------------------------------------------------------------ September 2003 - present 6% Roll-Up to age 85 enhanced death benefit - ------------------------------------------------------------------------------------------------------------------------------------ January 2004 - present Greater of 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit - ------------------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2004 The effective annual interest credited to the applicable benefit base is 5%.* Accordingly, all references in this Prospectus to the "6% Roll-Up benefit base" are deleted in their entirety and replaced with "5% Roll-Up benefit base." Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit charge: 0.50%.* Guaranteed minimum income benefit charge: 0.55%* Withdrawals will reduce each of the benefit bases on a pro rata basis only. - ------------------------------------------------------------------------------------------------------------------------------------ September 2003 - February 2004 (for the In calculating whether your withdrawal will Guaranteed minimum income benefit) and reduce your the Roll-Up benefit base portion of January 2004 - February 2005 (for the Greater your Guaranteed minimum income benefit base of the 6% Roll-Up to age 85 or the Annual on a pro rata or dollar-for-dollar basis, Ratchet to age 85 enhanced death benefit:) withdrawal charges will be included in the withdrawal amount. - ------------------------------------------------------------------------------------------------------------------------------------ September 2003 - present Unavailable -- accordingly all references to this feature are deleted in their entirety. - ------------------------------------------------------------------------------------------------------------------------------------ January 2004 - present Unavailable -- accordingly all references to this feature are deleted in their entirety. - ------------------------------------------------------------------------------------------------------------------------------------
* Contract owners who elected the Guaranteed minimum income benefit and/or the Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit had a limited opportunity to change to the new versions of these benefits, as they are described in "Contract features and benefits" and "Accessing your money," earlier in this Prospectus. I-3 Appendix IX: Contract variations Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 HOW TO OBTAIN AN ACCUMULATOR(R) STATEMENT OF ADDITIONAL INFORMATION FOR SEPARATE ACCOUNT NO. 49 Send this request form to: Accumulator(R) P.O. Box 1547 Secaucus, NJ 07096-1547 - -------------------------------------------------------------------------------- Please send me an Accumulator(R) SAI for SEPARATE ACCOUNT NO. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name: - -------------------------------------------------------------------------------- Address: - -------------------------------------------------------------------------------- City State Zip x1888/Core '02/'04, OR, '04(NY), '06/'06.5 and '07 Series Accumulator(R) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing or taking any other action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS ACCUMULATOR(R) Accumulator(R) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option, fixed maturity options, or the account for special dollar cost averaging ("investment options"). All features and benefits may not be available in all contracts and from all selling broker-dealers. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street Small o EQ/Ariel Appreciation II Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option, the fixed maturity options, and the account for special dollar cost averaging, which are discussed later in this Prospectus. If you elect the Guaranteed withdrawal benefit for life, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and certain permitted variable investment option(s). The permitted variable investment options are described later in this Prospectus. TYPES OF CONTRACTS. We offer the contracts for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA or Roth IRA. We offer two versions of the traditional IRA: "Rollover IRA" and "Flexible Premium IRA." We also offer two versions of the Roth IRA: "Roth Conversion IRA" and "Flexible Premium Roth IRA." o Traditional and Roth Inherited IRA beneficiary continuation contract ("Inherited IRA") (direct transfer contributions only). o An annuity that is an investment vehicle for a qualified defined contribution plan ("QP") (rollover and direct transfer contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $5,000 is required to purchase an NQ, Rollover IRA, Roth Conversion IRA, Inherited IRA, QP, or Rollover TSA contract. For Flexible Premium IRA and Flexible Premium Roth IRA contracts, we require a contribution of $2,000 to purchase a contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01874/Core '04 NY Series (R-4/15) Contents of this Prospectus - -------------------------------------------------------------------------------- ACCUMULATOR(R) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 12 - -------------------------------------------------------------------------------- Example 16 Condensed financial information 19 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 20 - -------------------------------------------------------------------------------- How you can purchase and contribute to your contract 20 Owner and annuitant requirements 26 How you can make your contributions 26 What are your investment options under the contract? 27 Portfolios of the Trusts 28 Allocating your contributions 34 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 37 Annuity purchase factors 38 Guaranteed minimum income benefit option 38 Guaranteed minimum death benefit 40 Guaranteed withdrawal benefit for life ("GWBL") 41 Inherited IRA beneficiary continuation contract 45 Your right to cancel within a certain number of days 45 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 47 - -------------------------------------------------------------------------------- Your account value and cash value 47 Your contract's value in the variable investment options 47 Your contract's value in the guaranteed interest option 47 Your contract's value in the fixed maturity options 47 Your contract's value in the account for special dollar cost averaging 47 Insufficient account value 47 - ---------- "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the Prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 48 - -------------------------------------------------------------------------------- Transferring your account value 48 Disruptive transfer activity 48 Rebalancing your account value 49 - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 51 - -------------------------------------------------------------------------------- Withdrawing your account value 51 How withdrawals are taken from your account value 53 How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2 53 How withdrawals affect your GWBL 54 Withdrawals treated as surrenders 54 Loans under Rollover TSA contracts 54 Surrendering your contract to receive its cash value 55 When to expect payments 55 Your annuity payout options 55 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 58 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 58 Charges that the Trusts deduct 61 Group or sponsored arrangements 61 Other distribution arrangements 61 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 62 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit if GWBL is not elected 62 Your beneficiary and payment of benefit if GWBL is elected 64 Beneficiary continuation option 65 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 68 - -------------------------------------------------------------------------------- Overview 68 Buying a contract to fund a retirement arrangement 68 Transfers among investment options 68 Taxation of nonqualified annuities 68 Individual retirement arrangements (IRAs) 70 Tax-sheltered annuity contracts (TSAs) 79 Federal and state income tax withholding and information reporting 84 Special rules for contracts funding qualified plans 85 Impact of taxes to AXA Equitable 85 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 86 - -------------------------------------------------------------------------------- About Separate Account No. 49 86 About the Trusts 86 About our fixed maturity options 86 About the general account 87 About other methods of payment 88 Dates and prices at which contract events occur 88 About your voting rights 89 About legal proceedings 89 Financial statements 89 Transfers of ownership, collateral assignments, loans and borrowing 90 Distribution of the contracts 90 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 92 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Annual Ratchet to age 85 enhanced death benefit example D-1 V -- Hypothetical illustrations E-1 VI -- Guaranteed principal benefit example F-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page 6% Roll-Up to age 85 37 account for special dollar cost averaging 34 account value 47 administrative charge 58 annual administrative charge 59 Annual Ratchet to age 85 enhanced death benefit 37 annuitant 20 annuitization 55 annuity maturity date 57 annuity payout options 55 annuity purchase factors 38 automatic investment program 88 AXA Allocation Portfolios cover beneficiary if GWBL is elected 64 beneficiary if GWBL is not elected 62 Beneficiary continuation option ("BCO") 65 business day 88 cash value 47 charges for state premium and other applicable taxes 61 contract date 26 contract date anniversary 26 contract year 26 contributions to Roth IRAs 76 regular contributions 76 rollovers and transfers 77 conversion rollover contributions 77 contributions to traditional IRAs 71 regular contributions 71 rollovers and transfers 72 disability, terminal illness or confinement to nursing home 60 disruptive transfer activity 48 distribution charge 58 ERISA 61 EQAccess 7 Fixed-dollar option 36 fixed maturity options 33 fixed maturity options - withdrawal charges 59 Flexible Premium IRA cover Flexible Premium Roth IRA cover free look 45 free withdrawal amount 60 general account 87 General dollar cost averaging 36 guaranteed interest option 33 Guaranteed minimum death benefit 40 Guaranteed minimum death benefit charge 60 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 37 Guaranteed minimum income benefit 38 Guaranteed minimum income benefit charge 60 Guaranteed principal benefits 34 Guaranteed withdrawal benefit for life charge 61 Guaranteed withdrawal benefit for life ("GWBL") 41 GWBL benefit base 42 GWBL benefit base Annual Ratchet charge 61 Inherited IRA cover Investment simplifier 36 investment options cover IRS 68 lifetime required minimum distribution withdrawals 52 loan reserve account 54 loans under Rollover TSA 54 market adjusted amount 33 market timing 48 market value adjustment 33 maturity dates 33 maturity value 33 Mortality and expense risks charge 58 NQ cover partial withdrawals 51 permitted variable investment options 27 Portfolio cover processing office 7 QP cover rate to maturity 33 Rebalancing 49 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 34 Separate Account No. 49 86 special dollar cost averaging 36 Spousal protection 63 standard death benefit 37 substantially equal withdrawals 52 Successor owner and annuitant 63 systematic withdrawals 52 TOPS 7 traditional IRA cover Trusts 86 TSA cover unit 47 variable investment options 27 wire transmittals and electronic applications 88 withdrawal charge 59 4 Index of key words and phrases To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract or supplemental materials. Your financial professional can provide further explanation about your contract. - -------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - -------------------------------------------------------------------------------- fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guaranteed minimum income benefit Guaranteed Income Benefit Guaranteed interest option Guaranteed Interest Account Guaranteed withdrawal benefit for life Guaranteed withdrawal benefit GWBL benefit base Guaranteed withdrawal benefit for life benefit base Guaranteed annual withdrawal amount Guaranteed withdrawal benefit for life Annual withdrawal amount Excess withdrawal Guaranteed withdrawal benefit for life Excess withdrawal - -------------------------------------------------------------------------------- Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year, and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility to exercise the Guaranteed minimum income benefit. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options; o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (through EQ Access only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of any transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or will- Who is AXA Equitable? 7 ful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA or Flexible Premium Roth IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts (employer or plan approval required) (7) requests for withdrawals or surrenders from contracts with the Guaranteed withdrawal benefit for life ("GWBL"); (8) tax withholding elections; (9) election of the Beneficiary continuation option; (10) IRA contribution recharacterizations; (11) Section 1035 exchanges; (12) direct transfers and rollovers; (13) exercise of the Guaranteed minimum income benefit; (14) death claims; (15) change in ownership (NQ only); (16) purchase by, or change of ownership to, a nonnatural owner; (17) enrollment in our "automatic required minimum distribution (RMD) service;" (18) requests to opt out of or back into the annual ratchet of the Guaranteed withdrawal benefit for life ("GWBL") benefit base; and (19) requests for enrollment in either our Maximum payment plan or Customized payment plan under the Guaranteed withdrawal benefit for life ("GWBL"). WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; (3) general dollar cost averaging (including the fixed dollar and interest sweep options); and (4) special dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging (including the fixed dollar and interest sweep options); (3) special dollar cost averaging; (4) substantially equal withdrawals; (5) systematic withdrawals; and (6) the date annuity payments are to begin. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners, both must sign. 8 Who is AXA Equitable? Accumulator(R) at a glance -- key features - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- Professional investment Accumulator's(R) variable investment options invest in different Portfolios managed by management professional investment advisers. - -------------------------------------------------------------------------------------------------------------------------------- Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2 only). --------------------------------------------------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - -------------------------------------------------------------------------------------------------------------------------------- Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - -------------------------------------------------------------------------------------------------------------------------------- Account for special dollar Available for dollar cost averaging all or a portion of any eligible contribution to your contract. cost averaging - -------------------------------------------------------------------------------------------------------------------------------- Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. --------------------------------------------------------------------------------------------------- o No tax on transfers among investment options inside the contract. --------------------------------------------------------------------------------------------------- If you are purchasing anannuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before purchasing one of these contracts, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities compared with any other investment that you may use in connection with your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed benefits may have limited useful- ness because of required minimum distributions ("RMDs"). - -------------------------------------------------------------------------------------------------------------------------------- Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during the annuitant's income benefit life once you elect to annuitize the contract. - -------------------------------------------------------------------------------------------------------------------------------- Guaranteed withdrawal The Guaranteed withdrawal benefit for life option ("GWBL") guarantees that you can take withdrawals benefit for life of up to a maximum amount each contract year (your "Guaranteed annual withdrawal amount") beginning at owner age 59-1/2 or later. Withdrawals are taken from your account value and continue during your lifetime even if your account value falls to zero (unless it is caused by a withdrawal that exceeds your Guaranteed annual withdrawal amount). - --------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) at a glance -- key features 9 - -------------------------------------------------------------------------------------------------------------------------------- Contribution amounts o NQ, Rollover IRA, Roth Conversion IRA, Inherited IRA, QP and Rollover TSA contracts o Initial minimum: $5,000 o Additional minimum: $500 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $50 (IRA contracts) $1000 (Inherited IRA contracts) --------------------------------------------------------------------------------------------------- o Flexible Premium IRA and Flexible Premium Roth IRA contracts o Initial minimum: $2,000 o Additional minimum: $ 50 --------------------------------------------------------------------------------------------------- Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million ($500,000 for owners or annuitants who are age 81 and older at contract issue). We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. See "How you can purchase and contribute to your contract" in "Contract features and benefits" later in this Prospectus. - -------------------------------------------------------------------------------------------------------------------------------- Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required; not available under contracts with GWBL) o Contract surrender o Maximum payment plan (only under contracts with GWBL) o Customized payment plan (only under contracts with GWBL) You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - -------------------------------------------------------------------------------------------------------------------------------- Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - -------------------------------------------------------------------------------------------------------------------------------- Additional features* o Guaranteed minimum death benefit options o Guaranteed principal benefit options o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually, and annually) o Free transfers o Waiver of withdrawal charge for certain withdrawals, disability, terminal illness, or confinement to a nursing home o Spousal continuation (if GWBL is elected) o Spousal protection (NQ only, if GWBL is not elected) o Successor owner/annuitant (if GWBL is not elected) o Beneficiary continuation option - -------------------------------------------------------------------------------------------------------------------------------- Fees and charges Please see "Fee table" later in this section for complete details. - -------------------------------------------------------------------------------------------------------------------------------- Annuitant issue ages (if NQ: 0-85 GWBL is not elected) Rollover IRA, Roth Conversion IRA, Flexible Premium Roth IRA and Rollover TSA: 20-85 Flexible Premium IRA: 20-70 Inherited IRA: 0-70 QP: 20-75 - -------------------------------------------------------------------------------------------------------------------------------- Owner and annuitant issue NQ, Rollover IRA, Roth Conversion IRA, Rollover TSA, Flexible Premium Roth IRA: 56-85 ages (if GWBL is elected) QP: 56-75 Flexible Premium IRA: 56-70 - --------------------------------------------------------------------------------------------------------------------------------
10 Accumulator(R) at a glance -- key features The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available at certain ages. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund within a certain number of days. Please see "Your right to cancel within a certain number of days" later in this Prospectus for additional information. OTHER CONTRACTS We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. A version of this contract (that includes credits) may be available to eligible employees and financial professionals of AXA Equitable and their spouses with modified optional benefits and/or reduced fees and charges. If you are an employee or financial professional of AXA Equitable, you should contact your human resources representative for more information. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. Accumulator(R) at a glance -- key features 11 Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay at the time that you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity payout option. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes may also apply. Charges for certain features shown in the fee table are mutually exclusive. - -------------------------------------------------------------------------------- Charges we deduct from your account value at the time you request certain transactions - -------------------------------------------------------------------------------- Maximum withdrawal charge as a percentage of contributions with- drawn (deducted if you surrender your contract or make certain withdrawals or apply your cash value to certain payout options).(1) 7.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $350 - -------------------------------------------------------------------------------- The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses. - -------------------------------------------------------------------------------- Charges we deduct from your account value on each contract date anniversary - -------------------------------------------------------------------------------- Maximum annual administrative charge(2) If your account value on a contract date anniversary is less than $50,000(3) $30 If your account value on a contract date anniversary is $50,000 or more $0 - -------------------------------------------------------------------------------- Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - -------------------------------------------------------------------------------- SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks 0.75%(4) Administrative 0.30% Distribution 0.20% ----- Total separate account annual expenses 1.25% - -------------------------------------------------------------------------------- Charges we deduct from your account value each year if you elect any of the following optional benefits - -------------------------------------------------------------------------------- Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect). Standard death benefit 0.00% Annual Ratchet to age 85 0.25% of the Annual Ratchet to age 85 benefit base - ----------------------------------------------------------------------------------------------------------------------------- Guaranteed principal benefit charge for option 2 (calculated as a percentage of the account value. Deducted annually(2) on the first 10 contract date anniversaries) 0.50% - ----------------------------------------------------------------------------------------------------------------------------- Guaranteed minimum income benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect) 0.65% - ----------------------------------------------------------------------------------------------------------------------------- Guaranteed withdrawal benefit for life benefit charge (calculated as a percentage of the GWBL benefit base. Deducted annually(2) on each contract date anniversary). 0.65% (for the Single life or Joint life option) If your GWBL benefit base ratchets, we reserve the right to increase your charge up to: 0.80% (for the Single life or Joint life option) - -----------------------------------------------------------------------------------------------------------------------------
12 Fee table Please see "Guaranteed withdrawal benefit for life" in "Contract features and benefits" for more information about this feature, including its benefit base and the Annual Ratchet provision, and "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses," both in this Prospectus. - -------------------------------------------------------------------------------- Net loan interest charge - Rollover TSA contracts only (calcu- lated and deducted daily as a percentage of the outstanding loan amount) 2.00%(5) You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio. - -------------------------------------------------------------------------------- Portfolio operating expenses expressed as an annual percentage of daily net assets - -------------------------------------------------------------------------------- Total Annual Portfolio Operating Expenses for 2007 Lowest Highest (expenses that are deducted from Portfolio assets ------ ------- including management fees, 12b-1 fees, 0.63% 3.56% service fees, and/or other expenses)(6) This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- --------------------------------------------------------------------------------------------- Manage- ment 12b-1 Other Portfolio Name Fees(7) Fees(8) Expenses(9) - --------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - --------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.10% 0.25% 0.17% AXA Conservative Allocation 0.10% 0.25% 0.21% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% AXA Moderate Allocation 0.10% 0.25% 0.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - --------------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% - --------------------------------------------------------------------------------------------------------------- Acquired Fund Fees and Total Net Expenses Annual Fee Waiv- Annual (Under- Expenses ers and/or Expenses lying (Before Expense (After Portfo- Expense Reimburse- Expense Portfolio Name lios)(10) Limitation) ments(11) Limitations) - --------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - --------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - --------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% - ---------------------------------------------------------------------------------------------------------------
Fee table 13
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets. - -------------------------------------------------------------------------------- Manage- ment 12b-1 Other Portfolio Name Fees(7) Fees(8) Expenses(9) - -------------------------------------------------------------------------------- EQ Advisors Trust: - -------------------------------------------------------------------------------- EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/Franklin Small Cap Value -- 1.33% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------- Acquired Fund Fees and Total Net Expenses Annual Fee Waiv- Annual (Under- Expenses ers and/or Expenses lying (Before Expense (After Portfo- Expense Reimburse- Expense Portfolio Name lios)(10) Limitation) ments(11) Limitations) - --------------------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(12) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate -- 1.36% (0.10)% 1.26% - ---------------------------------------------------------------------------------------------------
Notes: (1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal amount, if applicable: The withdrawal charge Contract percentage we use is Year determined by the contract 1 ...........................7.00% year in which you make 2 ...........................7.00% the withdrawal or surrender 3 ...........................6.00% your contract. For each 4 ...........................6.00% contribution, we consider the 5 ...........................5.00% contract year in which we 6 ...........................3.00% receive that contribution to 7 ...........................1.00% be "contract year 1") 8+ ..........................0.00% (2) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. (3) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, the charge, if applicable, is $30 for each contract year. 14 Fee table (4) These charges compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. (5) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (6) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (7) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (11) and (12) for any expense limitation agreement information. (8) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. (9) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (11) and (12) for any expense limitation agreement information. (10) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (11) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolio in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: - --------------------------------------------- Portfolio Name - --------------------------------------------- Multimanager Aggressive Equity 0.97% - --------------------------------------------- Multimanager Health Care 1.67% - --------------------------------------------- Multimanager Large Cap Core Equity 1.34% - --------------------------------------------- Multimanager Large Cap Growth 1.29% - --------------------------------------------- Multimanager Large Cap Value 1.26% - --------------------------------------------- Multimanager Mid Cap Growth 1.52% - --------------------------------------------- Multimanager Mid Cap Value 1.53% - --------------------------------------------- Multimanager Small Cap Growth 1.35% - --------------------------------------------- Multimanager Small Cap Value 1.45% - --------------------------------------------- Multimanager Technology 1.67% - --------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% - --------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% - --------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% - --------------------------------------------- EQ/AllianceBernstein Value 0.87% - --------------------------------------------- EQ/Ariel Appreciation II 1.09% - --------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% - --------------------------------------------- EQ/Davis New York Venture 1.25% - --------------------------------------------- EQ/Evergreen Omega 1.12% - --------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% - --------------------------------------------- EQ/GAMCO Small Company Value 1.10% - --------------------------------------------- EQ/International Core PLUS 1.05% - --------------------------------------------- EQ/Large Cap Core PLUS 0.83% - --------------------------------------------- EQ/Large Cap Growth PLUS 0.82% - --------------------------------------------- EQ/Legg Mason Value Equity 0.97% - --------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% - --------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% - --------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% - --------------------------------------------- EQ/Mid Cap Value PLUS 0.81% - --------------------------------------------- EQ/Montag & Caldwell Growth 1.13% - --------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% - --------------------------------------------- EQ/UBS Growth and Income 1.04% - --------------------------------------------- EQ/Van Kampen Comstock 0.99% - --------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% - --------------------------------------------- (12) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and administration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage Fee table 15 commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the Guaranteed minimum income benefit with the Annual Ratchet to age 85 enhanced death benefit) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of .009% of contract value. The fixed maturity options, guaranteed interest option and the account for special dollar cost averaging are not covered by the example. However, the annual administrative charge, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options, guaranteed interest option and the account for special dollar cost averaging. A market value adjustment (positive or negative) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 16 Fee table
- --------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period ----------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - --------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - --------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,079.00 $ 1,764.00 $ 2,488.00 $ 4,233.00 AXA Conservative Allocation $ 1,059.00 $ 1,705.00 $ 2,391.00 $ 4,049.00 AXA Conservative-Plus Allocation $ 1,064.00 $ 1,721.00 $ 2,417.00 $ 4,098.00 AXA Moderate Allocation $ 1,068.00 $ 1,733.00 $ 2,437.00 $ 4,136.00 AXA Moderate-Plus Allocation $ 1,072.00 $ 1,745.00 $ 2,458.00 $ 4,175.00 Multimanager Aggressive Equity $ 1,037.00 $ 1,640.00 $ 2,284.00 $ 3,842.00 Multimanager Core Bond $ 1,034.00 $ 1,630.00 $ 2,268.00 $ 3,812.00 Multimanager Health Care $ 1,104.00 $ 1,838.00 $ 2,609.00 $ 4,459.00 Multimanager High Yield $ 1,034.00 $ 1,630.00 $ 2,268.00 $ 3,812.00 Multimanager International Equity $ 1,083.00 $ 1,776.00 $ 2,508.00 $ 4,271.00 Multimanager Large Cap Core Equity $ 1,069.00 $ 1,736.00 $ 2,442.00 $ 4,146.00 Multimanager Large Cap Growth $ 1,071.00 $ 1,742.00 $ 2,453.00 $ 4,165.00 Multimanager Large Cap Value $ 1,066.00 $ 1,727.00 $ 2,427.00 $ 4,117.00 Multimanager Mid Cap Growth $ 1,090.00 $ 1,798.00 $ 2,544.00 $ 4,337.00 Multimanager Mid Cap Value $ 1,089.00 $ 1,795.00 $ 2,539.00 $ 4,328.00 Multimanager Small Cap Growth $ 1,092.00 $ 1,804.00 $ 2,554.00 $ 4,356.00 Multimanager Small Cap Value $ 1,081.00 $ 1,770.00 $ 2,498.00 $ 4,252.00 Multimanager Technology $ 1,104.00 $ 1,838.00 $ 2,609.00 $ 4,459.00 - --------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,017.00 $ 1,580.00 $ 2,185.00 $ 3,651.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,020.00 $ 1,590.00 $ 2,201.00 $ 3,681.00 EQ/AllianceBernstein International $ 1,047.00 $ 1,671.00 $ 2,335.00 $ 3,941.00 EQ/AllianceBernstein Large Cap Growth $ 1,062.00 $ 1,714.00 $ 2,407.00 $ 4,078.00 EQ/AllianceBernstein Quality Bond $ 1,021.00 $ 1,593.00 $ 2,206.00 $ 3,691.00 EQ/AllianceBernstein Small Cap Growth $ 1,045.00 $ 1,665.00 $ 2,325.00 $ 3,921.00 EQ/AllianceBernstein Value $ 1,028.00 $ 1,615.00 $ 2,242.00 $ 3,762.00 EQ/Ariel Appreciation II $ 1,060.00 $ 1,708.00 $ 2,397.00 $ 4,059.00 EQ/AXA Rosenberg Value Long/Short Equity $ 1,301.00 $ 2,406.00 $ 3,513.00 $ 6,048.00 EQ/BlackRock Basic Value Equity $ 1,025.00 $ 1,605.00 $ 2,227.00 $ 3,732.00 EQ/BlackRock International Value $ 1,059.00 $ 1,705.00 $ 2,391.00 $ 4,049.00 EQ/Boston Advisors Equity Income $ 1,047.00 $ 1,671.00 $ 2,335.00 $ 3,941.00 EQ/Calvert Socially Responsible $ 1,046.00 $ 1,668.00 $ 2,330.00 $ 3,931.00 EQ/Capital Guardian Growth $ 1,038.00 $ 1,643.00 $ 2,289.00 $ 3,852.00 EQ/Capital Guardian Research $ 1,034.00 $ 1,630.00 $ 2,268.00 $ 3,812.00 EQ/Caywood-Scholl High Yield Bond $ 1,034.00 $ 1,630.00 $ 2,268.00 $ 3,812.00 EQ/Davis New York Venture $ 1,062.00 $ 1,714.00 $ 2,407.00 $ 4,078.00 EQ/Equity 500 Index $ 994.00 $ 1,511.00 $ 2,070.00 $ 3,424.00 EQ/Evergreen International Bond $ 1,045.00 $ 1,665.00 $ 2,325.00 $ 3,921.00 - --------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- If you annuitize at the end If you do not surrender of the applicable time period, and your contract at the end select a non-life contingent period of the applicable time certain annuity option with less than five years period ----------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years 1 year 3 years - --------------------------------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - --------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 1,764.00 $ 2,488.00 $ 4,233.00 $ 379.00 $ 1,164.00 AXA Conservative Allocation N/A $ 1,705.00 $ 2,391.00 $ 4,049.00 $ 359.00 $ 1,105.00 AXA Conservative-Plus Allocation N/A $ 1,721.00 $ 2,417.00 $ 4,098.00 $ 364.00 $ 1,121.00 AXA Moderate Allocation N/A $ 1,733.00 $ 2,437.00 $ 4,136.00 $ 368.00 $ 1,133.00 AXA Moderate-Plus Allocation N/A $ 1,745.00 $ 2,458.00 $ 4,175.00 $ 372.00 $ 1,145.00 Multimanager Aggressive Equity N/A $ 1,640.00 $ 2,284.00 $ 3,842.00 $ 337.00 $ 1,040.00 Multimanager Core Bond N/A $ 1,630.00 $ 2,268.00 $ 3,812.00 $ 334.00 $ 1,030.00 Multimanager Health Care N/A $ 1,838.00 $ 2,609.00 $ 4,459.00 $ 404.00 $ 1,238.00 Multimanager High Yield N/A $ 1,630.00 $ 2,268.00 $ 3,812.00 $ 334.00 $ 1,030.00 Multimanager International Equity N/A $ 1,776.00 $ 2,508.00 $ 4,271.00 $ 383.00 $ 1,176.00 Multimanager Large Cap Core Equity N/A $ 1,736.00 $ 2,442.00 $ 4,146.00 $ 369.00 $ 1,136.00 Multimanager Large Cap Growth N/A $ 1,742.00 $ 2,453.00 $ 4,165.00 $ 371.00 $ 1,142.00 Multimanager Large Cap Value N/A $ 1,727.00 $ 2,427.00 $ 4,117.00 $ 366.00 $ 1,127.00 Multimanager Mid Cap Growth N/A $ 1,798.00 $ 2,544.00 $ 4,337.00 $ 390.00 $ 1,198.00 Multimanager Mid Cap Value N/A $ 1,795.00 $ 2,539.00 $ 4,328.00 $ 389.00 $ 1,195.00 Multimanager Small Cap Growth N/A $ 1,804.00 $ 2,554.00 $ 4,356.00 $ 392.00 $ 1,204.00 Multimanager Small Cap Value N/A $ 1,770.00 $ 2,498.00 $ 4,252.00 $ 381.00 $ 1,170.00 Multimanager Technology N/A $ 1,838.00 $ 2,609.00 $ 4,459.00 $ 404.00 $ 1,238.00 - --------------------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 1,580.00 $ 2,185.00 $ 3,651.00 $ 317.00 $ 980.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,590.00 $ 2,201.00 $ 3,681.00 $ 320.00 $ 990.00 EQ/AllianceBernstein International N/A $ 1,671.00 $ 2,335.00 $ 3,941.00 $ 347.00 $ 1,071.00 EQ/AllianceBernstein Large Cap Growth N/A $ 1,714.00 $ 2,407.00 $ 4,078.00 $ 362.00 $ 1,114.00 EQ/AllianceBernstein Quality Bond N/A $ 1,593.00 $ 2,206.00 $ 3,691.00 $ 321.00 $ 993.00 EQ/AllianceBernstein Small Cap Growth N/A $ 1,665.00 $ 2,325.00 $ 3,921.00 $ 345.00 $ 1,065.00 EQ/AllianceBernstein Value N/A $ 1,615.00 $ 2,242.00 $ 3,762.00 $ 328.00 $ 1,015.00 EQ/Ariel Appreciation II N/A $ 1,708.00 $ 2,397.00 $ 4,059.00 $ 360.00 $ 1,108.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,406.00 $ 3,513.00 $ 6,048.00 $ 601.00 $ 1,806.00 EQ/BlackRock Basic Value Equity N/A $ 1,605.00 $ 2,227.00 $ 3,732.00 $ 325.00 $ 1,005.00 EQ/BlackRock International Value N/A $ 1,705.00 $ 2,391.00 $ 4,049.00 $ 359.00 $ 1,105.00 EQ/Boston Advisors Equity Income N/A $ 1,671.00 $ 2,335.00 $ 3,941.00 $ 347.00 $ 1,071.00 EQ/Calvert Socially Responsible N/A $ 1,668.00 $ 2,330.00 $ 3,931.00 $ 346.00 $ 1,068.00 EQ/Capital Guardian Growth N/A $ 1,643.00 $ 2,289.00 $ 3,852.00 $ 338.00 $ 1,043.00 EQ/Capital Guardian Research N/A $ 1,630.00 $ 2,268.00 $ 3,812.00 $ 334.00 $ 1,030.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,630.00 $ 2,268.00 $ 3,812.00 $ 334.00 $ 1,030.00 EQ/Davis New York Venture N/A $ 1,714.00 $ 2,407.00 $ 4,078.00 $ 362.00 $ 1,114.00 EQ/Equity 500 Index N/A $ 1,511.00 $ 2,070.00 $ 3,424.00 $ 294.00 $ 911.00 EQ/Evergreen International Bond N/A $ 1,665.00 $ 2,325.00 $ 3,921.00 $ 345.00 $ 1,065.00 - --------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period - -------------------------------------------------------------------------- Portfolio Name 5 years 10 years - -------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - -------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,988.00 $ 4,233.00 AXA Conservative Allocation $ 1,891.00 $ 4,049.00 AXA Conservative-Plus Allocation $ 1,917.00 $ 4,098.00 AXA Moderate Allocation $ 1,937.00 $ 4,136.00 AXA Moderate-Plus Allocation $ 1,958.00 $ 4,175.00 Multimanager Aggressive Equity $ 1,784.00 $ 3,842.00 Multimanager Core Bond $ 1,768.00 $ 3,812.00 Multimanager Health Care $ 2,109.00 $ 4,459.00 Multimanager High Yield $ 1,768.00 $ 3,812.00 Multimanager International Equity $ 2,008.00 $ 4,271.00 Multimanager Large Cap Core Equity $ 1,942.00 $ 4,146.00 Multimanager Large Cap Growth $ 1,953.00 $ 4,165.00 Multimanager Large Cap Value $ 1,927.00 $ 4,117.00 Multimanager Mid Cap Growth $ 2,044.00 $ 4,337.00 Multimanager Mid Cap Value $ 2,039.00 $ 4,328.00 Multimanager Small Cap Growth $ 2,054.00 $ 4,356.00 Multimanager Small Cap Value $ 1,998.00 $ 4,252.00 Multimanager Technology $ 2,109.00 $ 4,459.00 - -------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,685.00 $ 3,651.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,701.00 $ 3,681.00 EQ/AllianceBernstein International $ 1,835.00 $ 3,941.00 EQ/AllianceBernstein Large Cap Growth $ 1,907.00 $ 4,078.00 EQ/AllianceBernstein Quality Bond $ 1,706.00 $ 3,691.00 EQ/AllianceBernstein Small Cap Growth $ 1,825.00 $ 3,921.00 EQ/AllianceBernstein Value $ 1,742.00 $ 3,762.00 EQ/Ariel Appreciation II $ 1,897.00 $ 4,059.00 EQ/AXA Rosenberg Value Long/Short Equity $ 3,013.00 $ 6,048.00 EQ/BlackRock Basic Value Equity $ 1,727.00 $ 3,732.00 EQ/BlackRock International Value $ 1,891.00 $ 4,049.00 EQ/Boston Advisors Equity Income $ 1,835.00 $ 3,941.00 EQ/Calvert Socially Responsible $ 1,830.00 $ 3,931.00 EQ/Capital Guardian Growth $ 1,789.00 $ 3,852.00 EQ/Capital Guardian Research $ 1,768.00 $ 3,812.00 EQ/Caywood-Scholl High Yield Bond $ 1,768.00 $ 3,812.00 EQ/Davis New York Venture $ 1,907.00 $ 4,078.00 EQ/Equity 500 Index $ 1,570.00 $ 3,424.00 EQ/Evergreen International Bond $ 1,825.00 $ 3,921.00 - --------------------------------------------------------------------------
Fee table 17
- ------------------------------------------------------------------------------------------------------ If you surrender your contract at the end of the applicable time period ----------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega $ 1,048.00 $ 1,674.00 $ 2,340.00 $ 3,951.00 EQ/FI Mid Cap $ 1,039.00 $ 1,646.00 $ 2,294.00 $ 3,862.00 EQ/Franklin Income $ 1,064.00 $ 1,721.00 $ 2,417.00 $ 4,098.00 EQ/Franklin Small Cap Value $ 1,067.00 $ 1,730.00 $ 2,432.00 $ 4,127.00 EQ/Franklin Templeton Founding Strategy $ 1,092.00 $ 1,804.00 $ 2,554.00 $ 4,356.00 EQ/GAMCO Mergers and Acquisitions $ 1,068.00 $ 1,733.00 $ 2,437.00 $ 4,136.00 EQ/GAMCO Small Company Value $ 1,046.00 $ 1,668.00 $ 2,330.00 $ 3,931.00 EQ/International Core PLUS $ 1,053.00 $ 1,686.00 $ 2,361.00 $ 3,990.00 EQ/International Growth $ 1,071.00 $ 1,742.00 $ 2,453.00 $ 4,165.00 EQ/JPMorgan Core Bond $ 1,013.00 $ 1,568.00 $ 2,164.00 $ 3,610.00 EQ/JPMorgan Value Opportunities $ 1,032.00 $ 1,624.00 $ 2,258.00 $ 3,792.00 EQ/Large Cap Core PLUS $ 1,035.00 $ 1,633.00 $ 2,273.00 $ 3,822.00 EQ/Large Cap Growth PLUS $ 1,034.00 $ 1,630.00 $ 2,268.00 $ 3,812.00 EQ/Legg Mason Value Equity $ 1,040.00 $ 1,649.00 $ 2,299.00 $ 3,872.00 EQ/Long Term Bond $ 1,009.00 $ 1,558.00 $ 2,149.00 $ 3,579.00 EQ/Lord Abbett Growth and Income $ 1,039.00 $ 1,646.00 $ 2,294.00 $ 3,862.00 EQ/Lord Abbett Large Cap Core $ 1,044.00 $ 1,661.00 $ 2,320.00 $ 3,912.00 EQ/Lord Abbett Mid Cap Value $ 1,043.00 $ 1,658.00 $ 2,315.00 $ 3,902.00 EQ/Marsico Focus $ 1,057.00 $ 1,699.00 $ 2,381.00 $ 4,030.00 EQ/Mid Cap Value PLUS $ 1,039.00 $ 1,646.00 $ 2,294.00 $ 3,862.00 EQ/Money Market $ 1,001.00 $ 1,533.00 $ 2,107.00 $ 3,497.00 EQ/Montag & Caldwell Growth $ 1,048.00 $ 1,674.00 $ 2,340.00 $ 3,951.00 EQ/Mutual Shares $ 1,070.00 $ 1,739.00 $ 2,447.00 $ 4,156.00 EQ/Oppenheimer Global $ 1,108.00 $ 1,851.00 $ 2,629.00 $ 4,496.00 EQ/Oppenheimer Main Street Opportunity $ 1,091.00 $ 1,801.00 $ 2,549.00 $ 4,347.00 EQ/Oppenheimer Main Street Small Cap $ 1,100.00 $ 1,826.00 $ 2,589.00 $ 4,422.00 EQ/PIMCO Real Return $ 1,026.00 $ 1,608.00 $ 2,232.00 $ 3,742.00 EQ/Short Duration Bond $ 1,015.00 $ 1,574.00 $ 2,175.00 $ 3,630.00 EQ/Small Company Index $ 995.00 $ 1,514.00 $ 2,076.00 $ 3,435.00 EQ/T. Rowe Price Growth Stock $ 1,051.00 $ 1,683.00 $ 2,356.00 $ 3,981.00 EQ/Templeton Growth $ 1,075.00 $ 1,752.00 $ 2,468.00 $ 4,194.00 EQ/UBS Growth and Income $ 1,049.00 $ 1,677.00 $ 2,345.00 $ 3,961.00 EQ/Van Kampen Comstock $ 1,038.00 $ 1,643.00 $ 2,289.00 $ 3,852.00 EQ/Van Kampen Emerging Markets Equity $ 1,100.00 $ 1,826.00 $ 2,589.00 $ 4,422.00 EQ/Van Kampen Mid Cap Growth $ 1,043.00 $ 1,658.00 $ 2,315.00 $ 3,902.00 EQ/Van Kampen Real Estate $ 1,070.00 $ 1,739.00 $ 2,447.00 $ 4,156.00 - ------------------------------------------------------------------------------------------------------ - ----------------------------------------------------------------------------------------------------------------------------- If you annuitize at the end If you do not surrender of the applicable time period, and your contract at the end select a non-life contingent period of the applicable time certain annuity option with less than five years period ----------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years 1 year 3 years - ----------------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega N/A $ 1,674.00 $ 2,340.00 $ 3,951.00 $ 348.00 $ 1,074.00 EQ/FI Mid Cap N/A $ 1,646.00 $ 2,294.00 $ 3,862.00 $ 339.00 $ 1,046.00 EQ/Franklin Income N/A $ 1,721.00 $ 2,417.00 $ 4,098.00 $ 364.00 $ 1,121.00 EQ/Franklin Small Cap Value N/A $ 1,730.00 $ 2,432.00 $ 4,127.00 $ 367.00 $ 1,130.00 EQ/Franklin Templeton Founding Strategy N/A $ 1,804.00 $ 2,554.00 $ 4,356.00 $ 392.00 $ 1,204.00 EQ/GAMCO Mergers and Acquisitions N/A $ 1,733.00 $ 2,437.00 $ 4,136.00 $ 368.00 $ 1,133.00 EQ/GAMCO Small Company Value N/A $ 1,668.00 $ 2,330.00 $ 3,931.00 $ 346.00 $ 1,068.00 EQ/International Core PLUS N/A $ 1,686.00 $ 2,361.00 $ 3,990.00 $ 353.00 $ 1,086.00 EQ/International Growth N/A $ 1,742.00 $ 2,453.00 $ 4,165.00 $ 371.00 $ 1,142.00 EQ/JPMorgan Core Bond N/A $ 1,568.00 $ 2,164.00 $ 3,610.00 $ 313.00 $ 968.00 EQ/JPMorgan Value Opportunities N/A $ 1,624.00 $ 2,258.00 $ 3,792.00 $ 332.00 $ 1,024.00 EQ/Large Cap Core PLUS N/A $ 1,633.00 $ 2,273.00 $ 3,822.00 $ 335.00 $ 1,033.00 EQ/Large Cap Growth PLUS N/A $ 1,630.00 $ 2,268.00 $ 3,812.00 $ 334.00 $ 1,030.00 EQ/Legg Mason Value Equity N/A $ 1,649.00 $ 2,299.00 $ 3,872.00 $ 340.00 $ 1,049.00 EQ/Long Term Bond N/A $ 1,558.00 $ 2,149.00 $ 3,579.00 $ 309.00 $ 958.00 EQ/Lord Abbett Growth and Income N/A $ 1,646.00 $ 2,294.00 $ 3,862.00 $ 339.00 $ 1,046.00 EQ/Lord Abbett Large Cap Core N/A $ 1,661.00 $ 2,320.00 $ 3,912.00 $ 344.00 $ 1,061.00 EQ/Lord Abbett Mid Cap Value N/A $ 1,658.00 $ 2,315.00 $ 3,902.00 $ 343.00 $ 1,058.00 EQ/Marsico Focus N/A $ 1,699.00 $ 2,381.00 $ 4,030.00 $ 357.00 $ 1,099.00 EQ/Mid Cap Value PLUS N/A $ 1,646.00 $ 2,294.00 $ 3,862.00 $ 339.00 $ 1,046.00 EQ/Money Market N/A $ 1,533.00 $ 2,107.00 $ 3,497.00 $ 301.00 $ 933.00 EQ/Montag & Caldwell Growth N/A $ 1,674.00 $ 2,340.00 $ 3,951.00 $ 348.00 $ 1,074.00 EQ/Mutual Shares N/A $ 1,739.00 $ 2,447.00 $ 4,156.00 $ 370.00 $ 1,139.00 EQ/Oppenheimer Global N/A $ 1,851.00 $ 2,629.00 $ 4,496.00 $ 408.00 $ 1,251.00 EQ/Oppenheimer Main Street Opportunity N/A $ 1,801.00 $ 2,549.00 $ 4,347.00 $ 391.00 $ 1,201.00 EQ/Oppenheimer Main Street Small Cap N/A $ 1,826.00 $ 2,589.00 $ 4,422.00 $ 400.00 $ 1,226.00 EQ/PIMCO Real Return N/A $ 1,608.00 $ 2,232.00 $ 3,742.00 $ 326.00 $ 1,008.00 EQ/Short Duration Bond N/A $ 1,574.00 $ 2,175.00 $ 3,630.00 $ 315.00 $ 974.00 EQ/Small Company Index N/A $ 1,514.00 $ 2,076.00 $ 3,435.00 $ 295.00 $ 914.00 EQ/T. Rowe Price Growth Stock N/A $ 1,683.00 $ 2,356.00 $ 3,981.00 $ 351.00 $ 1,083.00 EQ/Templeton Growth N/A $ 1,752.00 $ 2,468.00 $ 4,194.00 $ 375.00 $ 1,152.00 EQ/UBS Growth and Income N/A $ 1,677.00 $ 2,345.00 $ 3,961.00 $ 349.00 $ 1,077.00 EQ/Van Kampen Comstock N/A $ 1,643.00 $ 2,289.00 $ 3,852.00 $ 338.00 $ 1,043.00 EQ/Van Kampen Emerging Markets Equity N/A $ 1,826.00 $ 2,589.00 $ 4,422.00 $ 400.00 $ 1,226.00 EQ/Van Kampen Mid Cap Growth N/A $ 1,658.00 $ 2,315.00 $ 3,902.00 $ 343.00 $ 1,058.00 EQ/Van Kampen Real Estate N/A $ 1,739.00 $ 2,447.00 $ 4,156.00 $ 370.00 $ 1,139.00 - ----------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period ---------------------------- Portfolio Name 5 years 10 years - ---------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------- EQ/Evergreen Omega $ 1,840.00 $ 3,951.00 EQ/FI Mid Cap $ 1,794.00 $ 3,862.00 EQ/Franklin Income $ 1,917.00 $ 4,098.00 EQ/Franklin Small Cap Value $ 1,932.00 $ 4,127.00 EQ/Franklin Templeton Founding Strategy $ 2,054.00 $ 4,356.00 EQ/GAMCO Mergers and Acquisitions $ 1,937.00 $ 4,136.00 EQ/GAMCO Small Company Value $ 1,830.00 $ 3,931.00 EQ/International Core PLUS $ 1,861.00 $ 3,990.00 EQ/International Growth $ 1,953.00 $ 4,165.00 EQ/JPMorgan Core Bond $ 1,664.00 $ 3,610.00 EQ/JPMorgan Value Opportunities $ 1,758.00 $ 3,792.00 EQ/Large Cap Core PLUS $ 1,773.00 $ 3,822.00 EQ/Large Cap Growth PLUS $ 1,768.00 $ 3,812.00 EQ/Legg Mason Value Equity $ 1,799.00 $ 3,872.00 EQ/Long Term Bond $ 1,649.00 $ 3,579.00 EQ/Lord Abbett Growth and Income $ 1,794.00 $ 3,862.00 EQ/Lord Abbett Large Cap Core $ 1,820.00 $ 3,912.00 EQ/Lord Abbett Mid Cap Value $ 1,815.00 $ 3,902.00 EQ/Marsico Focus $ 1,881.00 $ 4,030.00 EQ/Mid Cap Value PLUS $ 1,794.00 $ 3,862.00 EQ/Money Market $ 1,607.00 $ 3,497.00 EQ/Montag & Caldwell Growth $ 1,840.00 $ 3,951.00 EQ/Mutual Shares $ 1,947.00 $ 4,156.00 EQ/Oppenheimer Global $ 2,129.00 $ 4,496.00 EQ/Oppenheimer Main Street Opportunity $ 2,049.00 $ 4,347.00 EQ/Oppenheimer Main Street Small Cap $ 2,089.00 $ 4,422.00 EQ/PIMCO Real Return $ 1,732.00 $ 3,742.00 EQ/Short Duration Bond $ 1,675.00 $ 3,630.00 EQ/Small Company Index $ 1,576.00 $ 3,435.00 EQ/T. Rowe Price Growth Stock $ 1,856.00 $ 3,981.00 EQ/Templeton Growth $ 1,968.00 $ 4,194.00 EQ/UBS Growth and Income $ 1,845.00 $ 3,961.00 EQ/Van Kampen Comstock $ 1,789.00 $ 3,852.00 EQ/Van Kampen Emerging Markets Equity $ 2,089.00 $ 4,422.00 EQ/Van Kampen Mid Cap Growth $ 1,815.00 $ 3,902.00 EQ/Van Kampen Real Estate $ 1,947.00 $ 4,156.00 - ----------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix V at the end of this Prospectus. 18 Fee table CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. Fee table 19 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT You may purchase a contract by making payments to us that we call "contributions." We require a minimum contribution amount for each type of contract purchased. The following table summarizes our rules regarding contributions to your contract. All ages in the table refer to the age of the annuitant named in the contract. If the Guaranteed withdrawal benefit for life is elected, both the owner and the annuitant named in the contact must meet the issue age requirements shown in the table, and contributions are based on the age of the older of the original owner and annuitant. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000 ($500,000 for owners or annuitants who are ages 81 and older at contract issue). We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We may accept less than the minimum initial contribution under a contract if an aggregate amount of contracts purchased at the same time by an individual (including spouse) meets the minimum. - -------------------------------------------------------------------------------- The "owner" is the person who is the measuring life for GWBL. The "annuitant" is the person who is the measuring life for all other contract benefits. The annuitant is not necessarily the contract owner. - --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------- Available Minimum Contract type for issue ages contributions Source of contributions Limitations on contributions+ - --------------------------------------------------------------------------------------------------------------------------------- NQ 0 through 85 o $5,000 (initial) o After-tax money. o If issue age is 83 or younger, no additional contributions o $500 (additional) o Paid to us by check or may be made after attain- transfer of contract value ment of age 84, or, if later, o $100 monthly and $300 in a tax-deferred exchange the first contract date quarterly under our auto- under Section 1035 of the anniversary. matic investment program Internal Revenue Code. (additional). o If issue age is 84 or older, additional contributions may be made up to one year from contract issue. - ---------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------ Available Minimum Contract type for issue ages contributions Source of contributions Limitations on contributions+ - ------------------------------------------------------------------------------------------------------------------------------ Rollover IRA 20 through 85 o $5,000 (initial) o Eligible rollover distribu- o If issue age is 83 or younger, tions from 403(b) plans, no additional contributions o $50 (additional) qualified plans, and govern- may be made after attain- mental employer 457(b) ment of age 84, or, if later, plans. the first contract date anniversary. o Rollovers from another traditional individual o If issue age is 84 or older, retirement arrangement. additional contributions may be made up to one year o Direct custodian-to- from contract issue. custodian transfers from another traditional indi- o Contributions after age 70-1/2 vidual retirement must be net of required arrangement. minimum distributions. o Regular IRA contributions. o Although we accept regular IRA contributions (limited to o Additional catch-up $5,000) under rollover IRA contributions. contracts, we intend that this contract be used prima- rily for rollover and direct transfer contributions. o Additional catch-up contri- butions of up to $1,000 per calendar year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - ------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
- ------------------------------------------------------------------------------------------------------------------------------ Available Minimum Contract type for issue ages contributions Source of contributions Limitations on contributions+ - ------------------------------------------------------------------------------------------------------------------------------ Roth Conversion 20 through 85 o $5,000 (initial) o Rollovers from another o If issue age is 83 or younger IRA Roth IRA. no additional contributions o $50 (additional) may be made after attain- o Rollovers from a "desig- ment of age 84, or, if later, nated Roth contribution the first contract date anni- account" under a 401(k) versary. plan or 403(b) plan. o If issue age is 84 or older, o Conversion rollovers from a additional contributions may traditional IRA or other be made up to one year eligible retirement plan. from contract issue. o Direct transfers from o Conversion rollovers after another Roth IRA. age 70-1/2 must be net of required minimum distribu- o Regular Roth IRA contribu- tions for the traditional IRA tions. or other eligible retirement o Additional catch-up plan, which is the source of contributions. the conversion rollover. o You cannot roll over funds from a traditional IRA or other eligible retirement plan if your adjusted gross income is $100,000 or more. o Although we accept regular Roth IRA contributions (lim- ited to $5,000) under Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contri- butions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribu- - ------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------ Available Minimum Contract type for issue ages contributions Source of contributions Limitations on contributions+ - ------------------------------------------------------------------------------------------------------------------------------ Rollover TSA* 20 through 85 o $5,000 (initial) o With documentation of o If issue age is 83 or younger, employer or plan approval, no additional contributions o $500 (additional) and limited to pre-tax may be made after attain- funds, direct plan-to-plan ment of age 84,or, if later, transfers from another the first contract date 403(b) plan or contract anniversary. exchanges from another 403(b) contract under the o If issue age is 84 or older, same plan. additional contributions may be made up to one year from contract issue. o With documentation of employer or plan approval, o Contributions after age 70-1/2 and limited to pre-tax must be net of any required funds, eligible rollover dis- minimum distributions. tributions from other 403(b) plans, qualified plans, gov- o We do not accept employer- ernmental employer 457(b) remitted contributions. plans or traditional IRAs. o We do not accept after-tax contributions, including des- ignated Roth contributions. - ------------------------------------------------------------------------------------------------------------------------------ QP 20 through 75 o $5,000 (initial) o Only transfer contributions o A separate QP contract must from other investments be established for each plan o $500 (additional) within an existing defined participant. contribution qualified plan trust. o We do not accept regular ongoing payroll contribu- o The plan must be qualified tions or contributions under Section 401(a) of the directly from the employer. Internal Revenue Code. o Only one additional transfer o For 401(k) plans, trans- contribution may be made ferred contributions may during a contract year. not include any after-tax contributions, including o No additional transfer con- designated Roth contribu- tributions after participant's tions. attainment of age 76 or, if later, the first contract date anniversary. o Contributions after age 70-1/2 must be net of any required minimum distributions. o We do not accept contribu- tions from defined benefit plans. See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. - ------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
- -------------------------------------------------------------------------------------------------------------------------------- Available Minimum Contract type or issue ages contributions Source of contributions Limitations on contributions+ - -------------------------------------------------------------------------------------------------------------------------------- Flexible Premium 20 through 70 o $2,000 (initial) o Regular traditional IRA o No regular IRA contributions IRA contributions. in the calendar year you turn o $50 (additional) age 70-1/2 and thereafter. o Additional catch-up o $50 under our automatic contributions. o Regular contributions may investment program (addi- not exceed $5,000. tional). o Eligible rollover distribu- tions from 403(b) plans, o Additional catch-up contri- qualified plans, and govern- butions of up to $1,000 per mental employer 457(b) calendar year where the plans. owner is at least age 50 but under age 70-1/2 at any time o Rollovers from another during the calendar year for traditional individual retire- which the contribution is ment arrangement. made. o Direct custodian- o Although we accept rollover to-custodian transfers from and direct transfer contribu- another traditional indi- tions under the Flexible vidual retirement Premium IRA contract, we arrangement. intend that this contract be used for ongoing regular contributions. o Rollover and direct transfer contributions may be made up to attainment of age 84. o Rollover and direct transfer contributions after age 70-1/2 must be net of required minimum distributions. - --------------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
- -------------------------------------------------------------------------------------------------------------------------------- Available Minimum Contract type for issue ages contributions Source of contributions Limitations on contributions+ - -------------------------------------------------------------------------------------------------------------------------------- Flexible Premium 20 through 85 o $2,000 (initial) o Regular Roth IRA o If issue age is 83 or younger, Roth IRA contributions. no additional contributions o $50 (additional) may be made after the o Additional catch-up attainment of age 84, or, if o $50 under our automatic contributions. later, the first contract date investment program (addi- anniversary. tional). o Rollovers from another Roth IRA. o If issue age is 84 or older, additional contributions may o Rollovers from a "desig- be made up to one year nated Roth contribution from contract issue. account" under a 401(k) plan or 403(b) plan. o Contributions are subject to income limits and other tax o Conversion rollovers from a rules. traditional IRA or other eligible retirement plan. o Regular Roth IRA contribu- tions may not exceed o Direct transfers from $ 5,000. another Roth IRA. o Additional catch-up contri- butions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribu- tion is made. o Although we accept rollover and direct transfer contribu- tions under the Flexible Premium Roth IRA contract, we intend that this contract be used for ongoing regular Roth IRA contributions. - -------------------------------------------------------------------------------------------------------------------------------- Inherited IRA 0-70 o $5,000 (initial) o Direct custodian-to- o Any additional contributions Beneficiary custodian transfers of your must be from the same type Continuation o $1,000 (additional) interest as a death benefi- of IRA of the same deceased Contract (tradi- ciary of the deceased owner. tional IRA or owner's traditional indi- Roth IRA) vidual retirement o Non-spousal beneficiary arrangement or Roth IRA to direct rollover contributions an IRA of the same type. from qualified plans, 403(b) plans and governmental employer 457(b) plans may be made to a traditional Inherited IRA contract under specified circumstances. - --------------------------------------------------------------------------------------------------------------------------------
+ If you purchase Guaranteed principal benefit option 2, no contributions are permitted after the six month period beginning on the contract date. For the Guaranteed withdrawal benefit for life option, additional contributions are not permitted after the later of: (i) the end of the first contract year, and (ii) the date you make your first withdrawal. * Rollover TSA contracts may not be available from all selling broker-dealers. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. Contract features and benefits 25 OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. If the Spousal protection feature is elected, the spouses must be joint owners, one of the spouses must be the annuitant, and both must be named as the only primary beneficiaries. If the Spousal continuation feature is available under your contract, for Single life contracts, the surviving spouse must be the sole primary beneficiary for it to apply. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. In general, we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your state. For NQ contracts, in which the Guaranteed withdrawal benefit is elected (with a single owner, Joint life, or a non-natural owner) that are purchased through an exchange that is not taxable under Section 1035 of the Internal Revenue Code, we permit joint annuitants. We also permit joint annuitants in non-exchange sales if you elect the Guaranteed withdrawal benefit for life on a Joint life basis, and the contract is owned by a non-natural owner. In all cases, the joint annuitants must be spouses. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. See "Inherited IRA beneficiary continuation contract" later in this section for Inherited IRA owner and annuitant requirements. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II at the end of this Prospectus for more information on QP contracts. Certain benefits under your contract, as described later in this Prospectus, are based on the age of the owner, if GWBL is elected. If the owner of the contract is not a natural person, these benefits will be based on the age of the annuitant. Under QP contracts and contracts in which GWBL is not elected, all benefits are based on the age of the annuitant. If GWBL is elected, the terms owner and successor owner are intended to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. PURCHASE CONSIDERATIONS FOR CHARITABLE REMAINDER TRUSTS If you are purchasing this contract to fund a charitable remainder trust and elect the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life ("GWBL"), or the Annual Ratchet to age 85 enhanced death benefit, you should strongly consider "split-funding": that is the trust holds investments in addition to this Accumulator(R) contract. Charitable remainder trusts are required to take specific distributions. The charitable remainder trust annual withdrawal requirement may be equal to a percentage of the donated amount or a percentage of the current value of the donated amount. If your Accumulator(R) contract is the only source for such distributions, the payments you need to take may significantly reduce the value of those guaranteed benefits. Such amount may be greater than the annual increase in the GMIB, the GWBL and/or the enhanced death benefit base and/or greater than the Guaranteed annual withdrawal amount under GWBL. See the discussion of these benefits later in this section. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept initial and additional contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealers. Additional contributions may also be made under our automatic investment program. These methods of payment are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- Your initial contribution must generally be accompanied by an application and any other form we need to process the payments. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain this information. If we are unable to obtain all of the information we require within five business days after we receive an incomplete application or form, we will inform the financial professional submitting the application on your behalf. We will then return the contribution to you unless you specifically direct us to 26 Contract features and benefits keep your contribution until we receive the required information. The contribution will be applied as of the date we receive the missing information. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option, the fixed maturity options and the account for special dollar cost averaging. If you elect the Guaranteed withdrawal benefit for life, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the following variable investment options: the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio ("permitted variable investment options"). VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. Contract features and benefits 27 PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features including the Guaranteed withdrawal benefit for life which restricts allocations to the permitted variable investment options. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable ALLOCATION greater emphasis on current income. - ----------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable ALLOCATION with a greater emphasis on capital appreciation. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital o BlackRock Financial Management, Inc. appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current o Pacific Investment Management Company income and capital appreciation. LLC o Post Advisory Group, LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - -----------------------------------------------------------------------------------------------------------------------------------
28 Contract features and benefits
- ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 29
- ----------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY markets using strategies that are designed to limit exposure to general equity market risk. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, o BlackRock Investment Management, LLC EQUITY income. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of o BlackRock Investment Management VALUE income, accompanied by growth of capital. International Limited - ----------------------------------------------------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to o Boston Advisors, LLC INCOME achieve an above-average and consistent total return. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company - ----------------------------------------------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company RESEARCH - ----------------------------------------------------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management YIELD BOND - ----------------------------------------------------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. o Davis Selected Advisers, L.P. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that o AllianceBernstein L.P. approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ----------------------------------------------------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. o Evergreen Investment Management Company, LLC - ----------------------------------------------------------------------------------------------------------------------------------- EQ/FI MID CAP Seeks to achieve long-term growth of capital. o Fidelity Management & Research Company - ----------------------------------------------------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects o Franklin Advisers, Inc. for capital appreciation. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. o Franklin Advisory Services, LLC - ----------------------------------------------------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily o AXA Equitable FOUNDING STRATEGY seeks income. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. o GAMCO Asset Management Inc. ACQUISITIONS - ----------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. o GAMCO Asset Management Inc. VALUE - ----------------------------------------------------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o MFS Investment Management - -----------------------------------------------------------------------------------------------------------------------------------
30 Contract features and benefits
- ----------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with o JPMorgan Investment Management Inc. moderate risk to capital and maintenance of liquidity. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. o JPMorgan Investment Management Inc. OPPORTUNITIES - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a o AXA Equitable secondary objective to seek reasonable current income. For purposes of this Portfolio, the words "reasonable o Institutional Capital LLC current income" mean moderate income. o Mellon Capital Management Corporation - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. o Legg Mason Capital Management, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o BlackRock Financial Management, Inc. through investment in long-maturity debt obligations. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of o Lord Abbett & Co. LLC INCOME income without excessive fluctuation in market value. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of o Lord Abbett & Co. LLC CORE income with reasonable risk. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. o Lord Abbett & Co. LLC - ----------------------------------------------------------------------------------------------------------------------------------- EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. o Marisco Capital Management LLC - ----------------------------------------------------------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ----------------------------------------------------------------------------------------------------------------------------------- EQ/MONEY MARKET Seeks to obtain a high level of current income, o The Dreyfus Corporation preserve its assets and maintain liquidity. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc. GROWTH - ----------------------------------------------------------------------------------------------------------------------------------- EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may o Franklin Mutual Advisers, LLC occasionally be short-term, and secondarily, income. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. o OppenheimerFunds, Inc. OPPORTUNITY - ----------------------------------------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. o Oppenheimer Funds, Inc. SMALL CAP - ----------------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with o Pacific Investment Management Company, preservation of real capital and prudent investment LLC management. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility o BlackRock Financial Management, Inc. of principal. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o AllianceBernstein L.P. deduction of Portfolio expenses) the total return of the Russell 2000 Index. - -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 31
- ----------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and o T. Rowe Price Associates, Inc. STOCK secondarily, income. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. o Templeton Global Advisors Limited - ----------------------------------------------------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital o UBS Global Asset Management appreciation with income as a secondary consideration. (Americas) Inc. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. o Morgan Stanley Investment Management Inc. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. o Morgan Stanley Investment Management Inc. MARKETS EQUITY - ----------------------------------------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. o Morgan Stanley Investment Management Inc. GROWTH - ----------------------------------------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and o Morgan Stanley Investment Management Inc. long-term capital appreciation. - -----------------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks, and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. 32 Contract features and benefits GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges, any withdrawal charges and any optional benefit charges. Your lifetime minimum rate ranges from 1.00% to 3.00%. The data page for your contract shows the lifetime minimum rate. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75%. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfers from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." - -------------------------------------------------------------------------------- Fixed maturity options generally range from one to ten years to maturity. - -------------------------------------------------------------------------------- Under the Special 10 year fixed maturity option, additional contributions will have the same maturity date as your initial contribution (see "The guaranteed principal benefits" below). The rate to maturity you will receive for each additional contribution is the rate to maturity in effect for new contributions allocated to that fixed maturity option on the date we apply your contribution. On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you apply for an Accumulator(R) contract, a 60-day rate lock-in will apply from the date the application is signed. Any contributions received and designated for a fixed maturity option during this period will receive the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever is greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from any of the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value (there may be a withdrawal charge). If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008, the next available maturity date was February 15, 2015. If no fixed maturity options are available, we will transfer your maturity value to the EQ/Money Market option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract, or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for withdrawal charges) of a portion of the amount in the fixed maturity option will be a percentage of the market Contract features and benefits 33 value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options (adjusted to reflect a similar maturity date), and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING The account for special dollar cost averaging is part of our general account. We pay interest at guaranteed rates in this account. We will credit interest to the amounts that you have in the account for special dollar cost averaging every day. We set the interest rates periodically, according to procedures that we have. We reserve the right to change these procedures. We guarantee to pay our current interest rate that is in effect on the date that your contribution is allocated to this account. Your guaranteed interest rate for the time period you select will be shown in your contract for an initial contribution. The rate will never be less than the lifetime minimum rate for the guaranteed interest option. See "Allocating your contributions" below for rules and restrictions that apply to the special dollar cost averaging program. ALLOCATING YOUR CONTRIBUTIONS You may choose from among three ways to allocate your contributions under your contract: self-directed, the guaranteed principal benefits or dollar cost averaging. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, the guaranteed interest option and fixed maturity options. No more than 25% of any contribution may be allocated to the guaranteed interest option. Allocations must be in whole percentages and you may change your allocations at any time. The total of your allocations into all available investment options must equal 100%. If the annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. THE GUARANTEED PRINCIPAL BENEFITS We offer a guaranteed principal benefit ("GPB") with two options. You may only elect one of the GPBs. Neither GPB is available under Inherited IRA contracts. We will not offer either GPB when the rate to maturity for the applicable fixed maturity option is 3%. If you elect either GPB, you may not elect the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, the systematic withdrawals option or the substantially equal withdrawals option. Both GPB options allow you to allocate a portion of your contribution or contributions to the variable investment options, while ensuring that your account value will at least equal your contributions adjusted for withdrawals and transfers on a specified date. GPB Option 2 generally provides you with the ability to allocate more of your contributions to the variable investment options than could be allocated using GPB Option 1. You may elect GPB Option 1 only if the annuitant is age 80 or younger when the contract is issued (after age 75, only the 7-year fixed maturity option is available). You may elect GPB Option 2 only if the annuitant is age 75 or younger when the contract is issued. GPB Option 2 is not available for purchase with any Flexible Premium IRA contract whether traditional or Roth. If you are purchasing an IRA, QP or Rollover TSA contract, before you either purchase GPB Option 2 or elect GPB Option 1 with a maturity year that would extend beyond the year in which you will reach age 70-1/2, you should consider whether your value in the variable investment options, guaranteed interest option and permissible funds outside this contract are sufficient to meet your required minimum distributions. See "Tax information" later 34 Contract features and benefits in this Prospectus. If you elect GPB Option 2 and change ownership of the contract, GPB Option 2 will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information" later in this Prospectus for more information. GUARANTEED PRINCIPAL BENEFIT OPTION 1. Under GPB Option 1, you select a fixed maturity option at the time you sign your application. We specify the portion of your initial contribution to be allocated to that fixed maturity option in an amount that will cause the maturity value to equal the amount of your entire initial contribution on the fixed maturity option's maturity date. The percentage of your contribution allocated to the fixed maturity option will be calculated based upon the rate to maturity then in effect for the fixed maturity option you choose. Your contract will contain information on the amount of your contribution allocated to the fixed maturity option. If you make any withdrawals or transfers from the fixed maturity option before the option's maturity date, the amount in the fixed maturity option will be adjusted and may no longer grow to equal your initial contribution under GPB Option 1. The maturity date you select generally may not be later than 10 years, or earlier than 7 years from your contract date. You may allocate the rest of your initial contribution to the investment options and guaranteed interest option however you choose (unless you elect a dollar cost averaging program, in which case the remainder of your initial contribution must be allocated to the dollar cost averaging program). Upon the maturity date of the fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." There is no charge for GPB Option 1. GUARANTEED PRINCIPAL BENEFIT OPTION 2. You may purchase GPB Option 2 at the time you apply for your contract. IF YOU PURCHASE GPB OPTION 2, YOU MAY NOT MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE RATE TO MATURITY ON THE SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore, any discussion in this Prospectus that involves any additional contributions after the first six months will be inapplicable. We specify the portion of your initial contribution, and any additional permitted contributions, to be allocated to a Special 10 year fixed maturity option. Your contract will contain information on the percentage of applicable contributions allocated to the Special 10 year fixed maturity option. You may allocate the rest of your contributions among the investment options (other than the Special 10 year fixed maturity option) however you choose, as permitted under your contract (unless you elect a dollar cost averaging program, in which case all contributions, other than amounts allocated to the Special 10 year fixed maturity option, must be allocated to the dollar cost averaging program). The Special 10 year fixed maturity option will earn interest at the specified rate to maturity then in effect. If on the 10th contract date anniversary, your annuity account value is less than the amount that is guaranteed under GPB Option 2, we will increase your annuity account value to be equal to the guaranteed amount under GPB Option 2. Any such additional amounts added to your annuity account value will be allocated to the EQ/Money Market investment option. After the maturity date of the Special 10 year fixed maturity option, the guarantee under GPB Option 2 will terminate. Upon the maturity date of the Special 10 year fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." The guaranteed amount under GPB Option 2 is equal to your initial contribution adjusted for any additional permitted contributions, transfers out of the Special 10 year fixed maturity option and withdrawals from the contract (see "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus). Any transfers or withdrawals from the Special 10 year fixed maturity option will also be subject to a market value adjustment (see "Market value adjustment" under "Fixed maturity options" above in this section). Once you purchase the Guaranteed principal benefit option 2, you may not voluntarily terminate this benefit. GPB Option 2 will terminate if the contract terminates before the maturity date of the Special 10 year fixed maturity option. If the owner and the annuitant are different people and the owner dies before the maturity date of the Special 10 year fixed maturity option, we will continue GPB Option 2 only if the contract can continue through the maturity date of the Special 10 year fixed maturity option. If the contract cannot so continue, we will terminate GPB Option 2. GPB Option 2 will continue where there is a successor owner/annuitant. GPB Option 2 will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a fee associated with GPB Option 2 (see "Charges and expenses" later in this Prospectus). You should note that the purchase of GPB Option 2 is not appropriate if you want to make additional contributions to your contract beyond the first six months after your contract is issued. If you later decide that you would like to make additional contributions to the Accumulator(R) contract, we may permit you to purchase another contract. If we do, however, you should note that we do not reduce or waive any of the charges on the new contract, nor do we guarantee that the features available under this contract will be available under the new contract. This means that you might end up paying more with respect to certain charges than if you had simply purchased a single contract (for example, the administrative charge). The purchase of GPB Option 2 is also not appropriate if you plan on terminating your contract before the maturity date of the Special 10 year fixed maturity option. In addition, because we prohibit contributions to your contract after the first six months, certain contract benefits that are dependent upon contributions or account value will be limited (for example, the guaranteed death benefit). You should also note that if you intend to allocate a large percentage of your contributions to the guaranteed interest option or other fixed maturity options, the purchase of GPB Option 2 may not be appropriate because of the guarantees already provided by these options. An Contract features and benefits 35 example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract is included in Appendix VI later in this Prospectus. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- SPECIAL DOLLAR COST AVERAGING PROGRAM. Under the special dollar cost averaging program, you may choose to allocate all or a portion of any eligible contribution to the account for special dollar cost averaging. Contributions into the account for special dollar cost averaging may not be transfers from other investment options. Your initial allocation to any special dollar cost averaging program time period must be at least $2,000 and any subsequent contribution to that same time period must be at least $250. You may only have one time period in effect at any time and once you select a time period, you may not change it. You may have your account value transferred to any of the variable investment options available under your contract. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life. We will transfer amounts from the account for special dollar cost averaging into the variable investment options over an available time period that you select. We offer time periods of 3, 6 or 12 months, during which you will receive an enhanced interest rate. We may also offer other time periods. Your financial professional can provide information on the time periods and interest rates currently available in your state, or you may contact our processing office. If the special dollar cost averaging program is selected at the time of application to purchase the Accumulator(R) contract, a 60 day rate lock will apply from the date of application. Any contribution(s) received during this 60 day period will be credited with the interest rate offered on the date of application for the remainder of the time period selected at application. Any contribution(s) received after the 60 day rate lock period has ended will be credited with the then current interest rate for the remainder of the time period selected at application. Contribution(s) made to a special dollar cost averaging program selected after the Accumulator(R) contract has been issued will be credited with the then current interest rate on the date the contribution is received by AXA Equitable for the time period initially selected by you. Once the time period you selected has run, you may then select another time period for future contributions. At that time, you may also select a different allocation for transfers to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, your account value will be transferred from the account for special dollar cost averaging into the variable investment options on a monthly basis. We may offer this program in the future with transfers on a different basis. We will transfer all amounts out of the account for special dollar cost averaging by the end of the chosen time period. The transfer date will be the same day of the month as the contract date, but not later than the 28th day of the month. For a special dollar cost averaging program selected after application, the first transfer date and each subsequent transfer date for the time period selected will be one month from the date the first contribution is made into the special dollar cost averaging program, but not later than the 28th day of the month. If you choose to allocate only a portion of an eligible contribution to the account for special dollar cost averaging, the remaining balance of that contribution will be allocated to the variable investment options, guaranteed interest option or fixed maturity options according to your instructions. The only transfers that will be made from the account for special dollar cost averaging are your regularly scheduled transfers to the variable investment options. No amounts may be transferred from the account for special dollar cost averaging to the guaranteed interest option or the fixed maturity options. If you request to transfer or withdraw any other amounts from the account for special dollar averaging, we will transfer all of the value that you have remaining in the account for special dollar cost averaging to the investment options according to the allocation percentages for special dollar cost averaging we have on file for you. You may ask us to cancel your participation at any time. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. If you elect the Guaranteed withdrawal benefit for life, general dollar cost averaging is not available. INVESTMENT SIMPLIFIER Fixed-dollar option. Under this option you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. 36 Contract features and benefits In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. Unlike the account for special dollar cost averaging, this option does not offer enhanced rates. Also, the option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date, your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. Interest sweep option. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. On the last day of each month, we check to see whether you have at least $7,500 in the guaranteed interest option. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not currently participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Under the Option I rebalancing Program, you may participate in any of the dollar cost averaging programs except general dollar cost averaging. If you elect a GPB and a dollar cost averaging program, 100% of your contributions not allocated to the fixed maturity option under the GPB must be allocated to the dollar cost averaging program you elect. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" immediately below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit and the death benefits, as described in this section. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 6% ROLL-UP TO AGE 85 (USED FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to the benefit base is: o 6% with respect to the variable investment options (other than EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market and EQ/Short Duration Bond), and the account for special dollar cost averaging; and o 3% with respect to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond, the fixed maturity options, the Special 10 year fixed maturity option, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up on the contract date anniversary following the annuitant's 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: Contract features and benefits 37 o your initial contribution to the contract (plus any additional contributions), or o your highest account value on any contract date anniversary up to the contract date anniversary following the annuitant's 85th birthday if GWBL is not elected (following the owner's or older spouse's (for Joint life contracts) 85th birthday if GWBL is elected), plus any contributions made since the most recent ratchet, less o a deduction that reflects any withdrawals you make (the amount of the deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus). GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6% Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. The benefit base is reduced by any applicable withdrawal charge remaining when the option is exercised. For more information, see "Withdrawal charge" in "Charges and expenses" later in this Prospectus. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed under "Guaranteed minimum income benefit option" below and annuity payout options are discussed under "Your annuity payout options" in "Accessing your money" later in this Prospectus. Your contract specifies different guaranteed annuity purchase factors for the Guaranteed minimum income benefit and the annuity payout options. We may provide more favorable current annuity purchase factors for the annuity payout options. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in certain instances. GUARANTEED MINIMUM INCOME BENEFIT OPTION The Guaranteed minimum income benefit is available if the annuitant is age 20 through 75 at the time the contract is issued. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. If you are purchasing this contract as an Inherited IRA or if you elect a GPB option or the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit is not available. If you are purchasing this contract to fund a Charitable Remainder Trust, the Guaranteed minimum income benefit is not available, except for certain split-funded Charitable Remainder Trusts. For IRA, QP and Rollover TSA contracts, owners over age 60 at contract issue should consider the impact of the minimum distributions required by tax law in relation to the withdrawal limitations under the Guaranteed minimum income benefit. See" How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. If the owner and annuitant are different in an NQ contract, there may be circumstances where the benefit may not be exercisable after an owner's death. If you elect the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the annuitant's age, as follows: - ----------------------------------------------------------------- Level payments - ----------------------------------------------------------------- Period certain years Annuitant's ------------------------------------- age at exercise IRAs NQ - ----------------------------------------------------------------- 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - ----------------------------------------------------------------- We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit should be regarded as a safety net only. It provides income protection if you elect an income payout while the annuitant is alive. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base, less any applicable withdrawal charge remaining, at guaranteed annuity purchase factors, or (ii) the income provided by applying your account value at our then current annuity purchase factors. For Rollover TSA only, we will subtract from the Guaranteed minimum income benefit 38 Contract features and benefits base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. Before you elect the Guaranteed minimum income benefit you should consider the fact that it provides a form of insurance and is based on conservative actuarial factors. The guaranteed annuity purchase factors we use to determine your payout annuity benefit under the Guaranteed minimum income benefit are more conservative than the guaranteed annuity purchase factors we use for our standard payout annuity options. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the Guaranteed minimum income benefit payout annuity will be smaller than each periodic payment under our standard payout annuity options. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the Guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male annuitant age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals, or loans under Rollover TSA contracts, and assuming there were no allocations to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options (including the Special 10 year fixed maturity option) or the loan reserve account under Rollover TSA contracts. - --------------------------------------------------------- Guaranteed minimum Contract date income benefit -- annual anniversary at exercise income payable for life - --------------------------------------------------------- 10 $11,891 15 $18,597 - --------------------------------------------------------- EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us, along with all required information within 30 days following your contract date anniversary, in order to exercise this benefit. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payout contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death or, if later, the end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income benefit during your life and the annuitant's life, as follows: o If the annuitant was at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If the annuitant was at least age 45 and no older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after the annuitant is age 60. o If the annuitant was at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's 85th birthday; (ii) if the annuitant was age 75 when the contract was issued the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's attainment of age 85; (iii) for Accumulator(R) QP contracts, the Plan participant can exercise the Guaranteed minimum income benefit only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) QP contract into an Accumulator(R) Rollover IRA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for the Plan participant to be eligible to exercise. (iv) for Accumulator(R) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (v) a successor owner/annuitant may only continue the Guaranteed Contract features and benefits 39 minimum income benefit if the contract is not past the last date on which the original annuitant could have exercised the benefit. In addition, the successor owner/annuitant must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The successor owner/annuitant's age on the date of the annuitant's death replaces the annuitant's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules. If you elect Spousal Protection and the spouse who is the annuitant dies, the above rules apply if the contract is continued by the surviving spouse as the successor owner/annuitant; and (vi) if you are the owner but not the annuitant and you die prior to exercise, then the following applies: o A successor owner who is not the annuitant may not be able to exercise the guaranteed minimum income benefit without causing a tax problem. You should consider naming the annuitant as successor owner, or if you do not name a successor owner, as the sole primary beneficiary. You should carefully review your successor owner and/or beneficiary designations at least one year prior to the first contract anniversary on which you could exercise the benefit. o If the successor owner is the annuitant, the guaranteed minimum income benefit continues only if the benefit could be exercised under the rules described above on a contract anniversary that is within one year following the owner's death. This would be the only opportunity for the successor owner to exercise. If the guaranteed minimum income benefit cannot be exercised within this timeframe, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. o If you designate your surviving spouse as successor owner, the guaranteed minimum income benefit continues and your surviving spouse may exercise the benefit according to the rules described above even if your spouse is not the annuitant and even if the benefit is exercised more than one year after your death. If your surviving spouse dies prior to exercise, the rule described in the previous bullet applies. o A successor owner or beneficiary that is a trust or other non-natural person may not exercise the benefit; in this case, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. See "When an NQ contract owner dies before the annuitant" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT Your contract provides a standard death benefit. If you do not elect the Annual Ratchet to age 85 enhanced death benefit described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions, adjusted for withdrawals (and any associated withdrawal charges), and any taxes that apply. The standard death benefit is the only death benefit available for annuitant ages 76 through 85 at issue (or owner ages 76 through 85 at issue, if GWBL is elected). Once your contract is issued, you may not change or voluntarily terminate your death benefit. If you elect the Annual Ratchet to age 85 enhanced death benefit, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment, OR your Annual Ratchet to age 85 enhanced death benefit on the date of the annuitant's death, adjusted for subsequent withdrawals (and associated withdrawal charges) and taxes that apply, whichever provides the higher amount. If you elect GWBL, the death benefit is payable upon the owner's death or the second to die of the owner and successor owner (or upon the annuitant's death or the second to die of the joint annuitants under a contract with a non-natural owner). If you elect the Spousal protection option, the Guaranteed minimum death benefit is based on the age of the older spouse, who may or may not be the annuitant, for the life of the contract. See "Spousal protection" in "Payment of death benefit" later in this Prospectus for more information. If you elect the Annual Ratchet to age 85 enhanced death benefit option and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, the Annual Ratchet to age 85 enhanced death benefit will be replaced with the standard death benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information" later in this Prospectus for more information. ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT APPLICABLE FOR AGES 0 THROUGH 75 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA, FLEXIBLE PREMIUM ROTH IRA, AND ROLLOVER TSA CONTRACTS; 20 THROUGH 70 AT ISSUE OF FLEXIBLE PREMIUM IRA CONTRACTS; 0 THROUGH 70 AT ISSUE FOR INHERITED IRA CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS. The Annual Ratchet to age 85 enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals (and transfers out of the Special 10 40 Contract features and benefits year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. See Appendix IV later in this Prospectus for an example of how we calculate the Annual Ratchet to age 85 enhanced death benefit. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL") For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL") guarantees that you can take withdrawals up to a maximum amount per year (your "Guaranteed annual withdrawal amount"). GWBL is only available at issue. This benefit is not available at issue ages younger than 56. GWBL is not available if you have elected the Guaranteed minimum income benefit, either Guaranteed principal benefit option or Spousal protection. You may elect one of our automated payment plans or you may take partial withdrawals. All withdrawals reduce your account value and Guaranteed minimum death benefit. See "Accessing your money" later in this Prospectus. Your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this Prospectus. Although you may make withdrawals from your contract prior to reaching age 59-1/2, such a withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount and therefore significantly reduce or eliminate the value of the GWBL. Please see "Effect of Excess withdrawals" below. You may buy this benefit on a single life ("Single life") or a joint life ("Joint life") basis. Under a Joint life contract, lifetime withdrawals are guaranteed for the life of both the owner and successor owner. For Joint life contracts, a successor owner may be named at contract issue only. The successor owner must be the owner's spouse. If you and the successor owner are no longer married, you may either: (i) drop the original successor owner or (ii) replace the original successor owner with your new spouse. This can only be done before the later of age 59-1/2 or when the first withdrawal is made from the contract. If the successor owner is dropped before the later of age 59-1/2 or when the first withdrawal is made from the contract, the Applicable percentage will be based on the owner's life on a Single life basis. After the later of age 59-1/2 or when the first withdrawal is made, the successor owner can be dropped but cannot be replaced. If the successor owner is dropped after the later of age 59-1/2 or when the first withdrawal is made, the Applicable percentage will continue to be based on the Joint life tier described later in this Prospectus. For NQ contracts, you have the option to designate the successor owner as a joint owner. For Joint life contracts owned by a non-natural owner, a joint annuitant may be named at contract issue only. The annuitant and joint annuitant must be spouses. If the annuitant and joint annuitant are no longer married, you may either: (i) drop the joint annuitant or (ii) replace the original joint annuitant with the annuitant's new spouse. This can only be done before the later of age 59-1/2 or when the first withdrawal is made. If the joint annuitant is dropped before the later of age 59-1/2 or when the first withdrawal is made from the contract, the Applicable percentage will be based on the annuitant's life on a Single life basis. After the later of age 59-1/2 or when the first withdrawal is made, the joint annuitant may be dropped but cannot be replaced. If the joint annuitant is dropped after the later of age 59-1/2 or when the first withdrawal is made, the Applicable percentage will continue to be based on the Joint life tier described later in this Prospectus. Joint life QP and TSA contracts are not permitted. This benefit is not available under an Inherited IRA contract. Loans are not available under TSA contracts. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your guaranteed withdrawal benefit for life. See "Owner and Annuitant requirements" earlier in this Prospectus for more information on charitable remainder trusts. The charge for the GWBL benefit will be deducted from your account value on each contract date anniversary. Please see "Guaranteed withdrawal benefit for life charge" later in this Prospectus for a description of the charge. You should not purchase this benefit if: o You plan to take withdrawals prior to age 59-1/2 or in excess of your Guaranteed annual withdrawal amount because those withdrawals may significantly reduce or eliminate the value of the benefit (see "Effect of Excess withdrawals" below in this section); o You are not interested in taking withdrawals prior to the contract's maturity date; o You are using the contract to fund a Rollover TSA or QP contract where withdrawal restrictions will apply; or o You plan to take withdrawals prior to age 59-1/2, as the taxable amount of the withdrawal will be includible in income and subject to an additional 10% federal income tax penalty, as discussed later in this Prospectus. The Federal Defense of Marriage Act precludes same-sex married couples, domestic partners, and civil union partners from being considered married under federal law. Such individuals, therefore, are not entitled to the favorable tax treatment accorded spouses under federal tax law. As a result, mandatory distributions from the contract must be made after the death of the first individual. Accordingly, the GWBL will have little or no value to the surviving same-gender spouse or partner. You should consult with your tax adviser for more information on this subject. For traditional IRAs and TSA and QP contracts, you may take your lifetime required minimum distributions ("RMDs") without losing the value of the GWBL benefit, provided you comply with the conditions described under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, this benefit may have limited usefulness for you and you should consider whether it is appropriate. Please consult your tax adviser. Contract features and benefits 41 GWBL BENEFIT BASE At issue, your GWBL benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL benefit base increases by any subsequent contributions. o Your GWBL benefit base may be increased on each contract date anniversary, as described below under "Annual ratchet" and "7% deferral bonus." o Your GWBL benefit base may be increased by the 200% Initial GWBL benefit base guarantee, as described later in this Prospectus. o Your GWBL benefit base is not reduced by withdrawals except any withdrawal made prior to age 59-1/2 and those withdrawals that cause total withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess withdrawals" below in this section. GUARANTEED ANNUAL WITHDRAWAL AMOUNT Your initial Guaranteed annual withdrawal amount is equal to a percentage of the GWBL benefit base. The initial applicable percentage ("Applicable percentage") is based on the owner's age at the time of the first withdrawal made at or after age 59-1/2. For Joint life contracts, the initial Applicable percentage is based on the age of the younger owner or successor owner, at the time of the first withdrawal made at or after age 59-1/2. If your GWBL benefit base ratchets, as described below in this section under "Annual ratchet," on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. The Applicable percentages are as follows: - -------------------------------------------- Age Applicable percentage* - -------------------------------------------- Single life Joint life - -------------------------------------------- 59-1/2-75 5.0% 4.5% 76-85 6.0% 5.5% 86 and older 7.0% 6.5% - -------------------------------------------- * Prior to age 59-1/2, the Applicable percentage is 0%. Under a Joint life contract, if the owner or successor owner dies prior to the first withdrawal being taken from the contract at or after age 59-1/2, the survivor may notify us to change the status of the contract to a Single life contract, and the Applicable percentage will be based on the survivor's life on a Single life basis. If the owner or successor owner dies after the first withdrawal is taken from the contract at or after age 59-1/2, the Applicable percentage will continue to be on a Joint life basis. We will recalculate the Guaranteed annual withdrawal amount on each contract date anniversary and as of the date of any subsequent contribution or Excess withdrawal, as described below under "Effect of Excess withdrawals" and "Subsequent contributions." The withdrawal amount is guaranteed never to decrease as long as there are no Excess withdrawals. Your Guaranteed annual withdrawals are not cumulative. If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. The withdrawal charge, if applicable, is waived for withdrawals up to the Guaranteed annual withdrawal amount, but all withdrawals are counted toward your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. EFFECT OF EXCESS WITHDRAWALS An Excess withdrawal is caused when you withdraw any amount before age 59-1/2 or more than your Guaranteed annual withdrawal amount in any contract year. For any withdrawal made prior to age 59-1/2 and any withdrawal that causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, the entire amount of that withdrawal and each subsequent withdrawal in that contract year are considered Excess withdrawals. An Excess withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount. If you make an Excess withdrawal, we will recalculate your GWBL benefit base and the Guaranteed annual withdrawal amount, as follows: o The GWBL benefit base is reset as of the date of the Excess withdrawal to equal the lesser of: (i) the GWBL benefit base immediately prior to the Excess withdrawal and (ii) the account value immediately following the Excess withdrawal. o The Guaranteed annual withdrawal amount is recalculated to equal the Applicable percentage multiplied by the reset GWBL benefit base. You should not purchase this contract if you plan to take withdrawals in excess of your Guaranteed annual withdrawal amount as such withdrawals may significantly reduce or eliminate the value of the GWBL benefit. If your account value is less than your GWBL benefit base (due, for example, to negative market performance), an Excess withdrawal, even one that is only slightly more than your Guaranteed annual withdrawal amount, can significantly reduce your GWBL benefit base and the Guaranteed annual withdrawal amount. For example, assume your GWBL benefit base is $100,000 and your account value is $80,000 when you decide to begin taking withdrawals at age 65. Your Guaranteed annual withdrawal amount is equal to $5,000 (5.0% of $100,000). You take an initial withdrawal of $8,000. Since your GWBL benefit base is immediately reset to equal the lesser of your GWBL benefit base prior to the Excess withdrawal ($100,000) and your account value immediately following the Excess withdrawal ($80,000 minus $8,000), your GWBL benefit base is now $72,000. In addition, your Guaranteed annual withdrawal amount is reduced to $3,600 (5.0% of $72,000), instead of the original $5,000. See "How withdrawals affect your GWBL" later in this Prospectus. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds the greater of (i) the Guaranteed annual withdrawal amount or (ii) the 10% free withdrawal amount. A withdrawal charge would not be applied in the example above since the $8,000 withdrawal (equal to 10% of the contract's account value as of the beginning of the contract year) falls within the 10% free withdrawal amount. Under the example above, additional withdrawals during the same contract year could result in a further reduction of the 42 Contract features and benefits GWBL benefit base and the Guaranteed annual withdrawal amount, as well as an application of withdrawal charges, if applicable. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. You should note that an Excess withdrawal that reduces your account value to zero terminates the contract, including all benefits, without value. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA, QP or TSA and participate in our Automatic RMD service, an automatic withdrawal under that program will not cause an Excess withdrawal, even if it exceeds your Guaranteed annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. Loans are not available under Rollover TSA contracts if GWBL is elected. ANNUAL RATCHET Your GWBL benefit base is recalculated on each contract date anniversary to equal the greater of: (i) the account value and (ii) the most recent GWBL benefit base. If your account value is greater, we will ratchet up your GWBL benefit base to equal your account value. If your GWBL benefit base ratchets on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. Your Guaranteed annual withdrawal amount will also be increased, if applicable, to equal your Applicable percentage times your new GWBL benefit base. If your GWBL benefit base ratchets, we may increase the charge for the benefit. Once we increase the charge, it is increased for the life of the contract. We will permit you to opt out of the ratchet if the charge increases. If you choose to opt out, your charge will stay the same but your GWBL benefit base will no longer ratchet. Upon request, we will permit you to accept a GWBL benefit base ratchet with the charge increase on a subsequent contract date anniversary. For a description of the charge increase, see "Guaranteed withdrawal benefit for life benefit charge" later in this Prospectus. 7% DEFERRAL BONUS At no additional charge, in each contract year in which you have not taken a withdrawal, we will increase your GWBL benefit base by an amount equal to 7% of your total contributions. This 7% deferral bonus is applicable for the life of the contract, subject to certain restrictions. We will apply the 7% deferral bonus to your GWBL benefit base on each contract date anniversary until you make a withdrawal from your contract. In a contract year following an Annual Ratchet (described above), the deferral bonus will be applied to your GWBL benefit base on each contract date anniversary until you make a withdrawal. However, no deferral bonus is applied on a contract date anniversary on which an Annual Ratchet occurs. Once you make a withdrawal, we will not apply the deferral bonus in future years unless you meet one of the exceptions that would allow you to continue to receive the deferral bonus. Those exceptions are described as follows: o You are eligible to receive the 7% deferral bonus for any of your first ten contract years that you have not taken a withdrawal, even if you had taken a withdrawal in a prior year. For example, if you take your first withdrawal in the second contract year, you are still eligible to receive the deferral bonus in contract years three through ten. The deferral bonus is not applied in the contract year in which a withdrawal was made. o You are eligible to receive the 7% deferral bonus to your GWBL benefit base on a contract date anniversary during the ten years following an Annual Ratchet, as long as no withdrawal is made in the same contract year. If a withdrawal is made during this ten-year period, no deferral bonus is applied in the contract year in which the withdrawal was made. If the Annual Ratchet occurs on any contract date anniversary, for the next and subsequent contract years, the deferral bonus will be 7% of the most recent ratcheted GWBL benefit base, plus any subsequent contributions. If the GWBL benefit base is reduced due to an Excess withdrawal, the 7% deferral bonus will be calculated using the reset GWBL benefit base, plus any applicable contributions. The 7% deferral bonus generally excludes contributions made in the prior 12 months. In the first contract year, the deferral bonus is determined using all contributions received in the first 90 days of the contract year. On any contract date anniversary on which you are eligible for a 7% deferral bonus, we will calculate the applicable bonus amount. If, when added to the current GWBL benefit base, the amount is greater than your account value, that amount will become your new GWBL benefit base but, as this adjustment is the result of the 7% deferral bonus rather than the Annual Ratchet, a new ten-year period, as described above, is not started by this adjustment to the GWBL benefit base. If that amount is less than or equal to your account value, your GWBL benefit base will be ratcheted to equal your account value (if higher), and the 7% deferral bonus will not apply. If you opt out of the Annual Ratchet (as discussed immediately above), the 7% deferral bonus will still apply. MATURITY DATE. The last deferral bonus will be applicable on the contract's maturity date. (See "Annuity maturity date" under "Accessing your money" later in this Prospectus.) 200% INITIAL GWBL BENEFIT BASE GUARANTEE If you have not taken a withdrawal from the contract before the later of (i) the tenth contract date anniversary, or (ii) the contract date anniversary following the owner's (or younger joint life's) attained age 70, the GWBL benefit base will be increased to equal 200% of contributions made to the contract during the first 90 days, plus 100% of any subsequent contributions received after the first 90 days. There will be no increase if your GWBL benefit base already exceeds this initial GWBL benefit base guarantee. This is the only time that this special increase to the GWBL benefit base is available. However, you will continue to be eligible for the 7% deferral bonuses following this one-time increase. SUBSEQUENT CONTRIBUTIONS Subsequent contributions are not permitted after the later of: (i) the end of the first contract year and (ii) the date the first withdrawal is taken. Contract features and benefits 43 Anytime you make an additional contribution, your GWBL benefit base will be increased by the amount of the contribution. Your Guaranteed annual withdrawal amount will be equal to the Applicable percentage of the increased GWBL benefit base. GUARANTEED MINIMUM DEATH BENEFIT There are two guaranteed minimum death benefits available if you elect the GWBL option: (i) the Standard death benefit, which is available at no additional charge for owner issue ages 56-85, and (ii) the Annual Ratchet to age 85 enhanced death benefit, which is available for an additional charge for owner issue ages 56-75. For Joint life contracts, both spouses must meet the issue age requirements. See "Guaranteed minimum death benefit" earlier in this Prospectus for more information. EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO If your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no further payments or benefits. If an Excess withdrawal results in a withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. However, if your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, please note the following: o Your contract terminates and you will receive a supplementary life annuity contract setting forth your continuing benefits. The owner of the contract will be the owner and annuitant. The successor owner, if applicable, will be the joint annuitant. If the owner is non-natural, the annuitant and joint annuitant, if applicable, will be the same as under your contract. o No subsequent contributions will be permitted. o If you were taking withdrawals through the "Maximum payment plan," we will continue the scheduled withdrawal payments on the same basis. o If you were taking withdrawals through the "Customized payment plan" or in unscheduled partial withdrawals, we will pay the balance of the Guaranteed annual withdrawal amount for that contract year in a lump sum. Payment of the Guaranteed annual withdrawal amount will begin on the next contract date anniversary. o Payments will continue at the same frequency for Single or Joint life contracts, as applicable, or annually if automatic payments were not being made. o Any guaranteed minimum death benefit remaining under the original contract will be carried over to the supplementary life annuity contract. The death benefit will no longer grow and will be reduced on a dollar-for-dollar basis as payments are made. If there is any remaining death benefit upon the death of the owner and successor owner, if applicable, we will pay it to the beneficiary. o The charge for the Guaranteed withdrawal benefit for life benefit and the Annual Ratchet to age 85 enhanced death benefit will no longer apply. o If at the time of your death the Guaranteed annual withdrawal amount was being paid to you as a supplementary life annuity contract, your beneficiary may not elect the Beneficiary continuation option. OTHER IMPORTANT CONSIDERATIONS o This benefit is not appropriate if you do not intend to take withdrawals prior to annuitization. o Amounts withdrawn in excess of your Guaranteed annual withdrawal amount, including any withdrawal made before age 59-1/2, may be subject to a withdrawal charge, if applicable, as described in "Charges and expenses" in your Prospectus. In addition, all withdrawals count toward your free withdrawal amount for that contract year. Excess withdrawals can significantly reduce or completely eliminate the value of the GWBL. See "Effect of Excess withdrawals" above in this section and "How withdrawals affect your GWBL" later in this Prospectus. o Withdrawals are not considered as annuity payments for tax purposes, and may be subject to an additional 10% Federal income tax penalty before age 59-1/2. See "Tax information" later in this Prospectus. o All withdrawals reduce your account value and Guaranteed minimum death benefit. See "How withdrawals are taken from your account value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. o If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. o The GWBL benefit terminates if the contract is continued under the beneficiary continuation option or under the Spousal continuation feature if the spouse is not the successor owner. o If you surrender your contract to receive its cash value and your cash value is greater than your Guaranteed annual withdrawal amount, all benefits under the contract will terminate, including the GWBL benefit. o If you transfer ownership of this contract, you terminate the GWBL benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. o Withdrawals are available under other annuity contracts we offer and this contract without purchasing a withdrawal benefit. o For IRA, QP and TSA contracts, if you have to take a required minimum distribution ('`RMD") and it is your first withdrawal under the contract, the RMD will be considered your "first withdrawal" for the purposes of establishing your GWBL Applicable percentage. o If you elect GWBL on a Joint life basis and subsequently get divorced, your divorce will not automatically terminate the contract. For both Joint life and Single life contracts, it is possible that the 44 Contract features and benefits terms of your divorce decree could significantly reduce or completely eliminate the value of this benefit. INHERITED IRA BENEFICIARY CONTINUATION CONTRACT This contract is available to an individual beneficiary of a traditional IRA or a Roth IRA where the deceased owner held the individual retirement account or annuity (or Roth individual retirement account or annuity) with an insurance company or financial institution other than AXA Equitable. The purpose of the inherited IRA beneficiary continuation contract is to permit the beneficiary to change the funding vehicle that the deceased owner selected ("original IRA") while taking the required minimum distribution payments that must be made to the beneficiary after the deceased owner's death. See the discussion of required minimum distributions under "Tax information." This contract is intended only for beneficiaries who want to take payments at least annually over their life expectancy. These payments generally must begin (or must have begun) no later than December 31 of the calendar year following the year the deceased owner died. This contract is not suitable for beneficiaries electing the "5-year rule." See "Beneficiary continuation option for IRA and Roth IRA contracts" under "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. You should discuss with your tax adviser your own personal situation. Please speak with your financial professional for further information. The inherited IRA beneficiary continuation contract can only be purchased by a direct transfer of the beneficiary's interest under the deceased owner's original IRA. The owner of the inherited IRA beneficiary continuation contract is the individual who is the beneficiary of the original IRA. (Certain trusts with only individual beneficiaries will be treated as individuals for this purpose). The contract must also contain the name of the deceased owner. In this discussion, "you" refers to the owner of the inherited IRA beneficiary continuation contract. The inherited IRA beneficiary continuation contract can be purchased whether or not the deceased owner had begun taking required minimum distribution payments during his or her life from the original IRA or whether you had already begun taking required minimum distribution payments of your interest as a beneficiary from the deceased owner's original IRA. You should discuss with your own tax adviser when payments must begin or must be made. Under the inherited IRA beneficiary continuation contract: o You must receive payments at least annually (but can elect to receive payments monthly or quarterly). Payments are generally made over your life expectancy determined in the calendar year after the deceased owner's death and determined on a term certain basis. o You must receive payments from this contract even if you are receiving payments from another IRA of the deceased owner in an amount that would otherwise satisfy the amount required to be distributed from this contract. o The beneficiary of the original IRA will be the annuitant under the inherited IRA beneficiary continuation contract. In the case where the beneficiary is a "see-through trust," the oldest beneficiary of the trust will be the annuitant. o An inherited IRA beneficiary continuation contract is not available for annuitants over age 70. o The initial contribution must be a direct transfer from the deceased owner's original IRA and is subject to minimum contribution amounts. See "How you can purchase and contribute to your contract" earlier in this section. o Subsequent contributions of at least $1,000 are permitted but must be direct transfers of your interest as a beneficiary from another IRA with a financial institution other than AXA Equitable, where the deceased owner is the same as under the original IRA contract. o You may make transfers among the investment options. o You may choose at any time to withdraw all or a portion of the account value. Any partial withdrawal must be at least $300. Withdrawal charges, will apply as described in "Charges and expenses" later in this Prospectus. o The Guaranteed minimum income benefit, Guaranteed with drawal benefit for life, successor owner/annuitant feature, special dollar cost averaging program, automatic investment program, GPB Options 1 and 2 and systematic withdrawals are not available under the Inherited IRA beneficiary continuation contract. o If you die, we will pay to a beneficiary that you choose the greater of the annuity account value or the applicable death benefit. o Upon your death, your beneficiary has the option to continue taking required minimum distributions based on your remaining life expectancy or to receive any remaining interest in the contract in a single sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If your beneficiary elects to continue to take distributions, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value as of the date we receive satisfactory proof of death and any required instructions, information and forms. Thereafter, withdrawal charges will no longer apply. If you had elected the Annual Ratchet to age 85 death benefit, it will no longer be in effect and the charge for the benefit will stop. The Guaranteed minimum death benefit will also no longer be in effect. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If for any reason you are not satisfied with your contract, you may return it to us for a refund. We will refund the full amount of your contribution. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. Under certain circumstances, this "free look" period may be longer. For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. We may require that you wait six months before you may apply for a contract with us again if: Contract features and benefits 45 o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. If you fully convert an existing traditional IRA contract to a Roth Conversion IRA or Flexible Premium Roth IRA contract, you may cancel your Roth Conversion IRA or Flexible Premium Roth IRA contract and return to a Rollover IRA or Flexible Premium IRA contract, whichever applies. Our processing office, or your financial professional, can provide you with the cancellation instructions. In addition to the cancellation right described above, you have the right to surrender your contract, rather than cancel it. Please see "Surrendering your contract to receive its cash value," later in this Prospectus. Surrendering your contract may yield results different than canceling your contract, including a greater potential for taxable income. In some cases, your cash value upon surrender may be greater than your contributions to the contract. Please see "Tax information," later in this Prospectus. 46 Contract features and benefits 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; (iv) the account for special dollar cost averaging; and (v) the loan reserve account (applies for Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less: (i) the total amount or a pro rata portion of the annual administrative charge, as well as optional benefit charges; (ii) any applicable withdrawal charges; and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option less daily charges for: (i) mortality and expense risks; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, if applicable, when we deduct the enhanced death benefit, Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, and/or GPB Option 2 benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest option at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING Your value in the account for special dollar cost averaging at any time will equal your contribution allocated to that option, plus interest, less the sum of all amounts that have been transferred to the variable investment options you have selected. INSUFFICIENT ACCOUNT VALUE If your account value in the variable investment options and the fixed maturity options is insufficient to pay the annual administrative charge, or any applicable charges for the guaranteed benefits, and you have no account value in the guaranteed interest option, your contract will terminate without value, and you will lose any applicable guaranteed benefits. See "Charges and expenses" later in this Prospectus. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. If you elect the Guaranteed withdrawal benefit for life and your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary life annuity contract, even if your GWBL benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, the benefit will still have value. See "Contract features and benefits" earlier in this Prospectus. Determining your contract's value 47 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer any amount to the account for special dollar cost averaging. o You may not transfer to a fixed maturity option that has a rate to maturity of 3%. o If the annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied, the rate to maturity is 3%. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment and affect your GPB. o No transfers are permitted into the Special 10 year fixed maturity option. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the annuity account value being allocated to the guaranteed interest option, based on the annuity account value as of the previous business day. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option and the interest sweep option dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the investment options in the prior contract year; or (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbi- 48 Transferring your money among investment options trage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We offer rebalancing, which you can use to automatically reallocate your account value among your investment options. We currently offer two options: "Option I" and "Option II." Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers from the guaranteed interest option to the variable investment Transferring your money among investment options 49 options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into, or a transfer out of the guaranteed interest option to initiate the rebalancing program, will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. You may not elect Option I if you are participating in general dollar cost averaging. You may not elect Option II if you are participating in any dollar cost averaging program. If you elect a benefit that limits your variable investment options, those limitations will also apply to the rebalancing programs. 50 Transferring your money among investment options 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. If you withdraw more than 90% of your contract's current cash value, we will treat it as a request to surrender your contract for its cash value. See "Surrendering your contract to receive its cash value" below. For the potential tax consequences of withdrawals, see "Tax information" later in this Prospectus. Please see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" and "How withdrawals affect your GWBL," below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. - -------------------------------------------------------------------------------- Method of withdrawal -------------------------------------------------------------- Auto- matic Lifetime payment Pre-age 59-1/2 required plans substan- minimum (GWBL System- tially distribu- Contract only) Partial atic equal tion - -------------------------------------------------------------------------------- NQ Yes Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes Yes - -------------------------------------------------------------------------------- Flexible Premium IRA Yes Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Conversion IRA Yes Yes Yes Yes No - -------------------------------------------------------------------------------- Flexible Premium Roth IRA Yes Yes Yes Yes No - -------------------------------------------------------------------------------- Inherited IRA No Yes No No *** - -------------------------------------------------------------------------------- QP* Yes Yes No No Yes - -------------------------------------------------------------------------------- Rollover TSA** Yes Yes Yes No Yes - -------------------------------------------------------------------------------- * For QP contracts, all payments are made to the trust, as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. ** Employer or plan approval required for all transactions. Your ability to take withdrawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. *** This contract pays out post-death required minimum distributions. See "Inherited IRA beneficiary continuation contract" in "Contract features and benefits" earlier in this Prospectus. AUTOMATIC PAYMENT PLANS (For contracts with GWBL only) You may take automatic withdrawals under either the Maximum payment plan or the Customized payment plan, as described below. Under either plan, you may take withdrawals on a monthly, quarterly or annual basis. You may change the payment frequency of your withdrawals at any time, and the change will become effective on the next contract date anniversary. You may elect either the Maximum payment plan or the Customized payment plan at any time after you become eligible to receive Guaranteed annual withdrawals. You must wait at least 28 days from contract issue before automatic payments begin. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will increase following any Annual Ratchet, 7% deferral bonus or by the one-time 200% Initial GWBL Benefit base guarantee. If you elect the Maximum payment plan and start monthly or quarterly payments after the beginning of a contract year, the payments you take that year will be less than your Guaranteed annual withdrawal amount. If you take a partial withdrawal while the Maximum payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will not be increased following any Annual Ratchet, 7% deferral bonus or by the one-time 200% Initial GWBL Benefit base guarantee. You must elect to change the scheduled payment amount. It is important to note that if you elect the Customized payment plan and start monthly or quarterly withdrawals after the beginning of a contract year, you could select scheduled payment amounts that would cause an Excess withdrawal. If your selected scheduled payment would cause an Excess withdrawal, we will notify you. As discussed earlier in this Prospectus, Excess withdrawals may significantly reduce the value of the Guaranteed withdrawal benefit for life benefit. If you take a partial withdrawal while the Customized payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Accessing your money 51 Partial withdrawals will be subject to a withdrawal charge if they exceed the 10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. Any request for a partial withdrawal will terminate your participation in either the Maximum payment plan or Customized payment plan, if applicable. SYSTEMATIC WITHDRAWALS (All contracts except Inherited IRA and QP contracts) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of your account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 10% free withdrawal amount. This option is not available if you have elected a Guaranteed principal benefit or the Guaranteed withdrawal benefit for life. SUBSTANTIALLY EQUAL WITHDRAWALS (Rollover IRA, Roth Conversion IRA, Flexible Premium IRA and Flexible Premium Roth IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals that we calculate for you are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). The substantially equal withdrawal option is not available if you have elected a guaranteed principal benefit or the Guaranteed withdrawal benefit for life. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA, Flexible Premium IRA, QP and Rollover TSA contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit, amounts with- 52 Accessing your money drawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA, Flexible Premium IRA, and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- We do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our automatic RMD service except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 10% free withdrawal amount. Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH GWBL. Generally, if you elect our Automatic RMD service, any lifetime required minimum distribution payment we make to you under our Automatic RMD service will not be treated as an Excess withdrawal. If you elect either the Maximum payment plan or the Customized payment plan AND our Automatic RMD service, we will make an extra payment, if necessary, on December 1st that will equal your lifetime required minimum distribution less all payments made through November 30 and any scheduled December payment. The combined automatic plan payments and lifetime required minimum distribution payment will not be treated as Excess withdrawals, if applicable. However, if you take any partial withdrawals in addition to your lifetime required minimum distribution and automatic payment plan payments, your applicable automatic payment plan will be terminated. The partial withdrawal may cause an Excess withdrawal and may be subject to a withdrawal charge. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. Further, your GWBL benefit base and Guaranteed annual withdrawal amount may be reduced. See "Effect of Excess Withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you elect our Automatic RMD service and elect to take your Guaranteed annual withdrawal amount in partial withdrawals without electing one of our available automatic payment plans, we will make a payment, if necessary, on December 1st that will equal your required minimum distribution less all withdrawals made through November 30th. If prior to December 1st you make a partial withdrawal that exceeds your Guaranteed annual withdrawal amount, but not your RMD amount, that partial withdrawal will be treated as an Excess withdrawal, as well as any subsequent partial withdrawals made during the same contract year. However, if by December 1st your withdrawals have not exceeded your RMD amount, the RMD payment we make to you will not be treated as an Excess withdrawal. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options and guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If the FMO amounts are insufficient, we will deduct all or a portion of the withdrawal from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option). HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2 In general withdrawals (including RMDs) will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000 - $16,000). Transfers out of the Special 10 year fixed maturity option will reduce the GPB Option 2 amount on a pro rata basis. In addition, if you make a contract withdrawal from the Special 10 year fixed maturity option, we will reduce your GPB Option 2 in a similar manner; however, the reduction will reflect both a transfer out of the Special 10 year fixed maturity option and a withdrawal from the contract. Therefore, the reduction in GPB Option 2 is greater when you take a contract withdrawal from the Special 10 year fixed maturity option than it would be if you took the withdrawal from another investment option. Similar to the example above, if your account value is $30,000 and you withdraw $12,000 from the Special 10 year fixed maturity option, you have withdrawn 40% of your account value. If your GPB Option 2 benefit was $40,000 before the withdrawal, the reduction to reflect the transfer out of the Special 10 year fixed maturity option would equal $16,000 ($40,000 x .40). The amount used to calculate the reduction to reflect the withdrawal from the contract is $24,000 ($40,000 - $16,000). The reduction to reflect the withdrawal would Accessing your money 53 equal $9,600 ($24,000 x .40), and your new benefit after the withdrawal would be $14,400 ($24,000 - $9,600). For purposes of calculating the adjustment to your guaranteed benefits, the amount of the withdrawal will include the amount of any applicable withdrawal charge. Using the first example above, the $12,000 withdrawal would include the withdrawal amount paid to you and the amount of any applicable withdrawal charge deducted from your account value. For more information on the calculation of the charge, see "Withdrawal charge" later in this Prospectus. With respect to the Guaranteed minimum income benefit, withdrawals will reduce the benefit's 6% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6% or less of the 6% Roll-Up benefit base on the most recent contract date anniversary. Additional contributions made during a contract year do not affect the amount of withdrawals that can be taken on a dollar-for-dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6% of the benefit base on the most recent anniversary, that entire withdrawal and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6% Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for the Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. HOW WITHDRAWALS AFFECT YOUR GWBL Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes cumulative withdrawals in a contract year to exceed the Guaranteed annual withdrawal amount. As the Guaranteed annual withdrawal amount before age 59-1/2 is zero, any withdrawal you make before that age will exceed the Guaranteed annual withdrawal amount, and will be considered an Excess withdrawal. Excess withdrawals can significantly reduce your GWBL benefit base and Guaranteed annual withdrawal amount. For more information, see "Effect of Excess withdrawals" and "Other important considerations" under "Guaranteed withdrawal benefit for life ("GWBL") " in "Contract features and benefits" earlier in this Prospectus. For purposes of calculating your GWBL, the amount of the excess withdrawal will include the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information on calculation of the charge, see "Withdrawal charge" in "Charges and expenses" later in this Prospectus. WITHDRAWALS TREATED AS SURRENDERS If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. In addition, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is an Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to an Excess withdrawal. In other words, if you take an Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Guaranteed withdrawal benefit for life " in "Contract features and benefits," earlier in this Prospectus for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." If you elect the GWBL option or a GPB, loans are not permitted. You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan, including any accrued and unpaid loan interest, will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the loan reserve account. Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of 54 Accessing your money the earliest maturity date(s) first. If FMO amounts are insufficient, we will deduct all or a portion of the loan from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option). If amounts are withdrawn from the Special 10 year fixed maturity option, the guaranteed benefit will be adversely affected. See " How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2 earlier in this section. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE If you do not elect GWBL, you may surrender your contract to receive its cash value at any time while the annuitant is living and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. If you elect GWBL, you may surrender your contract to receive its cash value at any time while an owner is living and before you begin to receive annuity payments. All benefits under the contract will terminate as of the date we receive the required information, including the Guaranteed withdrawal benefit for life (if applicable) if your cash value is greater than your Guaranteed annual withdrawal amount remaining that year. If your cash value is not greater than your Guaranteed annual withdrawal amount remaining that year, then you will receive a supplementary life annuity contract. For more information, please see "Effect of your account value falling to zero" under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" and "Annuity benefit" under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal charge) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of which sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option, fixed maturity options and the account for special dollar cost averaging (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the owner's and annuitant's ages at contract issue. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect the Guaranteed withdrawal benefit for life and choose to annuitize your contract, the Guaranteed withdrawal benefit for life will terminate without value even if your GWBL benefit base is greater Accessing your money 55 than zero. Payments you receive under the annuity payout option you select may be less than you would have received under GWBL. See "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus for further information. - -------------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------------- Income Manager(R) payout options Life annuity with period certain (available for annuitants age 83 Period certain annuity or less at contract issue) - -------------------------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contract that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life, and after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable income annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager(R) payout option without life contingencies unless withdrawal charges are no longer in effect under your Accumulator(R). For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply your account value of your Accumulator(R) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) and we will deduct any applicable withdrawal charge. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income benefit option, different 56 Accessing your money payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any withdrawal charges or market value adjustments. If amounts in a fixed maturity option are used to purchase any annuity payout option, prior to the maturity date, a market value adjustment will apply. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. For fixed annuity period certain payout options only, the amount applied to the annuity benefit is the greater of the cash value or 95% of what the account value would be if no withdrawal charge applied. The withdrawal charge applicable under your Accumulator(R) contract is imposed if you select a non-life contingent period certain payout annuity. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For the Income Manager(R) life contingent payout options, no withdrawal charge is imposed under the Accumulator(R). If the withdrawal charge that otherwise would have been applied to your account value under your Accumulator(R) is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager(R) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin but it may not be earlier than thirteen months from the Accumulator(R) contract date. Except with respect to the Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. In no event will you ever receive payments under a fixed option or an initial payment under a variable option of less than the minimum amounts guaranteed by the contract. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date based on the annuitant's age by which you must either take a lump sum payment or select an annuity payout option. We will send a notice with the annual statement one year prior to the maturity age. If you elect the Guaranteed withdrawal benefit for life and your contract is annuitized at maturity, we will offer an annuity payout option that guarantees you will receive payments for life that are at least equal to what you would have received under the Guaranteed withdrawal benefit for life. You will not be able to take withdrawals in addition to the payments under this annuity payout option. You will still be able to surrender the contract at any time for the remaining account value. As described in "Contract features and benefits" under "Guaranteed withdrawal benefit for life ("GWBL")" earlier in this Prospectus, these payments will have the potential to increase with favorable investment performance. Any remaining Guaranteed minimum death benefit value will be transferred to the annuity payout contract as your "minimum death benefit." If the Annual Ratchet to age 85 enhanced death benefit had been elected, its value as of the date the annuity payout contract is issued will become your minimum death benefit. The minimum death benefit will be reduced pro rata by each payment. If you die while there is any minimum death benefit remaining, it will be paid to your beneficiary. The maturity date by which you must take a lump sum payment or select an annuity payout option is as follows: - -------------------------------------------------------------------------------- Maximum Issue age Annuitization age - -------------------------------------------------------------------------------- 0-80 90 81 91 82 92 83 93 84 94 85 95 - -------------------------------------------------------------------------------- Accessing your money 57 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o On each contract date anniversary, a charge for each optional benefit that you elect. o On the first 10 contract date anniversaries -- a charge for GPB Option 2, if you elect this optional benefit. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits, and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 0.75% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the Guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. Administrative charge. We deduct a daily charge from the net assets in each variable investment option. The charge, together with the annual administrative charge described below, is to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.30% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.20% of the net assets in each variable investment option. HOW CERTAIN CHARGES ARE DEDUCTED With regard to the annual administrative, Annual Ratchet to age 85 enhanced death benefit, Guaranteed principal benefit option 2 and Guaranteed minimum income benefit charges, respectively, we will deduct the related charge, as follows for each: we will deduct the charge from your value in the variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging (not available if the Guaranteed principal benefit option is elected). If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid, on a date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). 58 Charges and expenses Deductions from the fixed maturity options (including the Special 10 year fixed maturity option) cannot cause the credited net interest for the contract year to fall below 1.50%. With regard to the annual administrative, the Annual Ratchet to age 85 enhanced death benefit and the Guaranteed minimum income benefit charges only, if your account value in the variable investment options and the fixed maturity options is insufficient to pay the applicable charge, and you have no account value in the guaranteed interest option, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. For more information, see "How certain charges are deducted" earlier in this section. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceed the 10% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or apply your cash value to a non-life contingent payout option. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options--The amount applied to purchase an annuity payout option" in "Accessing your money" earlier in this Prospectus. The withdrawal charge equals a percentage of the contributions withdrawn. The percentage that applies depends on how long each contribution has been invested in the contract. We determine the withdrawal charge separately for each contribution according to the following table: - -------------------------------------------------------------------------------- Contract year - -------------------------------------------------------------------------------- 1 2 3 4 5 6 7 8+ - -------------------------------------------------------------------------------- Percentage of contribution 7% 7% 6% 6% 5% 3% 1% 0% - -------------------------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1" and the withdrawal charge is reduced or expires on each applicable contract date anniversary. Amounts withdrawn up to the free withdrawal amount are not considered withdrawal of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. Please see "Fixed maturity option withdrawal charge" below for the withdrawal charge schedule applicable to monies withdrawn from and transferred among the fixed maturity options. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and the withdrawal charge from your account value. Any amount deducted to pay withdrawal charges is also subject to that same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each investment option. The withdrawal charge helps cover our sales expenses. For purposes of calculating reductions in your guaranteed benefits and associated benefit bases, the withdrawal amount includes both the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information, see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier in the Prospectus. FIXED MATURITY OPTIONS -- WITHDRAWAL CHARGES The withdrawal charge that applies to withdrawals taken from amounts in the fixed maturity options will never exceed 7% and will be determined by applying Alternate Scale I shown below. If you withdraw amounts that have been transferred from one fixed maturity option to another, we use Alternate Scale II (also shown below) if it produces a higher charge than Alternate Scale I. The withdrawal charge may not exceed the withdrawal charge that would normally apply to the contract. If a contribution has been in the contract for more than 7 years and therefore would have no withdrawal charge, no withdrawal charge will apply. Use of an Alternate Scale can only result in a lower charge. We will compare the result of applying Alternate Scale I or II, as the case may be, to the result of applying the normal withdrawal charge, and will charge the lower withdrawal charge. - -------------------------------------------------------------------------------- Alternate Scale I Alternate Scale II Year of investment in fixed matu- Year of transfer within fixed rity option* maturity option* - -------------------------------------------------------------------------------- Within year 1 7% Within year 1 5% - -------------------------------------------------------------------------------- 2 6% 2 4% - -------------------------------------------------------------------------------- 3 5% 3 3% - -------------------------------------------------------------------------------- 4 4% 4 2% - -------------------------------------------------------------------------------- 5 3% 5 1% - -------------------------------------------------------------------------------- 6 2% After year 5 0 - -------------------------------------------------------------------------------- 7 1% - -------------------------------------------------------------------------------- After year 7 0% Not to exceed 1% times the number of years remaining in the fixed maturity option, rounded to the higher number of years. In other words, if 4.3 years remain, it would be a 5% charge. - -------------------------------------------------------------------------------- * Measured from the contract date anniversary prior to the date of the contribution or transfer If you take a withdrawal from an investment option other than the fixed maturity options, the amount available for withdrawal without a withdrawal charge is reduced. It will be reduced by the amount of the contribution in the fixed maturity options to which no withdrawal charge applies. Charges and expenses 59 You should consider that on the maturity date of a fixed maturity option if we have not received your instructions for allocation of your maturity value, we will transfer your maturity value to the fixed maturity option with the shortest available maturity. If we are not offering other fixed maturity options, we will transfer your maturity value to the EQ/Money Market option. The potential for lower withdrawal charges for withdrawals from the fixed maturity options and the potential for a lower "free withdrawal amount" than what would normally apply, should be taken into account when deciding whether to allocate amounts to, or transfer amounts to or from, the fixed maturity options. The withdrawal charge does not apply in the circumstances described below. 10% free withdrawal amount. Each contract year you can withdraw up to 10% of your account value without paying a withdrawal charge. The 10% free withdrawal amount is determined using your account value at the beginning of each contract year. In the first contract year, the 10% free withdrawal amount is determined using all contributions received in the first 90 days of the contract year. Additional contributions during the contract year do not increase your 10% free withdrawal amount. The 10% free withdrawal amount does not apply if you surrender your contract except where required by law. For NQ contracts issued to a charitable remainder trust, the free withdrawal amount will equal the greater of: (1) the current account value less contributions that have not been withdrawn (earnings in the contract) and (2) the 10% free withdrawal amount defined above. Certain withdrawals. If you elected the Guaranteed minimum income benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year does not exceed 6% at the beginning of contract year 6% to age 85 Roll-Up benefit base, even if such withdrawals exceed the free withdrawal amount. Also, a withdrawal charge does not apply to a withdrawal that exceeds 6% of the beginning of contract year 6% to age 85 Roll-Up benefit base as long as it does not exceed the free withdrawal amount. If your withdrawals exceed the amount described above, this waiver is not applicable to that withdrawal nor to any subsequent withdrawal for the life of the contract. If you elect the Guaranteed withdrawal benefit for life, we will waive any withdrawal charge for any withdrawal during the contract year up to the Guaranteed annual withdrawal amount, even if such withdrawals exceed the free withdrawal amount. However, each withdrawal reduces the free withdrawal amount for that contract year by the amount of the withdrawal. Also, a withdrawal charge does not apply to a withdrawal that exceeds the Guaranteed annual withdrawal amount as long as it does not exceed the free withdrawal amount. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds both the free withdrawal amount and the Guaranteed annual withdrawal amount. Disability, terminal illness, or confinement to nursing home. The withdrawal charge also does not apply if: (i) The annuitant, if GWBL is not elected, or the owner (or older spouse under Joint life, if applicable), if GWBL is elected, has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or (ii) We receive proof satisfactory to us (including certification by a licensed physician) that the annuitant's life expectancy, if GWBL is not elected, or the owner's life expectancy (or older spouse under Joint life, if applicable), if GWBL is elected, is six months or less; or (iii) The annuitant if GWBL is not elected, or the owner (or older spouse under Joint life, if applicable), if GWBL is elected, has been confined to a nursing home for more than 90 days as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: - its main function is to provide skilled, intermediate, or custodial nursing care; - it provides continuous room and board to three or more persons; - it is supervised by a registered nurse or licensed practical nurse; - it keeps daily medical records of each patient; - it controls and records all medications dispensed; and - its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions described in (i), (ii) or (iii) above existed at the time a contribution was remitted or if the condition began within 12 months of the period following remittance. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. For more information, see "How certain charges are deducted" earlier in this section. STANDARD DEATH BENEFIT. There is no additional charge for the standard death benefit. GUARANTEED PRINCIPAL BENEFIT OPTION 2 If you purchase GPB Option 2, we deduct a charge annually from your account value on the first 10 contract date anniversaries. The charge is equal to 0.50% of the account value. For more information, see "How certain charges are deducted" earlier in this section. GUARANTEED MINIMUM INCOME BENEFIT CHARGE If you elect the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option, or the contract 60 Charges and expenses date anniversary after the annuitant reaches age 85, whichever occurs first. The charge is equal to 0.65% of the applicable benefit base in effect on the contract date anniversary. For more information, see "How certain charges are deducted" earlier in this section. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE CHARGE If you elect the Guaranteed withdrawal benefit for life ("GWBL"), we deduct a charge annually as a percentage of your GWBL benefit base on each contract date anniversary. If you elect the Single Life or Joint Life options, the charge is equal to 0.65%. We will deduct this charge from your value in the permitted variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered, annuitized, or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value in the permitted variable investment options is insufficient to pay this charge, and you have no account value in the guaranteed interest option, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. GWBL BENEFIT BASE ANNUAL RATCHET CHARGE If your GWBL benefit base ratchets, we reserve the right to raise the charge at the time of an Annual Ratchet. The maximum charge is 0.80%. The increased charge, if any will apply as of the contract date anniversary on which your GWBL benefit base ratchets and on all contract date anniversaries thereafter. We will permit you to opt out of the ratchet if the charge increases. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY ANNUITIZATION PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity annuitization payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge, or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to 12b-1 fees. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. Charges and expenses 61 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT IF GWBL IS NOT ELECTED You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit), as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the annuitant's death adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. EFFECT OF THE ANNUITANT'S DEATH If the annuitant dies before the annuity payments begin, we will pay the death benefit to your beneficiary. Generally, the death of the annuitant terminates the contract. However, a surviving spouse who is the sole primary beneficiary of the deceased owner/annuitant can choose to be treated as the successor owner/annuitant and continue the contract. The Successor owner/ annuitant feature is only available under NQ and individually owned IRA contracts (other than Inherited IRAs). See "Inherited IRA beneficiary continuation contract" in "Contract features and benefits" earlier in this Prospectus. For NQ and all types of IRA contracts, a beneficiary may be able to have limited ownership as discussed under "Beneficiary continuation option" below. WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT Under certain conditions the owner changes after the original owner's death for purposes of receiving required distributions from the contract. When you are not the annuitant under an NQ contract and you die before annuity payments begin, unless you specify otherwise, the beneficiary named to receive the death benefit upon the annuitant's death will become the successor owner. If you do not want this beneficiary to be the successor owner, you should name a specific successor owner. You may name a successor owner at any time during your life by sending satisfactory notice to our processing office. If the contract is jointly owned and the first owner to die is not the annuitant, the surviving owner becomes the sole contract owner. This person will be considered the successor owner for purposes of the distribution rules described in this section. The surviving owner automatically takes the place of any other beneficiary designation. You should carefully consider the following if you have elected the Guaranteed minimum income benefit and you are the owner, but not the annuitant. Because the payments under the Guaranteed minimum income benefit are based on the life of the annuitant, and the federal tax law required distributions described below are based on the life of the successor owner, a successor owner who is not also the annuitant may not be able to exercise the Guaranteed minimum income benefit if you die before annuity payments begin. Therefore, one year before you become eligible to exercise the Guaranteed minimum income benefit you should consider the effect of your beneficiary designations on potential payments after your death. For more information, see "Exercise rules" under "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus. Unless the surviving spouse of the owner who has died (or in the case of a joint ownership situation, the surviving spouse of the first owner to die) is the successor owner for this purpose, the entire interest in the contract must be distributed under the following rules: o The cash value of the contract must be fully paid to the successor owner (new owner) within five years after your death (the "5-year rule"), or in a joint ownership situation, the death of the first owner to die. 62 Payment of death benefit o The successor owner may instead elect to receive the cash value as a life annuity (or payments for a period certain of not longer than the successor owner's life expectancy). Payments must begin within one year after the non-annuitant owner's death. Unless this alternative is elected, we will pay any cash value five years after your death (or the death of the first owner to die). o A successor owner should consider naming a new beneficiary. If the surviving spouse is the successor owner or joint owner, the spouse may elect to continue the contract. No distributions are required as long as the surviving spouse and annuitant are living. An eligible successor owner, including a surviving joint owner after the first owner dies, may elect the beneficiary continuation option for NQ contracts discussed in "Beneficiary continuation option" below. HOW DEATH BENEFIT PAYMENT IS MADE We will pay the death benefit to the beneficiary in the form of the annuity payout option you have chosen. If you have not chosen an annuity payout option as of the time of the annuitant's death, the beneficiary will receive the death benefit in a single sum. Payment of the death benefit in a lump sum terminates all rights and any applicable guarantees under the contract, including the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life and the Guaranteed principal benefit Options 1 and 2. Subject to any exceptions in the contract, our rules and any applicable requirements under federal income tax rules, the beneficiary may elect to apply the death benefit to one or more annuity payout options we offer at the time. See "Your annuity payout options" in "Accessing your money" earlier in this Prospectus. Please note that any annuity payout option chosen may not extend beyond the life expectancy of the beneficiary. SUCCESSOR OWNER AND ANNUITANT. If you are both the contract owner and the annuitant, and your spouse is the sole primary beneficiary or the joint owner, then your spouse may elect to receive the death benefit or continue the contract as successor owner/annuitant. The successor owner/annuitant must be 85 or younger as of the date of the non-surviving spouse's death. The determination of spousal status is made under applicable state law; however, in the event of a conflict between federal and state law, we follow federal rules. If your surviving spouse decides to continue the contract, then as of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary to effect the Successor owner/annuitant feature, we will increase the account value to equal your elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. Thereafter, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. These additional contributions will be considered to be withdrawn only after all other amounts have been withdrawn. We will determine whether your applicable Guaranteed minimum death benefit option will continue as follows: o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 84 or younger at death, the Guaranteed minimum death benefit continues based upon the option that was elected by the original owner/annuitant and will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 85 or older at death, we will reinstate the Guaranteed minimum death benefit that was elected by the original owner/annuitant. The benefit will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 76 or over on the date of the original owner/annuitant's death, the Guaranteed minimum death benefit will no longer grow, and we will no longer charge for the benefit. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For information on the operation of the successor owner/annuitant feature with the Guaranteed minimum income benefit, see "Exercise of Guaranteed minimum income benefit" under "Guaranteed minimum income benefit option" in "Contract features and benefits," earlier in this Prospectus. SPOUSAL PROTECTION. Spousal protection is available for NQ contracts only. This feature permits spouses who are joint contract owners to increase the account value to equal the guaranteed minimum death benefit, if higher, upon the death of either spouse. This account value "step up" occurs even if the surviving spouse was the named annuitant. If you and your spouse jointly own the contract and one of you is the named annuitant, you may elect the Spousal protection option at the time you purchase your contract at no additional charge. Both spouses must be between the ages of 20 and 70 at the time the contract is issued and must each be named the primary beneficiary in the event of the other's death. The annuitant's age is generally used for the purpose of determining contract benefits. However, for the Annual Ratchet to age 85 enhanced death benefit, the benefit is based on the older spouse's age. The older spouse may or may not be the annuitant. If the annuitant dies prior to annuitization, the surviving spouse may elect to receive the death benefit or, if eligible, continue the contract as the sole owner/annuitant by electing the successor owner/annuitant option. If the non-annuitant spouse dies prior to annuitization, the Payment of death benefit 63 surviving spouse continues the contract automatically as the sole owner/annuitant. In either case, the contract would continue, as follows: o As of the date we receive due proof of the spouse's death, the account value will be reset to equal the Guaranteed minimum death benefit as of the date of the non-surviving spouse's death, if higher. o The Guaranteed minimum death benefit continues to be based on the older spouse's age for the life of the contract, even if the younger spouse is originally or becomes the sole owner/annuitant. o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the successor owner/annuitant, if applicable. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If the annuitant dies first, withdrawal charges will no longer apply to any contributions made prior to the annuitant's death. If the non-annuitant spouse dies first, the withdrawal charge schedule remains in effect with regard to all contributions. We will not allow Spousal protection to be added after contract issue. If there is a change in owner or primary beneficiary, the Spousal protection benefit will be terminated. If you divorce but do not change the owner or primary beneficiary, Spousal protection continues. YOUR BENEFICIARY AND PAYMENT OF BENEFIT IF GWBL IS ELECTED You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under Joint life contracts, the surviving spouse is considered the beneficiary, and will take the place of any other beneficiary. Under a contract with a non-natural owner that has joint annuitants, the surviving annuitant is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value or, if greater, the applicable Guaranteed minimum death benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) as of the date we receive satisfactory proof of the owner's (or the second to die of the owner and successor owner's, if applicable) death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the owner's (or the second to die of the owner and successor owner's, if applicable) death adjusted for any subsequent withdrawals. - -------------------------------------------------------------------------------- Under contracts with GWBL, the terms Owner and Successor Owner are intended to be references to Annuitant and Joint Annuitant, respectively if the contract has a non-natural owner. - -------------------------------------------------------------------------------- Subject to applicable laws and regulations, you may impose restrictions on the timing and manner of the payment of the death benefit to your beneficiary. For example, your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period and (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law. In general, if the annuitant dies, the owner (or successor owner, if applicable and the owner is also deceased) will become the annuitant, and the death benefit is not payable. If the contract had joint annuitants, it will become a single annuitant contract. EFFECT OF THE OWNER'S DEATH In general, if the owner dies while the contract is in force, the contract terminates and the applicable death benefit is paid. For Joint Life contracts with GWBL, the death benefit is paid to the beneficiary at the death of the second to die of the owner and successor owner, as applicable. There are various circumstances, however, in which the contract can be continued by a successor owner or under a Beneficiary continuation option. For individually owned Joint life contracts, the successor owner becomes the sole owner upon the death of the owner. If you are the sole owner and your spouse is the sole primary beneficiary, your surviving spouse can continue the contract as a successor owner, under "Spousal continuation" or under our Beneficiary continuation option, as discussed below. Upon the death of the owner, for single owner contracts or, in the case of Joint life contracts, upon the death of the second of the owner or successor owner to die, if the beneficiary is not the surviving spouse, federal income tax rules generally require payments of amounts under the contract to be made within five years of an owner's death (the "5-year rule"). In certain cases, an individual beneficiary may opt to receive payments over his/her life (or over a period not in excess of his/her life expectancy) if payments commence within one year of the owner's death. Any such election must be made in accordance with our rules at the time of death. If the beneficiary of a contract with one owner continues the contract under the 5-year rule, in general, all 64 Payment of death benefit guaranteed benefits and their charges will end. For more information on non-spousal joint owner contract continuation, see the section immediately below. NON-SPOUSAL JOINT LIFE CONTRACT CONTINUATION This section applies only with regard to Joint life contracts in which the successor owner has joint ownership rights and the owner and successor owner have divorced, but the successor owner has been neither dropped nor replaced or the contract has not been split, as described in the contract. Upon the death of either the owner or the successor owner, the survivor becomes the surviving owner. The cash value of the contract must be paid to the surviving owner within five years. The surviving owner may instead elect to receive a life annuity, provided payments begin within one year of the deceased owner's or successor owner's death. If the life annuity is elected, the contract and all benefits terminate. If the surviving owner dies within five years of the owner or successor owner (as applicable), and the contract has continued in force, the guaranteed minimum death benefit will be paid to the beneficiary. If the successor owner did not have joint ownership rights as discussed in this Prospectus, then in the case of the death of the successor owner where the contract was not split after a divorce, the contract continues as is with the sole owner. However, if the owner dies first, then the cash value must be distributed to the successor owner as described above. SPOUSAL CONTINUATION If you are the contract owner under a Single life contract and your spouse is the sole primary beneficiary, your spouse may elect to continue the contract as successor owner upon your death. Spousal beneficiaries who are not also the Joint life must be 85 or younger as of the date of the deceased spouse's death in order to continue the contract under Spousal continuation. If you own a Joint life contract and your spouse survives you, the contract will automatically continue upon your death. For Single life contracts, the spouse beneficiary may elect to receive the death benefit or continue the contract, as follows: o As of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary, we will increase the account value to equal your Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. o Withdrawal charges will no longer apply to contributions made before your death. No additional contributions will be permitted. o The Guaranteed minimum death benefit will continue, as follows: o if you elected the Standard death benefit it will continue o if you elected the Annual Ratchet to age 85 enhanced death benefit, and your spouse is age 75 or younger as of the date of your death and you were 84 or younger at death, the death benefit and charge will continue based on your spouse's age. If you were age 85 or older at death, we will reinstate the Annual Ratchet to age 85 enhanced death benefit. The benefit base which had previously been frozen at age 85 will now continue to grow until the contract date anniversary following the date your surviving spouse reaches age 85. If your spouse is 76 or older as of the date of your death, we will discontinue the death benefit and charge; however, we will freeze the benefit base as of the date of your death (reduced pro rata for any subsequent withdrawals), and pay it upon your spouse's death. o The Guaranteed withdrawal benefit for life and its charge will terminate. For Joint life contracts: o No death benefit is payable until the death of the surviving spouse. Your guaranteed minimum death benefit (and charge, if applicable) continues. o if you elected the Annual Ratchet to age 85 enhanced death benefit, the benefit base will continue to ratchet until the contract date anniversary following the surviving spouse's age 85. o Withdrawal charges will continue to apply to all contributions made both prior and subsequent to the deceased spouse's death. The right to make additional contributions under the contract is not affected by your death. o The Guaranteed withdrawal benefit for life and its charge will remain in effect. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. If you divorce, Spousal continuation does not apply. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. For Joint life contracts with GWBL, the Beneficiary continuation option is only available after the death of the second owner. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by Payment of death benefit 65 September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, the Annual Ratchet to age 85 enhanced death benefit or GPB Option 2 under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a portion of the account value and no withdrawal charges, if any, will apply. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. If the owner and annuitant are different and the owner dies before the annuitant, for purposes of this discussion, "beneficiary" refers to the successor owner. For a discussion of successor owner, see "When an NQ contract owner dies before the annuitant" earlier in this section. This feature must be elected within 9 months following the date of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts (regardless of whether the owner and annuitant are the same person): o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, the Annual Ratchet to age 85 enhanced death benefit or GPB Option 2 under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. 66 Payment of death benefit o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If you are both the owner and annuitant under a contract in which GWBL is not elected, or if the deceased is the owner under a contract in which GWBL is elected: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the annuity account value to equal the applicable death benefit if such death benefit is greater than such account value, adjusted for any subsequent withdrawals. o No withdrawal charges will apply to any withdrawals by the beneficiary. If the owner and annuitant under a contract in which GWBL is not elected are not the same person: o If the beneficiary continuation option is elected, the beneficiary automatically becomes the new annuitant of the contract, replacing the existing annuitant. o The annuity account value will not be reset to the death benefit amount. o The contract's withdrawal charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments; the contract's free corridor amount will continue to apply to withdrawals but does not apply to surrenders. o We do not impose a withdrawal charge on scheduled payments except if, when added to any withdrawals previously taken in the same contract year, including for this purpose a contract surrender, the total amount of withdrawals and scheduled payments exceed the free corridor amount. See the "Withdrawal charges" in "Charges and expenses" earlier in this Prospectus. If a contract in which GWBL is not elected is jointly owned: o The surviving owner supersedes any other named beneficiary and may elect the beneficiary continuation option. o If the deceased joint owner was also the annuitant, see " If you are both the owner and annuitant under a contract in which GWBL is not elected, or if the deceased is the owner under a contract in which GWBL is elected" earlier in this section. o If the deceased joint owner was not the annuitant, see "If the owner and annuitant under a contract in which GWBL is not elected are not the same person" earlier in this section. Payment of death benefit 67 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the Prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted based on these options. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator's(R) choice of death benefits, the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit, special dollar cost averaging, selection of variable investment options, guaranteed interest option, fixed maturity options and its choices of pay-out options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, the guaranteed minimum income benefit and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the 68 Tax information same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. TAXATION OF LIFETIME WITHDRAWALS IF YOU ELECT GUARANTEED WITHDRAWAL BENEFIT FOR LIFE We treat Guaranteed annual withdrawal amounts and other withdrawals as non-annuity payments for income tax purposes. These withdrawals are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. It reduces the investment in the contract. ANNUITY PAYMENTS Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus, as well as GMIB and other annuitization payments that are based on life or life expectancy, are considered annuity payments for tax purposes. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your "investment in the contract." Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. CONTRACTS PURCHASED THROUGH EXCHANGES You may purchase your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that is the source of the funds you are using to purchase the NQ contract is another nonqualified deferred annuity contract or life insurance or endowment contract. o the owner and the annuitant are the same under the source contract and the Accumulator(R) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must be the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carries over to the Accumulator(R) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between the carriers, and provision of cost basis information may be required to process this type of an exchange. Section 1035 exchanges are generally not available after death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. The IRS has not specifically addressed the tax treatment of the Spousal protection benefit. Please consult with your tax adviser before electing this feature. BENEFICIARY CONTINUATION OPTION We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for NQ contracts. See the discussion "Beneficiary continuation option for NQ Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2"; o scheduled payments, any additional withdrawals under "Withdrawal Option 2", or contract surrenders under "Withdrawal Option Tax information 69 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the "Withdrawal Option" selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling specifically does not address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or any withdrawal that might be taken). Before electing the beneficiary continuation option feature, the individuals you designate as beneficiary or successor owner should discuss with their tax advisers the consequences of such elections. The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2, a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Account 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Account 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Account 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Account 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets funding the account for the benefit of the IRA owner. The assets typically include mutual funds and/or individual stocks and securities in a custodial account, and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and, o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral, regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may purchase the contract as a traditional IRA or Roth IRA. The traditional IRAs we offer are the Rollover IRA and Flexible Premium IRA. The versions of the Roth IRA available are the Roth Conversion IRA and Flexible Premium Roth IRA. We also offer the Inherited IRA for payment of post-death required minimum distributions in traditional IRA and Roth IRA. We currently do not offer traditional IRA contracts for use as employer-funded SEP-IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS requires you to have before you purchase an IRA. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. 70 Tax information We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payment (as opposed to payments from a fixed income annuitization option). We have not applied for an opinion letter from the IRS to approve the respective forms of the Accumulator(R) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. We have received IRS opinion letters approving the respective forms of a similar traditional IRA and Roth IRA endorsement for use as a traditional and Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) traditional and Roth IRA contracts. We have submitted a form similar to the Inherited IRA beneficiary continuation contract to the IRS for approval as to form for use as a traditional IRA and Roth IRA, respectively. We do not know if and when such approval may be granted, Your right to cancel within a certain number of days You can cancel any version of the Accumulator(R) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel with a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. Traditional individual retirement annuities (traditional IRAs) Contributions to traditional IRAs. Individuals may make three different types of contributions to a traditional IRA: o regular contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). Regular contributions to traditional IRAs Limits on contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000 your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch-up contributions" of up to $1,000 to your traditional IRA. Special rules for spouses. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. "Catch-up" contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. Deductibility of contributions. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions". That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-701/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits to deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment.) If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for Tax information 71 traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted ------------------- x regular = deductible divided by $10,000 contribution contribution for the year limit Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000 ($53,000, after cost of living indexing adjustment for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution, and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. Nondeductible regular contributions. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 "catch-up" contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. When you can make regular contributions. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. Rollover and transfer contributions to traditional IRAs Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. Rollovers from "eligible retirement plans" other than traditional IRAs Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you 72 Tax information receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan, such as a traditional IRA, and subsequently take a premature distribution. Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for record keeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Rollovers from traditional IRAs to traditional IRAs You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Excess contributions Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contribution amount for the applicable taxable year; or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and Tax information 73 (3) you took no tax deduction for the excess contribution. Recharacterizations Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. Withdrawals, payments and transfers of funds out of traditional IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Taxation of payments. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, a 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. Required minimum distributions Background on Regulations--Required Minimum Distributions. Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing. Please consult your tax adviser concerning applicability of these complex rules to your situation. Lifetime required minimum distributions. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. When you have to take the first lifetime required minimum distribution. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your Required Beginning Date, which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year -- the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. How you can calculate required minimum distributions. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime 74 Tax information required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. Do you have to pick the same method to calculate your required minimum distributions for all of your traditional IRAs and other retirement plans? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. Will we pay you the annual amount every year from your traditional IRA based on the method you choose? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. What if you take more than you need to for any year? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. What if you take less than you need to for any year? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. What are the required minimum distribution payments after you die? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. Individual beneficiary. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owners death. No distribution is required before that fifth year. Spousal beneficiary. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. Non-individual beneficiary. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity con- Tax information 75 tract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. Spousal continuation If the contract is continued under Spousal continuation, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. Successor owner and annuitant If your spouse is the sole primary beneficiary and elects to become the successor owner and annuitant, no death benefit is payable until your surviving spouse's death. The required minimum distribution rules are applied as if your surviving spouse is the contract owner. Payments to a beneficiary after your death IRA death benefits are taxed the same as IRA distributions. Borrowing and loans are prohibited transactions You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. Early distribution penalty tax A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special federal income tax definition); or o used to pay medical insurance premiums for unemployed individuals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special federal income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method. To meet this last exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments, using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" earlier in this section. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under either option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. Roth individual retirement annuities (Roth IRAs) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Roth IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. Contributions to Roth IRAs Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eligible retirement plans ("conversion" rollover contributions); or o tax-free rollover contributions from other Roth individual retire ment arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA or a Flexible Premium Roth IRA contract. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. Regular contributions to Roth IRAs Limits on regular contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can con- 76 Tax information tribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion under "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment); o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment).. However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. When you can make contributions. Same as traditional IRAs. Deductibility of contributions. Roth IRA contributions are not tax deductible. Rollovers and direct transfers What is the difference between rollover and direct transfer transactions? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make rollover transactions between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two- year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion contribution"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Conversion rollover contributions to Roth IRAs In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting Tax information 77 - -- a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. How to recharacterize. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. Distributions from Roth IRAs Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to the special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o Rollovers from a Roth IRA to another Roth IRA; 78 Tax information O Direct transfers from a Roth IRA to another Roth IRA; o Qualified distributions from a Roth IRA; and o Return of excess contributions or amounts recharacterized to a traditional IRA. Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped and added together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contribu tions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. Required minimum distributions during life Lifetime required minimum distributions do not apply. Required minimum distributions at death Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the Required Beginning Date. Payments to a beneficiary after your death Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. Borrowing and loans are prohibited transactions Same as traditional IRA. Excess contributions Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. Early distribution penalty tax Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity con- Tax information 79 tracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) TSA CONTRACT Because the Accumulator(R) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) TSA contract are extremely limited as described below. Accumulator(R) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions 80 Tax information to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) annuity contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; Tax information 81 o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA annuity contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA annuity contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Rollover TSA contract, we do not track your investment in the contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" in this Prospectus, as well as GMIB and other annuitization payments that are based on the annuitant's life or life expectancy, are considered annuity payments for tax purposes. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and 82 Tax information (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Rollover TSA contract contract on the form used to establish the TSA, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in Tax information 83 effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribu tion from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However, we may require additional documentation in the case of payments made to non-United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. Federal income tax withholding on periodic annuity payments Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. Federal income tax withholding on non-periodic annuity payments (withdrawals) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. 84 Tax information As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. Mandatory withholding from TSA and qualified plan distributions Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan par ticipant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. Tax information 85 8. More information - -------------------------------------------------------------------------------- ABOUT SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of Separate Account No. 49 operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Accounts invests solely in class IB/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from, the Separate Account, or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Accounts under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in the prospectuses for each Trust, which generally accompany this Prospectus, or in the respective SAIs, which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below: - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Maturity Price Maturity Date of as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 - -------------------------------------------------------------------------------- 86 More information - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Maturity Price Maturity Date of as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2013 3.00%* $ 86.25 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - -------------------------------------------------------------------------------- * Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw any of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMO's maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. Any withdrawal charges that are deducted from a fixed maturity option will result in a market value adjustment calculated in the same way. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined by using a widely published index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and the fixed maturity options and the account for special dollar cost averaging, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is More information 87 not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept initial and subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information provided through certain broker-dealers with which we have established electronic facilities. In any such cases, you must sign our Acknowledgement of Receipt form. Where we require a signed application, the above procedures do not apply and no financial transactions will be permitted until we receive the signed application and have issued the contract. Where we issue a contract based on information provided through electronic facilities, we require an Acknowledgement of Receipt form, and financial transactions are only permitted if you request them in writing, sign the request and have its signature guaranteed, until we receive the signed Acknowledgement of Receipt form. After your contract has been issued, additional contributions may be transmitted by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. After your contract has been issued, additional contributions may be transmitted by wire. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, FLEXIBLE PREMIUM IRA AND FLEXIBLE PREMIUM ROTH IRA CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ, Flexible Premium IRA or Flexible Premium Roth IRA contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, QP, Inherited IRA Beneficiary Continuation (traditional IRA or Roth IRA) or Rollover TSA contracts, nor is it available with GPB Option 2. For NQ contracts, the minimum amounts we will deduct are $100 monthly and $300 quarterly. Under Flexible Premium IRA and Flexible Premium Roth IRA contracts, the minimum amount is $50. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options, but not the account for special dollar cost averaging. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. For contracts with GWBL, AIP will be automatically terminated after the later of: (i) the end of the first contract year, or (ii) the date the first withdrawal is taken. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. 88 More information o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m. Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Initial contributions allocated to the account for special dollar cost averaging receive the interest rate in effect on that business day. At certain times, we may offer the opportunity to lock in the interest rate for an initial contribution to be received under Section 1035 exchanges and trustee to trustee transfers. Your financial professional can provide information or you can call our processing office. o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of shares of the Trusts, we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in each prospectus for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's annuity and/or variable life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustees or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. One result of proportional voting is that a small number of contract owners may control the outcome of a vote. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or the distribution of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The More information 89 SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive notification of any change at our processing office. Loans are not available under your NQ contract. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. For NQ contracts only, subject to regulatory approval, if you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, and/or Guaranteed principal benefit option 2 (Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. However, the Benefit (other than the Guaranteed withdrawal benefit for life) will not terminate if the ownership of the contract is transferred to: (i) a family member (as defined in the contract); (ii) a trust created for the benefit of a family member or members; (iii) a trust qualified under section 501(c) of the Internal Revenue Code; or (iv) a successor by operation of law, such as an executor or guardian. The Guaranteed withdrawal benefit for life will not terminate if the ownership of the contract is transferred from a non-natural owner to an individual but the contract will continue to be based on the annuitant's life. The Guaranteed withdrawal benefit for life will also not terminate if you transfer your individually-owned contract to a trust held for your (or your and your immediate family's) benefit; the Guaranteed withdrawal benefit for life will continue to be based on your life. If you were not the annuitant under the individually-owned contract in which the Guaranteed withdrawal benefit for life is elected, you will become the annuitant under the new contract. Please speak with your financial professional for further information. For NQ contracts, if there is a change in owner, the Guaranteed withdrawal benefit for life will be terminated. However, if ownership is changed from a non-natural owner to an individual, the Guaranteed withdrawal benefit for life will not terminate and the benefit will continue to be determined by the annuitant. You cannot assign or transfer ownership of an IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available (except for Rollover TSA contracts for which employer or plan approval is required) and you cannot assign IRA and QP contracts as security for a loan or other obligation. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your IRA, QP or Rollover TSA contract (employer or plan approval required) to another similar arrangement under federal income tax rules. In the case of such a transfer, which involves a surrender of your contract, we will impose a withdrawal charge, if one applies. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 0.60% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. 90 More information Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 7.50% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker- dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. More information 91 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Guaranteed Interest Account with Market Value Adjustment (the "Registration Statement"). This Prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Guaranteed Interest Account with Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a web site that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to The AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa- equitable.com. 92 Incorporation of certain documents by reference Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.25%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ---------------------------------------------------------------------------------------- For the years ending December 31, -------------------- 2007 2006 - ---------------------------------------------------------------------------------------- AXA Aggressive Allocation - ---------------------------------------------------------------------------------------- Unit value $ 15.35 $ 14.64 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 23,506 22,269 - ---------------------------------------------------------------------------------------- AXA Conservative Allocation - ---------------------------------------------------------------------------------------- Unit value $ 12.00 $ 11.48 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,888 5,079 - ---------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ---------------------------------------------------------------------------------------- Unit value $ 12.65 $ 12.14 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 14,367 13,188 - ---------------------------------------------------------------------------------------- AXA Moderate Allocation - ---------------------------------------------------------------------------------------- Unit value $ 13.37 $ 12.74 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 69,894 68,613 - ---------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ---------------------------------------------------------------------------------------- Unit value $ 14.74 $ 14.03 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 104,476 99,167 - ---------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ---------------------------------------------------------------------------------------- Unit value $ 14.18 $ 13.88 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,999 12,334 - ---------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ---------------------------------------------------------------------------------------- Unit value $ 10.93 $ 10.36 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,207 2,015 - ---------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ---------------------------------------------------------------------------------------- Unit value $ 20.03 $ 18.16 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,113 8,352 - ---------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ---------------------------------------------------------------------------------------- Unit value $ 13.91 $ 12.36 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,459 2,328 - ---------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ---------------------------------------------------------------------------------------- Unit value $ 11.15 $ 10.80 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,076 4,096 - ---------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ---------------------------------------------------------------------------------------- Unit value $ 16.55 $ 14.37 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,394 3,592 - ---------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ---------------------------------------------------------------------------------------- Unit value $ 14.42 $ 15.30 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 19,821 13,336 - ---------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ---------------------------------------------------------------------------------------- Unit value $ 11.10 $ 11.38 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 720 562 - ---------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ---------------------------------------------------------------------------------------- Unit value $ 11.29 $ 11.07 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,608 2,099 - ---------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ----------------------------------------------------------------------------------------------------- Unit value $ 12.58 $ 11.79 $ 10.68 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,752 5,189 186 - ----------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ----------------------------------------------------------------------------------------------------- Unit value $ 10.93 $ 10.80 $ 10.32 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,564 1,608 153 - ----------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ----------------------------------------------------------------------------------------------------- Unit value $ 11.31 $ 11.09 $ 10.42 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 8,710 3,924 78 - ----------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ----------------------------------------------------------------------------------------------------- Unit value $ 11.69 $ 11.30 $ 10.52 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 49,852 22,917 1,082 - ----------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ----------------------------------------------------------------------------------------------------- Unit value $ 12.41 $ 11.78 $ 10.68 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 58,275 20,548 815 - ----------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ----------------------------------------------------------------------------------------------------- Unit value $ 12.69 $ 12.32 $ 10.94 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,642 5,278 307 - ----------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ----------------------------------------------------------------------------------------------------- Unit value $ 10.17 $ 10.17 $ 10.10 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,844 1,271 119 - ----------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ----------------------------------------------------------------------------------------------------- Unit value $ 14.88 $ 13.07 $ 11.20 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,355 1,996 93 - ----------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ----------------------------------------------------------------------------------------------------- Unit value $ 12.58 $ 11.08 $ 10.36 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,804 829 60 - ----------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ----------------------------------------------------------------------------------------------------- Unit value $ 10.54 $ 10.46 $ 10.21 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3.152 1,612 84 - ----------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ----------------------------------------------------------------------------------------------------- Unit value $ 13.35 $ 12.12 $ 10.77 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,764 1,487 109 - ----------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ----------------------------------------------------------------------------------------------------- Unit value $ 12.77 $ 12.26 $ 10.95 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,974 5,206 329 - ----------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ----------------------------------------------------------------------------------------------------- Unit value $ 10.36 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 76 -- -- - ----------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ----------------------------------------------------------------------------------------------------- Unit value $ 11.05 $ 10.41 $ 10.17 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,352 417 19 - -----------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- ---------------------------------------------------------------------------------------- For the years ending December 31, --------------------- 2007 2006 - ---------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ---------------------------------------------------------------------------------------- Unit value $ 14.48 $ 14.49 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,283 7,573 - ---------------------------------------------------------------------------------------- EQ/BlackRock International Value - ---------------------------------------------------------------------------------------- Unit value $ 19.73 $ 18.13 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,019 7,280 - ---------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ---------------------------------------------------------------------------------------- Unit value $ 7.00 $ 6.83 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,851 5,155 - ---------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ---------------------------------------------------------------------------------------- Unit value $ 13.27 $ 11.99 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 841 860 - ---------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ---------------------------------------------------------------------------------------- Unit value $ 12.45 $ 11.96 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,847 3,646 - ---------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ---------------------------------------------------------------------------------------- Unit value $ 13.67 $ 13.62 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,780 4,859 - ---------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ---------------------------------------------------------------------------------------- Unit value $ 11.26 $ 11.09 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,330 2,166 - ---------------------------------------------------------------------------------------- EQ/Davis New York Venture - ---------------------------------------------------------------------------------------- Unit value $ 11.12 $ 10.85 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,234 597 - ---------------------------------------------------------------------------------------- EQ/Equity 500 Index - ---------------------------------------------------------------------------------------- Unit value $ 14.24 $ 13.74 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 11,374 11,573 - ---------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ---------------------------------------------------------------------------------------- Unit value $ 10.75 $ 9.96 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,927 1,258 - ---------------------------------------------------------------------------------------- EQ/Evergreen Omega - ---------------------------------------------------------------------------------------- Unit value $ 13.34 $ 12.14 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,119 1,943 - ---------------------------------------------------------------------------------------- EQ/FI Mid Cap - ---------------------------------------------------------------------------------------- Unit value $ 16.04 $ 15.04 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 8,656 9,034 - ---------------------------------------------------------------------------------------- EQ/Franklin Income - ---------------------------------------------------------------------------------------- Unit value $ 10.51 $ 10.43 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,438 1,560 - ---------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ---------------------------------------------------------------------------------------- Unit value $ 9.77 $ 10.83 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 459 191 - ---------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ---------------------------------------------------------------------------------------- Unit value $ 9.52 -- - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,777 -- - ---------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ---------------------------------------------------------------------------------------- Unit value $ 11.89 $ 11.65 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,654 1,305 - ---------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ---------------------------------------------------------------------------------------- Unit value $ 30.24 $ 28.02 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,364 1,848 - ---------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ----------------------------------------------------------------------------------------------------- Unit value $ 12.14 $ 11.94 $ 10.93 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,492 4,028 189 - ----------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ----------------------------------------------------------------------------------------------------- Unit value $ 14.61 $ 13.34 $ 11.11 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,025 1,602 73 - ----------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ----------------------------------------------------------------------------------------------------- Unit value $ 5.97 $ 5.69 -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,884 224 -- - ----------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ----------------------------------------------------------------------------------------------------- Unit value $ 11.53 $ 10.74 $ 10.50 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 679 278 17 - ----------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ----------------------------------------------------------------------------------------------------- Unit value $ 11.27 $ 10.86 $ 10.42 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,914 271 34 - ----------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ----------------------------------------------------------------------------------------------------- Unit value $ 12.31 $ 11.75 $ 10.73 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,008 2,468 154 - ----------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ----------------------------------------------------------------------------------------------------- Unit value $ 10.40 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 732 -- -- - ----------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ----------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ----------------------------------------------------------------------------------------------------- Unit value $ 12.09 $ 11.73 $ 10.77 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,047 5,582 374 - ----------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ----------------------------------------------------------------------------------------------------- Unit value $ 9.75 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 100 -- -- - ----------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ----------------------------------------------------------------------------------------------------- Unit value $ 11.61 $ 11.31 $ 10.70 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,920 1,379 85 - ----------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ----------------------------------------------------------------------------------------------------- Unit value $ 13.66 $ 13.00 $ 11.35 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,968 3,775 306 - ----------------------------------------------------------------------------------------------------- EQ/Franklin Income - ----------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ----------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ----------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ----------------------------------------------------------------------------------------------------- Unit value $ 10.51 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 475 -- -- - ----------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ----------------------------------------------------------------------------------------------------- Unit value $ 23.87 $ 23.18 -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,166 78 -- - -----------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- ---------------------------------------------------------------------------------------- For the years ending December 31, -------------------- 2007 2006 - ---------------------------------------------------------------------------------------- EQ International Core PLUS - ---------------------------------------------------------------------------------------- Unit value $ 19.45 $ 17.09 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,341 7,928 - ---------------------------------------------------------------------------------------- EQ/International Growth - ---------------------------------------------------------------------------------------- Unit value $ 16.38 $ 14.28 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,672 1,109 - ---------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ---------------------------------------------------------------------------------------- Unit value $ 11.09 $ 10.89 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 13,997 13,554 - ---------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ---------------------------------------------------------------------------------------- Unit value $ 14.31 $ 14.67 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,615 1,576 - ---------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ---------------------------------------------------------------------------------------- Unit value $ 14.10 $ 13.74 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 965 1,098 - ---------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ---------------------------------------------------------------------------------------- Unit value $ 14.91 $ 13.06 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,842 1,399 - ---------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ---------------------------------------------------------------------------------------- Unit value $ 10.43 $ 11.23 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,132 2,181 - ---------------------------------------------------------------------------------------- EQ/Long Term Bond - ---------------------------------------------------------------------------------------- Unit value $ 10.67 $ 10.06 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,086 1,819 - ---------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ---------------------------------------------------------------------------------------- Unit value $ 12.54 $ 12.28 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,737 1,836 - ---------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ---------------------------------------------------------------------------------------- Unit value $ 12.85 $ 11.76 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 928 841 - ---------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ---------------------------------------------------------------------------------------- Unit value $ 12.30 $ 12.39 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,081 3,813 - ---------------------------------------------------------------------------------------- EQ/Marsico Focus - ---------------------------------------------------------------------------------------- Unit value $ 15.35 $ 13.64 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 16,822 17,558 - ---------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ---------------------------------------------------------------------------------------- Unit value $ 15.27 $ 15.71 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,788 7,522 - ---------------------------------------------------------------------------------------- EQ/Money Market - ---------------------------------------------------------------------------------------- Unit value $ 10.73 $ 10.38 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,875 3,721 - ---------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ---------------------------------------------------------------------------------------- Unit value $ 5.90 $ 4.95 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,019 1,387 - ---------------------------------------------------------------------------------------- EQ/Mutual Shares - ---------------------------------------------------------------------------------------- Unit value $ 10.75 $ 10.71 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,036 1,134 - ---------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ---------------------------------------------------------------------------------------- Unit value $ 11.58 $ 11.09 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 772 217 - ---------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------- EQ International Core PLUS - ----------------------------------------------------------------------------------------------------- Unit value $ 14.52 $ 12.55 $ 11.19 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,898 3,195 150 - ----------------------------------------------------------------------------------------------------- EQ/International Growth - ----------------------------------------------------------------------------------------------------- Unit value $ 11.51 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 358 -- -- - ----------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ----------------------------------------------------------------------------------------------------- Unit value $ 10.60 $ 10.50 $ 10.21 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,991 4,339 252 - ----------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ----------------------------------------------------------------------------------------------------- Unit value $ 12.34 $ 12.02 $ 10.98 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,298 769 63 - ----------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ----------------------------------------------------------------------------------------------------- Unit value $ 12.32 $ 11.64 $ 10.58 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,065 679 51 - ----------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ----------------------------------------------------------------------------------------------------- Unit value $ 12.27 $ 11.40 $ 10.25 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 992 530 22 - ----------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ----------------------------------------------------------------------------------------------------- Unit value $ 10.64 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 386 -- -- - ----------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ----------------------------------------------------------------------------------------------------- Unit value $ 10.01 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 753 -- -- - ----------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ----------------------------------------------------------------------------------------------------- Unit value $ 10.61 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 757 -- -- - ----------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ----------------------------------------------------------------------------------------------------- Unit value $ 10.57 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 415 -- -- - ----------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ----------------------------------------------------------------------------------------------------- Unit value $ 11.16 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,971 -- -- - ----------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ----------------------------------------------------------------------------------------------------- Unit value $ 12.63 $ 11.55 $ 10.59 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,004 4,974 348 - ----------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ----------------------------------------------------------------------------------------------------- Unit value $ 14.15 $ 12.87 $ 11.06 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,055 2,897 148 - ----------------------------------------------------------------------------------------------------- EQ/Money Market - ----------------------------------------------------------------------------------------------------- Unit value $ 10.06 $ 9.93 $ 9.98 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,172 1,335 252 - ----------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ----------------------------------------------------------------------------------------------------- Unit value $ 4.64 $ 4.46 -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,014 143 -- - ----------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ----------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ----------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - -----------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- ---------------------------------------------------------------------------------------- For the years ending December 31, -------------------- 2007 2006 - ---------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ---------------------------------------------------------------------------------------- Unit value $ 11.16 $ 10.93 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 378 111 - ---------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ---------------------------------------------------------------------------------------- Unit value $ 10.77 $ 11.10 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 469 122 - ---------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ---------------------------------------------------------------------------------------- Unit value $ 10.85 $ 9.86 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,128 6,212 - ---------------------------------------------------------------------------------------- EQ/Short Duration Bond - ---------------------------------------------------------------------------------------- Unit value $ 10.66 $ 10.25 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,111 1,130 - ---------------------------------------------------------------------------------------- EQ/Small Company Index - ---------------------------------------------------------------------------------------- Unit value $ 14.46 $ 14.92 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,740 3,972 - ---------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - ---------------------------------------------------------------------------------------- Unit value $ 17.81 $ 16.82 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,733 578 - ---------------------------------------------------------------------------------------- EQ/Templeton Growth - ---------------------------------------------------------------------------------------- Unit value $ 10.85 $ 10.76 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,332 950 - ---------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ---------------------------------------------------------------------------------------- Unit value $ 6.30 $ 6.30 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,181 2,323 - ---------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ---------------------------------------------------------------------------------------- Unit value $ 11.50 $ 11.94 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,546 4,735 - ---------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ---------------------------------------------------------------------------------------- Unit value $ 34.95 $ 24.92 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,239 6,367 - ---------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ---------------------------------------------------------------------------------------- Unit value $ 16.15 $ 13.36 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,890 2,067 - ---------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - ---------------------------------------------------------------------------------------- Unit value $ 8.29 -- - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,172 -- - ---------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ---------------------------------------------------------------------------------------- Unit value $ 14.42 $ 13.11 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 861 1,071 - ---------------------------------------------------------------------------------------- Multimanager Core Bond - ---------------------------------------------------------------------------------------- Unit value $ 11.28 $ 10.75 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,597 5,510 - ---------------------------------------------------------------------------------------- Multimanager Health Care - ---------------------------------------------------------------------------------------- Unit value $ 13.85 $ 12.87 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,186 3,336 - ---------------------------------------------------------------------------------------- Multimanager High Yield - ---------------------------------------------------------------------------------------- Unit value $ 12.80 $ 12.57 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,564 8,081 - ---------------------------------------------------------------------------------------- Multimanager International Equity - ---------------------------------------------------------------------------------------- Unit value $ 20.51 $ 18.47 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,242 4,388 - ---------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ----------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ----------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ----------------------------------------------------------------------------------------------------- Unit value $ 9.94 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,883 -- -- - ----------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ----------------------------------------------------------------------------------------------------- Unit value $ 9.99 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 333 -- -- - ----------------------------------------------------------------------------------------------------- EQ/Small Company Index - ----------------------------------------------------------------------------------------------------- Unit value $ 12.84 $ 12.47 $ 10.73 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,861 1,702 121 - ----------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - ----------------------------------------------------------------------------------------------------- Unit value $ 17.74 $ 17.28 -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 688 53 -- - ----------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ----------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ----------------------------------------------------------------------------------------------------- Unit value $ 5.59 $ 5.19 -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,420 96 -- - ----------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ----------------------------------------------------------------------------------------------------- Unit value $ 10.44 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,313 -- -- - ----------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ----------------------------------------------------------------------------------------------------- Unit value $ 18.41 $ 14.04 $ 11.50 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,108 1,431 64 - ----------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ----------------------------------------------------------------------------------------------------- Unit value $ 12.38 -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 742 -- -- - ----------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - ----------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ----------------------------------------------------------------------------------------------------- Unit value $ 12.63 $ 11.82 $ 10.68 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 674 354 14 - ----------------------------------------------------------------------------------------------------- Multimanager Core Bond - ----------------------------------------------------------------------------------------------------- Unit value $ 10.49 $ 10.44 $ 10.18 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,598 2,892 202 - ----------------------------------------------------------------------------------------------------- Multimanager Health Care - ----------------------------------------------------------------------------------------------------- Unit value $ 12.40 $ 11.74 $ 10.60 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,552 1,325 79 - ----------------------------------------------------------------------------------------------------- Multimanager High Yield - ----------------------------------------------------------------------------------------------------- Unit value $ 11.58 $ 11.38 $ 10.60 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,661 3,911 371 - ----------------------------------------------------------------------------------------------------- Multimanager International Equity - ----------------------------------------------------------------------------------------------------- Unit value $ 14.93 $ 13.09 $ 11.25 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,637 1,558 68 - -----------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- ---------------------------------------------------------------------------------------- For the years ending December 31, -------------------- 2007 2006 - ---------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ---------------------------------------------------------------------------------------- Unit value $ 14.06 $ 13.56 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,045 1,032 - ---------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ---------------------------------------------------------------------------------------- Unit value $ 12.71 $ 11.57 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,651 2,678 - ---------------------------------------------------------------------------------------- Multimanager Large Cap Value - ---------------------------------------------------------------------------------------- Unit value $ 15.97 $ 15.61 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,381 4,449 - ---------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ---------------------------------------------------------------------------------------- Unit value $ 14.89 $ 13.48 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,916 3,239 - ---------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ---------------------------------------------------------------------------------------- Unit value $ 14.86 $ 15.04 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,709 2,904 - ---------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ---------------------------------------------------------------------------------------- Unit value $ 9.08 $ 8.87 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,708 3,735 - ---------------------------------------------------------------------------------------- Multimanager Small Cap Value - ---------------------------------------------------------------------------------------- Unit value $ 13.36 $ 15.00 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,198 8,534 - ---------------------------------------------------------------------------------------- Multimanager Technology - ---------------------------------------------------------------------------------------- Unit value $ 14.54 $ 12.46 - ---------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,424 2,251 - ---------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ----------------------------------------------------------------------------------------------------- Unit value $ 12.09 $ 11.47 $ 10.59 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 794 424 26 - ----------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ----------------------------------------------------------------------------------------------------- Unit value $ 11.70 $ 11.03 $ 10.47 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,153 1,580 113 - ----------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ----------------------------------------------------------------------------------------------------- Unit value $ 13.24 $ 12.52 $ 11.08 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,350 1,540 106 - ----------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ----------------------------------------------------------------------------------------------------- Unit value $ 12.45 $ 11.63 $ 10.54 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,543 1,570 142 - ----------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ----------------------------------------------------------------------------------------------------- Unit value $ 13.27 $ 12.52 $ 11.01 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,263 1,454 126 - ----------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ----------------------------------------------------------------------------------------------------- Unit value $ 8.15 $ 7.67 -- - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,820 59 -- - ----------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ----------------------------------------------------------------------------------------------------- Unit value $ 13.08 $ 12.66 $ 10.95 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,948 3,850 232 - ----------------------------------------------------------------------------------------------------- Multimanager Technology - ----------------------------------------------------------------------------------------------------- Unit value $ 11.76 $ 10.70 $ 10.32 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,745 969 57 - -----------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-5 Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- Trustees who are considering the purchase of an Accumulator(R) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) QP contract to fund a plan for the contract's features and benefits other than tax deferral, after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. We will not accept defined benefit plans. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or other contributions directly from the employer. For 401(k) plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge and/or market value adjustment may apply. AXA Equitable will not perform or provide any plan record keeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant/employee takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for participants after age 70-1/2, trustees should consider: o whether required minimum distributions under QP contracts would cause withdrawals in excess of 6% of the Guaranteed minimum income benefit Roll-Up benefit base; and o that provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed from the contract. Finally, because the method of purchasing the QP contract, including the large initial contribution, and the features of the QP contract may appeal more to plan participants/employees who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants/employees who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisers whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. B-1 Appendix II: Purchase considerations for QP contracts Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00% ("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a).
- ------------------------------------------------------------------------------------------------------ Hypothetical assumed rate to maturity ("j" in the calculations below) ------------------------ February 15, 2012 - ------------------------------------------------------------------------------------------------------ 5.00% 9.00% As of February 15, 2012 before withdrawal - ------------------------------------------------------------------------------------------------------ (1) Market adjusted amount(b) $141,389 $121,737 - ------------------------------------------------------------------------------------------------------ (2) Fixed maturity amount(c) $131,104 $131,104 - ------------------------------------------------------------------------------------------------------ (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) On February 15, 2012 after $50,000 withdrawal - ------------------------------------------------------------------------------------------------------ (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ------------------------------------------------------------------------------------------------------ (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ------------------------------------------------------------------------------------------------------ (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ------------------------------------------------------------------------------------------------------ (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ------------------------------------------------------------------------------------------------------ (8) Maturity value(d) $111,099 $101,287 - ------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ where j is either 5% or 9% (1+j)(1,461/365) (1+j)(D/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amountx(1+h)(D/365)=($84,741 or $77,257)x(1+0.07)(1,461/365) Appendix III: Market value adjustment example C-1 Appendix IV: Annual Ratchet to age 85 enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the Annual Ratchet to age 85 enhanced death benefit, if elected. The following illustrates the Annual Ratchet to age 85 enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options or the Special 10 year fixed maturity option), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the Annual Ratchet to age 85 enhanced death benefit for an annuitant age 45 would be calculated as follows: - -------------------------------------------------------------------------------- End of contract Annual Ratchet to age 85 year Account value benefit base - -------------------------------------------------------------------------------- 1 $105,000 $ 105,000(1) - -------------------------------------------------------------------------------- 2 $115,500 $ 115,500(1) - -------------------------------------------------------------------------------- 3 $129,360 $ 129,360(1) - -------------------------------------------------------------------------------- 4 $103,488 $ 129,360(2) - -------------------------------------------------------------------------------- 5 $113,837 $ 129,360(2) - -------------------------------------------------------------------------------- 6 $127,497 $ 129,360(2) - -------------------------------------------------------------------------------- 7 $127,497 $ 129,360(2) - -------------------------------------------------------------------------------- The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. ANNUAL RATCHET TO AGE 85 (1) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (2) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. D-1 Appendix IV: Annual Ratchet to age 85 enhanced death benefit example Appendix V: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the value of the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying Portfolios (as described below), the corresponding net annual rates of return would be (2.48)% and 3.52% for the Accumulator(R) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges, but they do not reflect the charges we deduct from your account value annually for the optional Guaranteed minimum death benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return shown would be lower; however, the values shown in the following tables reflect all contract charges. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. Appendix V: Hypothetical illustrations E-1 Variable deferred annuity Accumulator(R) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Annual Ratchet to age 85 Guaranteed minimum death benefit Guaranteed minimum income benefit
Annual Lifetime Annual Ratchet to age 85 Guaranteed Minimum Income Benefit Guaranteed ---------------------------------- Minimum Death Guaranteed Hypothetical Account Value Cash Value Benefit Total Death Benefit Income Income Contract ------------------- ------------------ ------------------- ------------------- ----------------- ---------------- Age Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% - ----- --------- --------- --------- -------- --------- --------- --------- --------- --------- -------- -------- -------- ------- 60 1 100,000 100,000 93,000 93,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A 61 2 96,093 102,058 89,093 95,058 100,000 102,058 100,000 102,058 N/A N/A N/A N/A 62 3 92,261 104,132 86,261 98,132 100,000 104,132 100,000 104,132 N/A N/A N/A N/A 63 4 88,499 106,219 82,499 100,219 100,000 106,219 100,000 106,219 N/A N/A N/A N/A 64 5 84,802 108,316 79,802 103,316 100,000 108,316 100,000 108,316 N/A N/A N/A N/A 65 6 81,166 110,422 78,166 107,422 100,000 110,422 100,000 110,422 N/A N/A N/A N/A 66 7 77,585 112,534 76,585 111,534 100,000 112,534 100,000 112,534 N/A N/A N/A N/A 67 8 74,055 114,649 74,055 114,649 100,000 114,649 100,000 114,649 N/A N/A N/A N/A 68 9 70,572 116,763 70,572 116,763 100,000 116,763 100,000 116,763 N/A N/A N/A N/A 69 10 67,129 118,874 67,129 118,874 100,000 118,874 100,000 118,874 N/A N/A N/A N/A 74 15 82,963 129,898 82,963 129,898 100,000 129,898 100,000 129,898 14,266 14,266 14,266 14,266 79 20 61,880 139,512 61,880 139,512 100,000 139,512 100,000 139,512 20,393 20,393 20,393 20,393 84 25 40,877 147,400 40,877 147,400 100,000 147,400 100,000 147,400 34,821 34,821 34,821 34,821 89 30 31,369 165,783 31,369 165,783 100,000 148,664 100,000 148,664 N/A N/A N/A N/A 94 35 25,663 190,237 25,663 190,237 100,000 148,664 100,000 148,664 N/A N/A N/A N/A 95 36 24,622 195,577 24,622 195,577 100,000 148,664 100,000 148,664 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. E-2 Appendix V: Hypothetical illustrations Appendix VI: Guaranteed principal benefit example - -------------------------------------------------------------------------------- For purposes of these examples, we assume that there is an initial contribution of $100,000, made to the contract on February 15, 2008. We also assume that no additional contributions, no transfers among options and no withdrawals from the contract are made. For GPB Option 1, the example also assumes that a 10 year fixed maturity option is chosen. The hypothetical gross rates of return with respect to amounts allocated to the variable investment options are 0%, 6% and 10%. The numbers below reflect the deduction of all applicable separate account and contract charges and also reflect the charge for GPB Option 2. Also, for any given performance of your variable investment options, GPB Option 1 produces higher account values than GPB Option 2 unless investment performance has been significantly positive. The examples should not be considered a representation of past or future expenses. Similarly, the annual rates of return assumed in the example are not an estimate or guarantee of future investment performance. - ---------------------------------------------------------------------------------------------------- Assuming 100% Assuming in variable 100% in Under GPB Under GPB investment FMO Option 1 Option 2 options - ---------------------------------------------------------------------------------------------------- Amount allocated to FMO on February 15, 2008 based upon a 4.01% rate to maturity 100,000 67,470 40,000 -- - ---------------------------------------------------------------------------------------------------- Initial account value allocated to the variable investment options on February 15, 2008 0 32,530 60,000 100,000 - ---------------------------------------------------------------------------------------------------- Account value in the fixed maturity option on February 15, 2018 148,215 100,000 59,286 0 - ---------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018, assuming a 0% gross rate of return) 148,215 125,306 101,468** 77,792 - ---------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018, assuming a 6% gross rate of return) 148,215 145,976 137,102** 141,333 - ---------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018, assuming a 10% gross rate of return) 148,215 167,170 173,746** 206,487 - ----------------------------------------------------------------------------------------------------
** Since the annuity account value is greater than the alternate benefit under GPB Option 2, GPB Option 2 will not affect the annuity account value. Appendix VI: Guaranteed principal benefit example F-1 Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 2 How to Obtain an Accumulator(R) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) P.O. Box 1547 Secaucus, NJ 07096-1547 ................................................................................ Please send me an Accumulator(R) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip x1888/Core '02/04, OR, '04(NY), '06/'06.5 and '07 Series Accumulator(R) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing or taking any other action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS ACCUMULATOR(R)? Accumulator(R) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option, fixed maturity options, or the account for special dollar cost averaging ("investment options"). This contract may not currently be available in all states. Certain features and benefits described in this Prospectus may vary in your state; all features and benefits may not be available in all contracts, in all states or from all selling broker-dealers. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street Small o EQ/Ariel Appreciation II Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS MId Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option, the fixed maturity options, and the account for special dollar cost averaging, which are discussed later in this Prospectus. If you elect the Guaranteed withdrawal benefit for life or a Principal guarantee benefit, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and certain permitted variable investment option(s). The permitted variable investment options are described later in this Prospectus. TYPES OF CONTRACTS. We offer the contracts for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA or Roth IRA. We offer two versions of the traditional IRA: "Rollover IRA" and "Flexible Premium IRA." We also offer two versions of the Roth IRA: "Roth Conversion IRA" and "Flexible Premium Roth IRA." o Traditional and Roth Inherited IRA beneficiary continuation contract ("Inherited IRA") (direct transfer contributions only). o An annuity that is an investment vehicle for a qualified defined contribution plan ("QP") (Rollover and direct transfer contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $5,000 is required to purchase an NQ, Rollover IRA, Roth Conversion IRA, Inherited IRA, QP, or Rollover TSA contract. For Flexible Premium IRA and Flexible Premium Roth IRA contracts, we require a contribution of $4,000 to purchase a contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01914/Core '06/JS '06.5 Series (R-4/15) Contents of this Prospectus - -------------------------------------------------------------------------------- ACCUMULATOR(R) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 12 - -------------------------------------------------------------------------------- Example 16 Condensed financial information 19 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 20 - -------------------------------------------------------------------------------- How you can purchase and contribute to your contract 20 Owner and annuitant requirements 26 How you can make your contributions 26 What are your investment options under the contract? 26 Portfolios of the Trusts 28 Allocating your contributions 34 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 36 Annuity purchase factors 38 Guaranteed minimum income benefit option 38 Guaranteed minimum death benefit 40 Guaranteed withdrawal benefit for life ("GWBL") 42 Principal guarantee benefits 45 Inherited IRA beneficiary continuation contract 46 Your right to cancel within a certain number of days 47 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 48 - -------------------------------------------------------------------------------- Your account value and cash value 48 Your contract's value in the variable investment options 48 Your contract's value in the guaranteed interest option 48 Your contract's value in the fixed maturity options 48 Your contract's value in the account for special dollar cost averaging 48 Insufficient account value 48 - --------------- "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the Prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 50 - -------------------------------------------------------------------------------- Transferring your account value 50 Disruptive transfer activity 50 Rebalancing your account value 51 - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 52 - -------------------------------------------------------------------------------- Withdrawing your account value 52 How withdrawals are taken from your account value 54 How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits 54 How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit 55 Withdrawals treated as surrenders 55 Loans under Rollover TSA contracts 55 Surrendering your contract to receive its cash value 56 When to expect payments 56 Your annuity payout options 56 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 59 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 59 Charges that the Trusts deduct 62 Group or sponsored arrangements 62 Other distribution arrangements 63 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 64 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 64 Beneficiary continuation option 66 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 68 - -------------------------------------------------------------------------------- Overview 68 Buying a contract to fund a retirement arrangement 68 Transfers among investment options 68 Taxation of nonqualified annuities 68 Individual retirement arrangements (IRAs) 70 Tax-sheltered annuity contracts (TSAs) 80 Federal and state income tax withholding and information reporting 84 Special rules for contracts funding qualified plans 85 Impact of taxes to AXA Equitable 85 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 86 - -------------------------------------------------------------------------------- About Separate Account No. 49 86 About the Trusts 86 About our fixed maturity options 86 About the general account 87 About other methods of payment 88 Dates and prices at which contract events occur 88 About your voting rights 89 About legal proceedings 89 Financial statements 90 Transfers of ownership, collateral assignments, loans and borrowing 90 About Custodial IRAs 90 Distribution of the contracts 90 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 92 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Enhanced death benefit example D-1 V -- Hypothetical illustrations E-1 VI -- Earnings enhancement benefit example F-1 VII -- State contract availability and/or variations of certain features and benefits G-1 VIII -- Contract Variations H-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page 6% Roll-Up to age 85 36 account for special dollar cost averaging 34 account value 48 administrative charge 59 annual administrative charge 59 Annual Ratchet 44 Annual Ratchet to age 85 enhanced death benefit 36 annuitant 20 annuitization 56 annuity maturity date 58 annuity payout options 56 annuity purchase factors 38 automatic annual reset program 37 automatic customized reset program 37 AXA Allocation portfolios cover beneficiary 64 Beneficiary continuation option ("BCO") 66 business day 88 cash value 48 charges for state premium and other applicable taxes 62 contract date 26 contract date anniversary 26 contract year 26 contributions to Roth IRAs 76 regular contributions 77 rollovers and transfers 77 conversion contributions 77 contributions to traditional IRAs 71 regular contributions 71 rollovers and transfers 72 disability, terminal illness or confinement to nursing home 60 disruptive transfer activity 50 distribution charge 59 Earnings enhancement benefit 41 Earnings enhancement benefit charge 62 EQAccess 7 ERISA 63 Fixed-dollar option 35 fixed maturity options 33 Flexible Premium IRA cover Flexible Premium Roth IRA cover free look 47 free withdrawal amount 60 general account 87 General dollar cost averaging 35 guaranteed interest option 33 Guaranteed minimum death benefit 40 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 36 Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset option 40 Guaranteed minimum income benefit 38 Guaranteed minimum income benefit charge 61 Guaranteed minimum income benefit "no lapse guarantee" 40 Guaranteed withdrawal benefit for life ("GWBL") 42 Guaranteed withdrawal benefit for life charge 62 GWBL benefit base 43 IRA cover IRS 68 Inherited IRA cover Investment simplifier 35 investment options cover lifetime required minimum distribution withdrawals 53 loan reserve account 56 loans under Rollover TSA 55 market adjusted amount 33 market value adjustment 33 market timing 50 maturity dates 33 maturity value 33 Mortality and expense risks charge 59 NQ cover one-time reset option 37 partial withdrawals 52 permitted variable investment options 27 Portfolio cover Principal guarantee benefits 45 processing office 7 QP cover rate to maturity 33 Rebalancing 51 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 34 Separate Account No. 49 86 special dollar cost averaging 34 standard death benefit 36 substantially equal withdrawals 53 Spousal continuation 65 systematic withdrawals 53 TOPS 7 TSA cover traditional IRA cover Trusts 86 unit 48 variable investment options 27 wire transmittals and electronic applications 88 withdrawal charge 60 To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract or supplemental materials. Your financial professional can provide further explanation about your contract. 4 Index of key words and phrases
- ------------------------------------------------------------------------------------------ Prospectus Contract or Supplemental Materials - ------------------------------------------------------------------------------------------ fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guaranteed minimum income benefit Guaranteed Income Benefit guaranteed interest option Guaranteed Interest Account Guaranteed withdrawal benefit for life Guaranteed withdrawal benefit GWBL benefit base Guaranteed withdrawal benefit for life benefit base Guaranteed annual withdrawal amount Guaranteed withdrawal benefit for life Annual withdrawal amount Excess withdrawal Guaranteed withdrawal benefit for life Excess withdrawal - ------------------------------------------------------------------------------------------
Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year, and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility for GWBL deferral bonuses and eligibility to exercise the Guaranteed minimum income benefit and/or the Roll-Up benefit base reset option. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options; o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only) o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of your transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Who is AXA Equitable? 7 Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial profes sional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA or Flex ible Premium Roth IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts (employer or plan approval required) and contracts with the Guaranteed withdrawal benefit for life ("GWBL"); (7) tax withholding elections; (8) election of the beneficiary continuation option; (9) IRA contribution recharacterizations; (10) Section 1035 exchanges; (11) direct transfers and rollovers; (12) exercise of the Guaranteed minimum income benefit; (13) requests to reset your Roll-Up benefit base (for contracts that have both the Guaranteed minimum income benefit and the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit); (14) requests to opt out of or back into the annual ratchet of the Guaranteed withdrawal benefit for life ("GWBL") benefit base; (15) death claims; (16) change in ownership (NQ only, if available under your contract); (17) purchase by, or change of ownership to, a non natural owner; (18) requests for enrollment in either our Maximum payment plan or Customized payment plan under the Guaranteed withdrawal benefit for life ("GWBL"); and (19) requests to reset the guaranteed minimum value for contracts with a Principal guarantee benefit. WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; (3) general dollar cost averaging (including the fixed dollar and interest sweep options); and (4) special dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging (including the fixed dollar and interest sweep options); (3) special dollar cost averaging; (4) substantially equal withdrawals; (5) systematic withdrawals; and (6) the date annuity payments are to begin. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION AT LEAST 30 CALENDAR DAYS PRIOR TO YOUR CONTRACT DATE ANNIVERSARY: (1) automatic annual reset program; and (2) automatic customized reset program. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners, both must sign. 8 Who is AXA Equitable? Accumulator(R) at a glance -- key features - -------------------------------------------------------------------------------- Professional investment Accumulator's(R) variable investment options invest in management different Portfolios managed by professional investment advisers. - -------------------------------------------------------------------------------- Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. -------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - -------------------------------------------------------------------------------- Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - -------------------------------------------------------------------------------- Account for special Available for dollar cost averaging all or a portion dollar cost averaging of any eligible contribution to your contract. - -------------------------------------------------------------------------------- Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. -------------------------------------------------------- o No tax on transfers among investment options inside the contract. -------------------------------------------------------- If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before purchasing one of these contracts, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities compared with any other investment that you may use in connection with your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - -------------------------------------------------------------------------------- Guaranteed minimum The Guaranteed minimum income benefit provides income income benefit protection for you during your life once you elect to annuitize the contract. - -------------------------------------------------------------------------------- Guaranteed withdrawal The Guaranteed withdrawal benefit for life option benefit for life ("GWBL") guarantees that you can take withdrawals of up to a maximum amount each contract year (your "Guaranteed annual withdrawal amount") beginning at age 45 or later. Withdrawals are taken from your account value and continue during your lifetime even if your account value falls to zero (unless it is caused by a withdrawal that exceeds your Guaranteed annual withdrawal amount). - --------------------------------------------------------------------------------
Accumulator(R) at a glance -- key features 9 - ---------------------------------------------------------------------------------------------------------------------------- Contribution amounts o NQ, Rollover IRA, Roth Conversion IRA, Inherited IRA, QP and Rollover TSA contracts o Initial minimum: $5,000 o Additional minimum: $500 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $50 (IRA contracts) $1000 (Inherited IRA contracts) ---------------------------------------------------------------------------------------------------- o Flexible Premium IRA and Flexible Premium Roth IRA contracts o Initial minimum: $4,000 o Additional minimum: $50 $50 under our automatic investment program (subject to tax maximum) ---------------------------------------------------------------------------------------------------- Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million ($500,000 for owners or annuitants who are age 81 and older at contract issue unless you elect GWBL) under all Accumulator(R) series contracts with the same owner or annuitant. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. See "How you can purchase and contribute to your contract" in "Contract features and benefits" later in this Prospectus. - ---------------------------------------------------------------------------------------------------------------------------- Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender o Maximum payment plan (only under contracts with GWBL) o Customized payment plan (only under contracts with GWBL) You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ---------------------------------------------------------------------------------------------------------------------------- Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - ---------------------------------------------------------------------------------------------------------------------------- Additional features o Guaranteed minimum death benefit options o Principal guarantee benefits o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually, and annually) o Free transfers o Waiver of withdrawal charge for certain withdrawals, disability, terminal illness, or confinement to a nursing home o Earnings enhancement benefit, an optional death benefit available under certain contracts o Spousal continuation o Beneficiary continuation option o Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset - ---------------------------------------------------------------------------------------------------------------------------- Fees and charges Please see "Fee table" later in this section for complete details. - ---------------------------------------------------------------------------------------------------------------------------- Owner and annuitant NQ: 0-85 issue ages Rollover IRA, Roth Conversion IRA, Flexible Premium Roth IRA and Rollover TSA: 20-85 Flexible Premium IRA: 20-70 Inherited IRA: 0-70 QP: 20-75 - ----------------------------------------------------------------------------------------------------------------------------
10 Accumulator(R) at a glance -- key features The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available in your state or at certain ages. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions in the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund within a certain number of days. Please see "Your right to cancel within a certain number of days" later in this Prospectus for additional information. OTHER CONTRACTS We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts, based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. Accumulator(R) at a glance -- key features 11 Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay at the time that you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity payout option. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply.
- ----------------------------------------------------------------------------------------- Charges we deduct from your account value at the time you request certain transactions - ----------------------------------------------------------------------------------------- Maximum withdrawal charge as a percentage of contributions with- drawn (deducted if you surrender your contract or make certain withdrawals or apply your cash value to certain payout options).(1) 7.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - -----------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses.
- ----------------------------------------------------------------------------------------- Charges we deduct from your account value on each contract date anniversary - ----------------------------------------------------------------------------------------- Maximum annual administrative charge(2) If your account value on a contract date anniversary is less than $50,000(3) $ 30 If your account value on a contract date anniversary is $50,000 or more $ 0 - ----------------------------------------------------------------------------------------- Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - ----------------------------------------------------------------------------------------- SEPARATE ACCOUNT ANNUAL EXPENSES: Mortality and expense risks 0.80%(4) Administrative 0.30% Distribution 0.20% ------- Total Separate account annual expenses 1.30% - -----------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect any of the following optional benefits - ----------------------------------------------------------------------------------------- Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect). Standard death benefit and GWBL Standard death benefit 0.00% Annual Ratchet to age 85 0.25% Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85* (for new business and certain in-force contracts) 0.60% (for certain other in-force contracts) 0.65% GWBL Enhanced death benefit 0.30% *Please see Appendix VIII later in this Prospectus for more information. - ----------------------------------------------------------------------------------------- Principal guarantee benefits charge (calculated as a percentage of the account value. Deducted annually(2) on each contract date anni- versary for which the benefit is in effect) 100% Principal guarantee benefit 0.50% 125% Principal guarantee benefit 0.75% - -----------------------------------------------------------------------------------------
12 Fee table - --------------------------------------------------------------------------------------------------------------------------------- Guaranteed minimum income benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect) 0.65% - --------------------------------------------------------------------------------------------------------------------------------- Earnings enhancement benefit charge (calculated as a percent- age of the account value. Deducted annually(2) on each contract date anniversary for which the benefit is in effect) 0.35% - --------------------------------------------------------------------------------------------------------------------------------- Guaranteed withdrawal benefit for life benefit charge (calcu- 0.60% for the Single Life option lated as a percentage of the GWBL benefit base. Deducted annually(2) 0.75% for the Joint Life option on each contract date anniversary). If your GWBL benefit base ratchets, we reserve the right to increase your charge up to: 0.75% for the Single Life option 0.90% for the Joint Life option Please see "Guaranteed withdrawal benefit for life" in "Contract features and benefits" for more information about this feature, including its benefit base and the Annual Ratchet provision, and "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses," both later in this Prospectus. - --------------------------------------------------------------------------------------------------------------------------------- Net loan interest charge - Rollover TSA contracts only (calcu- lated and deducted daily as a percentage of the outstanding loan amount) 2.00%(5) - ---------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio.
- --------------------------------------------------------------------------------------------------------- Portfolio operating expenses expressed as an annual percentage of daily net assets - --------------------------------------------------------------------------------------------------------- Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ ------- other expenses)(6) 0.63% 3.56% - ---------------------------------------------------------------------------------------------------------
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------ Total Acquired Annual Fund Fees Expenses Fee Waiv- Net Annual and (Before ers and/or Expenses Manage- Expenses Expense Expense (After ment 12b-1 Other (Underlying Limita- Reimburse- Expense Portfolio Name Fees(7) Fees(8) Expenses(9) Portfolios)(10) tions) ments(11) Limitations) - ------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation 0.10% 0.25% 0.17% 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.10% 0.25% 0.21% 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.10% 0.25% 0.17% 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity 0.60% 0.25% 0.19% -- 1.04% -- 1.04% Multimanager Core Bond 0.58% 0.25% 0.18% -- 1.01% (0.01)% 1.00% Multimanager Health Care 1.20% 0.25% 0.23% -- 1.68% 0.00% 1.68% Multimanager High Yield 0.57% 0.25% 0.19% -- 1.01% -- 1.01% Multimanager International Equity 1.00% 0.25% 0.23% -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth 0.90% 0.25% 0.22% -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value 0.87% 0.25% 0.20% -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value 1.09% 0.25% 0.20% -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth 1.05% 0.25% 0.27% -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value 1.03% 0.25% 0.18% -- 1.46% 0.00% 1.46% Multimanager Technology 1.20% 0.25% 0.22% 0.01% 1.68% 0.00% 1.68% - ------------------------------------------------------------------------------------------------------------------------
Fee table 13 This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- ----------------------------------------------------------------------------------------- Manage- ment 12b-1 Other Portfolio Name Fees(7) Fees(8) Expenses(9) - ----------------------------------------------------------------------------------------- EQ Advisors Trust: - ----------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------- Total Acquired Annual Fund Fees Expenses Fee Waiv- Net Annual and (Before ers and/or Expenses Expenses Expense Expense (After (Underlying Limita- Reimburse- Expense Portfolio Name Portfolios)(10) tions) ments(11) Limitations) - ----------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ----------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(12) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate -- 1.36% (0.10)% 1.26% - -----------------------------------------------------------------------------------------------------------------
14 Fee table Notes: (1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal amount, if applicable: The withdrawal charge percentage we use is Contract determined by the contract year in which you Year make the withdrawal or surrender your contract. 1...........7.00% For each contribution, we consider the 2...........7.00% contract year in which we receive that 3...........6.00% contribution to be "contract year 1") 4...........6.00% 5...........5.00% 6...........3.00% 7...........1.00% 8+..........0.00% (2) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. (3) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, the charge, if applicable, is $30 for each contract year. (4) These changes compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. (5) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (6) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (7) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (11) and (12) for any expense limitation agreement information. (8) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. (9) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (11) and (12) for any expense limitation agreement information. (10) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (11) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: --------------------------------------------- Portfolio Name --------------------------------------------- Multimanager Aggressive Equity 0.97% Multimanager Health Care 1.67% Multimanager Large Cap Core Equity 1.34% Multimanager Large Cap Growth 1.29% Multimanager Large Cap Value 1.26% Multimanager Mid Cap Growth 1.52% Multimanager Mid Cap Value 1.53% Multimanager Small Cap Growth 1.35% Multimanager Small Cap Value 1.45% Multimanager Technology 1.67% EQ/AllianceBernstein Common Stock 0.84% EQ/AllianceBernstein Large Cap Growth 1.03% EQ/AllianceBernstein Small Cap Growth 1.11% EQ/AllianceBernstein Value 0.87% EQ/Ariel Appreciation II 1.09% EQ/BlackRock Basic Value Equity 0.92% EQ/Davis New York Venture 1.25% EQ/Evergreen Omega 1.12% EQ/GAMCO Mergers and Acquisitions 1.33% --------------------------------------------- Fee table 15 ---------------------------------------- Portfolio Name ---------------------------------------- EQ/GAMCO Small Company Value 1.10% EQ/International Core PLUS 1.05% EQ/Large Cap Core PLUS 0.83% EQ/Large Cap Growth PLUS 0.82% EQ/Legg Mason Value Equity 0.97% EQ/Lord Abbett Growth and Income 0.98% EQ/Lord Abbett Large Cap Core 0.99% EQ/Lord Abbett Mid Cap Value 1.04% EQ/Mid Cap Value PLUS 0.81% EQ/Montag & Caldwell Growth 1.13% EQ/T. Rowe Price Growth Stock 0.87% EQ/UBS Growth and Income 1.04% EQ/Van Kampen Comstock 0.99% EQ/Van Kampen Mid Cap Growth 1.04% ---------------------------------------- (12) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and adminis tration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the enhanced death benefit that provides for the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 and the Earnings enhancement benefit with either the Guaranteed minimum income benefit (with the annual reset feature) or the 125% Principal guarantee benefit) would pay in the situations illustrated. Each value in the expense example was calculated with the Guaranteed minimum income benefit except for the AXA Moderate Allocation portfolio. The AXA Moderate Allocation portfolio is calculated with either the Guaranteed minimum income benefit or the 125% Principal guarantee benefit depending on which benefit yielded the higher expenses. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.009% of contract value. The fixed maturity options, guaranteed interest option and the account for special dollar cost averaging are not covered by the example. However, the annual administrative charge, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options, guaranteed interest option and the account for special dollar cost averaging. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated, and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 16 Fee table
- -------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period - -------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - -------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - -------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,163.00 $ 2,018.00 $ 2,913.00 $ 5,089.00 AXA Conservative Allocation $ 1,143.00 $ 1,960.00 $ 2,819.00 $ 4,918.00 AXA Conservative-Plus Allocation $ 1,148.00 $ 1,975.00 $ 2,844.00 $ 4,963.00 AXA Moderate Allocation $ 1,163.00 $ 2,004.00 $ 2,870.00 $ 5,000.00 AXA Moderate-Plus Allocation $ 1,157.00 $ 2,000.00 $ 2,883.00 $ 5,036.00 Multimanager Aggressive Equity $ 1,121.00 $ 1,895.00 $ 2,714.00 $ 4,724.00 Multimanager Core Bond $ 1,118.00 $ 1,886.00 $ 2,699.00 $ 4,696.00 Multimanager Health Care $ 1,188.00 $ 2,091.00 $ 3,031.00 $ 5,301.00 Multimanager High Yield $ 1,118.00 $ 1,886.00 $ 2,699.00 $ 4,696.00 Multimanager International Equity $ 1,167.00 $ 2,030.00 $ 2,933.00 $ 5,125.00 Multimanager Large Cap Core Equity $ 1,154.00 $ 1,991.00 $ 2,869.00 $ 5,009.00 Multimanager Large Cap Growth $ 1,156.00 $ 1,997.00 $ 2,878.00 $ 5,027.00 Multimanager Large Cap Value $ 1,151.00 $ 1,981.00 $ 2,854.00 $ 4,981.00 Multimanager Mid Cap Growth $ 1,175.00 $ 2,052.00 $ 2,967.00 $ 5,187.00 Multimanager Mid Cap Value $ 1,174.00 $ 2,049.00 $ 2,962.00 $ 5,178.00 Multimanager Small Cap Growth $ 1,177.00 $ 2,058.00 $ 2,977.00 $ 5,205.00 Multimanager Small Cap Value $ 1,165.00 $ 2,024.00 $ 2,923.00 $ 5,107.00 Multimanager Technology $ 1,188.00 $ 2,091.00 $ 3,031.00 $ 5,301.00 - -------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,101.00 $ 1,837.00 $ 2,618.00 $ 4,545.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,104.00 $ 1,846.00 $ 2,633.00 $ 4,574.00 EQ/AllianceBernstein International $ 1,132.00 $ 1,926.00 $ 2,764.00 $ 4,817.00 EQ/AllianceBernstein Large Cap Growth $ 1,146.00 $ 1,969.00 $ 2,834.00 $ 4,945.00 EQ/AllianceBernstein Quality Bond $ 1,105.00 $ 1,849.00 $ 2,638.00 $ 4,583.00 EQ/AllianceBernstein Small Cap Growth $ 1,130.00 $ 1,920.00 $ 2,754.00 $ 4,798.00 EQ/AllianceBernstein Value $ 1,113.00 $ 1,871.00 $ 2,674.00 $ 4,649.00 EQ/Ariel Appreciation II $ 1,144.00 $ 1,963.00 $ 2,824.00 $ 4,927.00 EQ/AXA Rosenberg Value Long/Short Equity $ 1,386.00 $ 2,652.00 $ 3,911.00 $ 6,784.00 EQ/BlackRock Basic Value Equity $ 1,110.00 $ 1,861.00 $ 2,659.00 $ 4,621.00 EQ/BlackRock International Value $ 1,143.00 $ 1,960.00 $ 2,819.00 $ 4,918.00 EQ/Boston Advisors Equity Income $ 1,132.00 $ 1,926.00 $ 2,764.00 $ 4,817.00 EQ/Calvert Socially Responsible $ 1,131.00 $ 1,923.00 $ 2,759.00 $ 4,808.00 EQ/Capital Guardian Growth $ 1,122.00 $ 1,898.00 $ 2,719.00 $ 4,733.00 EQ/Capital Guardian Research $ 1,118.00 $ 1,886.00 $ 2,699.00 $ 4,696.00 EQ/Caywood-Scholl High Yield Bond $ 1,118.00 $ 1,886.00 $ 2,699.00 $ 4,696.00 EQ/Davis New York Venture $ 1,146.00 $ 1,969.00 $ 2,834.00 $ 4,945.00 EQ/Equity 500 Index $ 1,078.00 $ 1,768.00 $ 2,506.00 $ 4,333.00 EQ/Evergreen International Bond $ 1,130.00 $ 1,920.00 $ 2,754.00 $ 4,798.00 EQ/Evergreen Omega $ 1,133.00 $ 1,929.00 $ 2,769.00 $ 4,826.00 - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period and select a non-life contingent period certain annuity option with less than five years - -------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - -------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - -------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 2,018.00 $ 2,913.00 $ 5,089.00 AXA Conservative Allocation N/A $ 1,960.00 $ 2,819.00 $ 4,918.00 AXA Conservative-Plus Allocation N/A $ 1,975.00 $ 2,844.00 $ 4,963.00 AXA Moderate Allocation N/A $ 2,004.00 $ 2,870.00 $ 5,000.00 AXA Moderate-Plus Allocation N/A $ 2,000.00 $ 2,883.00 $ 5,036.00 Multimanager Aggressive Equity N/A $ 1,895.00 $ 2,714.00 $ 4,724.00 Multimanager Core Bond N/A $ 1,886.00 $ 2,699.00 $ 4,696.00 Multimanager Health Care N/A $ 2,091.00 $ 3,031.00 $ 5,301.00 Multimanager High Yield N/A $ 1,886.00 $ 2,699.00 $ 4,696.00 Multimanager International Equity N/A $ 2,030.00 $ 2,933.00 $ 5,125.00 Multimanager Large Cap Core Equity N/A $ 1,991.00 $ 2,869.00 $ 5,009.00 Multimanager Large Cap Growth N/A $ 1,997.00 $ 2,878.00 $ 5,027.00 Multimanager Large Cap Value N/A $ 1,981.00 $ 2,854.00 $ 4,981.00 Multimanager Mid Cap Growth N/A $ 2,052.00 $ 2,967.00 $ 5,187.00 Multimanager Mid Cap Value N/A $ 2,049.00 $ 2,962.00 $ 5,178.00 Multimanager Small Cap Growth N/A $ 2,058.00 $ 2,977.00 $ 5,205.00 Multimanager Small Cap Value N/A $ 2,024.00 $ 2,923.00 $ 5,107.00 Multimanager Technology N/A $ 2,091.00 $ 3,031.00 $ 5,301.00 - -------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 1,837.00 $ 2,618.00 $ 4,545.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,846.00 $ 2,633.00 $ 4,574.00 EQ/AllianceBernstein International N/A $ 1,926.00 $ 2,764.00 $ 4,817.00 EQ/AllianceBernstein Large Cap Growth N/A $ 1,969.00 $ 2,834.00 $ 4,945.00 EQ/AllianceBernstein Quality Bond N/A $ 1,849.00 $ 2,638.00 $ 4,583.00 EQ/AllianceBernstein Small Cap Growth N/A $ 1,920.00 $ 2,754.00 $ 4,798.00 EQ/AllianceBernstein Value N/A $ 1,871.00 $ 2,674.00 $ 4,649.00 EQ/Ariel Appreciation II N/A $ 1,963.00 $ 2,824.00 $ 4,927.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,652.00 $ 3,911.00 $ 6,784.00 EQ/BlackRock Basic Value Equity N/A $ 1,861.00 $ 2,659.00 $ 4,621.00 EQ/BlackRock International Value N/A $ 1,960.00 $ 2,819.00 $ 4,918.00 EQ/Boston Advisors Equity Income N/A $ 1,926.00 $ 2,764.00 $ 4,817.00 EQ/Calvert Socially Responsible N/A $ 1,923.00 $ 2,759.00 $ 4,808.00 EQ/Capital Guardian Growth N/A $ 1,898.00 $ 2,719.00 $ 4,733.00 EQ/Capital Guardian Research N/A $ 1,886.00 $ 2,699.00 $ 4,696.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,886.00 $ 2,699.00 $ 4,696.00 EQ/Davis New York Venture N/A $ 1,969.00 $ 2,834.00 $ 4,945.00 EQ/Equity 500 Index N/A $ 1,768.00 $ 2,506.00 $ 4,333.00 EQ/Evergreen International Bond N/A $ 1,920.00 $ 2,754.00 $ 4,798.00 EQ/Evergreen Omega N/A $ 1,929.00 $ 2,769.00 $ 4,826.00 - -------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period - ------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 463.00 $ 1,418.00 $ 2,413.00 $ 5,089.00 AXA Conservative Allocation $ 443.00 $ 1,360.00 $ 2,319.00 $ 4,918.00 AXA Conservative-Plus Allocation $ 448.00 $ 1,375.00 $ 2,344.00 $ 4,963.00 AXA Moderate Allocation $ 463.00 $ 1,404.00 $ 2,370.00 $ 5,000.00 AXA Moderate-Plus Allocation $ 457.00 $ 1,400.00 $ 2,383.00 $ 5,036.00 Multimanager Aggressive Equity $ 421.00 $ 1,295.00 $ 2,214.00 $ 4,724.00 Multimanager Core Bond $ 418.00 $ 1,286.00 $ 2,199.00 $ 4,696.00 Multimanager Health Care $ 488.00 $ 1,491.00 $ 2,531.00 $ 5,301.00 Multimanager High Yield $ 418.00 $ 1,286.00 $ 2,199.00 $ 4,696.00 Multimanager International Equity $ 467.00 $ 1,430.00 $ 2,433.00 $ 5,125.00 Multimanager Large Cap Core Equity $ 454.00 $ 1,391.00 $ 2,369.00 $ 5,009.00 Multimanager Large Cap Growth $ 456.00 $ 1,397.00 $ 2,378.00 $ 5,027.00 Multimanager Large Cap Value $ 451.00 $ 1,381.00 $ 2,354.00 $ 4,981.00 Multimanager Mid Cap Growth $ 475.00 $ 1,452.00 $ 2,467.00 $ 5,187.00 Multimanager Mid Cap Value $ 474.00 $ 1,449.00 $ 2,462.00 $ 5,178.00 Multimanager Small Cap Growth $ 477.00 $ 1,458.00 $ 2,477.00 $ 5,205.00 Multimanager Small Cap Value $ 465.00 $ 1,424.00 $ 2,423.00 $ 5,107.00 Multimanager Technology $ 488.00 $ 1,491.00 $ 2,531.00 $ 5,301.00 - ------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 401.00 $ 1,237.00 $ 2,118.00 $ 4,545.00 EQ/AllianceBernstein Intermediate Government Securities $ 404.00 $ 1,246.00 $ 2,133.00 $ 4,574.00 EQ/AllianceBernstein International $ 432.00 $ 1,326.00 $ 2,264.00 $ 4,817.00 EQ/AllianceBernstein Large Cap Growth $ 446.00 $ 1,369.00 $ 2,334.00 $ 4,945.00 EQ/AllianceBernstein Quality Bond $ 405.00 $ 1,249.00 $ 2,138.00 $ 4,583.00 EQ/AllianceBernstein Small Cap Growth $ 430.00 $ 1,320.00 $ 2,254.00 $ 4,798.00 EQ/AllianceBernstein Value $ 413.00 $ 1,271.00 $ 2,174.00 $ 4,649.00 EQ/Ariel Appreciation II $ 444.00 $ 1,363.00 $ 2,324.00 $ 4,927.00 EQ/AXA Rosenberg Value Long/Short Equity $ 686.00 $ 2,052.00 $ 3,411.00 $ 6,784.00 EQ/BlackRock Basic Value Equity $ 410.00 $ 1,261.00 $ 2,159.00 $ 4,621.00 EQ/BlackRock International Value $ 443.00 $ 1,360.00 $ 2,319.00 $ 4,918.00 EQ/Boston Advisors Equity Income $ 432.00 $ 1,326.00 $ 2,264.00 $ 4,817.00 EQ/Calvert Socially Responsible $ 431.00 $ 1,323.00 $ 2,259.00 $ 4,808.00 EQ/Capital Guardian Growth $ 422.00 $ 1,298.00 $ 2,219.00 $ 4,733.00 EQ/Capital Guardian Research $ 418.00 $ 1,286.00 $ 2,199.00 $ 4,696.00 EQ/Caywood-Scholl High Yield Bond $ 418.00 $ 1,286.00 $ 2,199.00 $ 4,696.00 EQ/Davis New York Venture $ 446.00 $ 1,369.00 $ 2,334.00 $ 4,945.00 EQ/Equity 500 Index $ 378.00 $ 1,168.00 $ 2,006.00 $ 4,333.00 EQ/Evergreen International Bond $ 430.00 $ 1,320.00 $ 2,254.00 $ 4,798.00 EQ/Evergreen Omega $ 433.00 $ 1,329.00 $ 2,269.00 $ 4,826.00 - -------------------------------------------------------------------------------------------------------
Fee table 17
- ------------------------------------------------------------------------------------------------------ If you surrender your contract at the end of the applicable time period - ------------------------------------------------------------------------------------------------------ Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap $ 1,123.00 $ 1,901.00 $ 2,724.00 $ 4,743.00 EQ/Franklin Income $ 1,148.00 $ 1,975.00 $ 2,844.00 $ 4,963.00 EQ/Franklin Small Cap Value $ 1,152.00 $ 1,984.00 $ 2,859.00 $ 4,991.00 EQ/Franklin Templeton Founding Strategy $ 1,177.00 $ 2,058.00 $ 2,977.00 $ 5,205.00 EQ/GAMCO Mergers and Acquisitions $ 1,153.00 $ 1,988.00 $ 2,864.00 $ 5,000.00 EQ/GAMCO Small Company Value $ 1,131.00 $ 1,923.00 $ 2,759.00 $ 4,808.00 EQ/International Core PLUS $ 1,137.00 $ 1,942.00 $ 2,789.00 $ 4,863.00 EQ/International Growth $ 1,156.00 $ 1,997.00 $ 2,878.00 $ 5,027.00 EQ/JPMorgan Core Bond $ 1,097.00 $ 1,824.00 $ 2,598.00 $ 4,507.00 EQ/JPMorgan Value Opportunities $ 1,116.00 $ 1,880.00 $ 2,689.00 $ 4,677.00 EQ/Large Cap Core PLUS $ 1,119.00 $ 1,889.00 $ 2,704.00 $ 4,705.00 EQ/Large Cap Growth PLUS $ 1,118.00 $ 1,886.00 $ 2,699.00 $ 4,696.00 EQ/Legg Mason Value Equity $ 1,124.00 $ 1,905.00 $ 2,729.00 $ 4,752.00 EQ/Long Term Bond $ 1,094.00 $ 1,815.00 $ 2,583.00 $ 4,478.00 EQ/Lord Abbett Growth and Income $ 1,123.00 $ 1,901.00 $ 2,724.00 $ 4,743.00 EQ/Lord Abbett Large Cap Core $ 1,129.00 $ 1,917.00 $ 2,749.00 $ 4,789.00 EQ/Lord Abbett Mid Cap Value $ 1,127.00 $ 1,914.00 $ 2,744.00 $ 4,780.00 EQ/Marsico Focus $ 1,141.00 $ 1,954.00 $ 2,809.00 $ 4,900.00 EQ/Mid Cap Value PLUS $ 1,123.00 $ 1,901.00 $ 2,724.00 $ 4,743.00 EQ/Money Market $ 1,085.00 $ 1,790.00 $ 2,542.00 $ 4,401.00 EQ/Montag & Caldwell Growth $ 1,133.00 $ 1,929.00 $ 2,769.00 $ 4,826.00 EQ/Mutual Shares $ 1,155.00 $ 1,994.00 $ 2,874.00 $ 5,018.00 EQ/Oppenheimer Global $ 1,193.00 $ 2,103.00 $ 3,050.00 $ 5,336.00 EQ/Oppenheimer Main Street Opportunity $ 1,176.00 $ 2,055.00 $ 2,972.00 $ 5,196.00 EQ/Oppenheimer Main Street Small Cap $ 1,184.00 $ 2,079.00 $ 3,011.00 $ 5,266.00 EQ/PIMCO Real Return $ 1,111.00 $ 1,864.00 $ 2,664.00 $ 4,630.00 EQ/Short Duration Bond $ 1,099.00 $ 1,830.00 $ 2,608.00 $ 4,526.00 EQ/Small Company Index $ 1,079.00 $ 1,771.00 $ 2,512.00 $ 4,343.00 EQ/T. Rowe Price Growth Stock $ 1,136.00 $ 1,938.00 $ 2,784.00 $ 4,854.00 EQ/Templeton Growth $ 1,159.00 $ 2,006.00 $ 2,893.00 $ 5,054.00 EQ/UBS Growth and Income $ 1,134.00 $ 1,932.00 $ 2,774.00 $ 4,835.00 EQ/Van Kampen Comstock $ 1,122.00 $ 1,898.00 $ 2,719.00 $ 4,733.00 EQ/Van Kampen Emerging Markets Equity $ 1,184.00 $ 2,079.00 $ 3,011.00 $ 5,266.00 EQ/Van Kampen Mid Cap Growth $ 1,127.00 $ 1,914.00 $ 2,744.00 $ 4,780.00 EQ/Van Kampen Real Estate $ 1,155.00 $ 1,994.00 $ 2,874.00 $ 5,018.00 - ------------------------------------------------------------------------------------------------------ - --------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period and select a non-life contingent period certain annuity option with less than five years - --------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - --------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------- EQ/FI Mid Cap N/A $ 1,901.00 $ 2,724.00 $ 4,743.00 EQ/Franklin Income N/A $ 1,975.00 $ 2,844.00 $ 4,963.00 EQ/Franklin Small Cap Value N/A $ 1,984.00 $ 2,859.00 $ 4,991.00 EQ/Franklin Templeton Founding Strategy N/A $ 2,058.00 $ 2,977.00 $ 5,205.00 EQ/GAMCO Mergers and Acquisitions N/A $ 1,988.00 $ 2,864.00 $ 5,000.00 EQ/GAMCO Small Company Value N/A $ 1,923.00 $ 2,759.00 $ 4,808.00 EQ/International Core PLUS N/A $ 1,942.00 $ 2,789.00 $ 4,863.00 EQ/International Growth N/A $ 1,997.00 $ 2,878.00 $ 5,027.00 EQ/JPMorgan Core Bond N/A $ 1,824.00 $ 2,598.00 $ 4,507.00 EQ/JPMorgan Value Opportunities N/A $ 1,880.00 $ 2,689.00 $ 4,677.00 EQ/Large Cap Core PLUS N/A $ 1,889.00 $ 2,704.00 $ 4,705.00 EQ/Large Cap Growth PLUS N/A $ 1,886.00 $ 2,699.00 $ 4,696.00 EQ/Legg Mason Value Equity N/A $ 1,905.00 $ 2,729.00 $ 4,752.00 EQ/Long Term Bond N/A $ 1,815.00 $ 2,583.00 $ 4,478.00 EQ/Lord Abbett Growth and Income N/A $ 1,901.00 $ 2,724.00 $ 4,743.00 EQ/Lord Abbett Large Cap Core N/A $ 1,917.00 $ 2,749.00 $ 4,789.00 EQ/Lord Abbett Mid Cap Value N/A $ 1,914.00 $ 2,744.00 $ 4,780.00 EQ/Marsico Focus N/A $ 1,954.00 $ 2,809.00 $ 4,900.00 EQ/Mid Cap Value PLUS N/A $ 1,901.00 $ 2,724.00 $ 4,743.00 EQ/Money Market N/A $ 1,790.00 $ 2,542.00 $ 4,401.00 EQ/Montag & Caldwell Growth N/A $ 1,929.00 $ 2,769.00 $ 4,826.00 EQ/Mutual Shares N/A $ 1,994.00 $ 2,874.00 $ 5,018.00 EQ/Oppenheimer Global N/A $ 2,103.00 $ 3,050.00 $ 5,336.00 EQ/Oppenheimer Main Street Opportunity N/A $ 2,055.00 $ 2,972.00 $ 5,196.00 EQ/Oppenheimer Main Street Small Cap N/A $ 2,079.00 $ 3,011.00 $ 5,266.00 EQ/PIMCO Real Return N/A $ 1,864.00 $ 2,664.00 $ 4,630.00 EQ/Short Duration Bond N/A $ 1,830.00 $ 2,608.00 $ 4,526.00 EQ/Small Company Index N/A $ 1,771.00 $ 2,512.00 $ 4,343.00 EQ/T. Rowe Price Growth Stock N/A $ 1,938.00 $ 2,784.00 $ 4,854.00 EQ/Templeton Growth N/A $ 2,006.00 $ 2,893.00 $ 5,054.00 EQ/UBS Growth and Income N/A $ 1,932.00 $ 2,774.00 $ 4,835.00 EQ/Van Kampen Comstock N/A $ 1,898.00 $ 2,719.00 $ 4,733.00 EQ/Van Kampen Emerging Markets Equity N/A $ 2,079.00 $ 3,011.00 $ 5,266.00 EQ/Van Kampen Mid Cap Growth N/A $ 1,914.00 $ 2,744.00 $ 4,780.00 EQ/Van Kampen Real Estate N/A $ 1,994.00 $ 2,874.00 $ 5,018.00 - --------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period - --------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - --------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------------- EQ/FI Mid Cap $ 423.00 $ 1,301.00 $ 2,224.00 $ 4,743.00 EQ/Franklin Income $ 448.00 $ 1,375.00 $ 2,344.00 $ 4,963.00 EQ/Franklin Small Cap Value $ 452.00 $ 1,384.00 $ 2,359.00 $ 4,991.00 EQ/Franklin Templeton Founding Strategy $ 477.00 $ 1,458.00 $ 2,477.00 $ 5,205.00 EQ/GAMCO Mergers and Acquisitions $ 453.00 $ 1,388.00 $ 2,364.00 $ 5,000.00 EQ/GAMCO Small Company Value $ 431.00 $ 1,323.00 $ 2,259.00 $ 4,808.00 EQ/International Core PLUS $ 437.00 $ 1,342.00 $ 2,289.00 $ 4,863.00 EQ/International Growth $ 456.00 $ 1,397.00 $ 2,378.00 $ 5,027.00 EQ/JPMorgan Core Bond $ 397.00 $ 1,224.00 $ 2,098.00 $ 4,507.00 EQ/JPMorgan Value Opportunities $ 416.00 $ 1,280.00 $ 2,189.00 $ 4,677.00 EQ/Large Cap Core PLUS $ 419.00 $ 1,289.00 $ 2,204.00 $ 4,705.00 EQ/Large Cap Growth PLUS $ 418.00 $ 1,286.00 $ 2,199.00 $ 4,696.00 EQ/Legg Mason Value Equity $ 424.00 $ 1,305.00 $ 2,229.00 $ 4,752.00 EQ/Long Term Bond $ 394.00 $ 1,215.00 $ 2,083.00 $ 4,478.00 EQ/Lord Abbett Growth and Income $ 423.00 $ 1,301.00 $ 2,224.00 $ 4,743.00 EQ/Lord Abbett Large Cap Core $ 429.00 $ 1,317.00 $ 2,249.00 $ 4,789.00 EQ/Lord Abbett Mid Cap Value $ 427.00 $ 1,314.00 $ 2,244.00 $ 4,780.00 EQ/Marsico Focus $ 441.00 $ 1,354.00 $ 2,309.00 $ 4,900.00 EQ/Mid Cap Value PLUS $ 423.00 $ 1,301.00 $ 2,224.00 $ 4,743.00 EQ/Money Market $ 385.00 $ 1,190.00 $ 2,042.00 $ 4,401.00 EQ/Montag & Caldwell Growth $ 433.00 $ 1,329.00 $ 2,269.00 $ 4,826.00 EQ/Mutual Shares $ 455.00 $ 1,394.00 $ 2,374.00 $ 5,018.00 EQ/Oppenheimer Global $ 493.00 $ 1,503.00 $ 2,550.00 $ 5,336.00 EQ/Oppenheimer Main Street Opportunity $ 476.00 $ 1,455.00 $ 2,472.00 $ 5,196.00 EQ/Oppenheimer Main Street Small Cap $ 484.00 $ 1,479.00 $ 2,511.00 $ 5,266.00 EQ/PIMCO Real Return $ 411.00 $ 1,264.00 $ 2,164.00 $ 4,630.00 EQ/Short Duration Bond $ 399.00 $ 1,230.00 $ 2,108.00 $ 4,526.00 EQ/Small Company Index $ 379.00 $ 1,171.00 $ 2,012.00 $ 4,343.00 EQ/T. Rowe Price Growth Stock $ 436.00 $ 1,338.00 $ 2,284.00 $ 4,854.00 EQ/Templeton Growth $ 459.00 $ 1,406.00 $ 2,393.00 $ 5,054.00 EQ/UBS Growth and Income $ 434.00 $ 1,332.00 $ 2,274.00 $ 4,835.00 EQ/Van Kampen Comstock $ 422.00 $ 1,298.00 $ 2,219.00 $ 4,733.00 EQ/Van Kampen Emerging Markets Equity $ 484.00 $ 1,479.00 $ 2,511.00 $ 5,266.00 EQ/Van Kampen Mid Cap Growth $ 427.00 $ 1,314.00 $ 2,244.00 $ 4,780.00 EQ/Van Kampen Real Estate $ 455.00 $ 1,394.00 $ 2,374.00 $ 5,018.00 - ---------------------------------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix V at the end of this Prospectus. 18 Fee table CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. Fee table 19 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT You may purchase a contract by making payments to us that we call "contributions." We require a minimum contribution amount for each type of owner and contract purchased. The following table summarizes our rules regarding contributions to your contract. Both the owner and annuitant named in the contract must meet the issue age requirements shown in the table, and contributions are based on the age of the older of the original owner and annuitant. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000 ($500,000 for owners or annuitants who are ages 81 and older at contract issue unless you elect GWBL). We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We may accept less than the minimum initial contribution under a contract if an aggregate amount of contracts purchased at the same time by an individual (including spouse) meets the minimum. - -------------------------------------------------------------------------------- The "owner" is the person who is the named owner in the contract and, if an individual, is the measuring life for determining, contract benefits. The "annuitant" is the person who is the measuring life for determining the contract's maturity date. The annuitant is not necessarily the contract owner. Where the owner of a contract is non-natural, the annuitant is the measuring life for determining contract benefits. - --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions+ - ----------------------------------------------------------------------------------------------------------------------------- NQ 0 through 85 o $5,000 (initial) o After-tax money. o No additional contributions may be made after attain- o $500 (additional) o Paid to us by check or ment of age 86, or if later, transfer of contract value the first contract date anni- o $100 monthly and $300 in a tax-deferred exchange versary.* quarterly under our auto- under Section 1035 of the matic investment program Internal Revenue Code. (additional) - -----------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
- -------------------------------------------------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions+ - -------------------------------------------------------------------------------------------------------------------------- Rollover IRA 20 through 85 o $5,000 (initial) o Eligible rollover distribu- o No additional contributions tions from 403(b) plans, may be made after attain- o $50 (additional) qualified plans, and govern- ment of age 86, or, if later, mental employer 457(b) the first contract date plans. anniversary.* o Rollovers from another o Contributions after age 70-1/2 traditional individual retire- must be net of required ment arrangement. minimum distributions. o Direct custodian-to- o Although we accept regular custodian transfers from IRA contributions (limited to another traditional indi- $5,000) under Rollover IRA vidual retirement contracts, we intend that arrangement. this contract be used primarily for rollover and o Regular IRA contributions. direct transfer contributions. o Additional catch-up o Additional catch-up contri- contributions. butions of up to $1,000 per calendar year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - --------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
- ------------------------------------------------------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions+ - ------------------------------------------------------------------------------------------------------------------------------- Roth Conversion 20 through 85 o $5,000 (initial) o Rollovers from another o No additional contributions IRA Roth IRA. may be made after attain- o $50 (additional) ment of age 86, or, if later, o Rollovers from a "desig- the first contract date nated Roth contribution anniversary.* account" under a 401(k) plan or 403(b) plan. o Conversion rollovers after age 70-1/2 must be net of o Conversion rollovers from a required minimum distribu- traditional IRA or other tions for the traditional IRA eligible retirement plan. or other eligible retirement plan which is the source of o Direct transfers from the conversion rollover. another Roth IRA. o You cannot roll over funds o Regular Roth IRA contribu- from a traditional IRA or tions. other eligible retirement plan if your adjusted gross o Additional catch-up income is $100,000 or contributions. more. o Although we accept regular Roth IRA contributions (lim- ited to $5,000) under Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contri- butions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribu- tion is made. - ------------------------------------------------------------------------------------------------------------------------------- Rollover TSA** 20 through 85 o $5,000 (initial) o With documentation of o No additional contributions employer or plan approval, may be made after attain- o $500 (additional) and limited to pre-tax ment of age 86, or, if later, funds, direct plan-to-plan the first contract date transfers from another anniversary.* 403(b) plan or contract exchanges from another o Contributions after age 70-1/2 403(b) contract under the must be net of any required same plan. minimum distributions. o With documentation of o We do not accept employer- employer or plan approval, remitted contributions. and limited to pre-tax funds, eligible rollover dis- o We do not accept after- tax tributions from other 403(b) contributions, including des- plans, qualified plans, gov- ignated Roth contributions. ernmental employer 457(b) plans or traditional IRAs. - -------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
- -------------------------------------------------------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions+ - -------------------------------------------------------------------------------------------------------------------------------- QP 20 through 75 o $5,000 (initial) o Only transfer contributions o A separate QP contract must from other investments be established for each plan o $500 (additional) within an existing defined participant. contribution qualified plan trust. o We do not accept regular ongoing payroll contribu- o The plan must be qualified tions or contributions under Section 401(a) of the directly from the employer. Internal Revenue Code. o Only one additional transfer o For 401(k) plans, trans- contribution may be made ferred contributions may during a contract year. not include any after-tax contributions, including o No additional transfer con- designated Roth contribu- tributions after participant's tions. attainment of age 76 or, if later, the first contract date anniversary. o Contributions after age 70-1/2 must be net of any required minimum distributions. o We do not accept contribu- tions from defined benefit plans. See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. - -------------------------------------------------------------------------------------------------------------------------------- Flexible Premium 20 through 70 o $4,000 (initial) o Regular traditional IRA o No regular IRA contributions IRA contributions. in the calendar year you turn o $50 (additional) age 70-1/2 and thereafter. o Additional catch-up o $50 monthly or contributions. o Regular contributions may quarterly under our not exceed $5,000. automatic invest- o Eligible rollover distribu- ment program tions from 403(b) plans, o Additional catch-up contri- (additional) qualified plans, and govern- butions of up to $1,000 per mental employer 457(b) calendar year where the plans. owner is at least age 50 but under age 70-1/2 at any time o Rollovers from another during the calendar year for traditional individual retire- which the contribution is ment arrangement. made. o Direct custodian- o Although we accept rollover to-custodian transfers from and direct transfer contribu- another traditional indi- tions under the Flexible vidual retirement Premium IRA contract, we arrangement. intend that this contract be used for ongoing regular contributions. o Rollover and direct transfer contributions may be made up to attainment of age 86.* o Rollover and direct transfer contributions after age 70-1/2 must be net of required minimum distributions. - --------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
- ---------------------------------------------------------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions+ - ---------------------------------------------------------------------------------------------------------------------------------- Flexible Premium 20 through 85 o $4,000 (initial) o Regular Roth IRA contribu- o No additional contributions Roth IRA tions. may be made after the o $50 (additional) attainment of age 86, or, if o Additional catch-up contri- later, the first contract date o $50 monthly or quarterly butions. anniversary.* under our automatic invest- ment program (additional) o Rollovers from another o Contributions are subject to Roth IRA. income limits and other tax rules. o Rollovers from a "desig- nated Roth contribution o Regular Roth IRA contribu- account" under a 401(k) tions may not exceed $ 5,000. plan or 403(b) plan. o Additional catch-up contri- o Conversion rollovers from butions of up to $1,000 per a traditional IRA or other calendar year where the eligible retirement plan. owner is at least age 50 at any time during the calendar o Direct transfers from year for which the contribu- another Roth IRA. tion is made. o Although we accept rollover and direct transfer contribu- tions under the Flexible Premium Roth IRA contract, we intend that this contract be used for ongoing regular Roth IRA contributions. - ----------------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
- ----------------------------------------------------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions+ - ----------------------------------------------------------------------------------------------------------------------------- Inherited IRA 0-70 o $5,000 (initial) o Direct custodian-to- o Any additional contributions Beneficiary custodian transfers of your must be from the same type Continuation o $1,000 (additional) interest as a death benefi- of IRA of the same deceased Contract (tradi- ciary of the deceased owner. tional IRA or owner's traditional indi- Roth IRA) vidual retirement o Non-spousal beneficiary arrangement or Roth IRA to direct rollover contributions an IRA of the same type. from qualified plans, 403(b) plans and governmental employer 457(b) plans may be made to a traditional Inherited IRA contract under specified circumstances. - -----------------------------------------------------------------------------------------------------------------------------
+ Additional contributions may not be permitted under certain conditions in your state. Please see Appendix VII later in the Prospectus to see if additional contributions are permitted in your state. If you are participating in a Principal guarantee benefit, contributions will only be permitted for the first six months after the contract is issued and no further contributions will be permitted for the life of the contract. For the Guaranteed withdrawal benefit for life option, additional contributions are not permitted after the later of: (i) the end of the first contract year, and (ii) the date you make your first withdrawal. * Please see Appendix VII later in this Prospectus for state variations. ** May not be available from all Selling broker-dealers. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. Contract features and benefits 25 OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. For the Spousal continuation feature to apply, the spouses must either be joint owners, or, for Single life contracts, the surviving spouse must be the sole primary beneficiary. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. In general, we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your state. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. See "Inherited IRA beneficiary continuation contract" later in this section for Inherited IRA owner and annuitant requirements. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II at the end of this Prospectus for more information on QP contracts. Certain benefits under your contract, as described later in this Prospectus, are based on the age of the owner. If the owner of the contract is not a natural person, these benefits will be based on the age of the annuitant. If the contract is jointly owned and GWBL has not been elected, benefits are based on the age of the older joint owner. In this Prospectus, when we use the term "owner", we intend this to be a reference to the annuitant if the contract has a non-natural owner. If GWBL is elected, the terms "owner" and "successor owner" are intended to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. We do not permit joint annuitants unless you elect the Guaranteed withdrawal benefit for life on a Joint life basis, and the contract is owned by a non-natural owner. Under QP contracts, all benefits are based on the age of the annuitant. PURCHASE CONSIDERATIONS FOR A CHARITABLE REMAINDER TRUST If you are purchasing this contract to fund a charitable remainder trust and elect either the Guaranteed minimum income benefit ("GMIB") or the Guaranteed withdrawal benefit for life ("GWBL"), or an enhanced death benefit, you should strongly consider "split-funding": that is, the trust holds investments in addition to this Accumulator(R) contract. Charitable remainder trusts are required to take specific distributions. The charitable remainder trust annual withdrawal requirement may be equal to a percentage of the donated amount or a percentage of the current value of the donated amount. If your Accumulator(R) contract is the only source for such distributions, the payments you need to take may significantly reduce the value of those guaranteed benefits. Such amount may be greater than the annual increase in the GMIB, GWBL and/or the enhanced death benefit base and/or greater than the Guaranteed annual withdrawal amount under GWBL. See the discussion of these benefits later in this section. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept initial and additional contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealers. Additional contributions may also be made under our automatic investment program. These methods of payment are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- Your initial contribution must generally be accompanied by an application and any other form we need to process the payments. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain this information. If we are unable to obtain all of the information we require within five business days after we receive an incomplete application or form, we will inform the financial professional submitting the application on your behalf. We will then return the contribution to you unless you specifically direct us to keep your contribution until we receive the required information. The contribution will be applied as of the date we receive the missing information. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option, the fixed maturity options and the account for special dollar cost averaging. If you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit, your invest- 26 Contract features and benefits ment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the following variable investment options: the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio ("permitted variable investment options"). If you elect the 125% Principal guarantee benefit, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the AXA Moderate Allocation Portfolio. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. Contract features and benefits 27 PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risk associated with certain guaranteed features, including those optional benefits that restrict allocations to the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable ALLOCATION greater emphasis on current income. - ------------------------------------------------------------------------------------------------------------------------------------ AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable ALLOCATION with a greater emphasis on capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER AGGRESSIVE Long-term growth of capital. o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER CORE BOND To seek a balance of high current income and capital o BlackRock Financial Management, Inc. appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER HEALTH CARE Long-term growth of capital. o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER HIGH YIELD High total return through a combination of current o Pacific Investment Management Company income and capital appreciation. LLC o Post Advisory Group, LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER INTERNATIONAL Long-term growth of capital. o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------
28 Contract features and benefits
- --------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - --------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - --------------------------------------------------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - ---------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 29
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY markets using strategies that are designed to limit exposure to general equity market risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, o BlackRock Investment Management, LLC EQUITY income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of o BlackRock Investment Management VALUE income, accompanied by growth of capital. International Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to o Boston Advisors, LLC INCOME achieve an above-average and consistent total return. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company RESEARCH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management YIELD BOND - ------------------------------------------------------------------------------------------------------------------------------------ EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. o Davis Selected Advisers, L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that o AllianceBernstein L.P. approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. o Evergreen Investment Management Company, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI MID CAP Seeks to achieve long-term growth of capital. o Fidelity Management & Research Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects o Franklin Advisers, Inc. for capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. o Franklin Advisory Services, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily o AXA Equitable FOUNDING STRATEGY seeks income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. o GAMCO Asset Management Inc. ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. o GAMCO Asset Management Inc. VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------
30 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with o JPMorgan Investment Management Inc. moderate risk to capital and maintenance of liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. o JPMorgan Investment Management Inc. OPPORTUNITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- o AXA Equitable ondary objective to seek reasonable current income. For o Institutional Capital LLC purposes of this Portfolio, the words "reasonable o Mellon Capital Management Corporation current income" mean moderate income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. o Legg Mason Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o BlackRock Financial Management, Inc. through investment in long-maturity debt obligations. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC INCOME income without excessive fluctuation in market value. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC CORE income with reasonable risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. o Lord, Abbett & Co. LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONEY MARKET Seeks to obtain a high level of current income, o The Dreyfus Corporation preserve its assets and maintain liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- o Franklin Mutual Advisers, LLC sionally be short-term, and secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. o OppenheimerFunds, Inc. OPPORTUNITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. SMALL CAP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with o Pacific Investment Management Company, preservation of real capital and prudent investment man- LLC agement. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility o BlackRock Financial Management, Inc. of principal. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o AllianceBernstein L.P. deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 31
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and o T. Rowe Price Associates, Inc. STOCK secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. o Templeton Global Advisors Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation o UBS Global Asset Management with income as a secondary consideration. (Americas) Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. o Morgan Stanley Investment Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. o Morgan Stanley Investment Management Inc. MARKETS EQUITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. o Morgan Stanley Investment Management Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- o Morgan Stanley Investment Management Inc. term capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks, and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. 32 Contract features and benefits GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges, any withdrawal charges and any optional benefit charges. See Appendix VII later in this Prospectus for state variations. Depending on the state where your contract is issued, your lifetime minimum rate ranges from 1.00% to 3.00%. The data page for your contract shows the lifetime minimum rate. Check with your financial professional as to which rate applies in your state. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75% or 3.00%, depending on your lifetime minimum rate. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfers from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional or see Appendix VII later in this Prospectus to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options generally range from one to ten years to maturity. - -------------------------------------------------------------------------------- On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for owner and annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you apply for an Accumulator(R) contract, a 60-day rate lock-in will apply from the date the application is signed. Any contributions received and designated for a fixed maturity option during this period will receive the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever is greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from any of the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value (there may be a withdrawal charge). If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008, the next available maturity date was February 15, 2015. If no fixed maturity options are available, we will transfer your maturity value to the EQ/Money Market option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract, or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market Contract features and benefits 33 value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options (adjusted to reflect a similar maturity date), and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING The account for special dollar cost averaging is part of our general account. We pay interest at guaranteed rates in this account. We will credit interest to the amounts that you have in the account for special dollar cost averaging every day. We set the interest rates periodically, according to procedures that we have. We reserve the right to change these procedures. We guarantee to pay our current interest rate that is in effect on the date that your contribution is allocated to this account. Your guaranteed interest rate for the time period you select will be shown in your contract for an initial contribution. The rate will never be less than the lifetime minimum rate for the guaranteed interest option. See "Allocating your contributions" below for rules and restrictions that apply to the special dollar cost averaging program. ALLOCATING YOUR CONTRIBUTIONS You may choose between self-directed and dollar cost averaging to allocate your contributions under your contract. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, the guaranteed interest option (subject to restrictions in certain states-see Appendix VII later in this Prospectus for state variations) and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. The total of your allocations into all available investment options must equal 100%. If an owner or annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options or the guaranteed interest option. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- SPECIAL DOLLAR COST AVERAGING PROGRAM. Under the special dollar cost averaging program, you may choose to allocate all or a portion of any eligible contribution to the account for special dollar cost averaging. Contributions into the account for special dollar cost averaging may not be transfers from other investment options. Your initial allocation to any special dollar cost averaging program time period must be at 34 Contract features and benefits least $2,000 and any subsequent contribution to that same time period must be at least $250. You may only have one time period in effect at any time and once you select a time period, you may not change it. In Pennsylvania, we refer to this program as "enhanced rate dollar cost averaging." You may have your account value transferred to any of the variable investment options available under your contract. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. We will transfer amounts from the account for special dollar cost averaging into the variable investment options over an available time period that you select. We offer time periods of 3, 6 or 12 months, during which you will receive an enhanced interest rate. We may also offer other time periods. Your financial professional can provide information on the time periods and interest rates currently available in your state, or you may contact our processing office. If the special dollar cost averaging program is selected at the time of application to purchase the Accumulator(R) contract, a 60 day rate lock will apply from the date of application. Any contribution(s) received during this 60 day period will be credited with the interest rate offered on the date of application for the remainder of the time period selected at application. Any contribution(s) received after the 60 day rate lock period has ended will be credited with the then current interest rate for the remainder of the time period selected at application. Contribution(s) made to a special dollar cost averaging program selected after the Accumulator(R) contract has been issued will be credited with the then current interest rate on the date the contribution is received by AXA Equitable for the time period initially selected by you. Once the time period you selected has run, you may then select another time period for future contributions. At that time, you may also select a different allocation for transfers to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, your account value will be transferred from the account for special dollar cost averaging into the variable investment options on a monthly basis. We may offer this program in the future with transfers on a different basis. We will transfer all amounts out of the account for special dollar cost averaging by the end of the chosen time period. The transfer date will be the same day of the month as the contract date, but not later than the 28th day of the month. For a special dollar cost averaging program selected after application, the first transfer date and each subsequent transfer date for the time period selected will be one month from the date the first contribution is made into the special dollar cost averaging program, but not later than the 28th day of the month. If you choose to allocate only a portion of an eligible contribution to the account for special dollar cost averaging, the remaining balance of that contribution will be allocated to the variable investment options, guaranteed interest option or fixed maturity options according to your instructions. The only transfers that will be made from the account for special dollar cost averaging are your regularly scheduled transfers to the variable investment options. No amounts may be transferred from the account for special dollar cost averaging to the guaranteed interest option or the fixed maturity options. If you request to transfer or withdraw any other amounts from the account for special dollar averaging, we will transfer all of the value that you have remaining in the account for special dollar cost averaging to the investment options according to the allocation percentages for special dollar cost averaging we have on file for you. You may ask us to cancel your participation at any time. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options (subject to restrictions in certain states. See Appendix VII later in this Prospectus.) You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. If you are participating in a Principal guarantee benefit, the general dollar cost averaging program is not available. If you elect the Guaranteed withdrawal benefit for life, general dollar cost averaging is not available. INVESTMENT SIMPLIFIER FIXED-DOLLAR OPTION. Under this option you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. Unlike the account for special dollar cost averaging, this option does not offer enhanced rates. Also, the option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. Contract features and benefits 35 If, on any transfer date, your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. INTEREST SWEEP OPTION. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Under the Option I rebalancing program, you may participate in any of the dollar cost averaging programs except general dollar cost averaging. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" immediately below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. Not all dollar cost averaging programs are available in every state. See Appendix VII later in this Prospectus for more information on state availability. GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit and the death benefits, as described in this section. The benefit base for the Guaranteed minimum income benefit and any enhanced death benefit will be calculated as described below in this section whether these options are elected individually or in combination. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 6% ROLL-UP TO AGE 85 (USED FOR THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to the benefit base is: o 6% with respect to the variable investment options (other than EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market and EQ/Short Duration Bond), and the account for special dollar cost averaging; the effective annual rate may be 4% in some states. Please see Appendix VII later in this Prospectus to see what applies in your state; and o 3% with respect to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond, the fixed maturity options, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up on the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday. For contracts with non-natural owners, the benefit base stops rolling up on the contract date anniversary following the annuitant's 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: 36 Contract features and benefits o your initial contribution to the contract (plus any additional contributions), or o your highest account value on any contract date anniversary up to the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday, plus any contributions made since the most recent Annual Ratchet, less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of the deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. For contracts with non-natural owners, the last contract date anniversary a ratchet could occur is based on the annuitant's age. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6% Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. For the Guaranteed minimum income benefit, the benefit base is reduced by any applicable withdrawal charge remaining when the option is exercised. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. In Washington a different roll-up rate applies to the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. See Appendix VII later in this Prospectus. GUARANTEED MINIMUM DEATH BENEFIT/GUARANTEED MINIMUM INCOME BENEFIT ROLL-UP BENEFIT BASE RESET. If both the Guaranteed minimum income benefit AND the Greater of the 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit (the "Greater of enhanced death benefit") are elected, you may reset the Roll-Up benefit base for these guaranteed benefits to equal the account value on any contract date anniversary until the contract date anniversary following age 75, if your contract has an annual reset. If your contract has a five year reset, you may reset the Roll-Up benefit base for these guaranteed benefits to equal the account value on any 5th or later contract date anniversary until the contract date anniversary following age 75. The reset amount would equal the account value as of the contract date anniversary on which you reset your Roll-Up benefit base. The 6% Roll-Up continues to age 85 on any reset benefit base. We will send you a notice in each year that the Roll-Up benefit base is eligible to be reset, and you will have 30 days from your contract date anniversary to reset your Roll-Up benefit base. If your contract is eligible for an annual reset and your request to reset your Roll-Up benefit base is received at our processing office more than 30 days after your contract date anniversary, your Roll-Up benefit base will reset on the next contract date anniversary on which you are eligible for a reset. If your contract is eligible for an annual reset, you may choose one of the three available reset methods: one-time reset option, automatic annual reset program or automatic customized reset program. - -------------------------------------------------------------------------------- ONE-TIME RESET OPTION - resets your Roll-Up benefit base on a single contract date anniversary. AUTOMATIC ANNUAL RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary you are eligible for a reset. AUTOMATIC CUSTOMIZED RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary, if eligible, for the period you designate. - -------------------------------------------------------------------------------- If you wish to cancel your elected reset program, your request must be received by our processing office at least 30 days prior to your contract date anniversary to terminate your reset program for such contract date anniversary. Cancellation requests received after this window will be applied the following year. A reset cannot be cancelled after it has occurred. For more information, see "How to reach us" earlier in this Prospectus. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset until the next contract date anniversary or for five years, depending upon the reset period available under your contract. Please see Appendix VIII later in this Prospectus for more information on the reset feature available under your contract. If after your death your spouse continues the contract and your contract has an annual reset, the benefit base will be eligible to be reset on each contract date anniversary, if applicable. However, if your contract has a five year reset, the benefit base will be eligible to be reset either five years from the contract date or from the last reset date, if applicable. The last age at which the benefit base is eligible to be reset is the contract date anniversary following owner (or older joint owner, if applicable) age 75. For contracts with non-natural owners, reset eligibility is based on the annuitant's age. It is important to note that once you have reset your Roll-Up benefit base, a new waiting period to exercise the Guaranteed minimum income benefit will apply from the date of reset; you may not exercise until the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. See "Exercise rules" under "Guaranteed minimum income benefit option" below for more information. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the exercise waiting period. Also, even when there is no additional charge when you reset your Roll-Up benefit base, the total dollar amount charged on future contract date anniversaries may increase as a result of the reset since the charges may be applied to a higher benefit base than would have been otherwise applied. See "Charges and expenses" in the Prospectus. If you are a traditional IRA, TSA or QP contract owner, before you reset your Roll-Up benefit base, please consider the effect of the 10-year exercise waiting period on your requirement to take lifetime required minimum distributions with respect to this contract. If you must begin taking lifetime required minimum distributions during the 10-year waiting period, you may want to consider taking the annual lifetime required minimum distribution calculated for this contract from another traditional IRA, TSA or QP contract that you maintain. If you withdraw the lifetime required minimum distribution from this contract, and the required minimum Contract features and benefits 37 distribution is more than 6% of the reset benefit base, the withdrawal would cause a pro-rata reduction in the benefit base. Alternatively, resetting the benefit base to a larger amount would make it less likely that the required minimum distributions would exceed the 6% threshold. See "Lifetime required minimum distribution withdrawals" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money." Also, see "Required minimum distributions" under "Individual retirement arrangements (IRAs)" and "Tax-sheltered annuity contracts (TSAs)" in "Tax information" and Appendix II -- "Purchase considerations for QP Contracts," later in this Prospectus. The Roll-Up benefit base for both the "Greater of" enhanced death benefit and the Guaranteed minimum income benefit are reset simultaneously when you request a Roll-Up benefit base reset. You cannot elect a Roll-Up benefit base reset for one benefit and not the other. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed under "Guaranteed minimum income benefit option" below and annuity payout options are discussed under "Your annuity payout options" in "Accessing your money" later in this Prospectus. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the owner's (and any joint owner's) age and sex in certain instances. Your contract may specify different guaranteed annuity purchase factors for the Guaranteed minimum income benefit and the annuity payout options. We may provide more favorable current annuity purchase factors for the annuity payout options. GUARANTEED MINIMUM INCOME BENEFIT OPTION The Guaranteed minimum income benefit is available if the owner is age 20 through 75 at the time the contract is issued. If the contract is jointly owned, the Guaranteed minimum income benefit will be calculated on the basis of the older owner's age. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. If you are purchasing this contract as an Inherited IRA or if you elect a Principal guarantee benefit or the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit is not available. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your Guaranteed minimum income benefit. See "Owner and annuitant requirements" earlier in this section. For IRA, QP and Rollover TSA contracts, owners over age 60 at contract issue should consider the impact of the minimum distributions required by tax law in relation to the withdrawal limitations under the Guaranteed minimum income benefit. See "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. If you elect the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the owner's age, as follows: - ------------------------------------------------ Level payments - ------------------------------------------------ Period certain years Owner's -------------------- age at exercise IRAs NQ - ------------------------------------------------ 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - ------------------------------------------------ We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit should be regarded as a safety net only. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base, less any applicable withdrawal charge remaining, to guaranteed annuity purchase factors, or (ii) the income provided by applying your account value to our then current annuity purchase factors. For Rollover TSA only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity pur- 38 Contract features and benefits chase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. Before you elect the Guaranteed minimum income benefit you should consider the fact that it provides a form of insurance and is based on conservative actuarial factors. For certain contracts, the guaranteed annuity purchase factors we use to determine your payout annuity benefit under the Guaranteed minimum income benefit are more conservative than the guaranteed annuity purchase factors we use for our standard payout annuity options. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the Guaranteed minimum income benefit payout annuity will be smaller than each periodic payment under our standard payout annuity options. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. GUARANTEED MINIMUM INCOME BENEFIT "NO LAPSE GUARANTEE". In general, if your account value falls to zero (except, as discussed below, if your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days), the Guaranteed minimum income benefit will be exercised automatically, based on the owner's (or older joint owner's, if applicable) current age and benefit base, as follows: o You will be issued a supplementary contract based on a single life with a maximum 10 year period certain. Payments will be made annually starting one year from the date the account value fell to zero. o You will have 30 days from when we notify you to change the payout option and/or the payment frequency. Please note that we will not automatically exercise the Guaranteed minimum income benefit, as described above, if you have a TSA contract and withdrawal restrictions apply. The no lapse guarantee will terminate under the following circumstances: o If your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year); o If your aggregate withdrawals during any contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days); o Upon the contract date anniversary following the owner (or older joint owner, if applicable) reaching age 85. Please note that if you participate in our Automatic RMD service, an automatic withdrawal under that program will not cause the no lapse guarantee to terminate even if a withdrawal causes your total contract year withdrawals to exceed 6% of your Roll-Up benefit base. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the Guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male owner age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals, or loans under Rollover TSA contracts, and assuming there were no allocations to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options or the loan reserve account under Rollover TSA contracts.
- ------------------------------------------------------------- Guaranteed Guaranteed mini- minimum income mum income benefit benefit -- annual -- annual income income payable for payable for life (for Contract life (for contracts contracts with the date with the five year annual Roll-Up ben- anniversary Roll-Up benefit base efit base reset at exercise reset feature) feature). - ------------------------------------------------------------- 10 $11,891 $10,065 15 $18,597 $15,266 - -------------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us, along with all required information within 30 days following your contract date anniversary, in order to exercise this benefit. Upon exercise of the Guaranteed minimum income benefit, the owner will become the annuitant, and the contract will be annuitized on the basis of the owner's life. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payout contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death or, if later, the end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. Eligibility to exercise the Guaranteed minimum income benefit is based on the owner's (or older joint owner's, if applicable) age as follows: o If you were at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. Contract features and benefits 39 o If you were at least age 45 and no older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after age 60. o If you were at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your 85th birthday; (ii) if you were age 75 when the contract was issued or the Roll-Up benefit base was reset, the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your attainment of age 85; (iii) for Accumulator(R) QP contracts, the Plan participant can exercise the Guaranteed minimum income benefit only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) QP contract into an Accumulator(R) Rollover IRA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for the Plan participant to be eligible to exercise. However, if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, a rollover into an IRA will not be effected and payments will be made directly to the trustee; (iv) for Accumulator(R) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (v) if you reset the Roll-Up benefit base (as described earlier in this section), your new exercise date will be the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the waiting period; (vi) a spouse beneficiary or younger spouse joint owner under Spousal continuation may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original owner could have exercised the benefit. In addition, the spouse beneficiary or younger spouse joint owner must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The spouse beneficiary or younger spouse joint owner's age on the date of the owner's death replaces the owner's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules; (vii) if the contract is jointly owned, you can elect to have the Guaranteed minimum income benefit paid either: (a) as a joint life benefit or (b) as a single life benefit paid on the basis of the older owner's age; and (viii) if the contract is owned by a trust or other non-natural person, eligibility to elect or exercise the Guaranteed minimum income benefit is based on the annuitant's age, rather than the owner's. See "Effect of the owner's death" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. Your contract provides a standard death benefit. If you do not elect one of the enhanced death benefits described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions, adjusted for withdrawals (and any associated withdrawal charges). The standard death benefit is the only death benefit available for owners (or older joint owners, if applicable) ages 76 through 85 at issue. Once your contract is issued, you may not change or voluntarily terminate your death benefit. If you elect one of the enhanced death benefits, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, information and forms necessary to effect payment, or your elected enhanced death benefit on the date of the owner's (or older joint owner's, if applicable) death, adjusted for subsequent withdrawals (and associated withdrawal charges), whichever provides the higher amount. See "Payment of death benefit" later in this Prospectus for more information. Any of the enhanced death benefits or the standard death benefit can be elected by themselves or with the Guaranteed minimum income benefit. If you elect one of the enhanced death benefit options described below and change ownership of the contract, generally the benefit will 40 Contract features and benefits automatically terminate, except under certain circumstances. If this occurs, any enhanced death benefit elected will be replaced with the standard death benefit. For contracts with non-natural owners, the death benefit will be payable upon the death of the annuitant. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information" later in this Prospectus for more information. OPTIONAL ENHANCED DEATH BENEFIT APPLICABLE FOR OWNER (OR OLDER JOINT OWNER, IF APPLICABLE) AGES 0 THROUGH 75 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA, FLEXIBLE PREMIUM ROTH IRA, AND ROLLOVER TSA CONTRACTS; 20 THROUGH 70 AT ISSUE OF FLEXIBLE PREMIUM IRA CONTRACTS; 0 THROUGH 70 AT ISSUE FOR INHERITED IRA CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS. FOR CONTRACTS WITH NON-NATURAL OWNERS, THE AVAILABLE DEATH BENEFITS ARE BASED ON THE ANNUITANT'S AGE. Subject to state availability (see Appendix VII later in this Prospectus for state availability of these benefits), you may elect one of the following enhanced death benefits: o Annual Ratchet to age 85. o The Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85. Each enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Once you have made your enhanced death benefit election, you may not change it. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your enhanced death benefit. See "Owner and annuitant requirements" earlier in this section. See Appendix IV later in this Prospectus for an example of how we calculate an enhanced death benefit. EARNINGS ENHANCEMENT BENEFIT Subject to state and contract availability (see Appendix VII later in this Prospectus for state availability of these benefits), if you are purchasing a contract under which the Earnings enhancement benefit is available, you may elect the Earnings enhancement benefit at the time you purchase your contract. The Earnings enhancement benefit provides an additional death benefit as described below. See the appropriate part of "Tax information" later in this Prospectus for the potential tax consequences of electing to purchase the Earnings enhancement benefit in an NQ, IRA or Rollover TSA contract. Once you purchase the Earnings enhancement benefit you may not voluntarily terminate this feature. If you elect the Guaranteed withdrawal benefit for life, the Earnings enhancement benefit is not available. If you elect the Earnings enhancement benefit described below and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the owner (or older joint owner, if applicable) is 70 or younger when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is 70 or younger when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 40% of: the greater of: o the account value or o any applicable death benefit decreased by: o total net contributions For purposes of calculating your Earnings enhancement benefit, the following applies: (i) "Net contributions" are the total contributions made (or if applicable, the total amount that would otherwise have been paid as a death benefit had the spouse beneficiary or younger spouse joint owner not continued the contract plus any subsequent contributions) adjusted for each withdrawal that exceeds your Earnings enhancement benefit earnings. "Net contributions" are reduced by the amount of that excess. Earnings enhancement benefit earnings are equal to (a) minus (b) where (a) is the greater of the account value and the death benefit immediately prior to the withdrawal, and (b) is the net contributions as adjusted by any prior withdrawals; and (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable Guaranteed minimum death benefit as of the date of death. If the owner (or older joint owner, if applicable) is age 71 through 75 when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is between the ages of 71 and 75 when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 25% of: the greater of: o the account value or o any applicable death benefit decreased by: o total net contributions The value of the Earnings enhancement benefit is frozen on the first contract date anniversary after the owner (or older joint owner, if applicable) turns age 80, except that the benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce the benefit by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If the benefit is $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and the benefit after the withdrawal would be $24,000 ($40,000 - $16,000). Contract features and benefits 41 For contracts with non-natural owners, your eligibility to elect the Earnings enhancement benefit will be calculated based on the annuitant's age. For an example of how the Earnings enhancement death benefit is calculated, please see Appendix VI. For contracts continued under Spousal continuation upon the death of the spouse (or older spouse, in the case of jointly owned contracts), the account value will be increased by the value of the Earnings enhancement benefit as of the date we receive due proof of death. The benefit will then be based on the age of the surviving spouse as of the date of the deceased spouse's death for the remainder of the contract. If the surviving spouse is age 76 or older, the benefit will terminate and the charge will no longer be in effect. The spouse may also take the death benefit (increased by the Earnings enhancement benefit) in a lump sum. See "Spousal continuation" in "Payment of death benefit" later in this Prospectus for more information. The Earnings enhancement benefit must be elected when the contract is first issued: neither the owner nor the successor owner can add it subsequently. Ask your financial professional or see Appendix VII later in this Prospectus to see if this feature is available in your state. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL") For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL") guarantees that you can take withdrawals up to a maximum amount per year (your "Guaranteed annual withdrawal amount"). GWBL is only available at issue. This benefit is not available at issue ages younger than 45. GWBL is not available if you have elected the Guaranteed minimum income benefit, the Earnings enhancement benefit or one of our Principal guarantee benefits described later in this Prospectus. You may elect one of our automated payment plans or you may take partial withdrawals. All withdrawals reduce your account value and Guaranteed minimum death benefit. See "Accessing your money" later in this Prospectus. Your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. You may buy this benefit on a single life ("Single life") or a joint life ("Joint life") basis. Under a Joint life contract, lifetime withdrawals are guaranteed for the life of both the owner and successor owner (or annuitant and joint annuitant, as applicable). For Joint life contracts, a successor owner may be named at contract issue only. The successor owner must be the owner's spouse. If you and the successor owner are no longer married, you may either: (i) drop the original successor owner or (ii) replace the original successor owner with your new spouse. This can only be done before the first withdrawal is made from the contract. After the first withdrawal, the successor owner can be dropped but cannot be replaced. If the successor owner is dropped after withdrawals begin, the charge will continue based on a Joint life basis. For NQ contracts, you have the option to designate the successor owner as a joint owner. For Joint life contracts owned by a non-natural owner, a joint annuitant may be named at contract issue only. The annuitant and joint annuitant must be spouses. If the annuitant and joint annuitant are no longer married, you may either: (i) drop the joint annuitant or (ii) replace the original joint annuitant with the annuitant's new spouse. This can only be done before the first withdrawal. After the first withdrawal, the joint annuitant may be dropped but cannot be replaced. If the joint annuitant is dropped after withdrawals begin, the charge continues based on a Joint life basis. Joint annuitants are not permitted under any other contracts. This benefit is not available under an Inherited IRA contract. Joint life QP and TSA contracts are not permitted. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your guaranteed withdrawal benefit for life. See "Owner and annuitant requirements" earlier in this section. The cost of the GWBL benefit will be deducted from your account value on each contract date anniversary. Please see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus for a description of the charge. You should not purchase this benefit if: o You plan to take withdrawals in excess of your Guaranteed annual withdrawal amount because those withdrawals may significantly reduce or eliminate the value of the benefit (see "Effect of Excess withdrawals" below in this section); o You are not interested in taking withdrawals prior to the contract's maturity date; o You are using the contract to fund a Rollover TSA or QP contract where withdrawal restrictions will apply; or o You plan to use it for withdrawals prior to age 59-1/2, as the taxable amount of the withdrawal will be includible in income and subject to an additional 10% federal income tax penalty, as discussed later in this Prospectus. The Federal Defense of Marriage Act precludes same-sex married couples, domestic partners, and civil union partners from being considered married under federal law. Such individuals, therefore, are not entitled to the favorable tax treatment accorded spouses under federal tax law. As a result, mandatory distributions from the contract must be made after the death of the first individual. Accordingly, the GWBL will have little or no value to the surviving same-gender spouse or partner. You should consult with your tax adviser for more information on this subject. For traditional IRAs, TSA and QP contracts, you may take your lifetime required minimum distributions ("RMDs") without losing the value of the GWBL benefit, provided you comply with the conditions described under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, this benefit may have limited usefulness for you and you should consider whether it is appropriate. Please consult your tax adviser. 42 Contract features and benefits GWBL BENEFIT BASE At issue, your GWBL benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL benefit base increases by any subsequent contributions. o Your GWBL benefit base may be increased on each contract date anniversary, as described below under "Annual ratchet" and "5% deferral bonus." o Your GWBL benefit base is not reduced by withdrawals except those withdrawals that cause total withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess withdrawals" below in this section. GUARANTEED ANNUAL WITHDRAWAL AMOUNT Your initial Guaranteed annual withdrawal amount is equal to a percentage of the GWBL benefit base. The initial applicable percentage ("Applicable percentage") is based on the owner's age at the time of the first withdrawal. For Joint life contracts, the initial Applicable percentage is based on the age of the owner or successor owner, whoever is younger at the time of the first withdrawal. For contracts held by non-natural owners, the initial Applicable percentage is based on the annuitant's age or on the younger annuitant's age, if applicable, at the time of the first withdrawal. If your GWBL benefit base ratchets, as described below in this section under "Annual ratchet," on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. The Applicable percentages are as follows: - -------------------------------------- Age Applicable percentage - -------------------------------------- 45-64 4.0% 65-74 5.0% 75-84 6.0% 85 and older 7.0% - -------------------------------------- We will recalculate the Guaranteed annual withdrawal amount on each contract date anniversary and as of the date of any subsequent contribution or Excess withdrawal, as described below under "Effect of Excess withdrawals" and "Subsequent contributions." The withdrawal amount is guaranteed never to decrease as long as there are no Excess withdrawals. Your Guaranteed annual withdrawals are not cumulative. If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. The withdrawal charge, if applicable, is waived for withdrawals up to the Guaranteed annual withdrawal amount, but all withdrawals are counted toward your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. EFFECT OF EXCESS WITHDRAWALS An Excess withdrawal is caused when you withdraw more than your Guaranteed annual withdrawal amount in any contract year. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, the entire amount of that withdrawal and each subsequent withdrawal in that contract year are considered Excess withdrawals. An Excess withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount. If you make an Excess withdrawal, we will recalculate your GWBL benefit base and the Guaranteed annual withdrawal amount, as follows: o The GWBL benefit base is reset as of the date of the Excess with drawal to equal the lesser of: (i) the GWBL benefit base immediately prior to the Excess withdrawal and (ii) the account value immediately following the Excess withdrawal. o The Guaranteed annual withdrawal amount is recalculated to equal the Applicable percentage multiplied by the reset GWBL benefit base. You should not purchase this contract if you plan to take withdrawals in excess of your Guaranteed annual withdrawal amount as such withdrawals may significantly reduce or eliminate the value of the GWBL benefit. If your account value is less than your GWBL benefit base (due, for example, to negative market performance), an Excess withdrawal, even one that is only slightly more than your Guaranteed annual withdrawal amount, can significantly reduce your GWBL benefit base and the Guaranteed annual withdrawal amount. For example, assume your Income base is $100,000 and your account value is $80,000 when you decide to begin taking withdrawals at age 65. Your Guaranteed annual withdrawal amount is equal to $5,000 (5.0% of $100,000). You take an initial withdrawal of $8,000. Since your Income base is immediately reset to equal the lesser of your GWBL benefit base prior to the Excess withdrawal ($100,000) and your account value immediately following the Excess withdrawal ($80,000 minus $8,000), your GWBL benefit base is now $72,000. In addition, your Guaranteed annual withdrawal amount is reduced to $3,600 (5.0% of $72,000), instead of the original $5,000. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds the greater of (i) the Guaranteed annual withdrawal amount or (ii) the 10% free withdrawal amount. A withdrawal charge would not be applied in the example above since the $8,000 withdrawal (equal to 10% of the contract's account value as of the beginning of the contract year) falls within the 10% free withdrawal amount. Under the example above, additional withdrawals during the same contract year could result in a further reduction of the GWBL benefit base and the Guaranteed annual withdrawal amount, as well as an application of withdrawal charges, if applicable. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. You should note that an Excess withdrawal that reduces your account value to zero terminates the contract, including all benefits, without value. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA, QP or TSA and participate in our Automatic RMD service, an automatic withdrawal under that program will not cause an Excess withdrawal, even Contract features and benefits 43 if it exceeds your Guaranteed annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. Loans are not available under Rollover TSA contracts if GWBL is elected. ANNUAL RATCHET Your GWBL benefit base is recalculated on each contract date anniversary to equal the greater of: (i) the account value and (ii) the most recent GWBL benefit base. If your account value is greater, we will ratchet up your GWBL benefit base to equal your account value. If your GWBL benefit base ratchets on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. Your Guaranteed annual withdrawal amount will also be increased, if applicable, to equal your Applicable percentage times your new GWBL benefit base. If your GWBL benefit base ratchets, we may increase the charge for the benefit. Once we increase the charge, it is increased for the life of the contract. We will permit you to opt out of the ratchet if the charge increases. If you choose to opt out, your charge will stay the same but your GWBL benefit base will no longer ratchet. Upon request, we will permit you to accept a GWBL benefit base ratchet with the charge increase on a subsequent contract date anniversary. For a description of the charge increase, see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus. 5% DEFERRAL BONUS At no additional charge, during the first ten contract years, in each year you have not taken a withdrawal, we will increase your GWBL benefit base by an amount equal to 5% of your total contributions. If the Annual Ratchet (as discussed immediately above) occurs on any contract date anniversary, for the next and subsequent contract years, the bonus will be 5% of the most recent ratcheted GWBL benefit base plus any subsequent contributions. If the GWBL benefit base is reduced due to an Excess withdrawal, the 5% deferral bonus will be calculated using the reset GWBL benefit base plus any applicable contributions. The deferral bonus generally excludes contributions made in the prior 12 months. In the first contract year, the deferral bonus is determined using all contributions received in the first 90 days of the contract year. On any contract date anniversary on which you are eligible for a bonus, we will calculate the applicable bonus amount. If, when added to the current GWBL benefit base, the amount is greater than your account value, that amount will become your new GWBL benefit base. If that amount is less than or equal to your account value, your GWBL benefit base will be ratcheted to equal your account value, and the 5% deferral bonus will not apply. If you opt out of the Annual Ratchet (as discussed immediately above), the 5% deferral bonus will still apply. SUBSEQUENT CONTRIBUTIONS Subsequent contributions are not permitted after the later of: (i) the end of the first contract year and (ii) the date the first withdrawal is taken. Anytime you make an additional contribution, your GWBL benefit base will be increased by the amount of the contribution. Your Guaranteed annual withdrawal amount will be equal to the Applicable percentage of the increased GWBL benefit base. GWBL GUARANTEED MINIMUM DEATH BENEFIT There are two guaranteed minimum death benefits available if you elect the GWBL option: (i) the GWBL Standard death benefit, which is available at no additional charge for owner issue ages 45-85, and (ii) the GWBL Enhanced death benefit, which is available for an additional charge for owner issue ages 45-75. Please see Appendix VII later in this Prospectus to see if these guaranteed death benefits are available in your state. The GWBL Standard death benefit is equal to the GWBL Standard death benefit base. The GWBL Standard death benefit base is equal to your initial contribution and any additional contributions less a deduction that reflects any withdrawals you make (see "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus). The GWBL Enhanced death benefit is equal to the GWBL Enhanced death benefit base. Your initial GWBL Enhanced death benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL Enhanced death benefit base increases by any subsequent contribution; o Your GWBL Enhanced death benefit base increases to equal your account value if ratcheted, as described above in this section; o Your GWBL Enhanced death benefit base increases by any 5% deferral bonus, as described above in this section; o Your GWBL Enhanced death benefit base decreases by an amount which reflects any withdrawals you make; See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. The death benefit is equal to your account value (adjusted for any pro rata optional benefit charges) as of the date we receive satisfactory proof of death, any required instructions for method of payment, information and forms necessary to effect payment or the applicable GWBL Guaranteed minimum death benefit on the date of the owner's death (adjusted for any subsequent withdrawals and withdrawal charges), whichever provides a higher amount. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO If your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no further payments or benefits. If an Excess withdrawal results in a withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. However, if your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, please note the following: 44 Contract features and benefits o Your Accumulator(R) contract terminates and you will receive a supplementary life annuity contract setting forth your continuing benefits. The owner of the Accumulator(R) contract will be the owner and annuitant. The successor owner, if applicable, will be the joint annuitant. If the owner is non-natural, the annuitant and joint annuitant, if applicable, will be the same as under your Accumulator(R) contract. o No subsequent contributions will be permitted. o If you were taking withdrawals through the "Maximum payment plan," we will continue the scheduled withdrawal payments on the same basis. o If you were taking withdrawals through the "Customized payment plan" or in unscheduled partial withdrawals, we will pay the balance of the Guaranteed annual withdrawal amount for that contract year in a lump sum. Payment of the Guaranteed annual withdrawal amount will begin on the next contract date anniversary. o Payments will continue at the same frequency for Single or Joint life contracts, as applicable, or annually if automatic payments were not being made. o Any guaranteed minimum death benefit remaining under the original contract will be carried over to the supplementary life annuity contract. The death benefit will no longer grow and will be reduced on a dollar for dollar basis as payments are made. If there is any remaining death benefit upon the death of the owner and successor owner, if applicable, we will pay it to the beneficiary. o The charge for the Guaranteed withdrawal benefit for life and the GWBL Enhanced death benefit will no longer apply. o If at the time of your death the Guaranteed annual withdrawal amount was being paid to you as a supplementary life annuity contract, your beneficiary may not elect the Beneficiary continuation option. OTHER IMPORTANT CONSIDERATIONS o This benefit is not appropriate if you do not intend to take withdrawals prior to annuitization. o Amounts withdrawn in excess of your Guaranteed annual withdrawal amount may be subject to a withdrawal charge, if applicable, as described in "Charges and expenses" later in the Prospectus. In addition, all withdrawals count toward your free withdrawal amount for that contract year. Excess withdrawals can significantly reduce or completely eliminate the value of the GWBL and GWBL Enhanced death benefit. See "Effect of Excess withdrawals" above in this section and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o Withdrawals are not considered as annuity payments for tax purposes, and may be subject to an additional 10% federal income tax penalty if they are taken before age 59-1/2. See "Tax information" later in this Prospectus. o All withdrawals reduce your account value and Guaranteed minimum death benefit. See "How withdrawals are taken from your account value" and "How withdrawals affect your Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. o The GWBL benefit terminates if the contract is continued under the beneficiary continuation option or under the Spousal continuation feature if the spouse is not the successor owner. o If you surrender your contract to receive its cash value and your cash value is greater than your Guaranteed annual withdrawal amount, all benefits under the contract will terminate, including the GWBL benefit. o If you transfer ownership of this contract, you terminate the GWBL benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information" later in this Prospectus for more information. o Withdrawals are available under other annuity contracts we offer and this contract without purchasing a withdrawal benefit. o For IRA, QP and TSA contracts, if you have to take a required minimum distribution ("RMD") and it is your first withdrawal under the contract, the RMD will be considered your "first withdrawal" for the purposes of establishing your GWBL Applicable percentage. o If you elect GWBL on a Joint life basis and subsequently get divorced, your divorce will not automatically terminate the contract. For both Joint life and Single life contracts, it is possible that the terms of your divorce decree could significantly reduce or completely eliminate the value of this benefit. PRINCIPAL GUARANTEE BENEFITS We offer two 10-year Principal guarantee benefits at an additional charge: the 100% Principal guarantee benefit and the 125% Principal guarantee benefit. You may only elect one Principal guarantee benefit ("PGB"). 100% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 100% Principal guarantee benefit is equal to your initial contribution and additional permitted contributions, adjusted for withdrawals. Under the 100% Principal guarantee benefit, your investment options are limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. 125% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 125% Principal guarantee benefit is equal to 125% of your initial contribution and additional permitted contributions, adjusted for withdrawals. Under the 125% Principal guarantee benefit, your investment options are limited to the guaranteed interest option, the account for special dollar cost averaging and the AXA Moderate Allocation portfolio. Under both Principal guarantee benefits, if, on the 10th contract date anniversary (or later if you've exercised a reset as explained below) ("benefit maturity date"), your account value is less than the guaran- Contract features and benefits 45 teed amount, we will increase your account value to equal the applicable guaranteed amount. Any such additional amounts added to your account value will be allocated pursuant to the allocation instructions for additional contributions we have on file. After the benefit maturity date, the guarantee will terminate. You have the option to reset (within 30 days following each applicable contract date anniversary) the guaranteed amount to the account value or 125% of the account value, as applicable, as of your fifth and later contract date anniversaries. If you exercise this option, you are eligible for another reset on each fifth and later contract date anniversary after the last reset up to the contract date anniversary following an owner's 85th birthday. If you elect to reset the guaranteed amount, your benefit maturity date will be extended to be the 10th contract date anniversary after the anniversary on which you reset the guaranteed amount. This extension applies each time you reset the guaranteed amount. Neither PGB is available under Inherited IRA, Flexible Premium IRA and Flexible Premium Roth IRA contracts. If you elect either PGB, you may not elect the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, the systematic withdrawals option or the substantially equal withdrawals option. If you purchase a PGB, you may not make additional contributions to your contract after six months from the contract issue date. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your Principal guarantee benefit. See "Owner and annuitant requirements" earlier in this section. If you are planning to take required minimum distributions from this contract, this benefit may not be appropriate. See "Tax information" later in this Prospectus. If you elect a PGB and change ownership of the contract, your PGB will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information" later in this Prospectus for more information. Once you purchase a PGB, you may not voluntarily terminate this benefit. Your PGB will terminate if the contract terminates before the benefit maturity date, as defined below. If you die before the benefit maturity date and the contract continues, we will continue the PGB only if the contract can continue through the benefit maturity date. If the contract cannot so continue, we will terminate your PGB and the charge. See "Non-spousal joint owner contract continuation" in "Payment of death benefit" later in this Prospectus. The PGB will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a charge for the Principal guarantee benefits (see "Charges and expenses" later in this Prospectus). You should note that the purchase of a PGB is not appropriate if you want to make additional contributions to your contract beyond the first six months after your contract is issued. The purchase of a PGB is also not appropriate if you plan on terminating your contract before the benefit maturity date. The purchase of a PGB may not be appropriate if you plan on taking withdrawals from your contract before the benefit maturity date. Withdrawals from your contract before the benefit maturity date reduce the guaranteed amount under a PGB on a pro rata basis. You should also note that if you intend to allocate a large percentage of your contributions to the guaranteed interest option, the purchase of a PGB may not be appropriate because of the guarantees already provided by this option at no additional charge. Please note that loans (applicable to TSA contracts only) are not permitted under either PGB. INHERITED IRA BENEFICIARY CONTINUATION CONTRACT This contract is available to an individual beneficiary of a traditional IRA or a Roth IRA where the deceased owner held the individual retirement account or annuity (or Roth individual retirement account or annuity) with an insurance company or financial institution other than AXA Equitable. The purpose of the inherited IRA beneficiary continuation contract is to permit the beneficiary to change the funding vehicle that the deceased owner selected ("original IRA") while taking the required minimum distribution payments that must be made to the beneficiary after the deceased owner's death. See the discussion of required minimum distributions under "Tax information." This contract is intended only for beneficiaries who want to take payments at least annually over their life expectancy. These payments generally must begin (or must have begun) no later than December 31 of the calendar year following the year the deceased owner died. This contract is not suitable for beneficiaries electing the "5-year rule." See "Beneficiary continuation option for IRA and Roth IRA contracts" under "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. You should discuss with your tax adviser your own personal situation. This contract may not be available in all states. Please speak with your financial professional for further information. The inherited IRA beneficiary continuation contract can only be purchased by a direct transfer of the beneficiary's interest under the deceased owner's original IRA. The owner of the inherited IRA beneficiary continuation contract is the individual who is the beneficiary of the original IRA. (Certain trusts with only individual beneficiaries will be treated as individuals for this purpose). The contract must also contain the name of the deceased owner. In this discussion, "you" refers to the owner of the inherited IRA beneficiary continuation contract. The inherited IRA beneficiary continuation contract can be purchased whether or not the deceased owner had begun taking required minimum distribution payments during his or her life from the original IRA or whether you had already begun taking required minimum distribution payments of your interest as a beneficiary from the deceased owner's original IRA. You should discuss with your own tax adviser when payments must begin or must be made. Under the inherited IRA beneficiary continuation contract: o You must receive payments at least annually (but can elect to receive payments monthly or quarterly). Payments are generally made over your life expectancy determined in the calendar year after the deceased owner's death and determined on a term certain basis. o You must receive payments from this contract even if you are receiving payments from another IRA of the deceased owner in 46 Contract features and benefits an amount that would otherwise satisfy the amount required to be distributed from this contract. o The beneficiary of the original IRA will be the annuitant under the inherited IRA beneficiary continuation contract. In the case where the beneficiary is a "see-through trust," the oldest beneficiary of the trust will be the annuitant. o An inherited IRA beneficiary continuation contract is not available for owners over age 70. o The initial contribution must be a direct transfer from the deceased owner's original IRA and is subject to minimum contribution amounts. See "How you can purchase and contribute to your contract" earlier in this section. o Subsequent contributions of at least $1,000 are permitted but must be direct transfers of your interest as a beneficiary from another IRA with a financial institution other than AXA Equitable, where the deceased owner is the same as under the original IRA contract. o You may make transfers among the investment options. o You may choose at any time to withdraw all or a portion of the account value. Any partial withdrawal must be at least $300. Withdrawal charges will apply as described in "Charges and expenses" later in this Prospectus. o The Guaranteed minimum income benefit, Spousal continuation, special dollar cost averaging program, automatic investment program, Principal guarantee benefits, the Guaranteed withdrawal benefit for life and systematic withdrawals are not available under the Inherited IRA beneficiary continuation contract. o If you die, we will pay to a beneficiary that you choose the greater of the account value or the applicable death benefit. o Upon your death, your beneficiary has the option to continue tak ing required minimum distributions based on your remaining life expectancy or to receive any remaining interest in the contract in a single sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If your beneficiary elects to continue to take distributions, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value as of the date we receive satisfactory proof of death and any required instructions, information and forms. Thereafter, withdrawal charges will no longer apply. If you had elected any enhanced death benefits, they will no longer be in effect and charges for such benefits will stop. The Guaranteed minimum death benefit will also no longer be in effect. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law requires, this "free look" period may be longer. Other state variations may apply. Please contact your financial professional and/or see Appendix VII to find out what applies in your state. Generally, your refund will equal your account value (less loan reserve account under Rollover TSA contracts) under the contract on the day we receive notification of your decision to cancel the contract and will reflect (i) any investment gain or loss in the variable investment options (less the daily charges we deduct), (ii) any guaranteed interest in the guaranteed interest option, (iii) any positive or negative market value adjustments in the fixed maturity options, and (iv) any interest in the account for special dollar cost averaging, through the date we receive your contract. Some states require that we refund the full amount of your contribution (not reflecting (i), (ii), (iii) or (iv) above). For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. If you fully convert an existing traditional IRA contract to a Roth Conversion IRA or Flexible Premium Roth IRA contract, you may cancel your Roth Conversion IRA or Flexible Premium Roth IRA contract and return to a Rollover IRA or Flexible Premium IRA contract, whichever applies. Our processing office, or your financial professional, can provide you with the cancellation instructions. In addition to the cancellation right described above, you have the right to surrender your contract, rather than cancel it. Please see "Surrendering your contract to receive its cash value," later in this Prospectus. Surrendering your contract may yield results different than canceling your contract, including a greater potential for taxable income. In some cases, your cash value upon surrender may be greater than your contributions to the contract. Please see "Tax information," later in this Propectus. Contract features and benefits 47 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; (iv) the account for special dollar cost averaging; and (v) the loan reserve account (applies for Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less: (i) the total amount or a pro rata portion of the annual administrative charge, as well as optional benefit charges; (ii) any applicable withdrawal charges; and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option less daily charges for: (i) mortality and expense risks; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, when we deduct the enhanced death benefit, Guaranteed minimum income benefit, Principal guarantee benefits, Guaranteed withdrawal benefit for life and/or Earnings enhancement benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest option at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING Your value in the account for special dollar cost averaging at any time will equal your contribution allocated to that option, plus interest, less the sum of all amounts that have been transferred to the variable investment options you have selected. ---------------------------------- If you apply for this contract by electronic means, please see Appendix VII for additional information. INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all your rights under your contract and any applicable guaranteed benefits, except as discussed below. See Appendix VII later in this Prospectus for any state variations with regard to terminating your contract. GUARANTEED MINIMUM INCOME BENEFIT NO LAPSE GUARANTEE. In certain circumstances, even if your account value falls to zero, your Guaranteed minimum income benefit will still have value. Please see "Contract features and benefits" earlier in this Prospectus for information on this feature. 48 Determining your contract's value PRINCIPAL GUARANTEE BENEFITS. If you take no withdrawals, and your account value is insufficient to pay charges, we will not terminate your contract if you are participating in a PGB. Your contract will remain in force and we will pay your guaranteed amount at the benefit maturity date. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. If you elect the Guaranteed withdrawal benefit for life and your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary life annuity contract, even if your GWBL benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, the benefit will still have value. See "Contract features and benefits" earlier in this Prospectus. Determining your contract's value 49 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer any amount to the account for special dollar cost averaging. o You may not transfer to a fixed maturity option that has a rate to maturity of 3%. o If an owner or annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment. Some states may have additional transfer restrictions. Please see Appendix VII later in this Prospectus. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option and interest sweep option dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or, (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the Investment options in the prior contract year; or, (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. 50 Transferring your money among investment options We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We currently offer two rebalancing programs that you can use to automatically reallocate your account value among your investment options. Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made through our website. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers from the guaranteed interest option to the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer out of the guaranteed interest option to initiate the rebalancing program will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. You may not elect Option II if you are participating in any dollar cost averaging program. You may not elect Option I if you are participating in general dollar cost averaging. If you elect a benefit that limits your variable investment options, those limitations will also apply to the rebalancing programs. Transferring your money among investment options 51 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. Please see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate.
- ---------------------------------------------------------------------------------- Method of withdrawal --------------------------------------------------------------- Automatic Lifetime payment Pre-age required plans 59-1/2 minimum (GWBL substantially distribu- Contract only) Partial Systematic equal tion - ---------------------------------------------------------------------------------- NQ Yes Yes Yes No No - ---------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes Yes - ---------------------------------------------------------------------------------- Flexible Premium IRA Yes Yes Yes Yes Yes - ---------------------------------------------------------------------------------- Roth Conversion IRA Yes Yes Yes Yes No - ---------------------------------------------------------------------------------- Flexible Pre- mium Roth IRA Yes Yes Yes Yes No - ---------------------------------------------------------------------------------- Inherited IRA No Yes No No * - ---------------------------------------------------------------------------------- QP** Yes Yes No No Yes - ---------------------------------------------------------------------------------- Rollover TSA*** Yes Yes Yes No Yes - ----------------------------------------------------------------------------------
* This contract pays out post-death required minimum distributions. See "Inherited IRA beneficiary continuation contract" in "Contract features and benefits" earlier in this Prospectus. ** All payments are made to the trust as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. *** Employer or plan approval required for all transactions. Your ability to take with drawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. AUTOMATIC PAYMENT PLANS (For contracts with GWBL only) You may take automatic withdrawals under either the Maximum payment plan or the Customized payment plan, as described below. Under either plan, you may take withdrawals on a monthly, quarterly or annual basis. You may change the payment frequency of your withdrawals at any time, and the change will become effective on the next contract date anniversary. You may elect either the Maximum payment plan or the Customized payment plan at any time. You must wait at least 28 days from contract issue before automatic payments begin. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will increase following any Annual Ratchet or 5% deferral bonus. If you elect the Maximum payment plan and start monthly or quarterly payments after the beginning of a contract year, the payments you take that year will be less than your Guaranteed annual withdrawal amount. If you take a partial withdrawal while the Maximum payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will not be increased following any Annual Ratchet or 5% deferral bonus. You must elect to change the scheduled payment amount. It is important to note that if you elect the Customized payment plan and start monthly or quarterly withdrawals after the beginning of a contract year, you could select scheduled payment amounts that would cause an Excess withdrawal. If your selected scheduled payment would cause an Excess withdrawal, we will notify you. As discussed earlier in the Prospectus, Excess withdrawals may significantly reduce the value of the Guaranteed withdrawal benefit for life benefit. See "Effect of Excess withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you take a partial withdrawal while the Customized payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Partial withdrawals will be subject to a withdrawal charge if they exceed the 10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. 52 Accessing your money Any request for a partial withdrawal will terminate your participation in either the Maximum payment plan or Customized payment plan, if applicable. SYSTEMATIC WITHDRAWALS (All contracts except Inherited IRA and QP contracts) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of your account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 10% free withdrawal amount. Systematic withdrawals are not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. SUBSTANTIALLY EQUAL WITHDRAWALS (Rollover IRA, Roth Conversion IRA, Flexible Premium IRA and Flexible Premium Roth IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals that we calculate for you are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). The substantially equal withdrawal program is not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA, Flexible Premium IRA, QP and Rollover TSA contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in Accessing your money 53 calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA, Flexible Premium IRA, and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- We do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our automatic RMD service except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 10% free withdrawal amount. Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH GWBL. Generally, if you elect our Automatic RMD service, any lifetime required minimum distribution payment we make to you under our Automatic RMD service will not be treated as an Excess withdrawal. If you elect either the Maximum payment plan or the Customized payment plan AND our Automatic RMD service, we will make an extra payment, if necessary, on December 1st that will equal your lifetime required minimum distribution less all payments made through November 30 and any scheduled December payment. The combined automatic plan payments and lifetime required minimum distribution payment will not be treated as Excess withdrawals, if applicable. However, if you take any partial withdrawals in addition to your lifetime required minimum distribution and automatic payment plan payments, your applicable automatic payment plan will be terminated. The partial withdrawals may cause an Excess withdrawal and may be subject to a withdrawal charge. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. Further, your GWBL benefit base and Guaranteed annual withdrawal amount may be reduced. See "Effect of Excess Withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you elect our Automatic RMD service and elect to take your Guaranteed annual withdrawal amount in partial withdrawals without electing one of our available automatic payment plans, we will make a payment, if necessary, on December 1st that will equal your required minimum distribution less all withdrawals made through November 30th. If prior to December 1st you make a partial withdrawal that exceeds your Guaranteed annual withdrawal amount, but not your RMD amount, that partial withdrawal will be treated as an Excess withdrawal, as well as any subsequent partial withdrawals made during the same contract year. However, if by December 1st your withdrawals have not exceeded your RMD amount, the RMD payment we make to you will not be treated as an Excess withdrawal. FOR CONTRACTS WITH THE GUARANTEED MINIMUM INCOME BENEFIT. The no lapse guarantee will not be terminated if a required minimum distribution payment using our automatic RMD service causes your cumulative withdrawals in the contract year to exceed 6% of the Roll- Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days). Owners of tax-qualified contracts (IRA, TSA and QP) generally should not reset the Roll-Up benefit base if lifetime required minimum distributions must begin before the end of the new exercise waiting period. See "Guaranteed minimum death benefit/Guaranteed minimum income benefit Roll-Up benefit base reset" in "Contract features and benefits" earlier in this Prospectus. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options and guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options in the order of the earliest maturity date(s) first. If the FMO amounts are insufficient, we will deduct all or a portion of the withdrawal from the account for special dollar cost averaging. A market value adjustment will apply to withdrawals from the fixed maturity options. HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND PRINCIPAL GUARANTEE BENEFITS In general, withdrawals (including RMDs) will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000 - $16,000). For purposes of calculating the adjustment to your guaranteed benefits, the amount of the withdrawal will include the amount of any applicable withdrawal charge. Using the example above, the $12,000 withdrawal would include the withdrawal amount paid to you and the amount of any applicable withdrawal charge deducted from your account value. For more information on the calculation of the charge, see "Withdrawal charge" later in the Prospectus. With respect to the Guaranteed minimum income benefit and the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' 6% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of with- 54 Accessing your money drawals in a contract year is 6% or less of the 6% Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. For this purpose, in the first contract year, all contributions received in the first 90 days after contract issue will be considered to have been received on the first day of the contract year. In subsequent contract years, additional contributions made during a contract year do not affect the amount of withdrawals that can be taken on a dollar-for-dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6% of the benefit base on the most recent anniversary, that entire withdrawal (including RMDs) and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6% Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for each Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. HOW WITHDRAWALS AFFECT YOUR GWBL AND GWBL GUARANTEED MINIMUM DEATH BENEFIT Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes cumulative withdrawals in a contract year to exceed the Guaranteed annual withdrawal amount. Withdrawals that exceed the Guaranteed annual withdrawal amount, however, can significantly reduce your GWBL benefit base and Guaranteed annual withdrawal amount. For more information, see "Effect of Excess withdrawals" and "Other important considerations" under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus. Your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a dollar-for-dollar basis up to the Guaranteed annual withdrawal amount. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, however, your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a pro rata basis. If the reduced GWBL Enhanced death benefit base is greater than your account value (after the Excess withdrawal), we will further reduce your GWBL Enhanced death benefit base to equal your account value. For purposes of calculating your GWBL and GWBL Guaranteed minimum death benefit amount, the amount of the Excess withdrawal will include the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information on calculation of the charge, see "Withdrawal charge" later in the Prospectus. WITHDRAWALS TREATED AS SURRENDERS If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. In addition, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. The rules in the preceding sentence do not apply if the Guaranteed minimum income benefit no lapse guarantee is in effect on your contract. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is an Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to an Excess withdrawal. In other words, if you take an Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Guaranteed withdrawal benefit for life " in "Contract features and benefits," earlier in this Prospectus, for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." If you elect the GWBL option or a PGB, loans are not permitted. You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see Appendix VII later in this Prospectus for any state restrictions you may be subject to if you take a loan from a Rollover TSA contract. Also, see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan, including any accrued but unpaid loan interest, will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. Accessing your money 55 LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the "loan reserve account." Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment may apply. If such fixed maturity amounts are insufficient, we will deduct all or a portion of the loan from the account for special dollar cost averaging. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while an owner is living (or for contracts with non-natural owners, while the annuitant is living) and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of the date we receive the required information, including the Guaranteed withdrawal benefit for life (if applicable) if your cash value is greater than your Guaranteed annual withdrawal amount remaining that year. If your cash value is not greater than your Guaranteed annual withdrawal amount remaining that year, then you will receive a supplementary life annuity contract. For more information, please see "Effect of your account value falling to zero" in "Contract features and benefits" earlier in this Prospectus. Also, if the Guaranteed minimum income benefit no lapse guarantee is in effect, the benefit will terminate without value if your cash value plus any other withdrawals taken in the contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year). For more information, please see "Insufficient account value" in "Determining your contract value" and "Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal charge) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option, fixed maturity options and the account for special dollar cost averaging (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery or wire transfer service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. Please see Appendix VII later in this Prospectus for variations that may apply in your state. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the owner's and annuitant's ages at contract issue. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed 56 Accessing your money minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect the Guaranteed withdrawal benefit for life and choose to annuitize your contract, the Guaranteed withdrawal benefit for life will terminate without value even if your GWBL benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under GWBL. See "Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus for further information. - ---------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - ---------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - ---------------------------------------------------------------------- Income Manager(R) payout options Life annuity with period certain (available for owners and annu- Period certain annuity itants age 83 or less at contract issue) - ----------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contract that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life, and after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable income annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager(R) payout option without life contingencies unless withdrawal charges are no longer in effect under your Accumulator(R). For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply your account value of your Accumulator(R) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) and we will deduct any applicable withdrawal charge. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. Accessing your money 57 The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income option , different payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any withdrawal charges. If amounts in a fixed maturity option are used to purchase any annuity payout option prior to the maturity date, a market value adjustment will apply. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. The withdrawal charge applicable under your Accumulator(R) contract is imposed if you select a non-life contingent period certain payout annuity. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For the Income Manager(R) life contingent payout options, no withdrawal charge is imposed under the Accumulator(R). If the withdrawal charge that otherwise would have been applied to your account value under your Accumulator(R) is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager(R) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin but it may not be earlier than thirteen months from the Accumulator(R) contract date. Except with respect to the Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments, or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is based on the age of the original annuitant at contract issue and cannot be changed even if you name a new annuitant. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elect the Guaranteed withdrawal benefit for life and your contract is annuitized at maturity, we will offer an annuity payout option that guarantees you will receive payments for life that are at least equal to what you would have received under the Guaranteed withdrawal benefit for life. You will not be able to take withdrawals in addition to the payments under this annuity payout option. You will still be able to surrender the contract at any time for the remaining account value. As described in "Contract features and benefits" under "Guaranteed withdrawal benefit for life," these payments will have the potential to increase with favorable investment performance. Any remaining Guaranteed minimum death benefit value will be transferred to the annuity payout contract as your "minimum death benefit." If the enhanced death benefit had been elected, its value as of the date the annuity payout contract is issued will become your minimum death benefit, and it will continue to ratchet annually if your account value is greater than your minimum death benefit base. The minimum death benefit will be reduced dollar-for-dollar by each payment. If you die while there is any minimum death benefit remaining, it will be paid to your beneficiary. Please see Appendix VII later in this Prospectus for variations that may apply in your state. 58 Accessing your money 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o On each contract date anniversary, a charge for each optional benefit that you elect: a death benefit (other than the Standard and GWBL Standard death benefit); the Guaranteed minimum income benefit; the Guaranteed withdrawal benefit for life; and the Earnings enhancement benefit. o On any contract date anniversary on which you are participating in a PGB -- a charge for a PGB. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits, and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 0.80% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the Guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. Administrative charge. We deduct a daily charge from the net assets in each variable investment option. The charge, together with the annual administrative charge described below, is to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.30% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.20% of the net assets in each variable investment option. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if available) in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account Charges and expenses 59 for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits, except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceed the 10% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or apply your cash value to a non-life contingent payout option. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options--The amount applied to purchase an annuity payout option" in "Accessing your money" earlier in the Prospectus. The withdrawal charge equals a percentage of the contributions withdrawn. The percentage that applies depends on how long each contribution has been invested in the contract. We determine the withdrawal charge separately for each contribution according to the following table: - ----------------------------------------------------------------- Contract year - ----------------------------------------------------------------- 1 2 3 4 5 6 7 8+ - ----------------------------------------------------------------- Percentage of contribution 7% 7% 6% 6% 5% 3% 1% 0% - ----------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1" and the withdrawal charge is reduced or expires on each applicable contract date anniversary. Amounts withdrawn up to the free withdrawal amount are not considered withdrawal of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. Please see Appendix VII later in this Prospectus for possible withdrawal charge schedule variations in your state. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and the withdrawal charge from your account value. Any amount deducted to pay withdrawal charges is also subject to that same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each investment option. The withdrawal charge helps cover our sales expenses. For purposes of calculating reductions in your guaranteed benefits and associated benefit bases, the withdrawal amount includes both the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information, see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier in the Prospectus. The withdrawal charge does not apply in the circumstances described below. 10% free withdrawal amount. Each contract year you can withdraw up to 10% of your account value without paying a withdrawal charge. The 10% free withdrawal amount is determined using your account value at the beginning of each contract year. In the first contract year, the 10% free withdrawal amount is determined using all contributions received in the first 90 days of the contract year. Additional contributions during the contract year do not increase your 10% free withdrawal amount. The 10% free withdrawal amount does not apply if you surrender your contract except where required by law. For NQ contracts issued to a charitable remainder trust, the free withdrawal amount will equal the greater of: (1) the current account value less contributions that have not been withdrawn (earnings in the contract) and (2) the 10% free withdrawal amount defined above. Certain withdrawals. If you elected the Guaranteed minimum income benefit and/or the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6% of the beginning of contract year 6% Roll-Up to age 85 benefit base, even if such withdrawals exceed the free withdrawal amount. Also, a withdrawal charge does not apply to a withdrawal that exceeds 6% of the beginning of contract year 6% Roll-Up to age 85 benefit base as long as it does not exceed the free withdrawal amount. If your withdrawals exceed the amount described above, this waiver is not applicable to that withdrawal nor to any subsequent withdrawal for the life of the contract. If you elect the Guaranteed withdrawal benefit for life, we will waive any withdrawal charge for any withdrawals during the contract year up to the Guaranteed annual withdrawal amount, even if such withdrawals exceed the free withdrawal amount. However, each withdrawal reduces the free withdrawal amount for that contract year by the amount of the withdrawal. Also, a withdrawal charge does not apply to a withdrawal that exceeds the Guaranteed annual withdrawal amount as long as it does not exceed the free withdrawal amount. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds both the free withdrawal amount and the Guaranteed annual withdrawal amount. Disability, terminal illness, or confinement to nursing home. The withdrawal charge also does not apply if: (i) An owner (or older joint owner, if applicable) has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or (ii) We receive proof satisfactory to us (including certification by a licensed physician) that an owner's (or older joint owner's, if applicable) life expectancy is six months or less; or (iii) An owner (or older joint owner, if applicable) has been confined to a nursing home for more than 90 days (or such other period, 60 Charges and expenses as required in your state) as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: - its main function is to provide skilled, intermediate, or custodial nursing care; - it provides continuous room and board to three or more persons; - it is supervised by a registered nurse or licensed practical nurse; - it keeps daily medical records of each patient; - it controls and records all medications dispensed; and - its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions described in (i), (ii) or (iii) above existed at the time a contribution was remitted or if the condition began within 12 months of the period following remittance. Some states may not permit us to waive the withdrawal charge in the above circumstances, or may limit the circumstances for which the withdrawal charge may be waived. Your financial professional can provide more information or you may contact our processing office. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to either 0.65% or 0.60% of the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 benefit base, depending upon when and where you purchased your contract. Please see Appendix VIII later in this Prospectus for more information on the Guaranteed minimum death benefit charge applicable to your contract. GWBL ENHANCED DEATH BENEFIT. This death benefit is only available if you elect the GWBL option. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary. The charge is equal to 0.30% of the GWBL Enhanced death benefit base. We will deduct this charge from your value in the variable investment options (or, if applicable, the permitted variable investment options) and the guaranteed interest option on a pro rata basis (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if applicable) in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If such fixed maturity option amounts are still insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. STANDARD DEATH BENEFIT AND GWBL STANDARD DEATH BENEFIT. There is no additional charge for these standard death benefits. PRINCIPAL GUARANTEE BENEFITS CHARGE If you purchase a PGB, we deduct a charge annually from your account value on each contract date anniversary on which you are participating in a PGB. The charge is equal to 0.50% of the account value for the 100% Principal guarantee benefit and 0.75% of the account value for the 125% Principal guarantee benefit. We will continue to deduct the charge until your benefit maturity date. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If such amounts are insufficient, we will deduct all or a portion from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. GUARANTEED MINIMUM INCOME BENEFIT CHARGE If you elect the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary after the owner (or older joint owner, if applicable) reaches age 85, whichever occurs first. The charge is equal to 0.65% of the applicable benefit base in effect on the contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If such fixed maturity option amounts are still insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered Charges and expenses 61 or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. EARNINGS ENHANCEMENT BENEFIT CHARGE If you elect the Earnings enhancement benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.35% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE BENEFIT CHARGE If you elect the Guaranteed withdrawal benefit for life ("GWBL"), we deduct a charge annually as a percentage of your GWBL benefit base on each contract date anniversary. If you elect the Single Life option, the charge is equal to 0.60%. If you elect the Joint Life option, the charge is equal to 0.75%. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option on a pro rata basis. (See Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state.) If those amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. GWBL BENEFIT BASE ANNUAL RATCHET CHARGE. If your GWBL benefit base ratchets, we reserve the right to raise the charge at the time of an Annual Ratchet. The maximum charge for the Single Life option is 0.75%. The maximum charge for the Joint Life option is 0.90%. The increased charge, if any, will apply as of the contract date anniversary on which your GWBL benefit base ratchets and on all contract date anniversaries thereafter. We will permit you to opt out of the ratchet if the charge increases. For Joint life contracts, if the successor owner or joint annuitant is dropped before you take your first withdrawal, we will adjust the charge at that time to reflect a Single life. If the successor owner or joint annuitant is dropped after withdrawals begin, the charge will continue based on a Joint life basis. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge, or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to the 12b-1 fee. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing 62 Charges and expenses charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. Charges and expenses 63 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. In either case, the death benefit is increased by any amount applicable under the Earnings enhancement benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) and any amount applicable under the Earnings enhancement benefit, as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. In general, if the annuitant dies, the owner (or older joint owner, if applicable) will become the annuitant, and the death benefit is not payable. EFFECT OF THE OWNER'S DEATH In general, if the owner dies while the contract is in force, the contract terminates and the applicable death benefit is paid. If the contract is jointly owned, the death benefit is payable upon the death of the older owner. If the contract has a non-natural owner, the death benefit is payable upon the death of the annuitant. For Joint Life contracts with GWBL, the death benefit is paid to the beneficiary at the death of the second to die of the owner and successor owner, or the annuitant and joint annuitant, as applicable. There are various circumstances, however, in which the contract can be continued by a successor owner or under a Beneficiary continuation option ("BCO"). For contracts with spouses who are joint owners, the surviving spouse will automatically be able to continue the contract under the "Spousal continuation" feature or under our Beneficiary continuation option, as discussed below. For contracts with non-spousal joint owners, the joint owner will be able to continue the contract as a successor owner subject to the limitations discussed below under "Non-spousal joint owner contract continuation." If you are the sole owner and your spouse is the sole primary beneficiary, your surviving spouse can continue the contract as a successor owner as discussed below, under "Spousal continuation" or under our Beneficiary continuation option, as discussed below. If the beneficiary is not the surviving spouse or if the surviving joint owner is not the surviving spouse, federal income tax rules generally require payments of amounts under the contract to be made within five years of an owner's death (the "5-year rule"). In certain cases, an individual beneficiary or non-spousal surviving joint owner may opt to receive payments over his/her life (or over a period not in excess of his/her life expectancy) if payments commence within one year of the owner's death. Any such election must be made in accordance with our rules at the time of death. If the beneficiary of a contract with one owner or a younger non-spousal joint owner continues the contract under the 5-year rule, in general, all guaranteed benefits and their charges will end. If a PGB election is in effect upon your death with a benefit maturity date of less than five years from the date of death, it will remain in effect. For more information on non-spousal joint owner contract continuation, see the section immediately below. NON-SPOUSAL JOINT OWNER CONTRACT CONTINUATION Upon the death of either owner, the surviving joint owner becomes the sole owner. Any death benefit (if the older owner dies first) or cash value (if the younger owner dies first) must be fully paid to the surviving joint 64 Payment of death benefit owner within five years. The surviving owner may instead elect to receive a life annuity, provided payments begin within one year of the deceased owner's death. If the life annuity is elected, the contract and all benefits terminate. If the older owner dies first, we will increase the account value to equal the Guaranteed minimum death benefit, if higher, and by the value of the Earnings enhancement benefit. The surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the Guaranteed minimum death benefit and charge and the Guaranteed minimum income benefit and charge will then be discontinued. Withdrawal charges will no longer apply, and no additional contributions will be permitted. If the younger owner dies first, the surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the death benefit is not payable, and the Guaranteed minimum death benefit and the Earnings enhancement benefit, if applicable, will continue without change. If the Guaranteed minimum income benefit cannot be exercised within the period required by federal tax laws, the benefit and charge will terminate as of the date we receive proof of death. Withdrawal charges will continue to apply and no additional contributions will be permitted. Upon the death of either owner, if the surviving owner elects the 5-year rule and a PGB was in effect upon the owner's death with a maturity date of more than five years from the date of death, we will terminate the benefit and the charge. SPOUSAL CONTINUATION If you are the contract owner and your spouse is the sole primary beneficiary or you jointly own the contract with your spouse, your spouse may elect to continue the contract as successor owner upon your death. Spousal beneficiaries (who are not also joint owners) must be 85 or younger as of the date of the deceased spouse's death in order to continue the contract under Spousal continuation. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. The younger spouse joint owner (for NQ contracts only) or the spouse beneficiary (under a Single owner contract), may elect to receive the death benefit or continue the contract, as follows: o As of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary, we will increase the account value to equal the elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit, and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. o In general, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. o The applicable Guaranteed minimum death benefit option may continue as follows: o If the surviving spouse is age 75 or younger on the date of your death, and you were age 84 or younger at death, the Guaranteed minimum death benefit you elected continues and will continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. o If the surviving spouse is age 75 or younger on the date of your death, and you were age 85 or older at death, we will reinstate the Guaranteed minimum death benefit you elected. The benefit base (which had previously been frozen at age 85) will now continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. o If the surviving spouse is age 76 or over on the date of your death, the Guaranteed minimum death benefit and charge will be discontinued. o If the Guaranteed minimum death benefit continues, the Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset, if applicable, will be based on the surviving spouse's age at the time of your death. The next available reset will be based on the contract issue date or last reset, as applicable. o For single owner contracts with the GWBL Enhanced death benefit, we will discontinue the benefit and charge. However, we will freeze the GWBL Enhanced death benefit base as of the date of your death (less subsequent withdrawals), and pay it upon your spouse's death. o The Earnings enhancement benefit will be based on the surviving spouse's age at the date of the deceased spouse's death for the remainder of the life of the contract. If the benefit had been previously frozen because the older spouse had attained age 80, it will be reinstated if the surviving spouse is age 75 or younger. The benefit is then frozen on the contract date anniversary after the surviving spouse reaches age 80. If the surviving spouse is age 76 or older, the benefit and charge will be discontinued. o If elected, PGB continues and is based on the same benefit maturity date and guaranteed amount that was guaranteed. o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the surviving spouse's age at the date of the deceased spouse's death. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If you elect the Guaranteed withdrawal benefit for life on a Joint life basis, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. Withdrawal charges will continue to apply to all contributions made prior to the deceased spouse's death. No additional contributions Payment of death benefit 65 will be permitted. If you elect the Guaranteed withdrawal benefit for life on a Single life basis, the benefit and charge will terminate. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For jointly owned NQ contracts, if the younger spouse dies first no death benefit is paid, and the contract continues as follows: o The Guaranteed minimum death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit continue to be based on the older spouse's age for the life of the contract. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. o If a PGB had been elected, the benefit continues and is based on the same benefit maturity date and guaranteed amount. o If you elect the Guaranteed withdrawal benefit for life, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. o The withdrawal charge schedule remains in effect. If you divorce, Spousal continuation does not apply. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state availability. Please speak with your financial professional or see Appendix VII later in this Prospectus for further information. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. For Joint life contracts with GWBL, BCO is only available after the death of the second owner. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit, adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o The beneficiary replaces the deceased owner as annuitant. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a portion of the account value and no withdrawal charges, if any, will apply. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum 66 Payment of death benefit distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. For purposes of this discussion, "beneficiary" refers to the successor owner. This feature must be elected within 9 months following the date of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts: o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If the deceased is the owner or older joint owner: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the Beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value plus any amount applicable under the Earnings enhancement benefit adjusted for any subsequent withdrawals. o No withdrawal charges will apply to any withdrawals by the beneficiary. If the deceased is the younger non-spousal joint owner: o The annuity account value will not be reset to the death benefit amount. o The contract's withdrawal charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments; the contract's free withdrawal amount will continue to apply to withdrawals but does not apply to surrenders. o We do not impose a withdrawal charge on scheduled payments except if, when added to any withdrawals previously taken in the same contract year, including for this purpose a contract surrender, the total amount of withdrawals and scheduled payments exceed the free withdrawal amount. See the "Withdrawal charges" in "Charges and expenses" earlier in this Prospectus. Payment of death benefit 67 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the Prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator's(R) choice of death benefits, the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit, special dollar cost averaging, selection of variable investment options, and its choices of payout options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. 68 Tax information TAXATION OF LIFETIME WITHDRAWALS IF YOU ELECT GUARANTEED WITHDRAWAL BENEFIT FOR LIFE We treat Guaranteed annual withdrawals and other withdrawals as non-annuity payments for income tax purposes. These withdrawals are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. It reduces the investment in the contract. ANNUITY PAYMENTS Guaranteed annual withdrawals that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus, as well as GMIB and other annuitization payments that are based on life or life expectancy, are considered annuity payments for tax purposes. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your unrecovered investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. EARNINGS ENHANCEMENT BENEFIT In order to enhance the amount of the death benefit to be paid at the owner's death, you may purchase an Earnings enhancement benefit rider for your NQ contract. Although we regard this benefit as an investment protection feature which is part of the contract and which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Earnings enhancement benefit rider is not part of the contract. In such a case the charges for the Earnings enhancement benefit rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable, and for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, AXA Equitable would take all reasonable steps to attempt to avoid this result, which could include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES You may purchase your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that is the source of the funds you are using to purchase the NQ contract is another nonqualified deferred annuity contract or life insurance or endowment contract. o the owner and the annuitant are the same under the source contract and the Accumulator(R) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must be the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carries over to the Accumulator(R) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between the carriers, and provision of cost basis information may be required to process this type of an exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. BENEFICIARY CONTINUATION OPTION We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for a prior similar version of the NQ contract. See the Tax information 69 discussion "Beneficiary continuation option for NQ Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2"; o scheduled payments, any additional withdrawals under "Withdrawal Option 2", or contract surrenders under "Withdrawal Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the "Withdrawal Option" selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling specifically does not address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or any withdrawal that might be taken). The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2, a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before 59-1/2. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Account 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Account 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Account 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Account 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets funding the account for the benefit of the IRA owner. The assets typically include mutual funds and/or individual stocks and securities in a custodial account, and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral, regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may purchase the contract as a traditional IRA or Roth IRA. The traditional IRAs we offer are the Rollover IRA and Flexible Premium IRA. The versions of the Roth IRA available are the Roth Conversion IRA and Flexible Premium Roth IRA. We also offer the Inherited IRA for payment of post-death required minimum distributions from tradi- 70 Tax information tional IRAs and Roth IRAs. We currently do not offer traditional IRA contracts for use as employer-funded SEP-IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS requires you to have before you purchase an IRA. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). AXA Equitable has applied for opinion letters from the IRS to approve the respective forms of the Accumulator(R) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. It is not clear if and when any such approval may be received. We have in the past received IRS opinion letters approving the respective forms of similar traditional IRA and Roth IRA endorsements for use as a traditional and Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) traditional and Roth IRA contracts. AXA Equitable has also submitted the respective forms of the Accumulator(R) Inherited IRA beneficiary continuation contract to the IRS for approval as to form for use as a traditional IRA or Roth IRA, respectively. We do not know if and when any such approval may be granted. Your right to cancel within a certain number of days You can cancel any version of the Accumulator(R) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel with a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. Traditional individual retirement annuities (traditional IRAs) Contributions to traditional IRAs. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). Regular contributions to traditional IRAs Limits on contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000 your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch-up contributions" of up to $1,000 to your traditional IRA. Special rules for spouses. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. "Catch-up" contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. Deductibility of contributions. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions". That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. Tax information 71 If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits on deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted ---------------------- x regular = deductible divided by $10,000 contribution contribution for the year limit Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return and your adjusted gross income cannot exceed $50,000 ($53,000 after cost of living adjustments for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. Nondeductible regular contributions. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000, for people eligible to make age 50-70-1/2 "catch-up" contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. When you can make regular contributions. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. Rollover and transfer contributions to traditional IRAs Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. Rollovers from "eligible retirement plans" other than traditional IRAs Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate 72 Tax information payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a 403(b) plan, qualified plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan, such as a traditional IRA, and subsequently take a premature distribution. Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Rollovers from traditional IRAs to traditional IRAs You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Excess contributions Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contribution amount for the applicable taxable year; or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Tax information 73 Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. Recharacterizations Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. Withdrawals, payments and transfers of funds out of traditional IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Taxation of payments. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. Required minimum distributions Background on Regulations--Required Minimum Distributions. Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing. Please consult your tax adviser concerning applicability of these complex rules to your situation. Lifetime required minimum distributions. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. When you have to take the first lifetime required minimum distribution. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your Required Beginning Date, which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year 74 Tax information - -- the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. How you can calculate required minimum distributions. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. Do you have to pick the same method to calculate your required minimum distributions for all of your traditional IRAs and other retirement plans? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. Will we pay you the annual amount every year from your traditional IRA based on the method you choose? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. What if you take more than you need to for any year? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. What if you take less than you need to for any year? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. What are the required minimum distribution payments after you die? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. Individual beneficiary. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owners death. No distribution is required before that fifth year. Spousal beneficiary. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. Non-individual beneficiary. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death Tax information 75 required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. Spousal continuation If the contract is continued under Spousal continuation, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. Payments to a beneficiary after your death IRA death benefits are taxed the same as IRA distributions. Borrowing and loans are prohibited transactions You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. Early distribution penalty tax A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special federal income tax definition); or o used to pay medical insurance premiums for unemployed individuals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special federal income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. To meet the substantially equal periodic payment exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments, using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" earlier in this section. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under either option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. Roth individual retirement annuities (Roth IRAs) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Roth IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. Contributions to Roth IRAs Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eligible retirement plans ("conversion rollover" contributions); or o tax-free rollover contributions from other Roth individual retirement arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). 76 Tax information Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA or a Flexible Premium Roth IRA contract. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. Regular contributions to Roth IRAs Limits on regular contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion under "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. When you can make contributions. Same as traditional IRAs. Deductibility of contributions. Roth IRA contributions are not tax deductible. Rollovers and direct transfers What is the difference between rollover and direct transfer transactions? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make rollovers between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Conversion rollover contributions to Roth IRAs In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth Tax information 77 accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting -- a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. How to recharacterize. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. Distributions from Roth IRAs Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax 78 Tax information returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to the special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped and added together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contributions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. Required minimum distributions during life Lifetime required minimum distributions do not apply. Required minimum distributions at death Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the Required Beginning Date. Payments to a beneficiary after your death Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. Borrowing and loans are prohibited transactions Same as traditional IRA. Excess contributions Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). Tax information 79 You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. Early distribution penalty tax Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) TSA CONTRACT Because the Accumulator(R) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) TSA contract are extremely limited as described below. Accumulator(R) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" annuity contracts may result in adverse tax consequences to the owner unless the contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the fol- 80 Tax information lowing discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information Tax information 81 sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA annuity contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA annuity contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" in this Prospectus, as well as GMIB and other annuitization payments that are based on the annuitant's life or life expectancy, are considered annuity payments for tax purposes. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules 82 Tax information when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. Tax information 83 SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribution from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However, we may require additional documentation in the case of payments made to non-United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the 84 Tax information owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. Tax information 85 8. More information - -------------------------------------------------------------------------------- ABOUT SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of Separate Account No. 49 operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Account invests solely in class IB/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from, the Separate Account, or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in the prospectuses for each Trust, which generally accompany this Prospectus, or in the respective SAIs, which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below: - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 - -------------------------------------------------------------------------------- 86 More information - -------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------- 2013 3.00%* $ 86.25 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - -------------------------------------------------------------- * Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw any of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMO's maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. Any withdrawal charges that are deducted from a fixed maturity option will result in a market value adjustment calculated in the same way. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined by using a widely published index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "non-unitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and the fixed maturity options and the account for special dollar cost averaging, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940. The More information 87 market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account . The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept initial and subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information provided through certain broker-dealers with which we have established electronic facilities. In any such cases, you must sign our Acknowledgement of Receipt form. Where we require a signed application, the above procedures do not apply and no financial transactions will be permitted until we receive the signed application and have issued the contract. Where we issue a contract based on information provided through electronic facilities, we require an Acknowledgement of Receipt form, and financial transactions are only permitted if you request them in writing, sign the request and have its signature guaranteed, until we receive the signed Acknowledgement of Receipt form. After your contract has been issued, additional contributions may be transmitted by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. After your contract has been issued, additional contributions may be transmitted by wire. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, FLEXIBLE PREMIUM IRA AND FLEXIBLE PREMIUM ROTH IRA CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ, Flexible Premium IRA or Flexible Premium Roth IRA contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, QP, Inherited IRA Beneficiary Continuation (traditional IRA or Roth IRA) or Rollover TSA contracts. Please see Appendix VII later in this Prospectus to see if the automatic investment program is available in your state. For NQ contracts, the minimum amounts we will deduct are $100 monthly and $300 quarterly. Under Flexible Premium IRA and Flexible Premium Roth IRA contracts, the minimum amount is $50. Under the IRA contracts, these amounts are subject to the tax maximums. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options, but not the account for special dollar cost averaging. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. For contracts with GWBL, AIP will be automatically terminated after the later of: (i) the end of the first contract year, or (ii) the date the first withdrawal is taken. For contracts with PGB, AIP will be automatically terminated at the end of the first six months. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. 88 More information o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Initial contributions allocated to the account for special dollar cost averaging receive the interest rate in effect on that business day. At certain times, we may offer the opportunity to lock in the interest rate for an initial contribution to be received under Section 1035 exchanges and trustee to trustee transfers. Your financial professional can provide information or you can call our processing office. o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of shares of the Trusts, we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in each prospectus for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's annuity and/or variable life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustees or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or the distribution of the contracts. More information 89 FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive notification of any change at our processing office. You cannot assign your NQ contract as collateral or security for a loan. Loans are also not available under your NQ contract. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. For NQ contracts only, subject to regulatory approval, if you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, the Earnings enhancement benefit, a PGB, and/or the Guaranteed withdrawal benefit for life ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. However, the Benefit will not terminate if the ownership of the contract is transferred from a non-natural owner to an individual but the contract will continue to be based on the annuitant's life. Please speak with your financial professional for further information. See Appendix VII later in this Prospectus for any state variations with regard to terminating any benefits under your contract. You cannot assign or transfer ownership of an IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available (except for Rollover TSA contracts, subject to plan or employer approval) and you cannot assign IRA and QP contracts as security for a loan or other obligation. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your IRA, QP or Rollover TSA contract to another similar arrangement under federal income tax rules. In the case of such a transfer, which involves a surrender of your contract, we will impose a withdrawal charge, if one applies. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 0.60% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 7.50% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. 90 More information If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker-dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. More information 91 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This Prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa- equitable.com. 92 Incorporation of certain documents by reference Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.30%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ------------------------------------------------------------------------------------------------------------- For the years ended December 31, ----------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------- Unit value $ 14.58 $ 13.91 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 25,941 4,973 - ------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------- Unit value $ 11.97 $ 11.46 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,306 590 - ------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------- Unit value $ 12.62 $ 12.12 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,473 1,414 - ------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------- Unit value $ 13.27 $ 12.65 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 37,645 8,363 - ------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------- Unit value $ 14.71 $ 14.01 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 75,948 17,150 - ------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------- Unit value $ 13.94 $ 13.65 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,328 869 - ------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------- Unit value $ 10.83 $ 10.27 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 353 63 - ------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------- Unit value $ 19.90 $ 18.04 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,042 800 - ------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------- Unit value $ 13.84 $ 12.31 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 881 180 - ------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------- Unit value $ 11.07 $ 10.73 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,453 364 - ------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------- Unit value $ 16.46 $ 14.29 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,013 213 - ------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------- Unit value $ 14.35 $ 15.23 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,014 1,142 - ------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------- Unit value $ 11.09 $ 11.37 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 639 124 - ------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------- Unit value $ 11.27 $ 11.05 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 440 160 - -------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- -------------------------------------------------------------------------------------------------------- For the years ended December 31, - -------------------------------------------------------------------------------------------------------- 2007 2006 - -------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - -------------------------------------------------------------------------------------------------------- Unit value $ 14.40 $ 14.42 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,992 385 - -------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - -------------------------------------------------------------------------------------------------------- Unit value $ 19.62 $ 18.04 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,421 590 - -------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - -------------------------------------------------------------------------------------------------------- Unit value $ 2.84 $ 2.77 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,300 989 - -------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - -------------------------------------------------------------------------------------------------------- Unit value $ 13.22 $ 11.94 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 324 101 - -------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - -------------------------------------------------------------------------------------------------------- Unit value $ 12.38 $ 11.90 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,506 604 - -------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - -------------------------------------------------------------------------------------------------------- Unit value $ 13.61 $ 13.57 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,267 276 - -------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - -------------------------------------------------------------------------------------------------------- Unit value $ 3.40 $ 3.35 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,141 966 - -------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - -------------------------------------------------------------------------------------------------------- Unit value $ 11.11 $ 10.85 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,823 406 - -------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - -------------------------------------------------------------------------------------------------------- Unit value $ 14.14 $ 13.65 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,496 553 - -------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - -------------------------------------------------------------------------------------------------------- Unit value $ 10.74 $ 9.95 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,405 316 - -------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - -------------------------------------------------------------------------------------------------------- Unit value $ 13.28 $ 12.09 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 550 81 - -------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - -------------------------------------------------------------------------------------------------------- Unit value $ 15.98 $ 14.99 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,442 587 - -------------------------------------------------------------------------------------------------------- EQ/Franklin Income - -------------------------------------------------------------------------------------------------------- Unit value $ 10.51 $ 10.43 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,144 828 - -------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - -------------------------------------------------------------------------------------------------------- Unit value $ 9.76 $ 10.82 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,033 123 - -------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - -------------------------------------------------------------------------------------------------------- Unit value $ 9.52 -- - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 21,512 -- - -------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - -------------------------------------------------------------------------------------------------------- Unit value $ 11.67 $ 11.43 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,148 231 - -------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - -------------------------------------------------------------------------------------------------------- Unit value $ 46.43 $ 43.04 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 981 156 - --------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- -------------------------------------------------------------------------------------------------------- For the years ended December 31, - -------------------------------------------------------------------------------------------------------- 2007 2006 - -------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - -------------------------------------------------------------------------------------------------------- Unit value $ 19.36 $ 17.03 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,892 625 - -------------------------------------------------------------------------------------------------------- EQ/International Growth - -------------------------------------------------------------------------------------------------------- Unit value $ 7.26 $ 6.33 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,231 363 - -------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - -------------------------------------------------------------------------------------------------------- Unit value $ 11.03 $ 10.84 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,598 1,106 - -------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - -------------------------------------------------------------------------------------------------------- Unit value $ 14.23 $ 14.59 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 648 104 - -------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - -------------------------------------------------------------------------------------------------------- Unit value $ 14.03 $ 13.69 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 162 37 - -------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - -------------------------------------------------------------------------------------------------------- Unit value $ 14.83 $ 13.00 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 747 58 - -------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - -------------------------------------------------------------------------------------------------------- Unit value $ 10.42 $ 11.22 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,065 314 - -------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - -------------------------------------------------------------------------------------------------------- Unit value $ 8.13 $ 7.67 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,046 249 - -------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - -------------------------------------------------------------------------------------------------------- Unit value $ 12.58 $ 12.32 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 975 291 - -------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - -------------------------------------------------------------------------------------------------------- Unit value $ 12.92 $ 11.83 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 524 92 - -------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - -------------------------------------------------------------------------------------------------------- Unit value $ 12.40 $ 12.50 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,011 408 - -------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - -------------------------------------------------------------------------------------------------------- Unit value $ 15.30 $ 13.60 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,402 1,416 - -------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - -------------------------------------------------------------------------------------------------------- Unit value $ 15.19 $ 15.64 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,507 506 - -------------------------------------------------------------------------------------------------------- EQ/Money Market - -------------------------------------------------------------------------------------------------------- Unit value $ 10.58 $ 10.24 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,895 702 - -------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - -------------------------------------------------------------------------------------------------------- Unit value $ 2.36 $ 1.98 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,099 449 - -------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - -------------------------------------------------------------------------------------------------------- Unit value $ 10.75 $ 10.71 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,018 666 - -------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - -------------------------------------------------------------------------------------------------------- Unit value $ 11.58 $ 11.10 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,541 158 - --------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- -------------------------------------------------------------------------------------------------------- For the years ended December 31, - -------------------------------------------------------------------------------------------------------- 2007 2006 - -------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - -------------------------------------------------------------------------------------------------------- Unit value $ 11.16 $ 10.93 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 487 35 - -------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - -------------------------------------------------------------------------------------------------------- Unit value $ 10.76 $ 11.10 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 886 96 - -------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - -------------------------------------------------------------------------------------------------------- Unit value $ 9.45 $ 8.59 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,197 841 - -------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - -------------------------------------------------------------------------------------------------------- Unit value $ 10.26 $ 9.87 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 488 111 - -------------------------------------------------------------------------------------------------------- EQ/Small Company Index - -------------------------------------------------------------------------------------------------------- Unit value $ 14.39 $ 14.85 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,354 370 - -------------------------------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock - -------------------------------------------------------------------------------------------------------- Unit value $ 6.75 $ 6.37 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,437 154 - -------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - -------------------------------------------------------------------------------------------------------- Unit value $ 10.84 $ 10.76 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,461 526 - -------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - -------------------------------------------------------------------------------------------------------- Unit value $ 2.46 $ 2.47 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,349 473 - -------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - -------------------------------------------------------------------------------------------------------- Unit value $ 11.48 $ 11.93 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,074 664 - -------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - -------------------------------------------------------------------------------------------------------- Unit value $ 34.76 $ 24.80 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,799 625 - -------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - -------------------------------------------------------------------------------------------------------- Unit value $ 16.12 $ 13.35 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,545 298 - -------------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - -------------------------------------------------------------------------------------------------------- Unit value $ 8.29 -- - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,973 -- - -------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - -------------------------------------------------------------------------------------------------------- Unit value $ 14.25 $ 12.96 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 238 94 - -------------------------------------------------------------------------------------------------------- Multimanager Core Bond - -------------------------------------------------------------------------------------------------------- Unit value $ 11.28 $ 10.76 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,109 333 - -------------------------------------------------------------------------------------------------------- Multimanager Health Care - -------------------------------------------------------------------------------------------------------- Unit value $ 13.81 $ 12.84 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 845 178 - -------------------------------------------------------------------------------------------------------- Multimanager High Yield - -------------------------------------------------------------------------------------------------------- Unit value $ 12.66 $ 12.44 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,768 448 - -------------------------------------------------------------------------------------------------------- Multimanager International Equity - -------------------------------------------------------------------------------------------------------- Unit value $ 20.44 $ 18.42 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,524 386 - --------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- -------------------------------------------------------------------------------------------------------- For the years ended December 31, - -------------------------------------------------------------------------------------------------------- 2007 2006 - -------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - -------------------------------------------------------------------------------------------------------- Unit value $ 14.02 $ 13.53 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 349 62 - -------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - -------------------------------------------------------------------------------------------------------- Unit value $ 12.67 $ 11.54 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 674 176 - -------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - -------------------------------------------------------------------------------------------------------- Unit value $ 15.92 $ 15.57 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,212 264 - -------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - -------------------------------------------------------------------------------------------------------- Unit value $ 14.84 $ 13.44 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 725 212 - -------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - -------------------------------------------------------------------------------------------------------- Unit value $ 14.81 $ 15.00 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 778 224 - -------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - -------------------------------------------------------------------------------------------------------- Unit value $ 5.21 $ 5.09 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,439 574 - -------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - -------------------------------------------------------------------------------------------------------- Unit value $ 13.29 $ 14.93 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 704 327 - -------------------------------------------------------------------------------------------------------- Multimanager Technology - -------------------------------------------------------------------------------------------------------- Unit value $ 14.50 $ 12.42 - -------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 986 112 - --------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-5 Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- Trustees who are considering the purchase of an Accumulator(R) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this Prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) QP contract to fund a plan for the contract's features and benefits other than tax deferral after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. We will not accept defined benefit plans. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or other contributions from the employer. For 401(k) plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge and/or market value adjustment may apply. AXA Equitable will not perform or provide any plan recordkeeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for participants after age 70-1/2, trustees should consider: o whether required minimum distributions under QP contracts would cause withdrawals in excess of 6% of the Guaranteed minimum income benefit Roll-Up benefit base; o that provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed; and o that if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, payments will be made to the trustee. Finally, because the method of purchasing the QP contract, including the large initial contribution, and the features of the QP contract may appeal more to plan participants who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisors whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. B-1 Appendix II: Purchase considerations for QP contracts Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00%(h) ("h" in the calculation below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a).
- ------------------------------------------------------------------------------------------------------------------------------------ Hypothetical assumed rate to maturity(j) ("j" in the calculation below) February 15, 2012 - ------------------------------------------------------------------------------------------------------------------------------------ 5.00% 9.00% - ------------------------------------------------------------------------------------------------------------------------------------ As of February 15, 2012 before withdrawal - ------------------------------------------------------------------------------------------------------------------------------------ (1) Market adjusted amount(b) $141,389 $121,737 - ------------------------------------------------------------------------------------------------------------------------------------ (2) Fixed maturity amount(c) $131,104 $131,104 - ------------------------------------------------------------------------------------------------------------------------------------ (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ------------------------------------------------------------------------------------------------------------------------------------ On February 15, 2012 after $50,000 withdrawal - ------------------------------------------------------------------------------------------------------------------------------------ (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ------------------------------------------------------------------------------------------------------------------------------------ (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ------------------------------------------------------------------------------------------------------------------------------------ (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ------------------------------------------------------------------------------------------------------------------------------------ (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ------------------------------------------------------------------------------------------------------------------------------------ (8) Maturity value(d) $111,099 $101,287 - ------------------------------------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ where j is either 5% or 9% (1+j)(1,461/365) (1+j)(D/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount \x (1+h)(D/365) = ($84,741 or $77,257) \x (1+0.07)(1,461/365)
Appendix III: Market value adjustment example C-1 Appendix IV: Enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the enhanced death benefit, if elected. The following illustrates the enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option or the fixed maturity options), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the enhanced death benefit for an owner age 45 would be calculated as follows:
- ------------------------------------------------------------------------------------------------------------- End of contract 6% Roll-Up to age 85 Annual Ratchet to age 85 GWBL Enhanced year Account value benefit base benefit base death benefit base - ------------------------------------------------------------------------------------------------------------- 1 $105,000 $ 106,000(4) $ 105,000(1) $ 105,000(5) - ------------------------------------------------------------------------------------------------------------- 2 $115,500 $ 112,360(3) $ 115,500(1) $ 115,500(5) - ------------------------------------------------------------------------------------------------------------- 3 $129,360 $ 119,102(3) $ 129,360(1) $ 129,360(5) - ------------------------------------------------------------------------------------------------------------- 4 $103,488 $ 126,248(3) $ 129,360(2) $ 135,828(6) - ------------------------------------------------------------------------------------------------------------- 5 $113,837 $ 133,823(4) $ 129,360(2) $ 142,296(6) - ------------------------------------------------------------------------------------------------------------- 6 $127,497 $ 141,852(4) $ 129,360(2) $ 148,764(6) - ------------------------------------------------------------------------------------------------------------- 7 $127,497 $ 150,363(4) $ 129,360(2) $ 155,232(6) - -------------------------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. ANNUAL RATCHET TO AGE 85 (1) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (2) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown would be the greater of the amounts shown under the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. (3) At the end of contract years 2 through 4, the enhanced death benefit will be based on the Annual Ratchet to age 85. (4) At the end of contract years 1 and 5 through 7, the enhanced death benefit will be based on the 6% Roll-Up to age 85. GWBL ENHANCED DEATH BENEFIT This example assumes no withdrawals. The GWBL Enhanced death benefit is a guaranteed minimum death benefit that is only available if you elect the Guaranteed withdrawal benefit for life. If you plan to take withdrawals during any of the first seven contract years, this illustration is of limited usefulness to you. (5) At the end of contract years 1 through 3, the GWBL Enhanced death benefit is equal to the current account value. (6) At the end of contract years 4 through 7, the GWBL Enhanced death benefit is greater than the current account value. D-1 Appendix IV: Enhanced death benefit example Appendix V: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85" enhanced death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying portfolios (as described below), the corresponding net annual rates of return would be (2.53)%, 3.47% for the Accumulator(R) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges but they do not reflect the charges we deduct from your account value annually for the enhanced death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return shown would be lower; however, the values shown in the following tables reflect the following contract charges: the "Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85" enhanced death benefit charge, the Earnings enhancement benefit charge, the Guaranteed minimum income benefit charge and any applicable administrative charge and withdrawal charge. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this Prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. Appendix V: Hypothetical illustrations E-1 Variable deferred annuity Accumulator(R) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 Guaranteed minimum death benefit Earnings enhancement benefit Guaranteed minimum income benefit
Greater of 6% Roll-Up to age Lifetime Annual 85 or Annual Guaranteed Minimum Income Benefit Ratchet to age ---------------------------------- 85 Guaranteed Total Death Benefit Minimum Death with the Earnings Guaranteed Hypothetical Account Value Cash Value Benefit enhancement benefit Income Income Contract ------------------- ------------------ ------------------- ------------------- ----------------- ---------------- Age Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% - ----- --------- --------- --------- -------- --------- --------- --------- --------- --------- -------- -------- -------- ------- 60 1 100,000 100,000 93,000 93,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A 61 2 95,751 101,730 88,751 94,730 106,000 106,000 108,400 108,400 N/A N/A N/A N/A 62 3 91,541 103,431 85,541 97,431 112,360 112,360 117,304 117,304 N/A N/A N/A N/A 63 4 87,364 105,097 81,364 99,097 119,102 119,102 126,742 126,742 N/A N/A N/A N/A 64 5 83,215 106,722 78,215 101,722 126,248 126,248 136,747 136,747 N/A N/A N/A N/A 65 6 79,086 108,299 76,086 105,299 133,823 133,823 147,352 147,352 N/A N/A N/A N/A 66 7 74,971 109,821 73,971 108,821 141,852 141,852 158,593 158,593 N/A N/A N/A N/A 67 8 70,864 111,279 70,864 111,279 150,363 150,363 170,508 170,508 N/A N/A N/A N/A 68 9 66,757 112,666 66,757 112,666 159,385 159,385 183,139 183,139 N/A N/A N/A N/A 69 10 62,644 113,971 62,644 113,971 168,948 168,948 196,527 196,527 N/A N/A N/A N/A 74 15 41,660 118,901 41,660 118,901 226,090 226,090 276,527 276,527 13,520 13,520 13,520 13,520 79 20 19,233 119,940 19,233 119,940 302,560 302,560 383,584 383,584 20,272 20,272 20,272 20,272 84 25 0 114,852 0 114,852 0 404,893 0 493,179 0 32,391 0 32,391 89 30 0 115,848 0 115,848 0 429,187 0 517,472 N/A N/A N/A N/A 94 35 0 120,161 0 120,161 0 429,187 0 517,472 N/A N/A N/A N/A 95 36 0 121,106 0 121,106 0 429,187 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. E-2 Appendix V: Hypothetical illustrations Appendix VI: Earnings enhancement benefit example - -------------------------------------------------------------------------------- The following illustrates the calculation of a death benefit that includes the Earnings enhancement benefit for an owner age 45. The example assumes a contribution of $100,000 and no additional contributions. Where noted, a single withdrawal in the amount shown is also assumed. The calculation is as follows:
No Withdrawal $3000 withdrawal $6000 withdrawal ------------------------------------------------------------------------------------------------------------------ A Initial contribution 100,000 100,000 100,000 ------------------------------------------------------------------------------------------------------------------ B Death benefit: prior to withdrawal.* 104,000 104,000 104,000 ------------------------------------------------------------------------------------------------------------------ Earnings enhancement benefit earnings: death benefit less net contributions (prior to the withdrawal in C D). 4,000 4,000 4,000 B minus A. ------------------------------------------------------------------------------------------------------------------ D Withdrawal 0 3,000 6,000 ------------------------------------------------------------------------------------------------------------------ Excess of the withdrawal over the Earnings E enhancement benefit earnings 0 0 2,000 greater of D minus C or zero ------------------------------------------------------------------------------------------------------------------ Net contributions (adjusted for the withdrawal in D) F A minus E 100,000 100,000 98,000 ------------------------------------------------------------------------------------------------------------------ Death benefit (adjusted for the withdrawal in D) G B minus D 104,000 101,000 98,000 ------------------------------------------------------------------------------------------------------------------ Death benefit less net contributions H G minus F 4,000 1,000 0 ------------------------------------------------------------------------------------------------------------------ I Earnings enhancement benefit factor 40% 40% 40% ------------------------------------------------------------------------------------------------------------------ Earnings enhancement benefit J H times I 1,600 400 0 ------------------------------------------------------------------------------------------------------------------ Death benefit: including Earnings enhancement benefit K G plus J 105,600 101,400 98,000 ------------------------------------------------------------------------------------------------------------------
* The death benefit is the greater of the account value or any applicable death benefit. Appendix VI: Earnings enhancement benefit example F-1 Appendix VII: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- The following information is a summary of the states where the Accumulator(R) contract or certain features and/or benefits are either not available as of the date of this Prospectus or vary from the contract's features and benefits as previously described in this Prospectus. STATES WHERE CERTAIN ACCUMULATOR(R) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA See "Contract features and benefits"--"Your If you reside in the state of California and you are age 60 right to cancel within a certain number of and older at the time the contract is issued, you may return days" your variable annuity contract within 30 days from the date that you receive it and receive a refund as described below. If you allocate your entire initial contribution to the EQ/Money Market option (and/or guaranteed interest option, if available), the amount of your refund will be equal to your contribution less interest, unless you make a transfer, in which case the amount of your refund will be equal to your account value on the date we receive your request to cancel at our processing office. This amount could be less than your initial contribution. If the Principal guarantee benefit or Guaranteed withdrawal benefit for life is elected, the investment allocation during the 30 day free look period is limited to the guaranteed interest option. If you allocate any portion of your initial contribution to the variable investment options (other than the EQ/Money Market option) and/or fixed maturity options, your refund will be equal to your account value on the date we receive your request to cancel at our processing office. - ------------------------------------------------------------------------------------------------------------------------------------ OREGON See "We require that the following types of The following is added: communications be on specific forms we provide (20) requests for required minimum distributions, other for that purpose:" in "Who is AXA Equitable?" than pursuant to our automatic RMD service. Flexible Premium IRA, Flexible Premium Roth Not Available IRA and QP contracts Fixed maturity options Not Available Automatic investment program Not Available Special dollar cost averaging program o Available only during the first contract year o Subsequent contributions cannot be used to elect new programs after the first contract year. You may make subsequent contributions to the initial programs while they are still running. See "How you can purchase and contribute to Additional contributions are limited to the first year after your contract" in "Contract features and the contract issue date only. benefits" See "Guaranteed minimum death The Roll-Up benefit base is eligible for reset beginning on benefit/Guaranteed minimum income benefit the fifth contract date anniversary and on each fifth or later roll-up benefit base reset" in "Contract contract date anniversary after a reset. features and benefits" - ------------------------------------------------------------------------------------------------------------------------------------
G-1 Appendix VII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ OREGON See "Lifetime required minimum distribution The following replaces the third paragraph: (CONTINUED) withdrawals" under "Withdrawing your account value" in "Accessing your money" We generally will not impose a withdrawal charge on minimum distribution withdrawals even if you are not enrolled in our automatic RMD service except if, when added to a lump sum withdrawal previously taken in the same contract year, the minimum distribution withdrawals exceed the 10% free withdrawal amount. In order to avoid a withdrawal charge in connection with minimum distribution withdrawals outside of our automatic RMD service, you must notify us using our request form. Such minimum distribution withdrawals must be based solely on your contract's account value. See "Selecting an annuity payout option" under An annuity commencement date earlier than seven years from the "Your annuity payout options" in "Accessing Accumulator(R) contract issue date may not be elected. your money" See "Greater of 6% Roll-Up to age 85 or Annual The charge is equal to 0.60% of the Greater of 6% Roll-Up to age Ratchet to age 85" under "Guaranteed minimum 85 or Annual Ratchet to age 85 benefit base. death benefit charge" in "Charges and expenses" See "Disability, terminal illness, or Item (i) under this section is deleted in its entirety confinement to nursing home" under "Withdrawal charge" in "Charges and expenses" - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA Contributions Your contract refers to contributions as premiums. Special dollar cost averaging program In Pennsylvania, we refer to this program as "enhanced rate dollar cost averaging." See "Disability, terminal illness, or Item (iii) under this section is deleted in its entirety confinement to nursing home" under "Withdrawal charge" in "Charges and expenses" Required disclosure for Pennsylvania customers Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO IRA, Roth IRA, Inherited IRA, QP and Rollover Not Available TSA contracts Beneficiary continuation option (IRA) Not Available Tax Information--Special rules for NQ Income form NQ contracts we issue is U.S. source. A Puerto Rico contracts resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico source income of Puerto Rico residents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable portion of amounts distributed from a contract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S. tax paid. Depending on your personal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-2
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS See "Charges that AXA Equitable deducts" under We will deduct the annual administrative charge, on a pro rata "Annual administrative charge" in "Charges and basis, only from your value in the variable investment options. expenses" We will not deduct this charge from your value in the guaranteed interest option. - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON Guaranteed interest option Not Available Investment simplifier -- Fixed-dollar option Not Available and Interest sweep option Fixed maturity options Not Available Income Manager(R) payout option Not Available Earnings enhancement benefit Not Available Special dollar cost averaging program o Available only at issue o Subsequent contributions cannot be used to elect new programs. You may make subsequent contributions to the initial programs while they are still running. "Greater of 6% Roll-Up to age 85 or Annual All references to this feature are deleted in their entirety. Ratchet to age 85 enhanced death benefit" You have the choice of the following guaranteed minimum death benefits: the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85; the Annual Ratchet to age 85; the Standard death benefit; the GWBL Enhanced death benefit; or the GWBL Standard death benefit. See "Guaranteed minimum death benefit charge" The charge for the Greater of 4% Roll-Up to age 85 or Annual in "Fee table" and in "Charges and expenses" Ratchet to age 85 is 0.60% See "Guaranteed minimum death benefit and o If you elect the 6% Guaranteed minimum income benefit with Guaranteed minimum income benefit base" in the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age "Contract features and benefits" 85 enhanced death benefit, the variable investment options (other than those variable investment options that roll up at 3%) and the account for special dollar cost averaging program will roll up at an annual rate of 6% for the Guaranteed minimum income benefit base and 4% for the 4% Roll-Up to age 85 benefit base. o If you elect the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, without the Guaranteed minimum income benefit, the variable investment options (other than those variable investment options that roll up at 3%) and the account for special dollar cost averaging program will roll up at an annual rate of 4% for the 4% Roll-Up to age 85 benefit base. See "Guaranteed minimum death Your "Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 benefit/Guaranteed minimum income benefit enhanced death benefit" benefit base will reset only if your roll-up benefit base reset" in "Contract account value is greater than your Guaranteed minimum income features and benefits" benefit roll-up benefit base. See "Guaranteed minimum death benefit" in You have a choice of the standard death benefit, the Annual "Contract features and benefits" Ratchet to age 85 enhanced death benefit, or the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. - ------------------------------------------------------------------------------------------------------------------------------------
G-3 Appendix VII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON See "Annual administrative charge" in "Charges The second paragraph of this section is replaced with the (CONTINUED) and expenses" following: The annual administrative charge will be deducted from the value in the variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of that charge for the year. See "How withdrawals affect your Guaranteed The first sentence of the third paragraph is replaced with the minimum income benefit and Guaranteed minimum following: death benefit" in "Accessing your money" With respect to the Guaranteed minimum income benefit and the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6% or less of each benefit's Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. With respect to the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, if elected without the Guaranteed minimum income benefit, withdrawals (including any applicable withdrawal charges) will reduce the 4% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6% or less of the 4% Roll-Up to age 85 benefit base on the contract issue date or the most recent contract date anniversary, if later. See "10% free withdrawal amount" under The 10% free withdrawal amount applies to full surrenders. "Withdrawal charge" in "Charges and expenses" See "Certain withdrawals" under "Withdrawal If you elect the Greater of 4% Roll-Up to age 85 or Annual charge" in "Charges and expenses" Ratchet to age 85 enhanced death benefit without a Guaranteed minimum income benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6% of the beginning of contract year 4% Roll-Up to age 85 benefit base, even if such withdrawals exceed the free withdrawal amount. See "Withdrawal charge" in "Charges and The owner (or older joint owner, if applicable) has qualified to expenses" under "Disability, terminal illness, receive Social Security disability benefits as certified by the or confinement to nursing home" Social Security Administration or a statement from an independent U.S. licensed physician stating that the owner (or older joint owner, if applicable) meets the definition of total disability for at least 6 continuous months prior to the notice of claim. Such disability must be re-certified every 12 months. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-4 Appendix VIII: Contract variations - -------------------------------------------------------------------------------- You should note that your contract's options, features and charges may vary from what is described in this Prospectus depending on the approximate date on which you purchased your contract. You may not change your contract or its features after issue. This Appendix reflects contract variations that differ from what is described in this Prospectus but may have been in effect at the time your contract was issued. If you purchased your contract during the "Approximate Time Period" below, the noted variation may apply to you. In addition, options and/or features may vary among states in light of applicable regulations or state approvals. Any such state variations are generally not included here but instead included in Appendix VII earlier in this section. For more information about state variations applicable to you, as well as particular features, charges and options available under your contract based upon when you purchased it, please contact your financial professional and/or refer to your contract.
- ------------------------------------------------------------------------------------------------------------------------------------ Approximate Time Period Feature/Benefit Variation - ------------------------------------------------------------------------------------------------------------------------------------ July 10, 2006 - January 15, 2007 Greater of 6% Roll-Up to age 85 or Annual The fee for this benefit is 0.60%. Ratchet to age 85 enhanced death benefit Guaranteed minimum death benefit/ The Roll-Up benefit base is eligible for reset Guaranteed minimum income benefit roll-up beginning on the fifth contract date anniversary benefit base reset and on each fifth or later contract date anniversary after a reset. - ------------------------------------------------------------------------------------------------------------------------------------ January 16, 2007 - present Greater of 6% Roll-Up to age 85 or Annual The fee for this benefit is 0.65%.* Ratchet to age 85 enhanced death benefit Guaranteed minimum death benefit/ The Roll-Up benefit base is eligible for reset Guaranteed minimum income benefit roll-up annually.* benefit base reset * This charge and feature are not available to contracts issued in Oregon. - ------------------------------------------------------------------------------------------------------------------------------------
H-1 Appendix VIII: Contract variations Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to Obtain an Accumulator(R) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) P.O. Box 1547 Secaucus, NJ 07096-1547 ................................................................................. Please send me an Accumulator(R) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip X1888/Core '02/'04, OR, '04(NY), '06/'06.5, and '07 Series Accumulator(R) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing or taking any other action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS ACCUMULATOR(R)? Accumulator(R) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option, fixed maturity options, or the account for special dollar cost averaging ("investment options"). This contract may not currently be available in all states. Certain features and benefits described in this Prospectus may vary in your state; all features and benefits may not be available in all contracts, in all states or from all selling broker-dealers. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street Small o EQ/Ariel Appreciation II Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T.Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS MId Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option, the fixed maturity options, and the account for special dollar cost averaging, which are discussed later in this Prospectus. If you elect a Principal guarantee benefit, the Guaranteed withdrawal benefit for life or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and certain permitted variable investment option(s). The permitted variable investment options are described later in this Prospectus. TYPES OF CONTRACTS. We offer the contracts for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA or Roth IRA. We offer two versions of the traditional IRA: "Rollover IRA" and "Flexible Premium IRA." We also offer two versions of the Roth IRA: "Roth Conversion IRA" and "Flexible Premium Roth IRA." o Traditional and Roth Inherited IRA beneficiary continuation contract ("Inherited IRA") (direct transfer and specified direct rollover contributions only). o An annuity that is an investment vehicle for a qualified defined contribution plans and certain qualified defined benefit plans ("QP"). (Rollover and direct transfer contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $5,000 is required to purchase an NQ, Rollover IRA, Roth Conversion IRA, Inherited IRA, QP, or Rollover TSA contract. For Flexible Premium IRA or Flexible Premium Roth IRA contracts, we require a contribution of $4,000 to purchase a contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01908/Core '07 Series (R-4/15) Contents of this Prospectus - -------------------------------------------------------------------- ACCUMULATOR(R) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 11 - -------------------------------------------------------------------------------- Example 15 Condensed financial information 19 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 20 - -------------------------------------------------------------------------------- How you can purchase and contribute to your contract 20 Owner and annuitant requirements 25 How you can make your contributions 25 What are your investment options under the contract? 26 Portfolios of the Trusts 27 Allocating your contributions 33 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 35 Annuity purchase factors 37 Guaranteed minimum income benefit 37 Guaranteed minimum death benefit 40 Guaranteed withdrawal benefit for life ("GWBL") 41 Principal guarantee benefits 45 Inherited IRA beneficiary continuation contract 46 Your right to cancel within a certain number of days 47 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 48 - -------------------------------------------------------------------------------- Your account value and cash value 48 Your contract's value in the variable investment options 48 Your contract's value in the guaranteed interest option 48 Your contract's value in the fixed maturity options 48 Your contract's value in the account for special dollar cost averaging 48 Insufficient account value 48 - ---------------------- "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the Prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 50 - -------------------------------------------------------------------------------- Transferring your account value 50 Disruptive transfer activity 50 Rebalancing your account value 51 - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 52 - -------------------------------------------------------------------------------- Withdrawing your account value 52 How withdrawals are taken from your account value 54 How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits 54 How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit 55 Withdrawals treated as surrenders 55 Loans under Rollover TSA contracts 55 Surrendering your contract to receive its cash value 56 When to expect payments 56 Your annuity payout options 56 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 59 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 59 Charges that the Trusts deduct 63 Group or sponsored arrangements 63 Other distribution arrangements 63 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 64 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 64 Beneficiary continuation option 66 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 69 - -------------------------------------------------------------------------------- Overview 69 Buying a contract to fund a retirement arrangement 69 Transfers among investment options 69 Taxation of nonqualified annuities 69 Individual retirement arrangements (IRAs) 71 Tax-sheltered annuity contracts (TSAs) 81 Federal and state income tax withholding and information reporting 85 Special rules for contracts funding qualified plans 86 Impact of taxes to AXA Equitable 86 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 87 - -------------------------------------------------------------------------------- About Separate Account No. 49 87 About the Trusts 87 About our fixed maturity options 87 About the general account 88 About other methods of payment 89 Dates and prices at which contract events occur 89 About your voting rights 90 About legal proceedings 90 Financial statements 91 Transfers of ownership, collateral assignments, loans and borrowing 91 About Custodial IRAs 91 Distribution of the contracts 91 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 94 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Enhanced death benefit example D-1 V -- Hypothetical illustrations E-1 VI -- Earnings enhancement benefit example F-1 VII -- State contract availability and/or variations of certain features and benefits G-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page 3% Roll-Up to age 85 36 6% Roll-Up to age 85 35 6-1/2% Roll-Up to age 85 35 account for special dollar cost averaging 33 account value 48 administrative charge 59 annual administrative charge 59 Annual Ratchet 43 Annual Ratchet to age 85 enhanced death benefit 35 annuitant 20 annuitization 56 annuity maturity date 58 annuity payout options 56 annuity purchase factors 37 automatic annual reset program 36 automatic customized reset program 36 automatic investment program 89 AXA Allocation portfolios cover beneficiary 64 Beneficiary continuation option ("BCO") 66 business day 89 cash value 48 charges for state premium and other applicable taxes 62 contract date 25 contract date anniversary 25 contract year 25 contributions to Roth IRAs 77 regular contributions 78 rollovers and transfers 78 conversion contributions 78 contributions to traditional IRAs 72 regular contributions 72 rollovers and transfers 73 disability, terminal illness or confinement to nursing home 60 disruptive transfer activity 50 Distribution Charge 59 Earnings enhancement benefit 41 Earnings enhancement benefit charge 62 EQAccess 7 ERISA 63 Fixed-dollar option 34 fixed maturity options 32 Flexible Premium IRA cover Flexible Premium Roth IRA cover free look 47 free withdrawal amount 60 general account 88 General dollar cost averaging 34 guaranteed interest option 32 Guaranteed minimum death benefit 36 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 35 Guaranteed minimum income benefit 37 Guaranteed minimum income benefit and the Roll-Up benefit base reset option 36 Guaranteed minimum income benefit charge 61 Guaranteed minimum income benefit "no lapse guarantee" 40 Guaranteed withdrawal benefit for life ("GWBL") 41 Guaranteed withdrawal benefit for life charge 62 GWBL benefit base 42 IRA cover IRS 69 Inherited IRA cover Investment simplifier 34 investment options cover lifetime required minimum distribution withdrawals 53 loan reserve account 56 loans under Rollover TSA 55 market adjusted amount 32 market value adjustment 32 market timing 50 maturity dates 32 maturity value 32 Mortality and expense risks charge 59 NQ cover one-time reset option 36 partial withdrawals 52 participant 25 permitted variable investment options 26 Portfolio cover Principal guarantee benefits 45 processing office 7 QP cover rate to maturity 32 Rebalancing 51 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 33 Separate Account No. 49 87 Special dollar cost averaging 33 standard death benefit 35 substantially equal withdrawals 53 Spousal continuation 65 systematic withdrawals 53 TOPS 7 TSA cover traditional IRA cover Trusts 87 unit 48 variable investment options 26 wire transmittals and electronic applications 89 withdrawal charge 60 4 Index of key words and phrases To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract or supplemental materials. Your financial professional can provide further explanation about your contract.
- ----------------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - ----------------------------------------------------------------------------------------- fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guaranteed minimum income benefit Guaranteed Income Benefit Guaranteed interest option Guaranteed Interest Account Guaranteed withdrawal benefit for life Guaranteed withdrawal benefit GWBL benefit base Guaranteed withdrawal benefit for life benefit base Guaranteed annual withdrawal amount Guaranteed withdrawal benefit for life Annual withdrawal amount Excess withdrawal Guaranteed withdrawal benefit for life Excess withdrawal - -----------------------------------------------------------------------------------------
Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year, and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility for GWBL deferral bonuses and eligibility to exercise the Guaranteed minimum income benefit and/or the Roll-Up benefit base reset option. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options; o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of your transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Who is AXA Equitable? 7 Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA or Flex ible Premium Roth IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts (employer or plan approval required) and contracts with the Guaranteed withdrawal benefit for life ("GWBL"); (7) tax withholding elections; (8) election of the beneficiary continuation option; (9) IRA contribution recharacterizations; (10) Section 1035 exchanges; (11) direct transfers and rollovers; (12) exercise of the Guaranteed minimum income benefit; (13) requests to reset your Roll-Up benefit base by electing one of the following: one-time reset option, automatic annual reset program or automatic customized reset program; (14) requests to opt out of or back into the annual ratchet of the Guaranteed withdrawal benefit for life ("GWBL") benefit base; (15) death claims; (16) change in ownership (NQ only, if available under your contract); (17) requests for enrollment in either our Maximum payment plan or Customized payment plan under the Guaranteed withdrawal benefit for life ("GWBL"); (18) purchase by, or change of ownership to, a nonnatural owner; (19) requests to reset the guaranteed minimum value for contracts with a Principal guarantee benefit; and (20) requests to collaterally assign your NQ contract. WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; (3) general dollar cost averaging (including the fixed dollar and interest sweep options); and (4) special dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging (including the fixed dollar and interest sweep options); (3) special dollar cost averaging; (4) substantially equal withdrawals; (5) systematic withdrawals; and (6) the date annuity payments are to begin. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION AT LEAST 30 CALENDAR DAYS PRIOR TO YOUR CONTRACT DATE ANNIVERSARY: (1) automatic annual reset program; and (2) automatic customized reset program. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners, both must sign. 8 Who is AXA Equitable? Accumulator(R) at a glance -- key features - -------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------------ Professional investment Accumulator's(R) variable investment options invest in different Portfolios managed by professional management investment advisers. - ------------------------------------------------------------------------------------------------------------------------------------ Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. ------------------------------------------------------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - ------------------------------------------------------------------------------------------------------------------------------------ Account for special dollar Available for dollar cost averaging all or a portion of any eligible contribution to your contract. cost averaging - ------------------------------------------------------------------------------------------------------------------------------------ Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among investment options inside the contract. ------------------------------------------------------------------------------------------------------- If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before purchasing one of these contracts, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities compared with any other investment that you may use in connection with your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during your life once you income benefit elect to annuitize the contract. - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed withdrawal The Guaranteed withdrawal benefit for life option ("GWBL") guarantees that you can take withdrawals benefit for life of up to a maximum amount each contract year (your "Guaranteed annual withdrawal amount") beginning at age 45 or later. Withdrawals are taken from your account value and continue during your lifetime even if your account value falls to zero (unless it is caused by a withdrawal that exceeds your Guaranteed annual withdrawal amount). - ------------------------------------------------------------------------------------------------------------------------------------ Contribution amounts o NQ, Rollover IRA, Roth Conversion IRA, Inherited IRA, QP and Rollover TSA contracts o Initial minimum: $5,000 o Additional minimum: $500 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ, Rollover IRA and Roth conversion IRA contracts) $50 (IRA contracts) $1000 (Inherited IRA contracts) ------------------------------------------------------------------------------------------------------- o Flexible Premium IRA and Flexible Premium Roth IRA contracts o Initial minimum: $4,000 o Additional minimum: $ 50 $50 under our automatic investment program ------------------------------------------------------------------------------------------------------- Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million ($500,000 for owners or annuitants who are age 81 and older at contract issue) under all Accumulator(R) series contracts with the same owner or annuitant. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We currently impose that limitation except in certain circumstances which are identified in "How you can purchase and contribute to your contract" in "Contract features and benefits" later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) at a glance -- key features 9 - ------------------------------------------------------------------------------------------------------------------------------------ Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender o Maximum payment plan (only under contracts with GWBL) o Customized payment plan (only under contracts with GWBL) You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ------------------------------------------------------------------------------------------------------------------------------------ Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - ------------------------------------------------------------------------------------------------------------------------------------ Additional features o Guaranteed minimum death benefit options o Principal guarantee benefits o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually, and annually) o Free transfers o Waiver of withdrawal charge for certain withdrawals, disability, terminal illness, or confinement to a nursing home o Earnings enhancement benefit, an optional death benefit available under certain contracts o Spousal continuation o Beneficiary continuation option o Roll-Up benefit base reset - ------------------------------------------------------------------------------------------------------------------------------------ Fees and charges Please see "Fee table" later in this section for complete details. - ------------------------------------------------------------------------------------------------------------------------------------ Owner and annuitant issue NQ: 0-85 ages Rollover IRA, Roth Conversion IRA, Flexible Premium Roth IRA and Rollover TSA: 20-85 Flexible Premium IRA: 20-70 Inherited IRA: 0-70 QP (Defined Contribution and Defined Benefit): 20-75 - ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available in your state or at certain ages. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund within a certain number of days. Please see "Your right to cancel within a certain number of days" later in this Prospectus for additional information. OTHER CONTRACTS We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts, based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. 10 Accumulator(R) at a glance -- key features Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay at the time that you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity payout option. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply.
- ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value at the time you request certain transactions - ------------------------------------------------------------------------------------------------------------------------------------ Maximum withdrawal charge as a percentage of contributions with- drawn (deducted if you surrender your contract or make certain withdrawals or apply your cash value to certain payout options).(1) 7.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350
The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value on each contract date anniversary - ------------------------------------------------------------------------------------------------------------------------------------ Maximum annual administrative charge(2) If your account value on a contract date anniversary is less than $50,000(3) $ 30 If your account value on a contract date anniversary is $50,000 or more $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ SEPARATE ACCOUNT ANNUAL EXPENSES: Mortality and expense risks 0.80%(4) Administrative 0.30% Distribution 0.20% ----- Total Separate account annual expenses 1.30% - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value each year if you elect any of the following optional benefits - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect). Standard death benefit and GWBL Standard death benefit 0.00% Annual Ratchet to age 85 0.25% Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 0.80%(5) If you elect to reset this benefit base, if applicable, we reserve the right to increase your charge up to: 0.95% Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 0.65%(5) If you elect to reset this benefit base, if applicable, we reserve the right to increase your charge up to: 0.80% Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 0.65% GWBL Enhanced death benefit 0.30% - ------------------------------------------------------------------------------------------------------------------------------------
Fee table 11 - ------------------------------------------------------------------------------------------------------------------------------------ Principal guarantee benefits charge (calculated as a percentage of the account value. Deducted annually(2) on each contract date anni- versary for which the benefit is in effect) 100% Principal guarantee benefit 0.50% 125% Principal guarantee benefit 0.75% - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum income benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect) If you elect the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base 0.80%(5) If you elect to reset this benefit base, we reserve the right to increase your charge up to: 1.10% If you elect the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base 0.65%(5) If you elect to reset this Roll-Up benefit base, we reserve the right to increase your charge up to: 0.95% - ------------------------------------------------------------------------------------------------------------------------------------ Earnings enhancement benefit charge (calculated as a percent- age of the account value. Deducted annually(2) on each contract date anniversary for which the benefit is in effect) 0.35% - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed withdrawal benefit for life benefit charge (calcu- 0.60% for the Single Life option lated as a percentage of the GWBL benefit base. Deducted annually(2) 0.75% for the Joint Life option on each contract date anniversary). If your GWBL benefit base ratchets, we reserve the right to increase your charge up to: 0.75% for the Single Life option 0.90% for the Joint Life option Please see "Guaranteed withdrawal benefit for life" in "Contract features and benefits" for more information about this feature, including its benefit base and the Annual Ratchet provision, and "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses," both later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------ Net loan interest charge - Rollover TSA contracts only (calcu- lated and deducted daily as a percentage of the outstanding loan amount) 2.00%(6) - ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------ Portfolio operating expenses expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ ------- other expenses)(7) 0.63% 3.56%
12 Fee table This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------ Total Acquired Annual Net Fund Fees Expenses Fee Waiv- Annual and (Before ers and/or Expenses Manage- Expenses Expense Expense (After ment 12b-1 Other (Underlying Limita- Reimburse- Expense Portfolio Name Fees(8) Fees(9) Expenses(10) Portfolios)(11) tions) ments(12) Limitations) - ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation 0.10% 0.25% 0.17% 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.10% 0.25% 0.21% 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.10% 0.25% 0.17% 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity 0.60% 0.25% 0.19% -- 1.04% -- 1.04% Multimanager Core Bond 0.58% 0.25% 0.18% -- 1.01% (0.01)% 1.00% Multimanager Health Care 1.20% 0.25% 0.23% -- 1.68% 0.00% 1.68% Multimanager High Yield 0.57% 0.25% 0.19% -- 1.01% -- 1.01% Multimanager International Equity 1.00% 0.25% 0.23% -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth 0.90% 0.25% 0.22% -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value 0.87% 0.25% 0.20% -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value 1.09% 0.25% 0.20% -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth 1.05% 0.25% 0.27% -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value 1.03% 0.25% 0.18% -- 1.46% 0.00% 1.46% Multimanager Technology 1.20% 0.25% 0.22% 0.01% 1.68% 0.00% 1.68% - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% -- 0.88% -- 0.88% EQ/AllianceBernstein International 0.71% 0.25% 0.18% -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% -- 1.12% -- 1.12% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% -- 0.93% 0.00% 0.93% EQ/BlackRock International Value 0.81% 0.25% 0.19% -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research 0.63% 0.25% 0.13% -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture 0.85% 0.25% 0.18% -- 1.28% 0.00% 1.28% EQ/Equity 500 Index 0.25% 0.25% 0.13% -- 0.63% -- 0.63% EQ/Evergreen International Bond 0.70% 0.25% 0.17% -- 1.12% 0.00% 1.12% EQ/Evergreen Omega 0.65% 0.25% 0.25% -- 1.15% 0.00% 1.15% EQ/FI Mid Cap 0.68% 0.25% 0.13% -- 1.06% (0.06)% 1.00% EQ/Franklin Income 0.90% 0.25% 0.15% -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% 1.05% 1.57% (0.12)% 1.45%(13) EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.60% 0.25% 0.30% 0.04% 1.19% (0.05)% 1.14% EQ/International Growth 0.85% 0.25% 0.27% -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% -- 1.07% (0.07)% 1.00% EQ/Long Term Bond 0.40% 0.25% 0.13% -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% -- 1.11% (0.11)% 1.00% - ------------------------------------------------------------------------------------------------------------------------------------
Fee table 13 This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------ Total Acquired Annual Net Fund Fees Expenses Fee Waiv- Annual and (Before ers and/or Expenses Manage- Expenses Expense Expense (After ment 12b-1 Other (Underlying Limita- Reimburse- Expense Portfolio Name Fees(8) Fees(9) Expenses(10) Portfolios)(11) tions) ments(12) Limitations) - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% -- 1.10% (0.05)% 1.05% EQ/Marsico Focus 0.85% 0.25% 0.13% -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% 0.02% 1.06% (0.04)% 1.02% EQ/Money Market 0.32% 0.25% 0.13% -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% -- 1.15% 0.00% 1.15% EQ/Mutual Shares 0.90% 0.25% 0.21% -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.95% 0.25% 0.51% 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return 0.55% 0.25% 0.14% -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond 0.43% 0.25% 0.15% -- 0.83% 0.00% 0.83% EQ/Small Company Index 0.25% 0.25% 0.14% -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% -- 1.18% (0.03)% 1.15% EQ/Templeton Growth 0.95% 0.25% 0.20% -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% -- 1.36% (0.10)% 1.26% - ------------------------------------------------------------------------------------------------------------------------------------
Notes: (1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal amount, if applicable: Contract The withdrawal charge percentage we use is Year determined by the contract year in which you 1 ............. 7.00% make the withdrawal or surrender your 2 ............. 7.00% contract. For each contribution, we consider 3 ............. 6.00% the contract year in which we receive that 4 ............. 6.00% contribution to be "contract year 1") 5 ............. 5.00% 6 ............. 3.00% 7 ............. 1.00% 8+ ............ 0.00% (2) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. (3) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, the charge, if applicable, is $30 for each contract year. (4) These charges compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. (5) We reserve the right to increase this charge if you elect to reset your Roll-Up benefit base on any contract date anniversary. See both "Guaranteed minimum death benefit charge" and "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. (6) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (7) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (8) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (12) and (13) for any expense limitation agreement information. (9) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. (10) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (12) and (13) for any expense limitation agreement information. (11) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (12) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advi- 14 Fee table sors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolios invests and extraordinary expenses) to not more than the amount specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: ---------------------------------------------- Portfolio Name ---------------------------------------------- Multimanager Aggressive Equity 0.97% ---------------------------------------------- Multimanager Health Care 1.67% ---------------------------------------------- Multimanager Large Cap Core Equity 1.34% ---------------------------------------------- Multimanager Large Cap Growth 1.29% ---------------------------------------------- Multimanager Large Cap Value 1.26% ---------------------------------------------- Multimanager Mid Cap Growth 1.52% ---------------------------------------------- Multimanager Mid Cap Value 1.53% ---------------------------------------------- Multimanager Small Cap Growth 1.35% ---------------------------------------------- Multimanager Small Cap Value 1.45% ---------------------------------------------- Multimanager Technology 1.67% ---------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% ---------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% ---------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% ---------------------------------------------- EQ/AllianceBernstein Value 0.87% ---------------------------------------------- EQ/Ariel Appreciation II 1.09% ---------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% ---------------------------------------------- EQ/Davis New York Venture 1.25% ---------------------------------------------- EQ/Evergreen Omega 1.12% ---------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% ---------------------------------------------- EQ/GAMCO Small Company Value 1.10% ---------------------------------------------- EQ/International Core PLUS 1.05% ---------------------------------------------- EQ/Large Cap Core PLUS 0.83% ---------------------------------------------- EQ/Large Cap Growth PLUS 0.82% ---------------------------------------------- EQ/Legg Mason Value Equity 0.97% ---------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% ---------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% ---------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% ---------------------------------------------- EQ/Mid Cap Value PLUS 0.81% ---------------------------------------------- EQ/Montag & Caldwell Growth 1.13% ---------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% ---------------------------------------------- EQ/UBS Growth and Income 1.04% ---------------------------------------------- EQ/Van Kampen Comstock 0.99% ---------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% ---------------------------------------------- (13) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and adminis tration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the enhanced death benefit that provides for the Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 and the Earnings enhancement benefit with the Guaranteed minimum income benefit) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.009% of contract value. The fixed maturity options, guaranteed interest option and the account for special dollar cost averaging are not covered by the example. However, the annual administrative charge, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options, guaranteed interest option and the account for special dollar cost averaging. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. Fee table 15 The example assumes that you invest $10,000 in the contract for the time periods indicated, and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 16 Fee table
- ---------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ---------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,196.00 $ 2,121.00 $ 3,095.00 $ 5,510.00 AXA Conservative Allocation $ 1,176.00 $ 2,063.00 $ 3,001.00 $ 5,342.00 AXA Conservative-Plus Allocation $ 1,181.00 $ 2,079.00 $ 3,026.00 $ 5,386.00 AXA Moderate Allocation $ 1,185.00 $ 2,091.00 $ 3,046.00 $ 5,422.00 AXA Moderate-Plus Allocation $ 1,189.00 $ 2,103.00 $ 3,065.00 $ 5,457.00 Multimanager Aggressive Equity $ 1,154.00 $ 1,999.00 $ 2,897.00 $ 5,152.00 Multimanager Core Bond $ 1,151.00 $ 1,990.00 $ 2,882.00 $ 5,124.00 Multimanager Health Care $ 1,221.00 $ 2,194.00 $ 3,212.00 $ 5,717.00 Multimanager High Yield $ 1,151.00 $ 1,990.00 $ 2,882.00 $ 5,124.00 Multimanager International Equity $ 1,200.00 $ 2,133.00 $ 3,114.00 $ 5,545.00 Multimanager Large Cap Core Equity $ 1,186.00 $ 2,094.00 $ 3,051.00 $ 5,430.00 Multimanager Large Cap Growth $ 1,188.00 $ 2,100.00 $ 3,060.00 $ 5,448.00 Multimanager Large Cap Value $ 1,183.00 $ 2,085.00 $ 3,036.00 $ 5,404.00 Multimanager Mid Cap Growth $ 1,207.00 $ 2,155.00 $ 3,148.00 $ 5,605.00 Multimanager Mid Cap Value $ 1,206.00 $ 2,152.00 $ 3,144.00 $ 5,597.00 Multimanager Small Cap Growth $ 1,209.00 $ 2,161.00 $ 3,158.00 $ 5,623.00 Multimanager Small Cap Value $ 1,198.00 $ 2,127.00 $ 3,104.00 $ 5,527.00 Multimanager Technology $ 1,221.00 $ 2,194.00 $ 3,212.00 $ 5,717.00 - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,134.00 $ 1,940.00 $ 2,802.00 $ 4,976.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,137.00 $ 1,950.00 $ 2,817.00 $ 5,004.00 EQ/AllianceBernstein International $ 1,164.00 $ 2,030.00 $ 2,947.00 $ 5,243.00 EQ/AllianceBernstein Large Cap Growth $ 1,179.00 $ 2,072.00 $ 3,016.00 $ 5,368.00 EQ/AllianceBernstein Quality Bond $ 1,138.00 $ 1,953.00 $ 2,822.00 $ 5,014.00 EQ/AllianceBernstein Small Cap Growth $ 1,162.00 $ 2,023.00 $ 2,937.00 $ 5,225.00 EQ/AllianceBernstein Value $ 1,145.00 $ 1,974.00 $ 2,857.00 $ 5,078.00 EQ/Ariel Appreciation II $ 1,177.00 $ 2,066.00 $ 3,006.00 $ 5,350.00 EQ/AXA Rosenberg Value Long/Short Equity $ 1,418.00 $ 2,753.00 $ 4,085.00 $ 7,166.00 EQ/BlackRock Basic Value Equity $ 1,142.00 $ 1,965.00 $ 2,842.00 $ 5,051.00 EQ/BlackRock International Value $ 1,176.00 $ 2,063.00 $ 3,001.00 $ 5,342.00 EQ/Boston Advisors Equity Income $ 1,164.00 $ 2,030.00 $ 2,947.00 $ 5,243.00 EQ/Calvert Socially Responsible $ 1,163.00 $ 2,027.00 $ 2,942.00 $ 5,234.00 EQ/Capital Guardian Growth $ 1,155.00 $ 2,002.00 $ 2,902.00 $ 5,161.00 EQ/Capital Guardian Research $ 1,151.00 $ 1,990.00 $ 2,882.00 $ 5,124.00 EQ/Caywood-Scholl High Yield Bond $ 1,151.00 $ 1,990.00 $ 2,882.00 $ 5,124.00 EQ/Davis New York Venture $ 1,179.00 $ 2,072.00 $ 3,016.00 $ 5,368.00 EQ/Equity 500 Index $ 1,111.00 $ 1,872.00 $ 2,691.00 $ 4,769.00 EQ/Evergreen International Bond $ 1,162.00 $ 2,023.00 $ 2,937.00 $ 5,225.00 EQ/Evergreen Omega $ 1,165.00 $ 2,033.00 $ 2,952.00 $ 5,252.00 EQ/FI Mid Cap $ 1,156.00 $ 2,005.00 $ 2,907.00 $ 5,170.00 - ---------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period and select a non-life contingent period certain annuity option with less than five years - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ---------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 2,121.00 $ 3,095.00 $ 5,510.00 AXA Conservative Allocation N/A $ 2,063.00 $ 3,001.00 $ 5,342.00 AXA Conservative-Plus Allocation N/A $ 2,079.00 $ 3,026.00 $ 5,386.00 AXA Moderate Allocation N/A $ 2,091.00 $ 3,046.00 $ 5,422.00 AXA Moderate-Plus Allocation N/A $ 2,103.00 $ 3,065.00 $ 5,457.00 Multimanager Aggressive Equity N/A $ 1,999.00 $ 2,897.00 $ 5,152.00 Multimanager Core Bond N/A $ 1,990.00 $ 2,882.00 $ 5,124.00 Multimanager Health Care N/A $ 2,194.00 $ 3,212.00 $ 5,717.00 Multimanager High Yield N/A $ 1,990.00 $ 2,882.00 $ 5,124.00 Multimanager International Equity N/A $ 2,133.00 $ 3,114.00 $ 5,545.00 Multimanager Large Cap Core Equity N/A $ 2,094.00 $ 3,051.00 $ 5,430.00 Multimanager Large Cap Growth N/A $ 2,100.00 $ 3,060.00 $ 5,448.00 Multimanager Large Cap Value N/A $ 2,085.00 $ 3,036.00 $ 5,404.00 Multimanager Mid Cap Growth N/A $ 2,155.00 $ 3,148.00 $ 5,605.00 Multimanager Mid Cap Value N/A $ 2,152.00 $ 3,144.00 $ 5,597.00 Multimanager Small Cap Growth N/A $ 2,161.00 $ 3,158.00 $ 5,623.00 Multimanager Small Cap Value N/A $ 2,127.00 $ 3,104.00 $ 5,527.00 Multimanager Technology N/A $ 2,194.00 $ 3,212.00 $ 5,717.00 - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 1,940.00 $ 2,802.00 $ 4,976.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,950.00 $ 2,817.00 $ 5,004.00 EQ/AllianceBernstein International N/A $ 2,030.00 $ 2,947.00 $ 5,243.00 EQ/AllianceBernstein Large Cap Growth N/A $ 2,072.00 $ 3,016.00 $ 5,368.00 EQ/AllianceBernstein Quality Bond N/A $ 1,953.00 $ 2,822.00 $ 5,014.00 EQ/AllianceBernstein Small Cap Growth N/A $ 2,023.00 $ 2,937.00 $ 5,225.00 EQ/AllianceBernstein Value N/A $ 1,974.00 $ 2,857.00 $ 5,078.00 EQ/Ariel Appreciation II N/A $ 2,066.00 $ 3,006.00 $ 5,350.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,753.00 $ 4,085.00 $ 7,166.00 EQ/BlackRock Basic Value Equity N/A $ 1,965.00 $ 2,842.00 $ 5,051.00 EQ/BlackRock International Value N/A $ 2,063.00 $ 3,001.00 $ 5,342.00 EQ/Boston Advisors Equity Income N/A $ 2,030.00 $ 2,947.00 $ 5,243.00 EQ/Calvert Socially Responsible N/A $ 2,027.00 $ 2,942.00 $ 5,234.00 EQ/Capital Guardian Growth N/A $ 2,002.00 $ 2,902.00 $ 5,161.00 EQ/Capital Guardian Research N/A $ 1,990.00 $ 2,882.00 $ 5,124.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,990.00 $ 2,882.00 $ 5,124.00 EQ/Davis New York Venture N/A $ 2,072.00 $ 3,016.00 $ 5,368.00 EQ/Equity 500 Index N/A $ 1,872.00 $ 2,691.00 $ 4,769.00 EQ/Evergreen International Bond N/A $ 2,023.00 $ 2,937.00 $ 5,225.00 EQ/Evergreen Omega N/A $ 2,033.00 $ 2,952.00 $ 5,252.00 EQ/FI Mid Cap N/A $ 2,005.00 $ 2,907.00 $ 5,170.00 - ---------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ---------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 496.00 $ 1,521.00 $ 2,595.00 $ 5,510.00 AXA Conservative Allocation $ 476.00 $ 1,463.00 $ 2,501.00 $ 5,342.00 AXA Conservative-Plus Allocation $ 481.00 $ 1,479.00 $ 2,526.00 $ 5,386.00 AXA Moderate Allocation $ 485.00 $ 1,491.00 $ 2,546.00 $ 5,422.00 AXA Moderate-Plus Allocation $ 489.00 $ 1,503.00 $ 2,565.00 $ 5,457.00 Multimanager Aggressive Equity $ 454.00 $ 1,399.00 $ 2,397.00 $ 5,152.00 Multimanager Core Bond $ 451.00 $ 1,390.00 $ 2,382.00 $ 5,124.00 Multimanager Health Care $ 521.00 $ 1,594.00 $ 2,712.00 $ 5,717.00 Multimanager High Yield $ 451.00 $ 1,390.00 $ 2,382.00 $ 5,124.00 Multimanager International Equity $ 500.00 $ 1,533.00 $ 2,614.00 $ 5,545.00 Multimanager Large Cap Core Equity $ 486.00 $ 1,494.00 $ 2,551.00 $ 5,430.00 Multimanager Large Cap Growth $ 488.00 $ 1,500.00 $ 2,560.00 $ 5,448.00 Multimanager Large Cap Value $ 483.00 $ 1,485.00 $ 2,536.00 $ 5,404.00 Multimanager Mid Cap Growth $ 507.00 $ 1,555.00 $ 2,648.00 $ 5,605.00 Multimanager Mid Cap Value $ 506.00 $ 1,552.00 $ 2,644.00 $ 5,597.00 Multimanager Small Cap Growth $ 509.00 $ 1,561.00 $ 2,658.00 $ 5,623.00 Multimanager Small Cap Value $ 498.00 $ 1,527.00 $ 2,604.00 $ 5,527.00 Multimanager Technology $ 521.00 $ 1,594.00 $ 2,712.00 $ 5,717.00 - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 434.00 $ 1,340.00 $ 2,302.00 $ 4,976.00 EQ/AllianceBernstein Intermediate Government Securities $ 437.00 $ 1,350.00 $ 2,317.00 $ 5,004.00 EQ/AllianceBernstein International $ 464.00 $ 1,430.00 $ 2,447.00 $ 5,243.00 EQ/AllianceBernstein Large Cap Growth $ 479.00 $ 1,472.00 $ 2,516.00 $ 5,368.00 EQ/AllianceBernstein Quality Bond $ 438.00 $ 1,353.00 $ 2,322.00 $ 5,014.00 EQ/AllianceBernstein Small Cap Growth $ 462.00 $ 1,423.00 $ 2,437.00 $ 5,225.00 EQ/AllianceBernstein Value $ 445.00 $ 1,374.00 $ 2,357.00 $ 5,078.00 EQ/Ariel Appreciation II $ 477.00 $ 1,466.00 $ 2,506.00 $ 5,350.00 EQ/AXA Rosenberg Value Long/Short Equity $ 718.00 $ 2,153.00 $ 3,585.00 $ 7,166.00 EQ/BlackRock Basic Value Equity $ 442.00 $ 1,365.00 $ 2,342.00 $ 5,051.00 EQ/BlackRock International Value $ 476.00 $ 1,463.00 $ 2,501.00 $ 5,342.00 EQ/Boston Advisors Equity Income $ 464.00 $ 1,430.00 $ 2,447.00 $ 5,243.00 EQ/Calvert Socially Responsible $ 463.00 $ 1,427.00 $ 2,442.00 $ 5,234.00 EQ/Capital Guardian Growth $ 455.00 $ 1,402.00 $ 2,402.00 $ 5,161.00 EQ/Capital Guardian Research $ 451.00 $ 1,390.00 $ 2,382.00 $ 5,124.00 EQ/Caywood-Scholl High Yield Bond $ 451.00 $ 1,390.00 $ 2,382.00 $ 5,124.00 EQ/Davis New York Venture $ 479.00 $ 1,472.00 $ 2,516.00 $ 5,368.00 EQ/Equity 500 Index $ 411.00 $ 1,272.00 $ 2,191.00 $ 4,769.00 EQ/Evergreen International Bond $ 462.00 $ 1,423.00 $ 2,437.00 $ 5,225.00 EQ/Evergreen Omega $ 465.00 $ 1,433.00 $ 2,452.00 $ 5,252.00 EQ/FI Mid Cap $ 456.00 $ 1,405.00 $ 2,407.00 $ 5,170.00 - ----------------------------------------------------------------------------------------------------------
Fee table 17
- ---------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/Franklin Income $ 1,181.00 $ 2,079.00 $ 3,026.00 $ 5,386.00 EQ/Franklin Small Cap Value $ 1,184.00 $ 2,088.00 $ 3,041.00 $ 5,413.00 EQ/Franklin Templeton Founding Strategy $ 1,209.00 $ 2,161.00 $ 3,158.00 $ 5,623.00 EQ/GAMCO Mergers and Acquisitions $ 1,185.00 $ 2,091.00 $ 3,046.00 $ 5,422.00 EQ/GAMCO Small Company Value $ 1,163.00 $ 2,027.00 $ 2,942.00 $ 5,234.00 EQ/International Core PLUS $ 1,170.00 $ 2,045.00 $ 2,972.00 $ 5,288.00 EQ/International Growth $ 1,188.00 $ 2,100.00 $ 3,060.00 $ 5,448.00 EQ/JPMorgan Core Bond $ 1,130.00 $ 1,928.00 $ 2,782.00 $ 4,939.00 EQ/JPMorgan Value Opportunities $ 1,149.00 $ 1,984.00 $ 2,872.00 $ 5,106.00 EQ/Large Cap Core PLUS $ 1,152.00 $ 1,993.00 $ 2,887.00 $ 5,133.00 EQ/Large Cap Growth PLUS $ 1,151.00 $ 1,990.00 $ 2,882.00 $ 5,124.00 EQ/Legg Mason Value Equity $ 1,157.00 $ 2,008.00 $ 2,912.00 $ 5,179.00 EQ/Long Term Bond $ 1,126.00 $ 1,919.00 $ 2,767.00 $ 4,911.00 EQ/Lord Abbett Growth and Income $ 1,156.00 $ 2,005.00 $ 2,907.00 $ 5,170.00 EQ/Lord Abbett Large Cap Core $ 1,161.00 $ 2,020.00 $ 2,932.00 $ 5,215.00 EQ/Lord Abbett Mid Cap Value $ 1,160.00 $ 2,017.00 $ 2,927.00 $ 5,206.00 EQ/Marsico Focus $ 1,174.00 $ 2,057.00 $ 2,991.00 $ 5,324.00 EQ/Mid Cap Value PLUS $ 1,156.00 $ 2,005.00 $ 2,907.00 $ 5,170.00 EQ/Money Market $ 1,118.00 $ 1,894.00 $ 2,727.00 $ 4,835.00 EQ/Montag & Caldwell Growth $ 1,165.00 $ 2,033.00 $ 2,952.00 $ 5,252.00 EQ/Mutual Shares $ 1,187.00 $ 2,097.00 $ 3,055.00 $ 5,439.00 EQ/Oppenheimer Global $ 1,225.00 $ 2,206.00 $ 3,231.00 $ 5,751.00 EQ/Oppenheimer Main Street Opportunity $ 1,208.00 $ 2,158.00 $ 3,153.00 $ 5,614.00 EQ/Oppenheimer Main Street Small Cap $ 1,217.00 $ 2,182.00 $ 3,192.00 $ 5,683.00 EQ/PIMCO Real Return $ 1,143.00 $ 1,968.00 $ 2,847.00 $ 5,060.00 EQ/Short Duration Bond $ 1,132.00 $ 1,934.00 $ 2,792.00 $ 4,958.00 EQ/Small Company Index $ 1,112.00 $ 1,875.00 $ 2,696.00 $ 4,778.00 EQ/T. Rowe Price Growth Stock $ 1,168.00 $ 2,042.00 $ 2,967.00 $ 5,279.00 EQ/Templeton Growth $ 1,192.00 $ 2,109.00 $ 3,075.00 $ 5,474.00 EQ/UBS Growth and Income $ 1,166.00 $ 2,036.00 $ 2,957.00 $ 5,261.00 EQ/Van Kampen Comstock $ 1,155.00 $ 2,002.00 $ 2,902.00 $ 5,161.00 EQ/Van Kampen Emerging Markets Equity $ 1,217.00 $ 2,182.00 $ 3,192.00 $ 5,683.00 EQ/Van Kampen Mid Cap Growth $ 1,160.00 $ 2,017.00 $ 2,927.00 $ 5,206.00 EQ/Van Kampen Real Estate $ 1,187.00 $ 2,097.00 $ 3,055.00 $ 5,439.00 - ---------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period and select a non-life contingent period certain annuity option with less than five years - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/Franklin Income N/A $ 2,079.00 $ 3,026.00 $ 5,386.00 EQ/Franklin Small Cap Value N/A $ 2,088.00 $ 3,041.00 $ 5,413.00 EQ/Franklin Templeton Founding Strategy N/A $ 2,161.00 $ 3,158.00 $ 5,623.00 EQ/GAMCO Mergers and Acquisitions N/A $ 2,091.00 $ 3,046.00 $ 5,422.00 EQ/GAMCO Small Company Value N/A $ 2,027.00 $ 2,942.00 $ 5,234.00 EQ/International Core PLUS N/A $ 2,045.00 $ 2,972.00 $ 5,288.00 EQ/International Growth N/A $ 2,100.00 $ 3,060.00 $ 5,448.00 EQ/JPMorgan Core Bond N/A $ 1,928.00 $ 2,782.00 $ 4,939.00 EQ/JPMorgan Value Opportunities N/A $ 1,984.00 $ 2,872.00 $ 5,106.00 EQ/Large Cap Core PLUS N/A $ 1,993.00 $ 2,887.00 $ 5,133.00 EQ/Large Cap Growth PLUS N/A $ 1,990.00 $ 2,882.00 $ 5,124.00 EQ/Legg Mason Value Equity N/A $ 2,008.00 $ 2,912.00 $ 5,179.00 EQ/Long Term Bond N/A $ 1,919.00 $ 2,767.00 $ 4,911.00 EQ/Lord Abbett Growth and Income N/A $ 2,005.00 $ 2,907.00 $ 5,170.00 EQ/Lord Abbett Large Cap Core N/A $ 2,020.00 $ 2,932.00 $ 5,215.00 EQ/Lord Abbett Mid Cap Value N/A $ 2,017.00 $ 2,927.00 $ 5,206.00 EQ/Marsico Focus N/A $ 2,057.00 $ 2,991.00 $ 5,324.00 EQ/Mid Cap Value PLUS N/A $ 2,005.00 $ 2,907.00 $ 5,170.00 EQ/Money Market N/A $ 1,894.00 $ 2,727.00 $ 4,835.00 EQ/Montag & Caldwell Growth N/A $ 2,033.00 $ 2,952.00 $ 5,252.00 EQ/Mutual Shares N/A $ 2,097.00 $ 3,055.00 $ 5,439.00 EQ/Oppenheimer Global N/A $ 2,206.00 $ 3,231.00 $ 5,751.00 EQ/Oppenheimer Main Street Opportunity N/A $ 2,158.00 $ 3,153.00 $ 5,614.00 EQ/Oppenheimer Main Street Small Cap N/A $ 2,182.00 $ 3,192.00 $ 5,683.00 EQ/PIMCO Real Return N/A $ 1,968.00 $ 2,847.00 $ 5,060.00 EQ/Short Duration Bond N/A $ 1,934.00 $ 2,792.00 $ 4,958.00 EQ/Small Company Index N/A $ 1,875.00 $ 2,696.00 $ 4,778.00 EQ/T. Rowe Price Growth Stock N/A $ 2,042.00 $ 2,967.00 $ 5,279.00 EQ/Templeton Growth N/A $ 2,109.00 $ 3,075.00 $ 5,474.00 EQ/UBS Growth and Income N/A $ 2,036.00 $ 2,957.00 $ 5,261.00 EQ/Van Kampen Comstock N/A $ 2,002.00 $ 2,902.00 $ 5,161.00 EQ/Van Kampen Emerging Markets Equity N/A $ 2,182.00 $ 3,192.00 $ 5,683.00 EQ/Van Kampen Mid Cap Growth N/A $ 2,017.00 $ 2,927.00 $ 5,206.00 EQ/Van Kampen Real Estate N/A $ 2,097.00 $ 3,055.00 $ 5,439.00 - ---------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/Franklin Income $ 481.00 $ 1,479.00 $ 2,526.00 $ 5,386.00 EQ/Franklin Small Cap Value $ 484.00 $ 1,488.00 $ 2,541.00 $ 5,413.00 EQ/Franklin Templeton Founding Strategy $ 509.00 $ 1,561.00 $ 2,658.00 $ 5,623.00 EQ/GAMCO Mergers and Acquisitions $ 485.00 $ 1,491.00 $ 2,546.00 $ 5,422.00 EQ/GAMCO Small Company Value $ 463.00 $ 1,427.00 $ 2,442.00 $ 5,234.00 EQ/International Core PLUS $ 470.00 $ 1,445.00 $ 2,472.00 $ 5,288.00 EQ/International Growth $ 488.00 $ 1,500.00 $ 2,560.00 $ 5,448.00 EQ/JPMorgan Core Bond $ 430.00 $ 1,328.00 $ 2,282.00 $ 4,939.00 EQ/JPMorgan Value Opportunities $ 449.00 $ 1,384.00 $ 2,372.00 $ 5,106.00 EQ/Large Cap Core PLUS $ 452.00 $ 1,393.00 $ 2,387.00 $ 5,133.00 EQ/Large Cap Growth PLUS $ 451.00 $ 1,390.00 $ 2,382.00 $ 5,124.00 EQ/Legg Mason Value Equity $ 457.00 $ 1,408.00 $ 2,412.00 $ 5,179.00 EQ/Long Term Bond $ 426.00 $ 1,319.00 $ 2,267.00 $ 4,911.00 EQ/Lord Abbett Growth and Income $ 456.00 $ 1,405.00 $ 2,407.00 $ 5,170.00 EQ/Lord Abbett Large Cap Core $ 461.00 $ 1,420.00 $ 2,432.00 $ 5,215.00 EQ/Lord Abbett Mid Cap Value $ 460.00 $ 1,417.00 $ 2,427.00 $ 5,206.00 EQ/Marsico Focus $ 474.00 $ 1,457.00 $ 2,491.00 $ 5,324.00 EQ/Mid Cap Value PLUS $ 456.00 $ 1,405.00 $ 2,407.00 $ 5,170.00 EQ/Money Market $ 418.00 $ 1,294.00 $ 2,227.00 $ 4,835.00 EQ/Montag & Caldwell Growth $ 465.00 $ 1,433.00 $ 2,452.00 $ 5,252.00 EQ/Mutual Shares $ 487.00 $ 1,497.00 $ 2,555.00 $ 5,439.00 EQ/Oppenheimer Global $ 525.00 $ 1,606.00 $ 2,731.00 $ 5,751.00 EQ/Oppenheimer Main Street Opportunity $ 508.00 $ 1,558.00 $ 2,653.00 $ 5,614.00 EQ/Oppenheimer Main Street Small Cap $ 517.00 $ 1,582.00 $ 2,692.00 $ 5,683.00 EQ/PIMCO Real Return $ 443.00 $ 1,368.00 $ 2,347.00 $ 5,060.00 EQ/Short Duration Bond $ 432.00 $ 1,334.00 $ 2,292.00 $ 4,958.00 EQ/Small Company Index $ 412.00 $ 1,275.00 $ 2,196.00 $ 4,778.00 EQ/T. Rowe Price Growth Stock $ 468.00 $ 1,442.00 $ 2,467.00 $ 5,279.00 EQ/Templeton Growth $ 492.00 $ 1,509.00 $ 2,575.00 $ 5,474.00 EQ/UBS Growth and Income $ 466.00 $ 1,436.00 $ 2,457.00 $ 5,261.00 EQ/Van Kampen Comstock $ 455.00 $ 1,402.00 $ 2,402.00 $ 5,161.00 EQ/Van Kampen Emerging Markets Equity $ 517.00 $ 1,582.00 $ 2,692.00 $ 5,683.00 EQ/Van Kampen Mid Cap Growth $ 460.00 $ 1,417.00 $ 2,427.00 $ 5,206.00 EQ/Van Kampen Real Estate $ 487.00 $ 1,497.00 $ 2,555.00 $ 5,439.00 - ----------------------------------------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix V at the end of this Prospectus. 18 Fee table CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. Fee table 19 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT You may purchase a contract by making payments to us that we call "contributions." We require a minimum contribution amount for each type of owner and contract purchased. The following table summarizes our rules regarding contributions to your contract. Both the owner and annuitant named in the contract must meet the issue age requirements shown in the table, and contributions are based on the age of the older of the original owner and annuitant. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000 ($500,000 for owners or annuitants who are ages 81 and older at contract issue). We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We currently impose that limitation, except that we permit contributions greater than the 150% limit if both: (i) the owner (or joint owner or joint annuitant, if applicable) is 75 or younger; and (ii) the total contributions in any year after the 150% limit is reached do not exceed 100% of the prior year's contributions. We may accept less than the minimum initial contribution under a contract if an aggregate amount of contracts purchased at the same time by an individual (including spouse) meets the minimum. - -------------------------------------------------------------------------------- The "owner" is the person who is the named owner in the contract and, if an individual, is the measuring life for determining contract benefits. The "annuitant" is the person who is the measuring life for determining the contract's maturity date. The annuitant is not necessarily the contract owner. Where the owner of a contract is non-natural, the annuitant is the measuring life for determining contract benefits. - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ Available for owner and annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions(+) - ------------------------------------------------------------------------------------------------------------------------------------ NQ 0 through 85 o $5,000 (initial) o After-tax money. o No additional contributions may be made after attain- o $500 (additional) o Paid to us by check or ment of age 86, or if later, transfer of contract value the first contract date anni- o $100 monthly and $300 in a tax-deferred exchange versary.* quarterly under our auto- under Section 1035 of the matic investment program Internal Revenue Code. (additional) - ------------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ Available for owner and annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions(+) - ------------------------------------------------------------------------------------------------------------------------------------ Rollover IRA 20 through 85 o $5,000 (initial) o Eligible rollover distribu- o No additional contributions tions from 403(b) plans, may be made after attain- o $50 (additional) qualified plans, and ment of age 86, or, if later, governmental employer the first contract date o $100 monthly and $300 457(b) plans. anniversary.* quarterly under our auto- matic investment program o Rollovers from another o Contributions after age 70-1/2 (additional) (subject to traditional individual must be net of required tax maximums) retirement arrangement. minimum distributions. o Direct custodian-to- o Although we accept regular custodian transfers from IRA contributions (limited to another traditional indi- $5,000) under Rollover IRA vidual retirement contracts, we intend that arrangement. this contract be used prima- rily for rollover and direct o Regular IRA contributions. transfer contributions. o Additional catch-up o Additional catch-up contri- contributions. butions of up to $1,000 per calendar year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
- ------------------------------------------------------------------------------------------------------------------------------------ Available for owner and annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions(+) - ------------------------------------------------------------------------------------------------------------------------------------ Roth Conversion 20 through 85 o $5,000 (initial) o Rollovers from another o No additional contributions IRA Roth IRA. may be made after attain- o $50 (additional) ment of age 86, or, if later, o Rollovers from a "desig- the first contract date o $100 monthly and $300 nated Roth contribution anniversary.* quarterly under our auto- account" under a 401(k) matic investment program plan or 403(b) plan. o Conversion rollovers after (additional) (subject to age 70-1/2 must be net of tax maximums) o Conversion rollovers from a required minimum distribu- traditional IRA or other tions for the traditional IRA eligible retirement plan. or other eligible retirement plan which is the source of o Direct transfers from the conversion rollover. another Roth IRA. o You cannot roll over funds o Regular Roth IRA contribu- from a traditional IRA or tions. other eligible retirement plan if your adjusted gross o Additional catch-up income is $100,000 or contributions. more. o Although we accept regular Roth IRA contributions (lim- ited to $5,000) under Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contri- butions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribu- tion is made. - ------------------------------------------------------------------------------------------------------------------------------------ Rollover TSA** 20 through 85 o $5,000 (initial) o With documentation of o No additional contributions employer or plan approval, may be made after attain- o $500 (additional) and limited to pre-tax ment of age 86, or, if later, funds, direct plan-to-plan the first contract date transfers from another anniversary.* 403(b) plan or contract exchanges from another o Contributions after age 70-1/2 403(b) contract under the must be net of any required same plan. minimum distributions. o With documentation of o We do not accept employer- employer or plan approval, remitted contributions. and limited to pre-tax funds, eligible rollover o We do not accept after tax distributions from other contributions, including des- 403(b)plans, qualified plans, ignated Roth contributions. governmental employer 457(b) plans or traditional IRAs. - ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ Available for owner and annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions(+) - ------------------------------------------------------------------------------------------------------------------------------------ QP 20 through 75 o $5,000 (initial) o Only transfer contributions o A separate QP contract must from other investments be established for each plan o $500 (additional) within an existing qualified participant. plan trust. o We do not accept regular o The plan must be qualified ongoing payroll contribu- under Section 401(a) of the tions or contributions Internal Revenue Code. directly from the employer. o For 401(k) plans, trans- o Only one additional transfer ferred contributions may contribution may be made not include any after-tax during a contract year. contributions, including designated Roth contribu- o No additional transfer con- tions. tributions after participant's attainment of age 76 or, if later, the first contract date anniversary. o Contributions after age 70-1/2 must be net of any required minimum distributions. See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. - ------------------------------------------------------------------------------------------------------------------------------------ Flexible Premium 20 through 70 o $4,000 (initial) o Regular traditional IRA o No regular IRA contributions IRA contributions. in the calendar year you turn o $50 (additional) age 70-1/2 and thereafter. o Additional catch-up o $50 monthly or quarterly contributions. o Regular contributions may under our automatic not exceed $5,000. investment program o Eligible rollover distribu- (additional)(subject to tions from 403(b) plans, o Additional catch-up contri- tax maximums) qualified plans, and govern- butions of up to $1,000 per mental employer 457(b) calendar year where the plans. owner is at least age 50 but under age 70-1/2 at any time o Rollovers from another during the calendar year for traditional individual which the contribution is retirement arrangement. made. o Direct custodian- o Although we accept rollover to-custodian transfers from and direct transfer contribu- another traditional indi- tions under the Flexible vidual retirement Premium IRA contract, we arrangement. intend that this contract be used for ongoing regular contributions. o Rollover and direct transfer contributions may be made up to attainment of age 86.* o Rollover and direct transfer contributions after age 70-1/2 must be net of required minimum distributions. - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
- ------------------------------------------------------------------------------------------------------------------------------------ Available for owner and annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions(+) - ------------------------------------------------------------------------------------------------------------------------------------ Flexible Premium 20 through 85 o $4,000 (initial) o Regular Roth IRA contribu- o No additional contributions Roth IRA tions. may be made after the o $50 (additional) attainment of age 86, or, if o Additional catch-up contri- later, the first contract date o $50 monthly or quarterly butions. anniversary.* under our automatic investment program o Rollovers from another o Contributions are subject to (additional)(subject to Roth IRA. income limits and other tax tax maximums) rules. o Rollovers from a "desig- nated Roth contribution o Regular Roth IRA contribu- account" under a 401(k) tions may not exceed plan or 403(b) plan. $5,000. o Conversion rollovers from a o Additional catch-up contri- traditional IRA or other butions of up to $1,000 per eligible retirement plan. calendar year where the owner is at least age 50 at o Direct transfers from any time during the calendar another Roth IRA. year for which the contribu- tion is made. o Although we accept rollover and direct transfer contribu- tions under the Flexible Premium Roth IRA contract, we intend that this contract be used for ongoing regular Roth IRA contributions. - ------------------------------------------------------------------------------------------------------------------------------------ Inherited IRA 0-70 o $5,000 (initial) o Direct custodian-to- o Any additional contributions Beneficiary custodian transfers of your must be from the same type Continuation o $1,000 (additional) interest as a death benefi- of IRA of the same deceased Contract (tradi- ciary of the deceased owner. tional IRA or owner's traditional indi- Roth IRA) vidual retirement o Non-spousal beneficiary arrangement or Roth IRA to direct rollover contributions an IRA of the same type. from qualified plans, 403(b) plans and governmental employer 457(b) plans may be made to a traditional Inherited IRA contract under specified circumstances. - ------------------------------------------------------------------------------------------------------------------------------------
+ Additional contributions may not be permitted under certain conditions in your state. Please see Appendix VII later in the Prospectus to see if additional contributions are permitted in your state. If you are participating in a Principal guarantee benefit, contributions will only be permitted for the first six months after the contract is issued and no further contributions will be permitted for the life of the contract. For the Guaranteed withdrawal benefit for life option, additional contributions are not permitted after the later of: (i) the end of the first contract year, and (ii) the date you make your first withdrawal. * Please see Appendix VII later in this Prospectus for state variations. ** May not be available from all Selling broker-dealers. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. 24 Contract features and benefits OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. For the Spousal continuation feature to apply, the spouses must either be joint owners, or, for Single life contracts, the surviving spouse must be the sole primary beneficiary. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. In general, we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your state. For NQ contracts (with a single owner, joint owners, or a non-natural owner) purchased through an exchange that is not taxable under Section 1035 of the Internal Revenue Code, we permit joint annuitants. We also permit joint annuitants in non-exchange sales if you elect the Guaranteed withdrawal benefit for life on a Joint life basis, and the contract is owned by a non-natural owner. In all cases, the joint annuitants must be spouses. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. See "Inherited IRA beneficiary continuation contract" later in this section for Inherited IRA owner and annuitant requirements. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II at the end of this Prospectus for more information on QP contracts. Certain benefits under your contract, as described later in this Prospectus, are based on the age of the owner. If the owner of the contract is not a natural person, these benefits will be based on the age of the annuitant. Under QP contracts, all benefits are based on the age of the annuitant. In this Prospectus, when we use the terms owner and joint owner, we intend these to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If GWBL is elected, the terms owner and Successor Owner are intended to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If the contract is jointly owned or is issued to a non-natural owner and the GWBL has not been elected, benefits are based on the age of the older joint owner or older joint annuitant, as applicable. PURCHASE CONSIDERATIONS FOR A CHARITABLE REMAINDER TRUST If you are purchasing this contract to fund a charitable remainder trust and elect either the Guaranteed minimum income benefit ("GMIB") or the Guaranteed withdrawal benefit for life ("GWBL"), or an enhanced death benefit, you should strongly consider "split-funding": that is the trust holds investments in addition to this Accumulator(R) contract. Charitable remainder trusts are required to take specific distributions. The charitable remainder trust annual withdrawal requirement may be equal to a percentage of the donated amount or a percentage of the current value of the donated amount. If your Accumulator(R) contract is the only source for such distributions, the payments you need to take may significantly reduce the value of those guaranteed benefits. Such amount may be greater than the annual increase in the GMIB, GWBL and/or the enhanced death benefit base and/or greater than the Guaranteed annual withdrawal amount under GWBL. See the discussion of these benefits later in this section. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept initial and additional contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealers. Additional contributions may also be made under our automatic investment program. These methods of payment are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- Your initial contribution must generally be accompanied by an application and any other form we need to process the payments. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain this information. If we are unable to obtain all of the information we require within five business days after we receive an incomplete application or form, we will inform the financial professional submitting the application on your behalf. We will then return the contribution to you unless you specifically direct us to Contract features and benefits 25 keep your contribution until we receive the required information. The contribution will be applied as of the date we receive the missing information. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option, the fixed maturity options and the account for special dollar cost averaging. If you elect the 100% Principal guarantee benefit, the Guaranteed withdrawal benefit for life or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the following variable investment options: the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio ("permitted variable investment options"). If you elect the 125% Principal guarantee benefit, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the AXA Moderate Allocation Portfolio. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. 26 Contract features and benefits PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features including those optional benefits that restrict allocations to the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable ALLOCATION greater emphasis on current income. - ------------------------------------------------------------------------------------------------------------------------------------ AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable ALLOCATION with a greater emphasis on capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER AGGRESSIVE Long-term growth of capital. o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER CORE BOND To seek a balance of high current income and capital o BlackRock Financial Management, Inc. appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER HEALTH CARE Long-term growth of capital. o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER HIGH YIELD High total return through a combination of current o Pacific Investment Management Company income and capital appreciation. LLC o Post Advisory Group, LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER INTERNATIONAL Long-term growth of capital. o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 27
- ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------
28 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY markets using strategies that are designed to limit exposure to general equity market risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, o BlackRock Investment Management, LLC EQUITY income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth o BlackRock Investment Management VALUE of income, accompanied by growth of capital. International Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to o Boston Advisors, LLC INCOME achieve an above-average and consistent total return. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company RESEARCH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management YIELD BOND - ------------------------------------------------------------------------------------------------------------------------------------ EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. o Davis Selected Advisers, L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that o AllianceBernstein L.P. approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. o Evergreen Investment Management Company, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI MID CAP Seeks to achieve long-term growth of capital. o Fidelity Management & Research Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects o Franklin Advisers, Inc. for capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. o Franklin Advisory Services, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily o AXA Equitable FOUNDING STRATEGY seeks income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. o GAMCO Asset Management Inc. ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. o GAMCO Asset Management Inc. VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 29
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with o JPMorgan Investment Management Inc. moderate risk to capital and maintenance of liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. o JPMorgan Investment Management Inc. OPPORTUNITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a o AXA Equitable secondary objective to seek reasonable current income. o Institutional Capital LLC For purposes of this Portfolio, the words "reasonable o Mellon Capital Management Corporation current income" mean moderate income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. o Legg Mason Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o BlackRock Financial Management, Inc. through investment in long-maturity debt obligations. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC INCOME income without excessive fluctuation in market value. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC CORE income with reasonable risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. o Lord, Abbett & Co. LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONEY MARKET Seeks to obtain a high level of current income, o The Dreyfus Corporation preserve its assets and maintain liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- o Franklin Mutual Advisers, LLC sionally be short-term, and secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. o OppenheimerFunds, Inc. OPPORTUNITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. SMALL CAP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with o Pacific Investment Management Company, preservation of real capital and prudent investment LLC management. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility o BlackRock Financial Management, Inc. of principal. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o AllianceBernstein L.P. deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ------------------------------------------------------------------------------------------------------------------------------------
30 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and o T. Rowe Price Associates, Inc. STOCK secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. o Templeton Global Advisors Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital o UBS Global Asset Management appreciation with income as a secondary consideration. (Americas) Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. o Morgan Stanley Investment Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. o Morgan Stanley Investment Management Inc. MARKETS EQUITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. o Morgan Stanley Investment Management Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- o Morgan Stanley Investment Management Inc. term capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks, and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. Contract features and benefits 31 GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges, any withdrawal charges and any optional benefit charges. See Appendix VII later in this Prospectus for state variations. Depending on the state where your contract is issued, your lifetime minimum rate ranges from 1.00% to 3.00%. The data page for your contract shows the lifetime minimum rate. Check with your financial professional as to which rate applies in your state. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75% or 3.00%, depending on your lifetime minimum rate. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfers from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional or see Appendix VII later in this Prospectus to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options generally range from one to ten years to maturity. - -------------------------------------------------------------------------------- On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for owner and annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you apply for an Accumulator(R) contract, a 60-day rate lock-in will apply from the date the application is signed. Any contributions received and designated for a fixed maturity option during this period will receive the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever is greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value (there may be a withdrawal charge). If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008, the next available maturity date was February 15, 2015. If no fixed maturity options are available, we will transfer your maturity value to the EQ/Money Market option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract, or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market 32 Contract features and benefits value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options (adjusted to reflect a similar maturity date), and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING The account for special dollar cost averaging is part of our general account. We pay interest at guaranteed rates in this account. We will credit interest to the amounts that you have in the account for special dollar cost averaging every day. We set the interest rates periodically, according to procedures that we have. We reserve the right to change these procedures. We guarantee to pay our current interest rate that is in effect on the date that your contribution is allocated to this account. Your guaranteed interest rate for the time period you select will be shown in your contract for an initial contribution. The rate will never be less than the lifetime minimum rate for the guaranteed interest option. See "Allocating your contributions" below for rules and restrictions that apply to the special dollar cost averaging program. ALLOCATING YOUR CONTRIBUTIONS You may choose between self-directed and dollar cost averaging to allocate your contributions under your contract. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, the guaranteed interest option (subject to restrictions in certain states-see Appendix VII later in this Prospectus for state variations) and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. The total of your allocations into all available investment options must equal 100%. If an owner or annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options or the guaranteed interest option. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- SPECIAL DOLLAR COST AVERAGING PROGRAM. Under the special dollar cost averaging program, you may choose to allocate all or a portion of any eligible contribution to the account for special dollar cost averaging. Contributions into the account for special dollar cost averaging may not be transfers from other investment options. Your initial allocation to any special dollar cost averaging program time period must be at Contract features and benefits 33 least $2,000 and any subsequent contribution to that same time period must be at least $250. You may only have one time period in effect at any time and once you select a time period, you may not change it. In Pennsylvania, we refer to this program as "enhanced rate dollar cost averaging." You may have your account value transferred to any of the variable investment options available under your contract. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life, the 100% Principal guarantee benefit or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. We will transfer amounts from the account for special dollar cost averaging into the variable investment options over an available time period that you select. We offer time periods of 3, 6 or 12 months, during which you will receive an enhanced interest rate. We may also offer other time periods. Your financial professional can provide information on the time periods and interest rates currently available in your state, or you may contact our processing office. If the special dollar cost averaging program is selected at the time of application to purchase the Accumulator(R) contract, a 60 day rate lock will apply from the date of application. Any contribution(s) received during this 60 day period will be credited with the interest rate offered on the date of application for the remainder of the time period selected at application. Any contribution(s) received after the 60 day rate lock period has ended will be credited with the then current interest rate for the remainder of the time period selected at application. Contribution(s) made to a special dollar cost averaging program selected after the Accumulator(R) contract has been issued will be credited with the then current interest rate on the date the contribution is received by AXA Equitable for the time period initially selected by you. Once the time period you selected has run, you may then select another time period for future contributions. At that time, you may also select a different allocation for transfers to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, your account value will be transferred from the account for special dollar cost averaging into the variable investment options on a monthly basis. We may offer this program in the future with transfers on a different basis. We will transfer all amounts out of the account for special dollar cost averaging by the end of the chosen time period. The transfer date will be the same day of the month as the contract date, but not later than the 28th day of the month. For a special dollar cost averaging program selected after application, the first transfer date and each subsequent transfer date for the time period selected will be one month from the date the first contribution is made into the special dollar cost averaging program, but not later than the 28th day of the month. If you choose to allocate only a portion of an eligible contribution to the account for special dollar cost averaging, the remaining balance of that contribution will be allocated to the variable investment options, guaranteed interest option or fixed maturity options according to your instructions. The only transfers that will be made from the account for special dollar cost averaging are your regularly scheduled transfers to the variable investment options. No amounts may be transferred from the account for special dollar cost averaging to the guaranteed interest option or the fixed maturity options. If you request to transfer or withdraw any other amounts from the account for special dollar averaging, we will transfer all of the value that you have remaining in the account for special dollar cost averaging to the investment options according to the allocation percentages for special dollar cost averaging we have on file for you. You may ask us to cancel your participation at any time. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options (subject to restrictions in certain states. See Appendix VII later in this Prospectus.) You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. If you are participating in a Principal guarantee benefit, the general dollar cost averaging program is not available. If you elect the Guaranteed withdrawal benefit for life or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, general dollar cost averaging is not available. INVESTMENT SIMPLIFIER FIXED-DOLLAR OPTION. Under this option you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life, the 100% Principal guarantee benefit or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. Unlike the account for special dollar cost averaging, this option does not offer 34 Contract features and benefits enhanced rates. Also, this option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date, your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. INTEREST SWEEP OPTION. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life, the 100% Principal guarantee benefit or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. Only the AXA Moderate Allocation portfolio is available if you elect the 125% Principal guarantee benefit. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Under the Option I rebalancing program, you may participate in any of the dollar cost averaging programs except general dollar cost averaging. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" immediately below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. Not all dollar cost averaging programs are available in every state. See Appendix VII later in this Prospectus for more information on state availability. You may only participate in one dollar cost averaging program at a time. GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit and the death benefits, as described in this section. The benefit base for the Guaranteed minimum income benefit and any enhanced death benefit will be calculated as described below in this section whether these options are elected individually or in combination. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 6-1/2% (OR 6%, IF APPLICABLE) ROLL-UP TO AGE 85 (USED FOR THE GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to the benefit base is: o 6-1/2% (or 6%,if applicable) with respect to the variable investment options (other than EQ/Money Market), and the account for special dollar cost averaging; the effective annual rate may be 4% in some states. Please see Appendix VII later in this Prospectus to see what applies in your state; and o 3% with respect to the EQ/Money Market, the fixed maturity options, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up on the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM Contract features and benefits 35 INCOME BENEFIT). Your benefit base is equal to the greater of either: o your initial contribution to the contract (plus any additional contributions), or o your highest account value on any contract date anniversary up to the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday, plus any contributions made since the most recent Annual Ratchet, less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of the deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. GREATER OF 6-1/2% (OR 6% IF APPLICABLE) ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6-1/2% (or 6%, if applicable) Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. For the Guaranteed minimum income benefit, the benefit base is reduced by any applicable withdrawal charge remaining when the option is exercised. For more information, see " Withdrawal charge" in "Charges and expenses" later in the Prospectus. 3% ROLL-UP TO AGE 85 (USED FOR THE GREATER OF 3% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to the benefit base is 3%. The benefit base stops rolling up on the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday. GREATER OF 3% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 3% Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. GUARANTEED MINIMUM INCOME BENEFIT AND THE ROLL-UP BENEFIT BASE RESET. You will be eligible to reset your Guaranteed minimum income benefit Roll-Up benefit base on each contract date anniversary until the contract date anniversary following age 75. If you elect the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, you may reset its Roll-Up benefit base on each contract date anniversary until the contract date anniversary following age 75 AND your investment option choices will be limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. The reset amount would equal the account value as of the contract date anniversary on which you reset your Roll-Up benefit base. The Roll-Up continues to age 85 on any reset benefit base. If you elect both the Guaranteed minimum income benefit AND the Greater of the 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit (the "Greater of enhanced death benefit"), you will be eligible to reset the Roll-Up benefit base for these guaranteed benefits to equal the account value on any contract date anniversary until the contract date anniversary following age 75, and your investment options will not be restricted. If you elect both options, they are not available with different Roll-Up benefit bases: each option must include either the 6-1/2% Roll-Up or 6% Roll-Up benefit base. We will send you a notice in each year that the Roll-Up benefit base is eligible to be reset, and you will have 30 days from your contract date anniversary to reset your Roll-Up benefit base. If your request to reset your Roll-Up benefit base is received at our processing office more than 30 days after your contract date anniversary, your Roll-Up benefit base will reset on the next contract date anniversary on which you are eligible for a reset. You may choose one of the three available reset methods: one-time reset option, automatic annual reset program or automatic customized reset program. - -------------------------------------------------------------------------------- ONE-TIME RESET OPTION - resets your Roll-Up benefit base on a single contract date anniversary. AUTOMATIC ANNUAL RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary you are eligible for a reset. AUTOMATIC CUSTOMIZED RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary, if eligible, for the period you designate. - -------------------------------------------------------------------------------- If you wish to cancel your elected reset program, your request must be received by our processing office at least 30 days prior to your contract date anniversary to terminate your reset program for such contract date anniversary. Cancellation requests received after this window will be applied the following year. A reset cannot be cancelled after it has occurred. For more information, see "How to reach us" earlier in this Prospectus. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset until the next contract date anniversary. If after your death your spouse continues this contract, the benefit base will be eligible to be reset on each contract date anniversary, if applicable. The last age at which the benefit base 36 Contract features and benefits is eligible to be reset is the contract date anniversary following owner (or older joint owner, if applicable) age 75. If you elect to reset your Roll-Up benefit base on any contract date anniversary, we may increase the charge for the Guaranteed minimum income benefit and the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. There is no charge increase for the Annual Ratchet to age 85 enhanced death benefit. See both "Guaranteed minimum death benefit charge" and "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus for more information. It is important to note that once you have reset your Roll-Up benefit base, a new waiting period to exercise the Guaranteed minimum income benefit will apply from the date of the reset: you may not exercise until the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. See "Exercise rules" under "Guaranteed minimum income benefit option" below for more information. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the exercise waiting period. Also, even when there is no additional charge when you reset your Roll-Up benefit base, the total dollar amount charged on future contract date anniversaries may increase as a result of the reset since the charges may be applied to a higher benefit base than would have been otherwise applied. See "Charges and expenses" in the Prospectus. If you are a traditional IRA, TSA or QP contract owner, before you reset your Roll-Up benefit base, please consider the effect of the 10-year exercise waiting period on your requirement to take lifetime required minimum distributions with respect to this contract. If you must begin taking lifetime required minimum distributions during the 10-year waiting period, you may want to consider taking the annual lifetime required minimum distribution calculated for this contract from another traditional IRA, TSA or QP contract that you maintain. If you withdraw the lifetime required minimum distribution from this contract, and the required minimum distribution is more than 6-1/2% (or 6%) of the reset benefit base, the withdrawal would cause a pro-rata reduction in the benefit base. Alternatively, resetting the benefit base to a larger amount would make it less likely that the required minimum distributions would exceed the 6-1/2% (or 6%) threshold. See "Lifetime required minimum distribution withdrawals" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money." Also, see "Required minimum distributions" under "Individual retirement arrangements (IRAs)" and "Tax-sheltered annuity contracts (TSAs)" in "Tax information" and Appendix II -- "Purchase considerations for QP Contracts," later in this Prospectus. If you elect both a "Greater of" enhanced death benefit and the Guaranteed minimum income benefit, the Roll-Up benefit bases for both are reset simultaneously when you request a Roll-Up benefit base reset. You cannot elect a Roll-Up benefit base reset for one benefit and not the other. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed under "Guaranteed minimum income benefit option" below and annuity payout options are discussed under "Your annuity payout options" in "Accessing your money" later in this Prospectus. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the owner's (and any joint owner's) age and sex in certain instances. We may provide more favorable current annuity purchase factors for the annuity payout options. GUARANTEED MINIMUM INCOME BENEFIT The Guaranteed minimum income benefit is available if the owner is age 20 through 75 at the time the contract is issued. Subject to state availability (see Appendix VII later in this Prospectus), you may elect one of the following: o The Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base. o The Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base. Both options include the ability to reset your Guaranteed minimum income benefit base on each contract date anniversary until the contract date anniversary following age 75. See "Guaranteed minimum income benefit and the Roll-Up benefit base reset" earlier in this section. If you elect the Guaranteed minimum income benefit with a "Greater of" death benefit, you can choose between one of the following two combinations: o the Greater of the 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base, or o the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base. If you elect the Guaranteed minimum income benefit without the Greater of the 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. If the contract is jointly owned, the guaranteed minimum income benefit will be calculated on the basis of the older owner's age. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. If you elect both the Guaranteed minimum income benefit and a "Greater of" enhanced death benefit, the Roll-Up rate you elect must be the same for both features. If you are purchasing this contract as an Inherited IRA or if you elect a Principal guarantee benefit or the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit is not available. If you Contract features and benefits 37 are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your guaranteed minimum income benefit. See "Owner and annuitant requirements" earlier in this section. For IRA, QP and Rollover TSA contracts, owners over age 60 at contract issue should consider the impact of the minimum distributions required by tax law in relation to the withdrawal limitations under the Guaranteed minimum income benefit. See "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. If you elect the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the owner's age, as follows:
- ------------------------------------------------ Level payments - ------------------------------------------------ Owner's Period certain years age at exercise - ------------------------------------------------ 80 and younger 10 81 9 82 8 83 7 84 6 85 5 - ------------------------------------------------
We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit should be regarded as a safety net only. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base, less any applicable withdrawal charge remaining, to guaranteed annuity purchase factors, or (ii) the income provided by applying your account value to our then current annuity purchase factors. For Rollover TSA only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. Before you elect the Guaranteed minimum income benefit you should consider the fact that it provides a form of insurance and is based on conservative actuarial factors. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. GUARANTEED MINIMUM INCOME BENEFIT "NO LAPSE GUARANTEE". In general, if your account value falls to zero (except, as discussed below, if your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days), the Guaranteed minimum income benefit will be exercised automatically, based on the owner's (or older joint owner's, if applicable) current age and benefit base, as follows: o You will be issued a supplementary contract based on a single life with a maximum 10 year period certain. Payments will be made annually starting one year from the date the account value fell to zero. o You will have 30 days from when we notify you to change the payout option and/or the payment frequency. Please note that we will not automatically exercise the Guaranteed minimum income benefit, as described above, if you have a TSA contract and withdrawal restrictions apply. The no lapse guarantee will terminate under the following circumstances: o If your aggregate withdrawals during any contract year exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days); o Upon the contract date anniversary following the owner (or older joint owner, if applicable) reaching age 85. Please note that if you participate in our Automatic RMD service, an automatic withdrawal under that program will not cause the no lapse guarantee to terminate even if a withdrawal causes your total contract year withdrawals to exceed 6-1/2% (or 6%, if applicable) of your Roll-Up benefit base at the beginning of the contract year. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the Guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male owner age 60 (at issue) on the contract date 38 Contract features and benefits anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals, or loans under Rollover TSA contracts, and assuming there were no allocations to the EQ/Money Market, the guaranteed interest option, the fixed maturity options or the loan reserve account under Rollover TSA contracts.
- ------------------------------------------------------ Guaranteed minimum Contract date income benefit -- annual anniversary at exercise income payable for life - ------------------------------------------------------ 10 $10,065 15 $15,266 - ------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us, along with all required information within 30 days following your contract date anniversary, in order to exercise this benefit. Upon exercise of the Guaranteed minimum income benefit, the owner (or older joint owner, if applicable) will become the annuitant, and the contract will be annuitized on the basis of the annuitant's life. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payout contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death or, if later, the end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. Eligibility to exercise the Guaranteed minimum income benefit is based on the owner's (or older joint owner's, if applicable) age, as follows: o If you were at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If you were at least age 45 and no older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after age 60. o If you were at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your 85th birthday; (ii) if you were age 75 when the contract was issued or the Roll-Up benefit base was reset, the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your attainment of age 85; (iii) for Accumulator(R) QP contracts, the Plan participant can exercise the Guaranteed minimum income benefit only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) QP contract into an Accumulator(R) Rollover IRA. This process must be completed within the 30-day time frame following the contract date anniversary in order for the Plan participant to be eligible to exercise. However, if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, a rollover into an IRA will not be effected and payments will be made directly to the trustee; (iv) Since no partial exercise is permitted, owners of defined benefit QP contracts who plan to change ownership of the contract to the participant must first compare the participant's lump sum benefit amount and annuity benefit amount to the GMIB benefit amount and account value, and make a withdrawal from the contract if necessary. See "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. (v) for Accumulator(R) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (vi) if you reset the Roll-Up benefit base (as described earlier in this section), your new exercise date will be the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the waiting period; (vii) a spouse beneficiary or younger spouse joint owner under Spousal continuation may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original owner could have exercised the benefit. In addition, the spouse beneficiary or younger spouse joint owner must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The spouse beneficiary or younger spouse joint owner's age on the date of the owner's death replaces the owner's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules; Contract features and benefits 39 (viii) if the contract is jointly owned, you can elect to have the Guaranteed minimum income benefit paid either: (a) as a joint life benefit or (b) as a single life benefit paid on the basis of the older owner's age (if applicable); and (ix) if the contract is owned by a trust or other non-natural person, eligibility to elect or exercise the Guaranteed minimum income benefit is based on the annuitant's (or older joint annuitant's, if applicable) age, rather than the owner's. See "Effect of the owner's death" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. Your contract provides a standard death benefit. If you do not elect one of the enhanced death benefits described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions, adjusted for withdrawals (and any associated withdrawal charges). The standard death benefit is the only death benefit available for owners (or older joint owners, if applicable) ages 81 through 85 at issue. Once your contract is issued, you may not change or voluntarily terminate your death benefit. If you elect one of the enhanced death benefits, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, information and forms necessary to effect payment, or your elected enhanced death benefit on the date of the owner's (or older joint owner's, if applicable) death, adjusted for subsequent withdrawals (and associated withdrawal charges), whichever provides the higher amount. See "Payment of death benefit" later in this Prospectus for more information. Any of the enhanced death benefits (other than the Greater of 3% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit) or the standard death benefit can be elected by themselves or with the Guaranteed minimum income benefit. Each enhanced death benefit has an additional charge. There is no additional charge for the standard death benefit. If you elect one of the enhanced death benefit options described below and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, any enhanced death benefit elected will be replaced with the standard death benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information" later in this Prospectus for more information. Subject to state availability (see Appendix VII later in this Prospectus for state availability of these benefits), your age at contract issue, and your contract type, you may elect one of the following enhanced death benefits: Optional enhanced death benefit applicable for owner (or older joint owner, if applicable) ages 0 through 75 at issue of NQ contracts; 20 through 75 at issue of Rollover IRA, Roth Conversion IRA, Flexible Premium Roth IRA, and Rollover TSA contracts; 20 through 70 at issue of Flexible Premium IRA contracts; 0 through 70 at issue for Inherited IRA contracts; and 20 through 75 at issue of QP contracts. o Annual Ratchet to age 85 o The Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 o The Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 Optional enhanced death benefit applicable for owner (or older joint owner, if applicable) ages 76 through 80 at issue of NQ, Rollover IRA, Roth Conversion IRA, Flexible Premium Roth IRA, and Rollover TSA contracts. o The Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 The Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 is not available for QP, Flexible Premium IRA, and Inherited IRA contracts. For contracts with non-natural owners, the available death benefits are based on the annuitant's age. Each enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Once you have made your enhanced death benefit election, you may not change it. As discussed earlier in this Prospectus, you can elect a "Greater of" enhanced death benefit with a corresponding Guaranteed minimum income benefit. You can elect one of the following two combinations: o the Greater of 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base, or o the Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base. If you purchase a "Greater of" enhanced death benefit with the Guaranteed minimum income benefit, you will be eligible to reset your Roll-Up benefit base on each contract date anniversary until the contract date anniversary following age 75. If you purchase a "Greater of" enhanced death benefit without the Guaranteed minimum income benefit, no reset is available. See "Guaranteed minimum income benefit and the Roll-Up benefit base reset" earlier in this section. 40 Contract features and benefits Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your enhanced death benefit. See "Owner and annuitant requirements" earlier in this section. See Appendix IV later in this Prospectus for an example of how we calculate an enhanced death benefit. EARNINGS ENHANCEMENT BENEFIT Subject to state and contract availability (see Appendix VII later in this Prospectus for state availability of these benefits), if you are purchasing a contract under which the Earnings enhancement benefit is available, you may elect the Earnings enhancement benefit at the time you purchase your contract, if the owner is age 75 or younger. The Earnings enhancement benefit provides an additional death benefit as described below. See the appropriate part of "Tax information" later in this Prospectus for the potential tax consequences of electing to purchase the Earnings enhancement benefit in an NQ, IRA or Rollover TSA contract. Once you purchase the Earnings enhancement benefit you may not voluntarily terminate this feature. If you elect the Guaranteed withdrawal benefit for life, the Earnings enhancement benefit is not available. If you elect the Earnings enhancement benefit described below and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the owner (or older joint owner, if applicable) is 70 or younger when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is 70 or younger when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 40% of: the greater of: o the account value or o any applicable death benefit decreased by: o total net contributions For purposes of calculating your Earnings enhancement benefit, the following applies: (i) "Net contributions" are the total contributions made (or if applicable, the total amount that would otherwise have been paid as a death benefit had the spouse beneficiary or younger spouse joint owner not continued the contract plus any subsequent contributions) adjusted for each withdrawal that exceeds your Earnings enhancement benefit earnings. "Net contributions" are reduced by the amount of that excess. Earnings enhancement benefit earnings are equal to (a) minus (b) where (a) is the greater of the account value and the death benefit immediately prior to the withdrawal, and (b) is the net contributions as adjusted by any prior withdrawals; and (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable Guaranteed minimum death benefit as of the date of death. If the owner (or older joint owner, if applicable) is age 71 through 75 when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is between the ages of 71 and 75 when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 25% of: the greater of: o the account value or o any applicable death benefit decreased by: o total net contributions The value of the Earnings enhancement benefit is frozen on the first contract date anniversary after the owner (or older joint owner, if applicable) turns age 80, except that the benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce the benefit by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If the benefit is $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and the benefit after the withdrawal would be $24,000 ($40,000 - $16,000). For an example of how the Earnings enhancement death benefit is calculated, please see Appendix VI. For contracts continued under Spousal continuation upon the death of the spouse (or older spouse, in the case of jointly owned contracts), the account value will be increased by the value of the Earnings enhancement benefit as of the date we receive due proof of death. The benefit will then be based on the age of the surviving spouse as of the date of the deceased spouse's death for the remainder of the contract. If the surviving spouse is age 76 or older, the benefit will terminate and the charge will no longer be in effect. The spouse may also take the death benefit (increased by the Earnings enhancement benefit) in a lump sum. See "Spousal continuation" in "Payment of death benefit" later in this Prospectus for more information. The Earnings enhancement benefit must be elected when the contract is first issued: neither the owner nor the successor owner can add it subsequently. Ask your financial professional or see Appendix VII later in this Prospectus to see if this feature is available in your state. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL") For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL") guarantees that you can take withdrawals up to a maximum amount per year (your "Guaranteed annual withdrawal amount"). GWBL is only available at issue. This benefit is not available at issue ages younger than 45. GWBL is not available if you have elected the Contract features and benefits 41 Guaranteed minimum income benefit, the Earnings enhancement benefit or one of our Principal guarantee benefits, described later in this Prospectus. You may elect one of our automated payment plans or you may take partial withdrawals. All withdrawals reduce your account value and Guaranteed minimum death benefit. See "Accessing your money" later in this Prospectus. Your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. You may buy this benefit on a single life ("Single life") or a joint life ("Joint life") basis. Under a Joint life contract, lifetime withdrawals are guaranteed for the life of both the owner and successor owner. For Joint life contracts, a successor owner may be named at contract issue only. The successor owner must be the owner's spouse. If you and the successor owner are no longer married, you may either: (i) drop the original successor owner or (ii) replace the original successor owner with your new spouse. This can only be done before the first withdrawal is made from the contract. After the first withdrawal, the successor owner can be dropped but cannot be replaced. If the successor owner is dropped after withdrawals begin, the charge will continue based on a Joint life basis. For NQ contracts, you have the option to designate the successor owner as a joint owner. For Joint life contracts owned by a non-natural owner, a joint annuitant may be named at contract issue only. The annuitant and joint annuitant must be spouses. If the annuitant and joint annuitant are no longer married, you may either: (i) drop the joint annuitant or (ii) replace the original joint annuitant with the annuitant's new spouse. This can only be done before the first withdrawal. After the first withdrawal, the joint annuitant may be dropped but cannot be replaced. If the joint annuitant is dropped after withdrawals begin, the charge continues based on a Joint life basis. Joint life QP and TSA contracts are not permitted. This benefit is not available under an Inherited IRA contract. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your guaranteed withdrawal benefit for life. See "Owner and annuitant requirements" earlier in this section. The charge for the GWBL benefit will be deducted from your account value on each contract date anniversary. Please see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus for a description of the charge. You should not purchase this benefit if: o You plan to take withdrawals in excess of your Guaranteed annual withdrawal amount because those withdrawals may significantly reduce or eliminate the value of the benefit (see "Effect of Excess withdrawals" below in this section); o You are not interested in taking withdrawals prior to the contract's maturity date; o You are using the contract to fund a Rollover TSA or QP contract where withdrawal restrictions will apply; or o You plan to use it for withdrawals prior to age 59-1/2, as the taxable amount of the withdrawal will be includible in income and subject to an additional 10% federal income tax penalty, as discussed later in this Prospectus. The Federal Defense of Marriage Act precludes same-sex married couples, domestic partners, and civil union partners from being considered married under federal law. Such individuals, therefore, are not entitled to the favorable tax treatment accorded spouses under federal tax law. As a result, mandatory distributions from the contract must be made after the death of the first individual. Accordingly, the GWBL will have little or no value to the surviving same-gender spouse or partner. You should consult with your tax adviser for more information on this subject. For traditional IRAs, TSA and QP contracts, you may take your lifetime required minimum distributions ("RMDs") without losing the value of the GWBL benefit, provided you comply with the conditions described under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, this benefit may have limited usefulness for you and you should consider whether it is appropriate. Please consult your tax adviser. GWBL BENEFIT BASE At issue, your GWBL benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL benefit base increases by any subsequent contributions. o Your GWBL benefit base may be increased on each contract date anniversary, as described below under "Annual ratchet" and "5% deferral bonus." o Your GWBL benefit base is not reduced by withdrawals except those withdrawals that cause total withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess withdrawals" below in this section. GUARANTEED ANNUAL WITHDRAWAL AMOUNT Your initial Guaranteed annual withdrawal amount is equal to a percentage of the GWBL benefit base. The initial applicable percentage ("Applicable percentage") is based on the owner's age at the time of the first withdrawal. For Joint life contracts, the initial Applicable percentage is based on the age of the owner or successor owner, whoever is younger at the time of the first withdrawal. If your GWBL benefit base ratchets, as described below in this section under "Annual ratchet," on any contract date anniversary after you begin taking with- 42 Contract features and benefits drawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. The Applicable percentages are as follows:
- -------------------------------------- Age Applicable percentage - -------------------------------------- 45-64 4.0% 65-74 5.0% 75-84 6.0% 85 and older 7.0% - --------------------------------------
We will recalculate the Guaranteed annual withdrawal amount on each contract date anniversary and as of the date of any subsequent contribution or Excess withdrawal, as described below under "Effect of Excess withdrawals" and "Subsequent contributions." The withdrawal amount is guaranteed never to decrease as long as there are no Excess withdrawals. Your Guaranteed annual withdrawals are not cumulative. If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. The withdrawal charge, if applicable, is waived for withdrawals up to the Guaranteed annual withdrawal amount, but all withdrawals are counted toward your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. EFFECT OF EXCESS WITHDRAWALS An Excess withdrawal is caused when you withdraw more than your Guaranteed annual withdrawal amount in any contract year. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, the entire amount of that withdrawal and each subsequent withdrawal in that contract year are considered Excess withdrawals. An Excess withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount. If you make an Excess withdrawal, we will recalculate your GWBL benefit base and the Guaranteed annual withdrawal amount, as follows: o The GWBL benefit base is reset as of the date of the Excess with drawal to equal the lesser of: (i) the GWBL benefit base immediately prior to the Excess withdrawal and (ii) the account value immediately following the Excess withdrawal. o The Guaranteed annual withdrawal amount is recalculated to equal the Applicable percentage multiplied by the reset GWBL benefit base. You should not purchase this contract if you plan to take withdrawals in excess of your Guaranteed annual withdrawal amount as such withdrawals may significantly reduce or eliminate the value of the GWBL benefit. If your account value is less than your GWBL benefit base (due, for example, to negative market performance), an Excess withdrawal, even one that is only slightly more than your Guaranteed annual withdrawal amount, can significantly reduce your GWBL benefit base and the Guaranteed annual withdrawal amount. For example, assume your GWBL benefit base is $100,000 and your account value is $80,000 when you decide to begin taking withdrawals at age 65. Your Guaranteed annual withdrawal amount is equal to $5,000 (5.0% of $100,000). You take an initial withdrawal of $8,000. Since your GWBL benefit base is immediately reset to equal the lesser of your GWBL benefit base prior to the Excess withdrawal ($100,000) and your account value immediately following the Excess withdrawal ($80,000 minus $8,000), your GWBL benefit base is now $72,000. In addition, your Guaranteed annual withdrawal amount is reduced to $3,600 (5.0% of $72,000), instead of the original $5,000. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds the greater of (i) the Guaranteed annual withdrawal amount or (ii) the 10% free withdrawal amount. A withdrawal charge would not be applied in the example above since the $8,000 withdrawal (equal to 10% of the contract's account value as of the beginning of the contract year) falls within the 10% free withdrawal amount. Under the example above, additional withdrawals during the same contract year could result in a further reduction of the GWBL benefit base and the Guaranteed annual withdrawal amount, as well as an application of withdrawal charges, if applicable. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. You should note that an Excess withdrawal that reduces your account value to zero terminates the contract, including all benefits, without value. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA, QP or TSA and participate in our Automatic RMD service, an automatic withdrawal under that program will not cause an Excess withdrawal, even if it exceeds your Guaranteed annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. Loans are not available under Rollover TSA contracts if GWBL is elected. ANNUAL RATCHET Your GWBL benefit base is recalculated on each contract date anniversary to equal the greater of: (i) the account value and (ii) the most recent GWBL benefit base. If your account value is greater, we will ratchet up your GWBL benefit base to equal your account value. If your GWBL benefit base ratchets on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. Your Guaranteed annual withdrawal amount will also be increased, if applicable, to equal your Applicable percentage times your new GWBL benefit base. If your GWBL benefit base ratchets, we may increase the charge for the benefit. Once we increase the charge, it is increased for the life of the contract. We will permit you to opt out of the ratchet if the charge increases. If you choose to opt out, your charge will stay the same but your GWBL benefit base will no longer ratchet. Upon request, we will permit you to accept a GWBL benefit base ratchet with the charge increase on a subsequent contract date anniversary. For a description of the charge increase, see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus. Contract features and benefits 43 5% DEFERRAL BONUS At no additional charge, during the first ten contract years, in each year you have not taken a withdrawal, we will increase your GWBL benefit base by an amount equal to 5% of your total contributions. If the Annual Ratchet (as discussed immediately above) occurs on any contract date anniversary, for the next and subsequent contract years, the bonus will be 5% of the most recent ratcheted GWBL benefit base plus any subsequent contributions. If the GWBL benefit base is reduced due to an Excess withdrawal, the 5% deferral bonus will be calculated using the reset GWBL benefit base plus any applicable contributions. The deferral bonus generally excludes contributions made in the prior 12 months. In the first contract year, the deferral bonus is determined using all contributions received in the first 90 days of the contract year. On any contract date anniversary on which you are eligible for a bonus, we will calculate the applicable bonus amount. If, when added to the current GWBL benefit base, the amount is greater than your account value, that amount will become your new GWBL benefit base. If that amount is less than or equal to your account value, your GWBL benefit base will be ratcheted to equal your account value, and the 5% deferral bonus will not apply. If you opt out of the Annual Ratchet (as discussed immediately above), the 5% deferral bonus will still apply. SUBSEQUENT CONTRIBUTIONS Subsequent contributions are not permitted after the later of: (i) the end of the first contract year and (ii) the date the first withdrawal is taken. Anytime you make an additional contribution, your GWBL benefit base will be increased by the amount of the contribution. Your Guaranteed annual withdrawal amount will be equal to the Applicable percentage of the increased GWBL benefit base. GWBL GUARANTEED MINIMUM DEATH BENEFIT There are two guaranteed minimum death benefits available if you elect the GWBL option: (i) the GWBL Standard death benefit, which is available at no additional charge for owner issue ages 45-85, and (ii) the GWBL Enhanced death benefit, which is available for an additional charge for owner issue ages 45-75. Please see Appendix VII later in this Prospectus to see if these guaranteed death benefits are available in your state. The GWBL Standard death benefit is equal to the GWBL Standard death benefit base. The GWBL Standard death benefit base is equal to your initial contribution and any additional contributions less a deduction that reflects any withdrawals you make (see "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus). The GWBL Enhanced death benefit is equal to the GWBL Enhanced death benefit base. Your initial GWBL Enhanced death benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL Enhanced death benefit base increases by any subsequent contribution; o Your GWBL Enhanced death benefit base increases to equal your account value if ratcheted, as described above in this section; o Your GWBL Enhanced death benefit base increases by any 5% deferral bonus, as described above in this section; o Your GWBL Enhanced death benefit base decreases by an amount which reflects any withdrawals you make; See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. The death benefit is equal to your account value (adjusted for any pro rata optional benefit charges) as of the date we receive satisfactory proof of death, any required instructions for method of payment, information and forms necessary to effect payment or the applicable GWBL Guaranteed minimum death benefit on the date of the owner's death (adjusted for any subsequent withdrawals and withdrawal charges), whichever provides a higher amount. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO If your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no further payments or benefits. If an Excess withdrawal results in a withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. However, if your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, please note the following: o Your Accumulator(R) contract terminates and you will receive a supplementary life annuity contract setting forth your continuing benefits. The owner of the Accumulator(R) contract will be the owner and annuitant. The successor owner, if applicable, will be the joint annuitant. If the owner is non-natural, the annuitant and joint annuitant, if applicable, will be the same as under your Accumulator(R) contract. o No subsequent contributions will be permitted. o If you were taking withdrawals through the "Maximum payment plan," we will continue the scheduled withdrawal payments on the same basis. o If you were taking withdrawals through the "Customized payment plan" or in unscheduled partial withdrawals, we will pay the balance of the Guaranteed annual withdrawal amount for that contract year in a lump sum. Payment of the Guaranteed annual withdrawal amount will begin on the next contract date anniversary. o Payments will continue at the same frequency for Single or Joint life contracts, as applicable, or annually if automatic payments were not being made. o Any guaranteed minimum death benefit remaining under the original contract will be carried over to the supplementary life annuity contract. The death benefit will no longer grow and will be reduced on a dollar-for-dollar basis as payments are made. If there is any remaining death benefit upon the death of the owner and successor owner, if applicable, we will pay it to the beneficiary. 44 Contract features and benefits o The charge for the Guaranteed withdrawal benefit for life and the GWBL Enhanced death benefit will no longer apply. o If at the time of your death the Guaranteed annual withdrawal amount was being paid to you as a supplementary life annuity contract, your beneficiary may not elect the Beneficiary continuation option. OTHER IMPORTANT CONSIDERATIONS o This benefit is not appropriate if you do not intend to take withdrawals prior to annuitization. o Amounts withdrawn in excess of your Guaranteed annual withdrawal amount may be subject to a withdrawal charge, if applicable, as described in "Charges and expenses" later in the Prospectus. In addition, all withdrawals count toward your free withdrawal amount for that contract year. Excess withdrawals can significantly reduce or completely eliminate the value of the GWBL and GWBL Enhanced death benefit. See "Effect of Excess withdrawals" above in this section and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o Withdrawals are not considered as annuity payments for tax purposes, and may be subject to an additional 10% federal income tax penalty if they are taken before age 59-1/2. See "Tax information" later in this Prospectus. o All withdrawals reduce your account value and Guaranteed minimum death benefit. See "How withdrawals are taken from your account value" and "How withdrawals affect your Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. o The GWBL benefit terminates if the contract is continued under the beneficiary continuation option or under the Spousal continuation feature if the spouse is not the successor owner. o If you surrender your contract to receive its cash value and your cash value is greater than your Guaranteed annual withdrawal amount, all benefits under the contract will terminate, including the GWBL benefit. o If you transfer ownership of this contract, you terminate the GWBL benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information" later in this Prospectus for more information. o Withdrawals are available under other annuity contracts we offer and this contract without purchasing a withdrawal benefit. o For IRA, QP and TSA contracts, if you have to take a required minimum distribution ("RMD") and it is your first withdrawal under the contract, the RMD will be considered your "first withdrawal" for the purposes of establishing your GWBL Applicable percentage. o If you elect GWBL on a Joint life basis and subsequently get divorced, your divorce will not automatically terminate the contract. For both Joint life and Single life contracts, it is possible that the terms of your divorce decree could significantly reduce or completely eliminate the value of this benefit. PRINCIPAL GUARANTEE BENEFITS We offer two 10-year Principal guarantee benefits at an additional charge: the 100% Principal guarantee benefit and the 125% Principal guarantee benefit. You may only elect one Principal guarantee benefit ("PGB"). 100% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 100% Principal guarantee benefit is equal to your initial contribution and additional permitted contributions, adjusted for withdrawals. Under the 100% Principal guarantee benefit, your investment options are limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. 125% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 125% Principal guarantee benefit is equal to 125% of your initial contribution and additional permitted contributions, adjusted for withdrawals. Under the 125% Principal guarantee benefit, your investment options are limited to the guaranteed interest option, the account for special dollar cost averaging and the AXA Moderate Allocation Portfolio. Under both Principal guarantee benefits, if, on the 10th contract date anniversary (or later if you've exercised a reset as explained below) ("benefit maturity date"), your account value is less than the guaranteed amount, we will increase your account value to equal the applicable guaranteed amount. Any such additional amounts added to your account value will be allocated pursuant to the allocation instructions for additional contributions we have on file. After the benefit maturity date, the guarantee will terminate. You have the option to reset (within 30 days following each applicable contract date anniversary) the guaranteed amount to the account value or 125% of the account value, as applicable, as of your fifth and later contract date anniversaries. If you exercise this option, you are eligible for another reset on each fifth and later contract date anniversary after the last reset up to the contract date anniversary following an owner's 85th birthday. If you elect to reset the guaranteed amount, your benefit maturity date will be extended to be the 10th contract date anniversary after the anniversary on which you reset the guaranteed amount. This extension applies each time you reset the guaranteed amount. Neither PGB is available under Inherited IRA, Flexible Premium IRA and Flexible Premium Roth IRA contracts. If you elect either PGB, you may not elect the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, the systematic withdrawals option or the substantially equal withdrawals option. If you purchase a PGB, you may not make additional contributions to your contract after six months from the contract issue date. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those Contract features and benefits 45 distributions do not adversely impact your Principal guarantee benefit. See "Owner and annuitant requirements" earlier in this section. If you are planning to take required minimum distributions from this contract, this benefit may not be appropriate. See "Tax information" later in this Prospectus. If you elect a PGB and change ownership of the contract, your PGB will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information" later in this Prospectus for more information. Once you purchase a PGB, you may not voluntarily terminate this benefit. Your PGB will terminate if the contract terminates before the benefit maturity date, as defined below. If you die before the benefit maturity date and the contract continues, we will continue the PGB only if the contract can continue through the benefit maturity date. If the contract cannot so continue, we will terminate your PGB and the charge. See "Non-spousal joint owner contract continuation" in "Payment of death benefit" later in this Prospectus. The PGB will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a charge for the Principal guarantee benefits (see "Charges and expenses" later in this Prospectus). You should note that the purchase of a PGB is not appropriate if you want to make additional contributions to your contract beyond the first six months after your contract is issued. The purchase of a PGB is also not appropriate if you plan on terminating your contract before the benefit maturity date. The purchase of a PGB may not be appropriate if you plan on taking withdrawals from your contract before the benefit maturity date. Withdrawals from your contract before the benefit maturity date reduce the guaranteed amount under a PGB on a pro rata basis. You should also note that if you intend to allocate a large percentage of your contributions to the guaranteed interest option, the purchase of a PGB may not be appropriate because of the guarantees already provided by this option at no additional charge. Please note that loans (applicable to TSA contracts only) are not permitted under either PGB. INHERITED IRA BENEFICIARY CONTINUATION CONTRACT This contract is available to an individual beneficiary of a traditional IRA or a Roth IRA where the deceased owner held the individual retirement account or annuity (or Roth individual retirement account or annuity) with an insurance company or financial institution other than AXA Equitable. The purpose of the inherited IRA beneficiary continuation contract is to permit the beneficiary to change the funding vehicle that the deceased owner selected ("original IRA") while taking the required minimum distribution payments that must be made to the beneficiary after the deceased owner's death. See the discussion of required minimum distributions under "Tax information." This contract is intended only for beneficiaries who want to take payments at least annually over their life expectancy. These payments generally must begin (or must have begun) no later than December 31 of the calendar year following the year the deceased owner died. This contract is not suitable for beneficiaries electing the "5-year rule." See "Beneficiary continuation option for IRA and Roth IRA contracts" under "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. You should discuss with your tax adviser your own personal situation. This contract may not be available in all states. Please speak with your financial professional for further information. The Inherited traditional IRA is also available to non-spousal beneficiaries of deceased plan participants in qualified plans, 403(b) plans and governmental employer 457(b) plans ("Applicable Plan(s)"). In this discussion, unless otherwise indicated, references to "deceased owner" include "deceased plan participant"; references to "original IRA" include "the deceased plan participant's interest or benefit under the Applicable Plan", and references to "individual beneficiary of a traditional IRA" include "individual non-spousal beneficiary under an Applicable Plan." The inherited IRA beneficiary continuation contract can only be purchased by a direct transfer of the beneficiary's interest under the deceased owner's original IRA. In the case of a non-spousal beneficiary under a deceased plan participant's Applicable Plan, the Inherited traditional IRA can only be purchased by a direct rollover of the death benefit under the Applicable Plan. The owner of the inherited IRA beneficiary continuation contract is the individual who is the beneficiary of the original IRA. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. The contract must also contain the name of the deceased owner. In this discussion, "you" refers to the owner of the inherited IRA beneficiary continuation contract. The inherited IRA beneficiary continuation contract can be purchased whether or not the deceased owner had begun taking required minimum distribution payments during his or her life from the original IRA or whether you had already begun taking required minimum distribution payments of your interest as a beneficiary from the deceased owner's original IRA. You should discuss with your own tax adviser when payments must begin or must be made. Under the inherited IRA beneficiary continuation contract: o You must receive payments at least annually (but can elect to receive payments monthly or quarterly). Payments are generally made over your life expectancy determined in the calendar year after the deceased owner's death and determined on a term certain basis. o You must receive payments from this contract even if you are receiving payments from another IRA of the deceased owner in an amount that would otherwise satisfy the amount required to be distributed from this contract. o The beneficiary of the original IRA will be the annuitant under the inherited IRA beneficiary continuation contract. In the case where the beneficiary is a "see-through trust," the oldest beneficiary of the trust will be the annuitant. o An inherited IRA beneficiary continuation contract is not available for owners over age 70. o The initial contribution must be a direct transfer from the deceased owner's original IRA and is subject to minimum contri- 46 Contract features and benefits bution amounts. See "How you can purchase and contribute to your contract" earlier in this section. o Subsequent contributions of at least $1,000 are permitted but must be direct transfers of your interest as a beneficiary from another IRA with a financial institution other than AXA Equitable, where the deceased owner is the same as under the original IRA contract. A non-spousal beneficiary under an Applicable Plan cannot make subsequent contributions to an Inherited traditional IRA contract. o You may make transfers among the investment options. o You may choose at any time to withdraw all or a portion of the account value. Any partial withdrawal must be at least $300. Withdrawal charges will apply as described in "Charges and expenses" later in this Prospectus. o The Guaranteed minimum income benefit, Spousal continuation, special dollar cost averaging program, automatic investment program, Principal guarantee benefits, the Guaranteed withdrawal benefit for life and systematic withdrawals are not available under the Inherited IRA beneficiary continuation contract. o If you die, we will pay to a beneficiary that you choose the greater of the account value or the applicable death benefit. o Upon your death, your beneficiary has the option to continue tak ing required minimum distributions based on your remaining life expectancy or to receive any remaining interest in the contract in a single sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If your beneficiary elects to continue to take distributions, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value as of the date we receive satisfactory proof of death and any required instructions, information and forms. Thereafter, withdrawal charges will no longer apply. If you had elected any enhanced death benefits, they will no longer be in effect and charges for such benefits will stop. The Guaranteed minimum death benefit will also no longer be in effect. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law requires, this "free look" period may be longer. Other state variations may apply. Please contact your financial professional and/or see Appendix VII to find out what applies in your state. Generally, your refund will equal your account value (less loan reserve account under TSA contracts) under the contract on the day we receive notification of your decision to cancel the contract and will reflect (i) any investment gain or loss in the variable investment options (less the daily charges we deduct), (ii) any guaranteed interest in the guaranteed interest option, (iii) any positive or negative market value adjustments in the fixed maturity options, and (iv) any interest in the account for special dollar cost averaging, through the date we receive your contract. Some states require that we refund the full amount of your contribution (not reflecting (i), (ii), (iii) or (iv) above). For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. If you fully convert an existing traditional IRA contract to a Roth Conversion IRA or Flexible Premium Roth IRA contract, you may cancel your Roth Conversion IRA or Flexible Premium Roth IRA contract and return to a Rollover IRA or Flexible Premium IRA contract, whichever applies. Our processing office, or your financial professional, can provide you with the cancellation instructions. In addition to the cancellation right described above, you have the right to surrender your contract, rather than cancel it. Please see "Surrendering your contract to receive its cash value," later in this Prospectus. Surrendering your contract may yield results different than canceling your contract, including a greater potential for taxable income. In some cases, your cash value upon surrender may be greater than your contributions to the contract. Please see "Tax information," later in this Prospectus. Contract features and benefits 47 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; (iv) the account for special dollar cost averaging; and (v) the loan reserve account (applies for Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less: (i) the total amount or a pro rata portion of the annual administrative charge, as well as optional benefit charges; (ii) any applicable withdrawal charges; and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option less daily charges for: (i) mortality and expense risks; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, when we deduct the enhanced death benefit, Guaranteed minimum income benefit, Principal guarantee benefits, Guaranteed withdrawal benefit for life and/or Earnings enhancement benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest option at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING Your value in the account for special dollar cost averaging at any time will equal your contribution allocated to that option, plus interest, less the sum of all amounts that have been transferred to the variable investment options you have selected. ---------------------------------- INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all your rights under your contract and any applicable guaranteed benefits, except as discussed below. See Appendix VII later in this Prospectus for any state variations with regard to terminating your contract. GUARANTEED MINIMUM INCOME BENEFIT NO LAPSE GUARANTEE. In certain circumstances, even if your account value falls to zero, your Guaranteed minimum income benefit will still have value. Please see "Contract features and benefits" earlier in this Prospectus for information on this feature. PRINCIPAL GUARANTEE BENEFITS. If you take no withdrawals, and your account value is insufficient to pay charges, we will not terminate your 48 Determining your contract's value contract if you are participating in a PGB. Your contract will remain in force and we will pay your guaranteed amount at the benefit maturity date. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. If you elect the Guaranteed withdrawal benefit for life and your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary life annuity contract, even if your GWBL benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, the benefit will still have value. See "Contract features and benefits" earlier in this Prospectus. Determining your contract's value 49 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer any amount to the account for special dollar cost averaging. o You may not transfer to a fixed maturity option that has a rate to maturity of 3%. o If an owner or annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment. Some states may have additional transfer restrictions. Please see Appendix VII later in this Prospectus. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option and interest sweep option dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or, (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the Investment options in the prior contract year; or, (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. 50 Transferring your money among investment options We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We currently offer two rebalancing programs that you can use to automatically reallocate your account value among your investment options. Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers from the guaranteed interest option to the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer out of the guaranteed interest option to initiate the rebalancing program will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. You may not elect Option II if you are participating in any dollar cost averaging program. You may not elect Option I if you are participating in general dollar cost averaging. If you elect a benefit that limits your variable investment options, those limitations will also apply to the rebalancing programs. Transferring your money among investment options 51 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. Please see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate.
- -------------------------------------------------------------------------------- Method of withdrawal - -------------------------------------------------------------------------------- Automatic Pre-age Lifetime payment 59-1/2 required plans substan minimum (GWBL System- -tially distribu- Contract only) Partial atic equal tion - -------------------------------------------------------------------------------- NQ Yes Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes Yes - -------------------------------------------------------------------------------- Flexible Premium IRA Yes Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Conversion IRA Yes Yes Yes Yes No - -------------------------------------------------------------------------------- Flexible Premium Roth IRA Yes Yes Yes Yes No - -------------------------------------------------------------------------------- Inherited IRA No Yes No No * - -------------------------------------------------------------------------------- QP** Yes Yes No No Yes - -------------------------------------------------------------------------------- Rollover TSA*** Yes Yes Yes No Yes - --------------------------------------------------------------------------------
* This contract pays out post-death required minimum distributions. See "Inherited IRA beneficiary continuation contract" in "Contract features and benefits" earlier in this Prospectus. ** All payments are made to the trust, as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. *** Employer or plan approval required for all transactions. Your ability to take withdrawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. AUTOMATIC PAYMENT PLANS (For contracts with GWBL only) You may take automatic withdrawals under either the Maximum payment plan or the Customized payment plan, as described below. Under either plan, you may take withdrawals on a monthly, quarterly or annual basis. You may change the payment frequency of your withdrawals at any time, and the change will become effective on the next contract date anniversary. You may elect either the Maximum payment plan or the Customized payment plan at any time. You must wait at least 28 days from contract issue before automatic payments begin. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will increase following any Annual Ratchet or 5% deferral bonus. If you elect the Maximum payment plan and start monthly or quarterly payments after the beginning of a contract year, the payments you take that year will be less than your Guaranteed annual withdrawal amount. If you take a partial withdrawal while the Maximum payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will not be increased following any Annual Ratchet or 5% deferral bonus. You must elect to change the scheduled payment amount. It is important to note that if you elect the Customized payment plan and start monthly or quarterly withdrawals after the beginning of a contract year, you could select scheduled payment amounts that would cause an Excess withdrawal. If your selected scheduled payment would cause an Excess withdrawal, we will notify you. As discussed earlier in the Prospectus, Excess withdrawals may significantly reduce the value of the Guaranteed withdrawal benefit for life benefit. See "Effect of Excess withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you take a partial withdrawal while the Customized payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Partial withdrawals will be subject to a withdrawal charge if they exceed the 10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. 52 Accessing your money Any request for a partial withdrawal will terminate your participation in either the Maximum payment plan or Customized payment plan, if applicable. SYSTEMATIC WITHDRAWALS (All contracts except Inherited IRA and QP contracts) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of your account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 10% free withdrawal amount. Systematic withdrawals are not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. SUBSTANTIALLY EQUAL WITHDRAWALS (Rollover IRA, Roth Conversion IRA, Flexible Premium IRA and Flexible Premium Roth IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals that we calculate for you are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). The substantially equal withdrawal program is not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA, Flexible Premium IRA, QP and Rollover TSA contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This service is not available under defined benefit QP contracts. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value Accessing your money 53 of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA, Flexible Premium IRA, and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- We do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our automatic RMD service except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 10% free withdrawal amount. Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH GWBL. Generally, if you elect our Automatic RMD service, any lifetime required minimum distribution payment we make to you under our Automatic RMD service will not be treated as an Excess withdrawal. If you elect either the Maximum payment plan or the Customized payment plan AND our Automatic RMD service, we will make an extra payment, if necessary, on December 1st that will equal your lifetime required minimum distribution less all payments made through November 30 and any scheduled December payment. The combined automatic plan payments and lifetime required minimum distribution payment will not be treated as Excess withdrawals, if applicable. However, if you take any partial withdrawals in addition to your lifetime required minimum distribution and automatic payment plan payments, your applicable automatic payment plan will be terminated. The partial withdrawal may cause an Excess withdrawal and may be subject to a withdrawal charge. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. Further, your GWBL benefit base and Guaranteed annual withdrawal amount may be reduced. See "Effect of Excess Withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you elect our Automatic RMD service and elect to take your Guaranteed annual withdrawal amount in partial withdrawals without electing one of our available automatic payment plans, we will make a payment, if necessary, on December 1st that will equal your required minimum distribution less all withdrawals made through November 30th. If prior to December 1st you make a partial withdrawal that exceeds your Guaranteed annual withdrawal amount, but not your RMD amount, that partial withdrawal will be treated as an Excess withdrawal, as well as any subsequent partial withdrawals made during the same contract year. However, if by December 1st your withdrawals have not exceeded your RMD amount, the RMD payment we make to you will not be treated as an Excess withdrawal. FOR CONTRACTS WITH THE GUARANTEED MINIMUM INCOME BENEFIT. The no lapse guarantee will not be terminated if a required minimum distribution payment using our automatic RMD service causes your cumulative withdrawals in the contract year to exceed 6-1/2% (or 6%, if applicable) of the Roll- Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days). Owners of tax-qualified contracts (IRA, TSA and QP) generally should not reset the Roll-Up benefit base if lifetime required minimum distributions must begin before the end of the new exercise waiting period. See "Guaranteed minimum death benefit/Guaranteed minimum income benefit Roll-Up benefit base reset" in "Contract features and benefits" earlier in this Prospectus. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options and guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options in the order of the earliest maturity date(s) first. If the FMO amounts are insufficient, we will deduct all or a portion of the withdrawal from the account for special dollar cost averaging. A market value adjustment will apply to withdrawals from the fixed maturity options. HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND PRINCIPAL GUARANTEE BENEFITS In general, withdrawals (including RMDs) will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000 - $16,000). For purposes of calculating the adjustment to your guaranteed benefits, the amount of the withdrawal will include the amount of any applicable withdrawal charge. Using the example above, the $12,000 withdrawal would include the withdrawal amount paid to you and the amount of any applicable withdrawal charge deducted from your account value. For more information on the calculation of the charge, see "Withdrawal charge" later in the Prospectus. With respect to the Guaranteed minimum income benefit and the Greater of 6-1/2% (or 6% or 3%, as applicable) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, withdrawals 54 Accessing your money (including any applicable withdrawal charges) will reduce each of the benefits' 6-1/2% (or 6% or 3%, as applicable) Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6-1/2% (or 6% or 3%, as applicable) or less of the 6-1/2% (or 6% or 3%, as applicable) Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. For this purpose, in the first contract year, all contributions received in the first 90 days after contract issue will be considered to have been received on the first day of the contract year. In subsequent contract years, additional contributions made during a contract year do not affect the amount of withdrawals that can be taken on a dollar-for-dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6-1/2% (or 6% or 3%, as applicable) of the benefit base on the most recent anniversary, that entire withdrawal (including RMDs) and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6-1/2% (or 6% or 3%, as applicable) Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for each Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. HOW WITHDRAWALS AFFECT YOUR GWBL AND GWBL GUARANTEED MINIMUM DEATH BENEFIT Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes cumulative withdrawals in a contract year to exceed the Guaranteed annual withdrawal amount. Withdrawals that exceed the Guaranteed annual withdrawal amount, however, can significantly reduce your GWBL benefit base and Guaranteed annual withdrawal amount. For more information, see "Effect of Excess withdrawals" and "Other important considerations" under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus. Your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a dollar-for-dollar basis by any withdrawal up to the Guaranteed annual withdrawal amount. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a pro rata basis. If the reduced GWBL Enhanced death benefit base is greater than your account value (after the Excess withdrawal), we will further reduce your GWBL Enhanced death benefit base to equal your account value. For purposes of calculating your GWBL and GWBL Guaranteed minimum death benefit amount, the amount of the excess withdrawal will include the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information on calculation of the charge, see "Withdrawal charge" later in the Prospectus. WITHDRAWALS TREATED AS SURRENDERS If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. In addition, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. The rules in the preceding sentence do not apply if the Guaranteed minimum income benefit no lapse guarantee is in effect on your contract. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is an Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to an Excess withdrawal. In other words, if you take an Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Guaranteed withdrawal benefit for life " in "Contract features and benefits," earlier in this Prospectus, for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." If you elect the GWBL option or a PGB, loans are not permitted. You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see Appendix VII later in this Prospectus for any state restrictions you may be subject to if you take a loan from a Rollover TSA contract. Also, see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan, including any accrued but unpaid loan interest, will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate Accessing your money 55 will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. See Appendix VII later in this Prospectus to see if a different interest rate applies in your state. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the "loan reserve account." Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment may apply. If such fixed maturity amounts are insufficient, we will deduct all or a portion of the loan from the account for special dollar cost averaging. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while an owner is living (or for contracts with non-natural owners, while the annuitant is living) and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of the date we receive the required information, including the Guaranteed withdrawal benefit for life (if applicable) if your cash value is greater than your Guaranteed annual withdrawal amount remaining that year. If your cash value is not greater than your Guaranteed annual withdrawal amount remaining that year, then you will receive a supplementary life annuity contract. For more information, please see "Effect of your account value falling to zero" in "Contract features and benefits" earlier in this Prospectus. Also, if the Guaranteed minimum income benefit no lapse guarantee is in effect, the benefit will terminate without value if your cash value plus any other withdrawals taken in the contract year exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base (as of the beginning of the contract year). For more information, please see "Insufficient account value" in "Determining your contract value" and "Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal charge) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of which sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option, fixed maturity options and the account for special dollar cost averaging (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery or wire transfer service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. Please see Appendix VII later in this Prospectus for variations that may apply in your state. 56 Accessing your money You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the owner's and annuitant's ages at contract issue. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect the Guaranteed withdrawal benefit for life and choose to annuitize your contract, the Guaranteed withdrawal benefit for life will terminate without value even if your GWBL benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under GWBL. See "Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus for further information. - -------------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------------- Income Manager(R) payout options Life annuity with period certain (available for owners and annu- Period certain annuity itants age 83 or less at contract issue) - --------------------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contract that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life, and after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable income annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager(R) payout option without life contingencies unless withdrawal charges are no longer in effect under your Accumulator(R). For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply your account value of your Accumulator(R) contract to an Income Manager(R) payout annuity. In this case, we will Accessing your money 57 consider any amounts applied as a withdrawal from your Accumulator(R) and we will deduct any applicable withdrawal charge. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income benefit option, different payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any withdrawal charges. If amounts in a fixed maturity option are used to purchase any annuity payout option prior to the maturity date, a market value adjustment will apply. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. The withdrawal charge applicable under your Accumulator(R) contract is imposed if you select a non-life contingent period certain payout annuity. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For the Income Manager(R) life contingent payout options, no withdrawal charge is imposed under the Accumulator(R). If the withdrawal charge that otherwise would have been applied to your account value under your Accumulator(R) is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager(R) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin but it may not be earlier than thirteen months from the Accumulator(R) contract date. (Please see Appendix VII later in this Prospectus for information on state variations.). Except with respect to the Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments, or with a longer duration of a non-life contingent annuity or longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is based on the age of the original annuitant at contract issue and cannot be changed even if you name a new annuitant. For contracts with joint annuitants, the maturity age is based on the older annuitant. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elect the Guaranteed withdrawal benefit for life and your contract is annuitized at maturity, we will offer an annuity payout option that guarantees you will receive payments for life that are at least equal to what you would have received under the Guaranteed withdrawal benefit for life. You will not be able to take withdrawals in addition to the payments under this annuity payout option. You will still be able to surrender the contract at any time for the remaining account value. As described in "Contract features and benefits" under "Guaranteed withdrawal benefit for life," these payments will have the potential to increase with favorable investment performance. Any remaining Guaranteed minimum death benefit value will be transferred to the annuity payout contract as your "minimum death benefit." If the enhanced death benefit had been elected, its value as of the date the annuity payout contract is issued will become your minimum death benefit, and it will continue to ratchet annually if your account value is greater than your minimum death benefit base. The minimum death benefit will be reduced dollar-for-dollar by each payment. If you die while there is any minimum death benefit remaining, it will be paid to your beneficiary. Please see Appendix VII later in this Prospectus for variations that may apply in your state. 58 Accessing your money 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o On each contract date anniversary, a charge for each optional benefit that you elect: a death benefit (other than the Standard and GWBL Standard death benefit); the Guaranteed minimum income benefit; the Guaranteed withdrawal benefit for life; and the Earnings enhancement benefit. o On any contract date anniversary on which you are participating in a PGB -- a charge for a PGB. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits, and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 0.80% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the Guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. Administrative charge. We deduct a daily charge from the net assets in each variable investment option. The charge, together with the annual administrative charge described below, is to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.30% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.20% of the net assets in each variable investment option. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge Charges and expenses 59 from the fixed maturity options (if available) in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits, except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceed the 10% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or apply your cash value to a non-life contingent payout option. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options -- The amount applied to purchase an annuity payout option" in "Accessing your money" earlier in the Prospectus. The withdrawal charge equals a percentage of the contributions withdrawn. The percentage that applies depends on how long each contribution has been invested in the contract. We determine the withdrawal charge separately for each contribution according to the following table: - -------------------------------------------------------------------------------- Contract year - -------------------------------------------------------------------------------- 1 2 3 4 5 6 7 8+ - -------------------------------------------------------------------------------- Percentage of contribution 7% 7% 6% 6% 5% 3% 1% 0% - -------------------------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1," and the withdrawal charge is reduced or expires on each applicable contract date anniversary. Amounts withdrawn up to the free withdrawal amount are not considered withdrawal of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. Please see Appendix VII later in this Prospectus for possible withdrawal charge schedule variations in your state. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and the withdrawal charge from your account value. Any amount deducted to pay withdrawal charges is also subject to that same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each investment option. The withdrawal charge helps cover our sales expenses. For purposes of calculating reductions in your guaranteed benefits and associated benefit bases, the withdrawal amount includes both the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information, see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier in the Prospectus. The withdrawal charge does not apply in the circumstances described below. 10% free withdrawal amount. Each contract year you can withdraw up to 10% of your account value without paying a withdrawal charge. The 10% free withdrawal amount is determined using your account value at the beginning of each contract year. In the first contract year, the 10% free withdrawal amount is determined using all contributions received in the first 90 days of the contract year. Additional contributions during the contract year do not increase your 10% free withdrawal amount. The 10% free withdrawal amount does not apply if you surrender your contract except where required by law. For NQ contracts issued to a charitable remainder trust, the free withdrawal amount will equal the greater of: (1) the current account value less contributions that have not been withdrawn (earnings in the contract) and (2) the 10% free withdrawal amount defined above. Certain withdrawals. If you elected the Guaranteed minimum income benefit and/or the Greater of 6-1/2% (or 6%, if applicable) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6-1/2% (or 6%, if applicable) of the beginning of contract year 6-1/2% (or 6%, if applicable) Roll-Up to age 85 benefit base, even if such withdrawals exceed the free withdrawal amount. Also, a withdrawal charge does not apply to a withdrawal that exceeds 6-1/2% (or 6%, if applicable) of the beginning of contract year 6-1/2% (or 6%, if applicable) Roll-Up to age 85 benefit base as long as it does not exceed the free withdrawal amount. If you are age 76-80 at issue and elected the Greater of 3% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, this waiver applies to withdrawals up to 3% of the beginning of the contract year 3% Roll-Up to age 85 benefit base. If your withdrawals exceed the amount described above, this waiver is not applicable to that withdrawal or to any subsequent withdrawals for the life of the contract. If you elect the Guaranteed withdrawal benefit for life, we will waive any withdrawal charge for any withdrawal during the contract year up to the Guaranteed annual withdrawal amount, even if such withdrawals exceed the free withdrawal amount. However, each withdrawal reduces the free withdrawal amount for that contract year by the amount of the withdrawal. Also, a withdrawal charge does not apply to a withdrawal that exceeds the Guaranteed annual withdrawal amount as long as it does not exceed the free withdrawal amount. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds both the free withdrawal amount and the Guaranteed annual withdrawal amount. Disability, terminal illness, or confinement to nursing home. The withdrawal charge also does not apply if: (i) An owner (or older joint owner, if applicable) has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or 60 Charges and expenses (ii) We receive proof satisfactory to us (including certification by a licensed physician) that an owner's (or older joint owner's, if applicable) life expectancy is six months or less; or (iii) An owner (or older joint owner, if applicable) has been confined to a nursing home for more than 90 days (or such other period, as required in your state) as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: - its main function is to provide skilled, intermediate, or custodial nursing care; - it provides continuous room and board to three or more persons; - it is supervised by a registered nurse or licensed practical nurse; - it keeps daily medical records of each patient; - it controls and records all medications dispensed; and - its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions described in (i), (ii) or (iii) above existed at the time a contribution was remitted or if the condition began within 12 months of the period following remittance. Some states may not permit us to waive the withdrawal charge in the above circumstances, or may limit the circumstances for which the withdrawal charge may be waived. Your financial professional can provide more information or you may contact our processing office. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.80% of the greater of the 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. If you opt to reset your Roll-Up benefit base on any contract date anniversary, we reserve the right to increase the charge for this enhanced death benefit up to a maximum of 0.95% of the applicable benefit base. You will be notified of the increased charge at the time we notify you of your eligibility to reset. The increased charge, if any, will apply as of the next contract date anniversary following the reset and on all contract date anniversaries thereafter. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.65% of the greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. If you opt to reset your Roll-Up benefit base on any contract date anniversary, if applicable, we reserve the right to increase the charge for this enhanced death benefit up to a maximum of 0.80% of the applicable benefit base. You will be notified of the increased charge at the time we notify you of your eligibility to reset. The increased charge, if any, will apply as of the next contract date anniversary following the reset and on all contract date anniversaries thereafter. GREATER OF 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.65% of the greater of the 3% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. GWBL ENHANCED DEATH BENEFIT. This death benefit is only available if you elect the GWBL option. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary. The charge is equal to 0.30% of the GWBL Enhanced death benefit base. We will deduct this charge from your value in the variable investment options (or, if applicable, permitted variable investment options) and the guaranteed interest option on a pro rata basis (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if applicable) in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If such fixed maturity option amounts are still insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. STANDARD DEATH BENEFIT AND GWBL STANDARD DEATH BENEFIT. There is no additional charge for these standard death benefits. PRINCIPAL GUARANTEE BENEFITS CHARGE If you purchase a PGB, we deduct a charge annually from your account value on each contract date anniversary on which you are participating in a PGB. The charge is equal to 0.50% of the account value for the 100% Principal guarantee benefit and 0.75% of the account value for the 125% Principal guarantee benefit. We will continue to deduct the charge until your benefit maturity date. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If such amounts are insufficient, we will deduct all or a portion from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. Charges and expenses 61 If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. GUARANTEED MINIMUM INCOME BENEFIT CHARGE If you elect the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary after the owner (or older joint owner, if applicable) reaches age 85, whichever occurs first. If you elect the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base, the charge is equal to 0.80% of the applicable benefit base on the contract date anniversary. If you elect the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base, the charge is equal to 0.65% of the applicable benefit base. If you opt to reset your Roll-Up benefit base on any contract date anniversary, we reserve the right to increase the charge for this benefit up to a maximum of 1.10% for the benefit that includes the 6-1/2% Roll-Up benefit base or 0.95% for the benefit that includes the 6% Roll-Up benefit base. You will be notified of the increased charge at the time we notify you of your eligibility to reset. The increased charge, if any, will apply as of the next contract date anniversary following the reset and on all contract date anniversaries thereafter. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If such fixed maturity option amounts are still insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. EARNINGS ENHANCEMENT BENEFIT CHARGE If you elect the Earnings enhancement benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.35% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE BENEFIT CHARGE If you elect the Guaranteed withdrawal benefit for life ("GWBL"), we deduct a charge annually as a percentage of your GWBL benefit base on each contract date anniversary. If you elect the Single Life option, the charge is equal to 0.60%. If you elect the Joint Life option, the charge is equal to 0.75%. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option on a pro rata basis. (See Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. GWBL BENEFIT BASE ANNUAL RATCHET CHARGE. If your GWBL benefit base ratchets, we reserve the right to raise the charge at the time of an Annual Ratchet. The maximum charge for the Single Life option is 0.75%. The maximum charge for the Joint Life option is 0.90%. The increased charge, if any, will apply as of the contract date anniversary on which your GWBL benefit base ratchets and on all contract date anniversaries thereafter. We will permit you to opt out of the ratchet if the charge increases. For Joint life contracts, if the successor owner or joint annuitant is dropped before you take your first withdrawal, we will adjust the charge at that time to reflect a Single life. If the successor owner or joint annuitant is dropped after withdrawals begin, the charge will continue based on a Joint life. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. 62 Charges and expenses CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge, or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to the 12b-1 fee. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. Charges and expenses 63 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. Under a contract with a non-natural owner that has joint annuitants, the surviving annuitant is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. In either case, the death benefit is increased by any amount applicable under the Earnings enhancement benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) and any amount applicable under the Earnings enhancement benefit, as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. - -------------------------------------------------------------------------------- When we use the terms owner and joint owner, we intend these to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If the contract is jointly owned or is issued to a non- natural owner and the GWBL has not been elected, the death benefit is payable upon the death of the older joint owner or older joint annuitant, as applicable. Under contracts with GWBL, the terms Owner and Successor Owner are intended to be references to Annuitant and Joint Annuitant, respectively if the contract has a non-natural owner. - -------------------------------------------------------------------------------- Subject to applicable laws and regulations, you may impose restrictions on the timing and manner of the payment of the death benefit to your beneficiary. For example, your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. In general, if the annuitant dies, the owner (or older joint owner, if applicable) will become the annuitant, and the death benefit is not payable. If the contract had joint annuitants, it will become a single annuitant contract. EFFECT OF THE OWNER'S DEATH In general, if the owner dies while the contract is in force, the contract terminates and the applicable death benefit is paid. If the contract is jointly owned, the death benefit is payable upon the death of the older owner. For Joint Life contracts with GWBL, the death benefit is paid to the beneficiary at the death of the second to die of the owner and successor owner, as applicable. There are various circumstances, however, in which the contract can be continued by a successor owner or under a Beneficiary continuation option ("BCO"). For contracts with spouses who are joint owners, the surviving spouse will automatically be able to continue the contract under the "Spousal continuation" feature, or under our Beneficiary continuation option, as discussed below. For contracts with non-spousal joint owners, the joint owner will be able to continue the contract as a successor owner subject to the limitations discussed below under "Non-spousal joint owner contract continuation." If you are the sole owner and your spouse is the sole primary beneficiary, your surviving spouse can continue the contract as a successor owner, under "Spousal continuation" or under our Beneficiary continuation option, as discussed below. If the surviving joint owner is not the surviving spouse, or, for single owner contracts, if the beneficiary is not the surviving spouse, federal income tax rules generally require payments of amounts under the contract to be made within five years of an owner's death (the "5-year rule"). In certain cases, an individual beneficiary or non-spousal surviving joint owner may opt to receive payments over his/her life (or over a period not in excess of his/her life expectancy) if payments commence within one year of the owner's death. Any such election must be made in accordance with our rules at the time of death. If the ben- 64 Payment of death benefit eficiary of a contract with one owner or a younger non-spousal joint owner continues the contract under the 5-year rule, in general, all guaranteed benefits and their charges will end. If a PGB election is in effect upon your death with a benefit maturity date of less than five years from the date of death, it will remain in effect. For more information on non-spousal joint owner contract continuation, see the section immediately below. NON-SPOUSAL JOINT OWNER CONTRACT CONTINUATION Upon the death of either owner, the surviving joint owner becomes the sole owner. Any death benefit (if the older owner dies first) or cash value (if the younger owner dies first) must be fully paid to the surviving joint owner within five years. The surviving owner may instead elect to receive a life annuity, provided payments begin within one year of the deceased owner's death. If the life annuity is elected, the contract and all benefits terminate. If the older owner dies first, we will increase the account value to equal the Guaranteed minimum death benefit, if higher, and by the value of the Earnings enhancement benefit. The surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the Guaranteed minimum death benefit and charge and the Guaranteed minimum income benefit and charge will then be discontinued. Withdrawal charges will no longer apply, and no additional contributions will be permitted. If the younger owner dies first, the surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the death benefit is not payable, and the Guaranteed minimum death benefit and the Earnings enhancement benefit, if applicable, will continue without change. If the Guaranteed minimum income benefit cannot be exercised within the period required by federal tax laws, the benefit and charge will terminate as of the date we receive proof of death. Withdrawal charges will continue to apply and no additional contributions will be permitted. Upon the death of either owner, if the surviving owner elects the 5-year rule and a PGB was in effect upon the owner's death with a maturity date of more than five years from the date of death, we will terminate the benefit and the charge. SPOUSAL CONTINUATION If you are the contract owner and your spouse is the sole primary beneficiary or you jointly own the contract with your younger spouse, or if the contract owner is a non-natural person and you and your younger spouse are joint annuitants, your spouse may elect to continue the contract as successor owner upon your death. Spousal beneficiaries (who are not also joint owners) must be 85 or younger as of the date of the deceased spouse's death in order to continue the contract under Spousal continuation. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. Upon your death, the younger spouse joint owner (for NQ contracts only) or the spouse beneficiary (under a Single owner contract) may elect to receive the death benefit, continue the contract under our Beneficiary continuation option (as discussed below in this section) or continue the contract, as follows: o As of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary, we will increase the account value to equal the elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit, and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. o In general, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. o The applicable Guaranteed minimum death benefit option may continue as follows: o If you elected either the Annual Ratchet to age 85 or the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, and if your surviving spouse is age 75 or younger on the date of your death, and you were age 84 or younger at death, the enhanced death benefit continues and will continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. If you were age 85 or older at death, we will reinstate the Guaranteed minimum death benefit you elected. The benefit base (which had previously been frozen at age 85) will now continue to grow until the contract date anniversary following the date the surviving spouse reaches age 85. o If you elected the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, and your surviving spouse is age 80 or younger at the date of your death, and you were age 84 or younger at death, the enhanced death benefit continues and will grow according to its terms until the contract date anniversary following the surviving spouse's 85th birthday. If you were age 85 or older at death, we will reinstate the enhanced death benefit you elected. The benefit base (which had been previously frozen at age 85) will now continue to grow according to its terms until the contract date anniversary following the surviving spouse's 85th birthday. If your spouse is younger than age 75, before electing to continue the contract, your spouse should consider that he or she could purchase a new contract and elect the Greater of 6% (as opposed to 3%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit at the same cost. He or she could also purchase a contract with a "Greater of 6-1/2%" enhanced death benefit at an additional cost. o If you elected either the Annual Ratchet to age 85 or the Greater of the 6-1/2% (or 6%) Roll-Up to age 85 or Annual Payment of death benefit 65 Ratchet to age 85 enhanced death benefit and your surviving spouse is age 76 or older on the date of your death, the Guaranteed minimum death benefit and charge will be discontinued. If you elected the Greater of the 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit and your surviving spouse is 81 or older, the Guaranteed minimum death benefit and charge will be discontinued. o If the Guaranteed minimum death benefit continues, the Roll-Up benefit base reset, if applicable, will be based on the surviving spouse's age at the time of your death. The next available reset will be based on the contract issue date or last reset, as applicable. o For single owner contracts with the GWBL Enhanced death benefit, we will discontinue the benefit and charge. However, we will freeze the GWBL Enhanced death benefit base as of the date of your death (less subsequent withdrawals), and pay it upon your spouse's death. o The Earnings enhancement benefit will be based on the surviving spouse's age at the date of the deceased spouse's death for the remainder of the life of the contract. If the benefit had been previously frozen because the older spouse had attained age 80, it will be reinstated if the surviving spouse is age 75 or younger. The benefit is then frozen on the contract date anniversary after the surviving spouse reaches age 80. If the surviving spouse is age 76 or older, the benefit and charge will be discontinued. o If elected, PGB continues and is based on the same benefit maturity date and guaranteed amount that was guaranteed. o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the surviving spouse's age at the date of the deceased spouse's death. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If you elect the Guaranteed withdrawal benefit for life on a Joint life basis, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. Withdrawal charges will continue to apply to all contributions made prior to the deceased spouse's death. No additional contributions will be permitted. If you elect the Guaranteed withdrawal benefit for life on a Single life basis, the benefit and charge will terminate. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. If the deceased spouse was a joint annuitant, the contract will become a single annuitant contract. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For jointly owned NQ contracts, if the younger spouse dies first no death benefit is paid, and the contract continues as follows: o The Guaranteed minimum death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit continue to be based on the older spouse's age for the life of the contract. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. If the deceased spouse was a joint annuitant, the contract will become a single annuitant contract. o If a PGB had been elected, the benefit continues and is based on the same benefit maturity date and guaranteed amount. o If you elect the Guaranteed withdrawal benefit for life, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. o The withdrawal charge schedule remains in effect. If you divorce, Spousal continuation does not apply. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state availability. Please speak with your financial professional or see Appendix VII later in this Prospectus for further information. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. For Joint life contracts with GWBL, BCO is only available after the death of the second owner. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit, adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax 66 Payment of death benefit information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o The beneficiary replaces the deceased owner as annuitant. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a portion of the account value and no withdrawal charges, if any, will apply. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. For purposes of this discussion, "beneficiary" refers to the successor owner. This feature must be elected within 9 months following the date of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts: o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any Payment of death benefit 67 remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If the deceased is the owner or older joint owner: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the Beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value plus any amount applicable under the Earnings enhancement benefit adjusted for any subsequent withdrawals. o No withdrawal charges will apply to any withdrawals by the beneficiary. If the deceased is the younger non-spousal joint owner: o The annuity account value will not be reset to the death benefit amount. o The contract's withdrawal charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments; the contract's free withdrawal amount will continue to apply to withdrawals but does not apply to surrenders. o We do not impose a withdrawal charge on scheduled payments except if, when added to any withdrawals previously taken in the same contract year, including for this purpose a contract surrender, the total amount of withdrawals and scheduled payments exceed the free withdrawal amount. See the "Withdrawal charges" in "Charges and expenses" earlier in this Prospectus. 68 Payment of death benefit 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the Prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator's(R) choice of death benefits, the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit, special dollar cost averaging, selection of variable investment options, guaranteed interest option, fixed maturity options and its choices of payout options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. Tax information 69 TAXATION OF LIFETIME WITHDRAWALS IF YOU ELECT GUARANTEED WITHDRAWAL BENEFIT FOR LIFE We treat Guaranteed annual withdrawals and other withdrawals as non-annuity payments for income tax purposes. These withdrawals are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. It reduces the investment in the contract. ANNUITY PAYMENTS Guaranteed annual withdrawals that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus, as well as GMIB and other annuitization payments that are based on life or life expectancy, are considered annuity payments for tax purposes. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your unrecovered investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. Collateral assignments are taxable to the extent of any earnings in the contract at the time any portion of the contract's value is assigned as collateral. Therefore, if you assign your contract as collateral for a loan with a third party after the contract is issued but before the end of the first contract year, you may have taxable income even though you receive no payments under the contract. AXA Equitable will report any income attributable to a collateral assignment on Form 1099-R. Also, if AXA Equitable makes payments or distributions to the assignee pursuant to directions under the collateral assignment agreement, any gains in such payments may be taxable to you and reportable on Form 1099-R even though you do not receive them. EARNINGS ENHANCEMENT BENEFIT In order to enhance the amount of the death benefit to be paid at the owner's death, you may purchase an Earnings enhancement benefit rider for your NQ contract. Although we regard this benefit as an investment protection feature which is part of the contract and which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Earnings enhancement benefit rider is not part of the contract. In such a case the charges for the Earnings enhancement benefit rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable, and for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, AXA Equitable would take all reasonable steps to attempt to avoid this result, which could include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES You may purchase your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that is the source of the funds you are using to purchase the NQ contract is another nonqualified deferred annuity contract or life insurance or endowment contract. o the owner and the annuitant are the same under the source contract and the Accumulator(R) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must be the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carries over to the Accumulator(R) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between the carriers, and provision of cost basis information may be required to process this type of an exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit 70 Tax information taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. BENEFICIARY CONTINUATION OPTION We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for a prior similar version of the NQ contract. See the discussion "Beneficiary continuation option for NQ Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2"; o scheduled payments, any additional withdrawals under "Withdrawal Option 2", or contract surrenders under "Withdrawal Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the "Withdrawal Option" selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling specifically does not address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or any withdrawal that might be taken). The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2, a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before 59-1/2. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Account 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Account 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Account 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Account 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets funding the account for the benefit of the IRA owner. The assets typically include mutual funds and/or individual stocks and securities in a custodial account, and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral, regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 Tax information 71 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may purchase the contract as a traditional IRA or Roth IRA. The traditional IRAs we offer are the Rollover IRA and Flexible Premium IRA. The versions of the Roth IRA available are the Roth Conversion IRA and Flexible Premium Roth IRA. We also offer the Inherited IRA for payment of post-death required minimum distributions from traditional IRAs and Roth IRAs. We currently do not offer traditional IRA contracts for use as employer-funded SEP IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS requires you to have before you purchase an IRA. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). AXA Equitable has applied for opinion letters from the IRS to approve the respective forms of nearly identical prior versions of the Accumulator(R) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. It is not clear if and when any such approval may be received. We have in the past received IRS opinion letters approving the respective forms of similar traditional IRA and Roth IRA endorsements for use as a traditional and Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) traditional and Roth IRA contracts. AXA Equitable has also submitted the respective forms of the Accumulator(R) Inherited IRA beneficiary continuation contract to the IRS for approval as to form for use as a traditional IRA or Roth IRA, respectively. We do not know if and when any such approval may be granted. Your right to cancel within a certain number of days You can cancel any version of the Accumulator(R) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel with a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. Traditional individual retirement annuities (traditional IRAs) Contributions to traditional IRAs. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). Regular contributions to traditional IRAs Limits on contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000 your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch-up contributions" of up to $1,000 to your traditional IRA. Special rules for spouses. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. "Catch-up" contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. Deductibility of contributions. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. 72 Tax information If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions". That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits on deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted -------------------- x regular = deductible divided by $10,000 contribution contribution for the year limit Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return and your adjusted gross income cannot exceed $50,000 ($53,000 after cost of living adjustment for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. Nondeductible regular contributions. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 "catch-up" contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. When you can make regular contributions. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. Rollover and transfer contributions to traditional IRAs Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; Tax information 73 o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. Rollovers from "eligible retirement plans" other than traditional IRAs Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan, such as a traditional IRA, and subsequently take a premature distribution. Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Rollovers from traditional IRAs to traditional IRAs You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Excess contributions Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contribution amount for the applicable taxable year; or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular 74 Tax information traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. Recharacterizations Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. Withdrawals, payments and transfers of funds out of traditional IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Taxation of payments. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. Required minimum distributions Background on Regulations--Required Minimum Distributions. Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing. Please consult your tax adviser concerning applicability of these complex rules to your situation. Lifetime required minimum distributions. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. When you have to take the first lifetime required minimum distribution. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your Required Beginning Date, which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year Tax information 75 - -- the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. How you can calculate required minimum distributions. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. Do you have to pick the same method to calculate your required minimum distributions for all of your traditional IRAs and other retirement plans? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. Will we pay you the annual amount every year from your traditional IRA based on the method you choose? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. What if you take more than you need to for any year? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. What if you take less than you need to for any year? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. What are the required minimum distribution payments after you die? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. Individual beneficiary. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owners death. No distribution is required before that fifth year. Spousal beneficiary. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. Non-individual beneficiary. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death 76 Tax information required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. Spousal continuation If the contract is continued under Spousal continuation, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. Payments to a beneficiary after your death IRA death benefits are taxed the same as IRA distributions. Borrowing and loans are prohibited transactions You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. Early distribution penalty tax A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special federal income tax definition); or o used to pay medical insurance premiums for unemployed individuals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special federal income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. To meet the substantially equal periodic payments exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments, using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" earlier in this section. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under either option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. Roth individual retirement annuities (Roth IRAs) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Roth IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. Contributions to Roth IRAs Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eligible retirement plans ("conversion rollover" contributions); or o tax-free rollover contributions from other Roth individual retirement arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA or a Flexible Premium Roth IRA contract. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. Tax information 77 Regular contributions to Roth IRAs Limits on regular contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion under "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000. (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. When you can make contributions. Same as traditional IRAs. Deductibility of contributions. Roth IRA contributions are not tax deductible. Rollovers and direct transfers What is the difference between rollover and direct transfer transactions? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make rollovers between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Conversion rollover contributions to Roth IRAs In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. 78 Tax information Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting -- a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includable in certain circumstances. Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. How to recharacterize. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. Distributions from Roth IRAs Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Tax information 79 Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to the special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped and added together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contributions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. Required minimum distributions during life Lifetime required minimum distributions do not apply. Required minimum distributions at death Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the Required Beginning Date. Payments to a beneficiary after your death Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. Borrowing and loans are prohibited transactions Same as traditional IRA. Excess contributions Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. 80 Tax information Early distribution penalty tax Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) General This section of this Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) TSA CONTRACT Because the Accumulator(R) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) TSA contract are extremely limited as described below. Accumulator(R) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the 403(b) annuity contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and Tax information 81 rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its 82 Tax information designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" in this Prospectus, as well as GMIB and other annuitization payments that are based on the annuitant's life or life expectancy, are considered annuity payments for tax purposes. If you elect an annuity payout option, you will recover any investment in the contract as each payment is received by dividing the investment in the contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. Tax information 83 TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Rollover TSA contract on the form used to establish the TSA, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan 84 Tax information must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribution from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However, we may require additional documentation in the case of payments made to non-United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. Tax information 85 FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. 86 Tax information 8. More information - -------------------------------------------------------------------------------- ABOUT SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of Separate Account No. 49 operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Account invests solely in class IB/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from, the Separate Account, or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in the prospectuses for each Trust, which generally accompany this Prospectus, or in the respective SAIs, which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below:
- ---------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - ---------------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 - ----------------------------------------------------------------
More information 87
- ---------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - ---------------------------------------------------------------- 2013 3.00%* $ 86.25 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - ----------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw any of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMO's maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. Any withdrawal charges that are deducted from a fixed maturity option will result in a market value adjustment calculated in the same way. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined by using a widely published index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and the fixed maturity options and the account for special dollar cost averaging, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940. The 88 More information market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account . The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept initial and subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information provided through certain broker-dealers with which we have established electronic facilities. In any such cases, you must sign our Acknowledgement of Receipt form. Where we require a signed application, the above procedures do not apply and no financial transactions will be permitted until we receive the signed application and have issued the contract. Where we issue a contract based on information provided through electronic facilities, we require an Acknowledgement of Receipt form, and financial transactions are only permitted if you request them in writing, sign the request and have its signature guaranteed, until we receive the signed Acknowledgement of Receipt form. After your contract has been issued, additional contributions may be transmitted by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. After your contract has been issued, additional contributions may be transmitted by wire. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, ROLLOVER IRA, ROTH CONVERSION IRA, FLEXIBLE PREMIUM IRA AND FLEXIBLE PREMIUM ROTH IRA CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ, Rollover IRA, Roth Conversion IRA, Flexible Premium IRA or Flexible Premium Roth IRA contract on a monthly or quarterly basis. AIP is not available for QP, Inherited IRA beneficiary continuation (traditional IRA or Roth IRA) or Rollover TSA contracts. Please see Appendix VII later in this Prospectus to see if the automatic investment program is available in your state. For NQ, Rollover IRA and Roth Conversion IRA contracts, the minimum amounts we will deduct are $100 monthly and $300 quarterly. For Flexible Premium IRA and Flexible Premium Roth IRA contracts, the minimum amount we will deduct is $50. Under the IRA contracts, these amounts are subject to the tax maximums. AIP additional contributions may be allocated to any of the variable investment options, the guaranteed interest option and available fixed maturity options, but not the account for special dollar cost averaging. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. For contracts with GWBL, AIP will be automatically terminated after the later of: (i) the end of the first contract year, or (ii) the date the first withdrawal is taken. For contracts with PGB, AIP will be automatically terminated at the end of the first six months. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. More information 89 o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Initial contributions allocated to the account for special dollar cost averaging receive the interest rate in effect on that business day. At certain times, we may offer the opportunity to lock in the interest rate for an initial contribution to be received under Section 1035 exchanges and trustee to trustee transfers. Your financial professional can provide information or you can call our processing office. o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of shares of the Trusts, we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in each prospectus for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's annuity and/or variable life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustees or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have 90 More information a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or the distribution of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive notification of any change at our processing office. If you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, the Earnings enhancement benefit, a PGB, and/or the Guaranteed withdrawal benefit for life ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. The Benefit will not terminate if the ownership of the contract is transferred from a non-natural owner to an individual but the contract will continue to be based on the annuitant's life. The Benefit will also not terminate if you transfer your individually-owned contract to a trust held for your (or your and your immediate family's) benefit; the Benefit will continue to be based on your life. If you were not the annuitant under the individually-owned contract, you will become the annuitant under the new contract. Please speak with your financial professional for further information. See Appendix VII later in this Prospectus for any state variations with regard to terminating any benefits under your contract. You cannot assign or transfer ownership of an IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available and you cannot assign IRA and QP contracts as security for a loan or other obligation. If the employer that provided the funds does not restrict them, loans are available under a Rollover TSA contract. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your IRA, QP or Rollover TSA contract to another similar arrangement under federal income tax rules. In the case of such a transfer, which involves a surrender of your contract, we will impose a withdrawal charge, if one applies. Loans are not available under your NQ contract. In certain circumstances, you may collaterally assign all or a portion of the value of your NQ contract as security for a loan with a third party lender. The terms of the assignment are subject to our approval. The amount of the assignment may never exceed your account value on the day prior to the date we receive all necessary paperwork to effect the assignment. Only one assignment per contract is permitted, and any such assignment must be made prior to the first contract date anniversary. You must indicate that you have not purchased, and will not purchase, any other AXA Equitable (or affiliate's) NQ deferred annuity contract in the same calendar year that you purchase this contract. A collateral assignment does not terminate your benefits under the contract. However, all withdrawals, distributions and benefit payments, as well as the exercise of any benefits, are subject to the assignee's prior approval and payment directions. We will follow such directions until AXA Equitable receives written notification satisfactory to us that the assignment has been terminated. If the owner or beneficiary fails to provide timely notification of the termination, it is possible that we could pay the assignee more than the amount of the assignment, or continue paying the assignee pursuant to existing directions after the collateral assignment has in fact been terminated. Our payment of any death benefit to the beneficiary will also be subject to the terms of the assignment until we receive written notification satisfactory to us that the assignment has been terminated. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. More information 91 The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 0.60% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 7.50% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker- dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product 92 More information category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. More information 93 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This Prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa-equitable.com. 94 Incorporation of certain documents by reference Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.30%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ---------------------------------------------------------------------------------------------------------------- For the year ended December 31, ---------------------------------------------------- 2007 2006 - ---------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ---------------------------------------------------------------------------------------------------------------- Unit value $ 14.58 $ 13.91 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 25,941 4,973 - ---------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ---------------------------------------------------------------------------------------------------------------- Unit value $ 11.97 $ 11.46 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,306 590 - ---------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ---------------------------------------------------------------------------------------------------------------- Unit value $ 12.62 $ 12.12 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,473 1,414 - ---------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ---------------------------------------------------------------------------------------------------------------- Unit value $ 13.27 $ 12.65 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 37,645 8,363 - ---------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ---------------------------------------------------------------------------------------------------------------- Unit value $ 14.71 $ 14.01 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 75,948 17,150 - ---------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ---------------------------------------------------------------------------------------------------------------- Unit value $ 13.94 $ 13.65 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,328 869 - ---------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ---------------------------------------------------------------------------------------------------------------- Unit value $ 10.83 $ 10.27 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 353 63 - ---------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ---------------------------------------------------------------------------------------------------------------- Unit value $ 19.90 $ 18.04 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,042 800 - ---------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ---------------------------------------------------------------------------------------------------------------- Unit value $ 13.84 $ 12.31 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 881 180 - ---------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ---------------------------------------------------------------------------------------------------------------- Unit value $ 11.07 $ 10.73 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,453 364 - ---------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ---------------------------------------------------------------------------------------------------------------- Unit value $ 16.46 $ 14.29 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,013 213 - ---------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ---------------------------------------------------------------------------------------------------------------- Unit value $ 14.35 $ 15.23 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,014 1,142 - ---------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ---------------------------------------------------------------------------------------------------------------- Unit value $ 11.09 $ 11.37 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 639 124 - ---------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ---------------------------------------------------------------------------------------------------------------- Unit value $ 11.27 $ 11.05 - ---------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 440 160 - ----------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- ------------------------------------------------------------------------------------------------------ For the year ended December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------ Unit value $ 14.40 $ 14.42 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,992 385 - ------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------ Unit value $ 19.62 $ 18.04 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,421 590 - ------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------ Unit value $ 2.84 $ 2.77 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,300 989 - ------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------ Unit value $ 13.22 $ 11.94 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 324 101 - ------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------ Unit value $ 12.38 $ 11.90 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,506 604 - ------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------ Unit value $ 13.61 $ 13.57 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,267 276 - ------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------ Unit value $ 3.40 $ 3.35 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,141 966 - ------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------ Unit value $ 11.11 $ 10.85 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,823 406 - ------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------ Unit value $ 14.14 $ 13.65 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,496 553 - ------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------ Unit value $ 10.74 $ 9.95 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,405 316 - ------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------ Unit value $ 13.28 $ 12.09 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 550 81 - ------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------ Unit value $ 15.98 $ 14.99 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,442 587 - ------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------ Unit value $ 10.51 $ 10.43 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,144 828 - ------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------ Unit value $ 9.76 $ 10.82 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,033 123 - ------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------ Unit value $ 9.52 -- - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 21,512 -- - ------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------ Unit value $ 11.67 $ 11.43 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,148 231 - ------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------ Unit value $ 46.43 $ 43.04 - ------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 981 156 - ------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- ----------------------------------------------------------------------------------------------------- For the year ended December 31, ---------------------------------------------------- 2007 2006 - ----------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ----------------------------------------------------------------------------------------------------- Unit value $ 19.36 $ 17.03 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,892 625 - ----------------------------------------------------------------------------------------------------- EQ/International Growth - ----------------------------------------------------------------------------------------------------- Unit value $ 7.26 $ 6.33 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,231 363 - ----------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ----------------------------------------------------------------------------------------------------- Unit value $ 11.03 $ 10.84 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,598 1,106 - ----------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ----------------------------------------------------------------------------------------------------- Unit value $ 14.23 $ 14.59 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 648 104 - ----------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ----------------------------------------------------------------------------------------------------- Unit value $ 14.03 $ 13.69 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 162 37 - ----------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ----------------------------------------------------------------------------------------------------- Unit value $ 14.83 $ 13.00 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 747 58 - ----------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ----------------------------------------------------------------------------------------------------- Unit value $ 10.42 $ 11.22 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,065 314 - ----------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ----------------------------------------------------------------------------------------------------- Unit value $ 8.13 $ 7.67 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,046 249 - ----------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ----------------------------------------------------------------------------------------------------- Unit value $ 12.58 $ 12.32 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 975 291 - ----------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ----------------------------------------------------------------------------------------------------- Unit value $ 12.92 $ 11.83 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 524 92 - ----------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ----------------------------------------------------------------------------------------------------- Unit value $ 12.40 $ 12.50 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,011 408 - ----------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ----------------------------------------------------------------------------------------------------- Unit value $ 15.30 $ 13.60 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,402 1,416 - ----------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ----------------------------------------------------------------------------------------------------- Unit value $ 15.19 $ 15.64 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,507 506 - ----------------------------------------------------------------------------------------------------- EQ/Money Market - ----------------------------------------------------------------------------------------------------- Unit value $ 10.58 $ 10.24 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,895 702 - ----------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ----------------------------------------------------------------------------------------------------- Unit value $ 2.36 $ 1.98 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,099 449 - ----------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ----------------------------------------------------------------------------------------------------- Unit value $ 10.75 $ 10.71 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,018 666 - ----------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ----------------------------------------------------------------------------------------------------- Unit value $ 11.58 $ 11.10 - ----------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,541 158 - -----------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- ---------------------------------------------------------------------------------------------------- For the year ended December 31, ---------------------------------------------------- 2007 2006 - ---------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ---------------------------------------------------------------------------------------------------- Unit value $ 11.16 $ 10.93 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 487 35 - ---------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ---------------------------------------------------------------------------------------------------- Unit value $ 10.76 $ 11.10 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 886 96 - ---------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ---------------------------------------------------------------------------------------------------- Unit value $ 9.45 $ 8.59 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,197 841 - ---------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ---------------------------------------------------------------------------------------------------- Unit value $ 10.26 $ 9.87 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 488 111 - ---------------------------------------------------------------------------------------------------- EQ/Small Company Index - ---------------------------------------------------------------------------------------------------- Unit value $ 14.39 $ 14.85 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,354 370 - ---------------------------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock - ---------------------------------------------------------------------------------------------------- Unit value $ 6.75 $ 6.37 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,437 154 - ---------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ---------------------------------------------------------------------------------------------------- Unit value $ 10.84 $ 10.76 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,461 526 - ---------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ---------------------------------------------------------------------------------------------------- Unit value $ 2.46 $ 2.47 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,349 473 - ---------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ---------------------------------------------------------------------------------------------------- Unit value $ 11.48 $ 11.93 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,074 664 - ---------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ---------------------------------------------------------------------------------------------------- Unit value $ 34.76 $ 24.80 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,799 625 - ---------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ---------------------------------------------------------------------------------------------------- Unit value $ 16.12 $ 13.35 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,545 298 - ---------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - ---------------------------------------------------------------------------------------------------- Unit value $ 8.29 -- - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,973 -- - ---------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ---------------------------------------------------------------------------------------------------- Unit value $ 14.25 $ 12.96 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 238 94 - ---------------------------------------------------------------------------------------------------- Multimanager Core Bond - ---------------------------------------------------------------------------------------------------- Unit value $ 11.28 $ 10.76 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,109 333 - ---------------------------------------------------------------------------------------------------- Multimanager Health Care - ---------------------------------------------------------------------------------------------------- Unit value $ 13.81 $ 12.84 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 845 178 - ---------------------------------------------------------------------------------------------------- Multimanager High Yield - ---------------------------------------------------------------------------------------------------- Unit value $ 12.66 $ 12.44 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,768 448 - ---------------------------------------------------------------------------------------------------- Multimanager International Equity - ---------------------------------------------------------------------------------------------------- Unit value $ 20.44 $ 18.42 - ---------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,524 386 - ----------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- -------------------------------------------------------------------------------------------------- For the year ended December 31, ---------------------------------------------------- 2007 2006 Multimanager Large Cap Core Equity - -------------------------------------------------------------------------------------------------- Unit value $ 14.02 $ 13.53 - -------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 349 62 - -------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - -------------------------------------------------------------------------------------------------- Unit value $ 12.67 $ 11.54 - -------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 674 176 - -------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - -------------------------------------------------------------------------------------------------- Unit value $ 15.92 $ 15.57 - -------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,212 264 - -------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - -------------------------------------------------------------------------------------------------- Unit value $ 14.84 $ 13.44 - -------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 725 212 - -------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - -------------------------------------------------------------------------------------------------- Unit value $ 14.81 $ 15.00 - -------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 778 224 - -------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - -------------------------------------------------------------------------------------------------- Unit value $ 5.21 $ 5.09 - -------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,439 574 - -------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - -------------------------------------------------------------------------------------------------- Unit value $ 13.29 $ 14.93 - -------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 704 327 - -------------------------------------------------------------------------------------------------- Multimanager Technology - -------------------------------------------------------------------------------------------------- Unit value $ 14.50 $ 12.42 - -------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 986 112 - --------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-5 Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- Trustees who are considering the purchase of an Accumulator(R) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this Prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) QP contract to fund a plan for the contract's features and benefits other than tax deferral, after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or contributions directly from the employer. For 401(k) plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge and/or market value adjustment may apply. If in a defined benefit plan, the plan's actuary determines that an overfunding in the QP contract has occurred, then any transfers of plan assets out of the QP contract may result in the assessment of a withdrawal charge or a market value adjustment on the amount being transferred. For defined benefit plans, the maximum percentage of actuarial value of the plan participant's normal retirement benefit that can be funded by a QP contract is 80%. The account value under a QP contract may at any time be more or less than the lump sum actuarial equivalent of the accrued benefit for a defined benefit plan participant. AXA Equitable does not guarantee that the account value under a QP contract will at any time equal the actuarial value of 80% of a participant/employee's accrued benefit. AXA Equitable will not perform or provide any plan recordkeeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for annuitants after age 70-1/2, trustees should consider: o whether required minimum distributions under QP contracts would cause withdrawals in excess of 6-1/2% (or 6%, as applicable) of the Guaranteed minimum income benefit Roll-Up benefit base; o that provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed; and o that if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, payments will be made to the trustee. Finally, because the method of purchasing the QP contract, including the large initial contribution, and the features of the QP contract may appeal more to plan participants who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisers whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. B-1 Appendix II: Purchase considerations for QP contracts Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00%("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a).
- ------------------------------------------------------------------------------------------------------------------------------------ Hypothetical assumed rate to maturity ("j" in the calculations below) February 15, 2012 -------------------------------------------------------- 5.00% 9.00% - ------------------------------------------------------------------------------------------------------------------------------------ As of February 15, 2012 before withdrawal - ------------------------------------------------------------------------------------------------------------------------------------ (1) Market adjusted amount(b) $141,389 $121,737 - ------------------------------------------------------------------------------------------------------------------------------------ (2) Fixed maturity amount(c) $131,104 $131,104 - ------------------------------------------------------------------------------------------------------------------------------------ (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ------------------------------------------------------------------------------------------------------------------------------------ On February 15, 2012 after $50,000 withdrawal - ------------------------------------------------------------------------------------------------------------------------------------ (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ------------------------------------------------------------------------------------------------------------------------------------ (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ------------------------------------------------------------------------------------------------------------------------------------ (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ------------------------------------------------------------------------------------------------------------------------------------ (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ------------------------------------------------------------------------------------------------------------------------------------ (8) Maturity value(d) $111,099 $101,287 - ------------------------------------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ where j is either 5% or 9% (1+j)(D/365) (1+j)(1,461/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) x (1+0.07)(1,461/365)
Appendix III: Market value adjustment example C-1 Appendix IV: Enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the enhanced death benefit, if elected. The following illustrates the enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/Money Market, the guaranteed interest option or the fixed maturity options), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the enhanced death benefit for an owner age 45 would be calculated as follows:
- ------------------------------------------------------------------------------------------------------------------------------------ End of contract 6-1/2% Roll-Up to age 85 6% Roll-Up to age 85 Annual Ratchet to age 85 GWBL Enhanced year Account value benefit base benefit base benefit base death benefit base - ------------------------------------------------------------------------------------------------------------------------------------ 1 $105,000 $ 106,500 (4) $ 106,000 (6) $ 105,000 (1) $ 105,000 (7) - ------------------------------------------------------------------------------------------------------------------------------------ 2 $115,500 $ 113,423 (3) $ 112,360 (5) $ 115,500 (1) $ 115,500 (7) - ------------------------------------------------------------------------------------------------------------------------------------ 3 $129,360 $ 120,795 (3) $ 119,102 (5) $ 129,360 (1) $ 129,360 (7) - ------------------------------------------------------------------------------------------------------------------------------------ 4 $103,488 $ 128,647 (3) $ 126,248 (5) $ 129,360 (2) $ 135,828 (8) - ------------------------------------------------------------------------------------------------------------------------------------ 5 $113,837 $ 137,009 (4) $ 133,823 (6) $ 129,360 (2) $ 142,296 (8) - ------------------------------------------------------------------------------------------------------------------------------------ 6 $127,497 $ 145,914 (4) $ 141,852 (6) $ 129,360 (2) $ 148,764 (8) - ------------------------------------------------------------------------------------------------------------------------------------ 7 $127,497 $ 155,399 (4) $ 150,363 (6) $ 129,360 (2) $ 155,232 (8) - ------------------------------------------------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. ANNUAL RATCHET TO AGE 85 (1) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (2) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown would be the greater of the amounts shown under the 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85. (3) At the end of contract years 2 through 4, the enhanced death benefit will be based on the Annual Ratchet to age 85. (4) At the end of contract years 1 and 5 through 7, the enhanced death benefit will be based on the 6-1/2% Roll-Up to age 85. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown would be the greater of the amounts shown under the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. (5) At the end of contract years 2 through 4, the enhanced death benefit will be based on the Annual Ratchet to age 85. (6) At the end of contract years 1 and 5 through 7, the enhanced death benefit will be based on the 6% Roll-Up to age 85. GWBL ENHANCED DEATH BENEFIT This example assumes no withdrawals. The GWBL Enhanced death benefit is a guaranteed minimum death benefit that is only available if you elect the Guaranteed withdrawal benefit for life. If you plan to take withdrawals during any of the first seven contract years, this illustration is of limited usefulness to you. (7) At the end of contract years 1 through 3, the GWBL Enhanced death benefit is equal to the current account value. (8) At the end of contract years 4 through 7, the GWBL Enhanced death benefit is greater than the current account value. D-1 Appendix IV: Enhanced death benefit example Appendix V: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "Greater of 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85" enhanced death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying portfolios (as described below), the corresponding net annual rates of return would be (2.53)% and 3.47% for the Accumulator(R) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges, but they do not reflect the charges we deduct from your account value annually for the enhanced death benefit, the Earnings enhancement benefit, and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return shown would be lower; however, the values shown in the following tables reflect the following contract charges: the "Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85" enhanced death benefit charge, the Earnings enhancement benefit charge, the Guaranteed minimum income benefit charge and any applicable administrative charge and withdrawal charge. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised, and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this Prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. Appendix V: Hypothetical illustrations E-1 Variable deferred annuity Accumulator(R) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 Guaranteed minimum death benefit Earnings enhancement benefit Guaranteed minimum income benefit
Greater of 6-1/2% Roll-Up to age 85 or Annual Lifetime Annual Ratchet to age Guaranteed Minimum Income Benefit 85 Guaranteed Total Death Benefit ---------------------------------- Minimum Death with the Earnings Guaranteed Hypothetical Account Value Cash Value Benefit enhancement benefit Income Income Contract ------------------- ------------------ ------------------- ------------------- ----------------- ---------------- Age Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% - ----- --------- --------- --------- -------- --------- --------- --------- --------- --------- -------- -------- -------- ------- 60 1 100,000 100,000 93,000 93,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A 61 2 95,425 101,404 88,425 94,404 106,500 106,500 109,100 109,100 N/A N/A N/A N/A 62 3 90,870 102,741 84,870 96,741 113,423 113,423 118,792 118,792 N/A N/A N/A N/A 63 4 86,329 104,001 80,329 98,001 120,795 120,795 129,113 129,113 N/A N/A N/A N/A 64 5 81,792 105,175 76,792 100,175 128,647 128,647 140,105 140,105 N/A N/A N/A N/A 65 6 77,251 106,251 74,251 103,251 137,009 137,009 151,812 151,812 N/A N/A N/A N/A 66 7 72,698 107,219 71,698 106,219 145,914 145,914 164,280 164,280 N/A N/A N/A N/A 67 8 68,125 108,065 68,125 108,065 155,399 155,399 177,558 177,558 N/A N/A N/A N/A 68 9 63,521 108,775 63,521 108,775 165,500 165,500 191,699 191,699 N/A N/A N/A N/A 69 10 58,877 109,336 58,877 109,336 176,257 176,257 206,760 206,760 N/A N/A N/A N/A 74 15 34,604 109,288 34,604 109,288 241,487 241,487 298,082 298,082 14,441 14,441 14,441 14,441 79 20 7,569 102,524 7,569 102,524 330,859 330,859 423,202 423,202 22,168 22,168 22,168 22,168 84 25 0 85,450 0 85,450 0 453,305 0 554,251 0 36,264 0 36,264 89 30 0 74,666 0 74,666 0 482,770 0 583,716 N/A N/A N/A N/A 94 35 0 66,463 0 66,463 0 482,770 0 583,716 N/A N/A N/A N/A 95 36 0 64,667 0 64,667 0 482,770 0 583,716 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. E-2 Appendix V: Hypothetical illustrations Appendix VI: Earnings enhancement benefit example - -------------------------------------------------------------------------------- The following illustrates the calculation of a death benefit that includes the Earnings enhancement benefit for an owner age 45. The example assumes a contribution of $100,000 and no additional contributions. Where noted, a single withdrawal in the amount shown is also assumed. The calculation is as follows: No Withdrawal $3,000 withdrawal $6,000 withdrawal -------------------------------------------------------------------------------------------------------------------------------- A Initial contribution 100,000 100,000 100,000 -------------------------------------------------------------------------------------------------------------------------------- B Death benefit: prior to withdrawal.* 104,000 104,000 104,000 -------------------------------------------------------------------------------------------------------------------------------- Earnings enhancement benefit earnings: death benefit less net contributions (prior to the withdrawal in C D). 4,000 4,000 4,000 B minus A. -------------------------------------------------------------------------------------------------------------------------------- D Withdrawal 0 3,000 6,000 -------------------------------------------------------------------------------------------------------------------------------- Excess of the withdrawal over the Earnings E enhancement benefit earnings 0 0 2,000 greater of D minus C or zero -------------------------------------------------------------------------------------------------------------------------------- Net contributions (adjusted for the withdrawal in D) F A minus E 100,000 100,000 98,000 -------------------------------------------------------------------------------------------------------------------------------- Death benefit (adjusted for the withdrawal in D) G B minus D 104,000 101,000 98,000 -------------------------------------------------------------------------------------------------------------------------------- Death benefit less net contributions H G minus F 4,000 1,000 0 -------------------------------------------------------------------------------------------------------------------------------- I Earnings enhancement benefit factor 40% 40% 40% -------------------------------------------------------------------------------------------------------------------------------- Earnings enhancement benefit J H times I 1,600 400 0 -------------------------------------------------------------------------------------------------------------------------------- Death benefit: including Earnings enhancement benefit K G plus J 105,600 101,400 98,000 --------------------------------------------------------------------------------------------------------------------------------
* The death benefit is the greater of the account value or any applicable death benefit. Appendix VI: Earnings enhancement benefit example F-1 Appendix VII: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- The following information is a summary of the states where the Accumulator(R) contract or certain features and/or benefits are either not available as of the date of this Prospectus or vary from the contract's features and benefits as previously described in this Prospectus. STATES WHERE CERTAIN ACCUMULATOR(R) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA See "Contract features and benefits"--"Your right to If you reside in the state of California and you are cancel within a certain number of days" age 60 and older at the time the contract is issued, you may return your variable annuity contract within 30 days from the date that you receive it and receive a refund as described below. If you allocate your entire initial contribution to the EQ/Money Market option (and/or guaranteed interest option, if available), the amount of your refund will be equal to your contribution less interest, unless you make a transfer, in which case the amount of your refund will be equal to your account value on the date we receive your request to cancel at our processing office. This amount could be less than your initial contribution. If the Principal guarantee benefit or Guaranteed withdrawal benefit for life is elected, the investment allocation during the 30 day free look period is limited to the guaranteed interest option. If you allocate any portion of your initial contribution to the variable investment options (other than the EQ/Money Market option) and/or fixed maturity options, your refund will be equal to your account value on the date we receive your request to cancel at our processing office. - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS See "Loans under Rollover TSA contracts" in "Accessing Your loan interest rate will not exceed 8% (or any your money" lower maximum rate that may become required by Illinois or federal law). See "Selecting an annuity payout option" under "Your The following sentence replaces the first sentence of annuity payout options" in "Accessing your money" the second paragraph in this section: You can choose the date annuity payments begin but it may not be earlier than twelve months from the Accumulator(R) contract date. - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS Annual administrative charge The annual administrative charge will not be deducted from amounts allocated to the Guaranteed interest option. See "Disability, terminal illness or confinement to This section is deleted in its entirety. nursing home" under "Withdrawal charge" in "Charges and expenses" ) - ------------------------------------------------------------------------------------------------------------------------------------
G-1 Appendix VII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI Automatic Investment Program Not Available QP (defined contribution and defined benefit) contracts Not Available See "How you can purchase and contribute to your Additional contributions are limited to the first contract" in "Contract features and benefits" year after the contract issue date only. The 150% limitation rule does not apply. - ------------------------------------------------------------------------------------------------------------------------------------ The following information applies to Accumulator(R) contracts sold in New Jersey from May 29, 2007 to September 10, 2007: NEW JERSEY "Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to All references to this feature are deleted in age 85 enhanced death benefit" their entirety. You have the choice of the following guaranteed minimum death benefits: the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85; the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85; the Annual Ratchet to age 85; the Standard death benefit; the GWBL Standard death benefit; or the GWBL Enhanced death benefit. See "Guaranteed minimum death benefit charge" in "Fee The charge for the Greater of 6% Roll-Up to age table. 85 or Annual Ratchet to age 85 is 0.60% The charge for the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 is 0.60% See "Guaranteed minimum death benefit charge" and Footnote (4) (and all related text) is deleted in "Guaranteed minimum income benefit charge" in "Fee its entirety. We do not reserve the right to table" increase your charge if you reset your Greater of 6% to age 85 or Annual Ratchet to age 85 enhanced death benefit and Guaranteed minimum income benefit Roll-Up benefit base. See "Guaranteed minimum income benefit and the Roll-Up All references to resetting your Roll-Up benefit benefit base reset" in "Contract features and benefits" base on each contract date anniversary are deleted in their entirety here and throughout the Prospectus. Instead, if you elect the Guaranteed minimum income benefit alone or together with the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, you will be eligible to reset the Roll-Up benefit base for these guaranteed benefits to equal the account value as of the 5th or later contract date anniversary. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset for five years. The Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base is not available in combination with the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-2
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY See "Guaranteed minimum income benefit option" in The table showing the maximum periods certain available (CONTINUED) "Contract features and benefits" under the life with a period certain payout option is deleted in its entirety and replaced with the following: ------------------------------------------------------- Level payments ------------------------------------------------------- Period certain years Owner's ------------------------------ age at exercise IRAs NQ ------------------------------------------------------- 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 ------------------------------------------------------- See "Greater of 6% Roll-Up to age 85 or Annual Ratchet The second sentence of the first paragraph and the to age 85" under "Guaranteed minimum death benefit entire second paragraph is deleted in their entirety charge" in "Charges and expenses" and replaced with the following: The charge is equal to 0.60% of the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. See "Greater of 3% Roll-Up to age 85 or Annual Ratchet The second sentence is deleted in its entirety and to age 85" under "Guaranteed minimum death benefit replaced with the following: charge" in "Charges and expenses" The charge is equal to 0.60% of the Greater of the 3% Roll-up to age 85 or the Annual Ratchet to age 85 benefit base. See "Guaranteed minimum income benefit charge" in The third paragraph is deleted in its entirety. "Charges and expenses" - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA Contributions Your contract refers to contributions as premiums. Special dollar cost averaging program In Pennsylvania, we refer to this program as "enhanced rate dollar cost averaging." See "Disability, terminal illness, or confinement to Item (iii) under this section is deleted in its nursing home" under "Withdrawal charge" in "Charges entirety and expenses" Required disclosure for Pennsylvania customers Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. - ------------------------------------------------------------------------------------------------------------------------------------
G-3 Appendix VII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO Beneficiary continuation option (IRA) Not Available IRA, Roth IRA, Inherited IRA, Rollover TSA and QP (Defined Not Available Benefit) contracts See "How you can purchase and contribute to your Specific requirements for purchasing QP contracts in contract" in "Contract features and benefits" Puerto Rico are outlined below in "Purchase considerations for QP (Defined Contribution) contracts in Puerto Rico". See "Exercise Rules" under "How you can purchase and Exercise restrictions for the GMIB on a Puerto Rico contribute to your contract" in "Contract features and QPDC contract are described below, under "Purchase benefits" considerations for QP (Defined Contribution) contracts in Puerto Rico", and in your contract. See "Income Manager(R) payout options" in "Accessing your This payout option is not available with QPDC money" contracts. See "Transfers of ownership, collateral assignments, loans Transfers of ownership of QP contracts are governed and borrowing" in "More information" by Puerto Rico law. Please consult your tax, legal or plan advi- sor if you intend to transfer ownership of your contract. "Purchase considerations for QP (Defined Contribution) Purchase considerations for QP (Defined Contribution) contracts in Puerto Rico" -- this section replaces contracts in Puerto Rico: "Appendix II: Purchase considerations for QP contracts" Trustees who are considering the purchase of an in this Prospectus. Accumulator(R) QP contract in Puerto Rico should discuss with their tax, legal and plan advisors whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of Puerto Rico income tax rules. The QP contract and this Prospectus should be reviewed in full, and the following factors, among others, should be noted. Limits on Contract Ownership: o The QP contract is offered only as a funding vehicle to qualified plan trusts of single participant defined contribution plans that are tax-qualified under Puerto Rico law, not United States law. The contract is not available to US qualified plans or to defined benefit plans qualifying under Puerto Rico law. o The QP contract owner is the qualified plan trust. The annuitant under the contract is the self-employed Puerto Rico resident, who is the sole plan participant. o This product should not be purchased if the self- employed individual anticipates having additional employees become eligible for the plan. We will not allow additional contracts to be issued for participants other than the original business owner. o If the business that sponsors the plan adds another employee, no further contributions may be made to the contract. If the employer moves the funds to another funding vehicle that can accommodate more than one employee, this move could result in surrender charges, if applicable, and the loss of guaranteed benefits in the contract. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-4
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO Limits on Contributions: (CONTINUED) o All contributions must be direct transfers from other investments within an existing qualified plan trust. o Employer payroll contributions are not accepted. o Only one additional transfer contribution may be made per contract year. o Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. o As mentioned above, if a new employee becomes eligible for the plan, the trustee will not be permitted to make any further contributions to the contract established for the original business owner. Limits on Payments: o Loans are not available under the contract. o All payments are made to the plan trust as owner, even though the plan participant/annuitant is the ultimate recipient of the benefit payment. o AXA Equitable does no tax reporting or withholding of any kind. The plan administrator or trustee will be solely responsible for performing or providing for all such services. o AXA Equitable does not offer contracts that qualify as IRAs under Puerto Rico law. The plan trust will exercise the GMIB and must continue to hold the supplementary contract for the duration of the GMIB payments. Plan Termination: o If the plan participant terminates the business, and as a result wishes to terminate the plan, the trust would have to be kept in existence to receive payments. This could create expenses for the plan. o If the plan participant terminates the plan and the trust is dissolved, or if the plan trustee (which may or may not be the same as the plan participant) is unwilling to accept payment to the plan trust for any reason, AXA Equitable would have to change the contract from a Puerto Rico QP to NQ in order to make payments to the individual as the new owner. Depending on when this occurs, it could be a taxable distribution from the plan, with a potential tax of the entire account value of the contract. Puerto Rico income tax withholding and reporting by the plan trustee could apply to the distribution transaction. o If the plan trust is receiving GMIB payments and the trust is subsequently terminated, transforming the contract into an individually owned NQ contract, the trustee would be responsible for the applicable Puerto Rico income tax withholding and reporting on the present value of the remaining annuity payment stream. o AXA Equitable is a U.S. insurance company, therefore distributions under the NQ contract could be subject to United States taxation and withholding on a "taxable amount not determined" basis. - ------------------------------------------------------------------------------------------------------------------------------------
G-5 Appendix VII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO Tax information-- special rules for NQ contracts Income from NQ contracts we issue is U.S. source. A (CONTINUED) Puerto Rico resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico source income of Puerto Rico residents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable portion of amounts distributed from a contract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S. tax paid. Depending on your personal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS See "Annual administrative charge" in "Charges and The annual administrative charge will not be deducted expenses" from amounts allocated to the Guaranteed interest option. - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON Guaranteed interest option Not Available Investment simplifier -- Fixed-dollar option Not Available and Interest sweep option Fixed maturity options Not Available Income Manager(R) payout option Not Available Earnings enhancement benefit Not Available Special dollar cost averaging program o Available only at issue o Subsequent contributions cannot be used to elect new programs. You may make subsequent contributions to the initial programs while they are still running. "Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to All references to these features are deleted in their age 85 enhanced death benefit"; "Greater of 6% Roll-Up entirety. to age 85 or Annual Ratchet to age 85 enhanced death benefit"; and "GWBL Enhanced death benefit" You have the choice of the following guaranteed minimum death benefits: the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit; the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit; the Annual Ratchet to age 85; the Standard death benefit; or the GWBL Standard death benefit. See "Guaranteed minimum death benefit charge" in "Fee The charge for the Greater of 4% Roll-Up to age 85 or table" and in "Charges and expenses" Annual Ratchet to age 85 is 0.65% and cannot be increased. See "How you can purchase and contribute to your o For contracts with GWBL, the $1,500,000 contribution contract" in "Contract features and benefits" limit applies for all issue ages. o The second sentence of the third paragraph is deleted. The paragraph now reads: "We limit aggregate contribu- tions made after the first contract year to 150% of first- year contributions." - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-6
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON See "Guaranteed minimum death benefit and Guaranteed o If you elect the 6-1/2% (or 6%, as applicable) (CONTINUED) minimum income benefit base" in "Contract features and Guaranteed minimum income benefit with the Greater of benefits" 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, the variable investment options (other than EQ/Money Market) and the account for special dollar cost averaging will roll up at an annual rate of 6-1/2% (or 6%, as applicable) for the Guaranteed minimum income benefit base and 4% for the 4% Roll-Up to age 85 ben- efit base. o If you elect the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, with- out a Guaranteed minimum income benefit, the variable investment options (other than EQ/Money Market) and the account for special dollar cost averaging will roll up at an annual rate of 4% for the 4% Roll-Up to age 85 benefit base. See "Guaranteed minimum death benefit/Guaranteed minimum Your "Greater of 4% Roll-Up to age 85 or Annual Ratchet income benefit roll-up benefit benefit base reset" in to age 85 enhanced death benefit" benefit base will "Contract features and benefits" reset only if your account value is greater than your Guaranteed minimum income benefit Roll-Up benefit base. See "How withdrawals affect your Guaranteed minimum The first sentence of the third paragraph is replaced income benefit and Guaranteed minimum death benefit" in with the following: "Accessing your money" o With respect to the 6-1/2% (or 6%, as applicable) Guaranteed minimum income benefit, withdrawals (including any applicable withdrawal charges) will reduce the 6-1/2% (or 6%, as applicable) Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6-1/2% (or 6%, as applicable) or less of the 6-1/2% (or 6%, as applicable) Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. o With respect to the Guaranteed minimum income benefit and the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, if elected in combination, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6-1/2% (or 6%, as applicable) or less of the Guaranteed minimum income benefit's Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. - ------------------------------------------------------------------------------------------------------------------------------------
G-7 Appendix VII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON o With respect to the Greater of 4% Roll-Up to age 85 (CONTINUED) or Annual Ratchet to age 85 enhanced death benefit, if elected without the Guaranteed minimum income benefit, withdrawals (including any applicable withdrawal charges) will reduce the 4% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6% or less of the 4% Roll-Up to age 85 benefit base on the contract issue date or the most recent contract date anniversary, if later. o With respect to the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, with- drawals (including any applicable withdrawal charges) will reduce the 3% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the with- drawals in a contract year is 3% or less of the 3% Roll-Up to age 85 enhanced death benefit base on the contract issue date or the most recent contract date anniversary, if later. See "Guaranteed minimum death benefit" in You have a choice of the standard death benefit, the "Contract features and benefits" Annual Ratchet to age 85 enhanced death benefit, the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, or the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. See "GWBL Guaranteed minimum death benefit" under Only the GWBL Standard death benefit is available. "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" See "Annual administrative charge" in "Charges and The second paragraph of this section is replaced with expenses" the following: The annual administrative charge will be deducted from the value in the variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of that charge for the year. See "10% free withdrawal amount" under "Withdrawal The 10% free withdrawal amount applies to full charge" in "Charges and expenses" surrenders. See "Certain withdrawals" under "Withdrawal charge" in If you elect the Greater of 4% Roll-Up to age 85 or "Charges and expenses" Annual Ratchet to age 85 enhanced death benefit without a Guaranteed minimum income benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6% of the beginning of contract year 4% Roll-Up to age 85 benefit base, even if such withdrawals exceed the free withdrawal amount. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-8
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON See "Withdrawal charge" in "Charges and expenses" under The owner (or older joint owner, if applicable) has (CONTINUED) "Disability, terminal illness, or confinement to nursing qualified to receive Social Security disability home" benefits as certified by the Social Security Administration or a statement from an independent U.S. licensed physician stating that the owner (or older joint owner, if applicable) meets the definition of total disability for at least 6 continuous months prior to the notice of claim. Such disability must be re-certified every 12 months. - ------------------------------------------------------------------------------------------------------------------------------------
G-9 Appendix VII: State contract availability and/or variations of certain features and benefits Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to Obtain an Accumulator(R) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) P.O. Box 1547 Secaucus, NJ 07096-1547 ................................................................................. Please send me an Accumulator(R) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name: - -------------------------------------------------------------------------------- Address: - -------------------------------------------------------------------------------- City State Zip x1888/Core '02/`04, OR, '04 (NY), '06/6.5 and '07 Series Accumulator(R) Elite(SM) A combination variable and fixed deferred annuity contract PROSPECTUS MAY 1, 2008 - -------------------------------------------------------------------------------- Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing, or taking any other action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) ELITE(SM)? Accumulator(R) Elite(SM) is a deferred annuity contract issued by AXA EQUITABLE LIFE INSURANCE COMPANY. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option, fixed maturity options or the account for special dollar cost averaging ("investment options"). Certain features and benefits described in this Prospectus may vary in your state; all features and benefits may not be available in all contracts, in all states or from all selling broker-dealers. Please see Appendix VIII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street Small o EQ/Ariel Appreciation II Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option, the fixed maturity option and the account for special dollar cost averaging, which are discussed later in this Prospectus. TYPES OF CONTRACTS. Contracts were offered for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An annuity that is an investment vehicle for a qualified defined contribution plan ("QP") (Rollover and direct transfer contributions only). o Traditional and Roth Inherited IRA beneficiary continuation contract ("Inherited IRA") (direct transfer contributions only). o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $10,000 was required to purchase a contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. THIS CONTRACT IS NO LONGER AVAILABLE FOR NEW PURCHASERS. This contract is no longer being sold. This Prospectus is designed for current contract owners. In addition to the possible state variations noted above, you should note that your contract features and charges may vary depending on the date on which you purchased your contract. For more information about the particular features, charges and options applicable to you, please contact your financial professional or refer to your contract, as well as review Appendix IX later in this Prospectus for contract variation information and timing. You may not change your contract or its features as issued. THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER AGENCY. THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT BANK GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF PRINCIPAL. X01894/Elite '02/'04 Series (R-4/15) Contents of this Prospectus - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (Not all of the features listed are available under all contracts or in all states.) - -------------------------------------------------------------------------------- ACCUMULATOR(R) ELITE(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) Elite(SM) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 13 - -------------------------------------------------------------------------------- Example 17 Condensed financial information 20 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 21 - -------------------------------------------------------------------------------- How you can contribute to your contract 21 Owner and annuitant requirements 24 How you can make your contributions 24 What are your investment options under the contract? 24 Portfolios of the Trusts 25 Allocating your contributions 31 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 34 Annuity purchase factors 36 Guaranteed minimum income benefit option* 36 Guaranteed minimum death benefit 38 Principal Protector(SM) 40 Inherited IRA beneficiary continuation contract 43 Your right to cancel within a certain number of days 44 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 45 - -------------------------------------------------------------------------------- Your account value and cash value 45 Your contract's value in the variable investment options 45 Your contract's value in the guaranteed interest option 45 Your contract's value in the fixed maturity options 45 Your contract's value in the account for special dollar cost averaging 45 Insufficient account value 45 - ---------- * Depending on when you purchased your contract, this benefit may be called the "Living Benefit." Accordingly, if applicable, all references to the Guaranteed minimum income benefit in this Prospectus and any related registration statement documents are references to the Living Benefit. "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 47 - -------------------------------------------------------------------------------- Transferring your account value 47 Disruptive transfer activity 47 Rebalancing your account value 48 - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 50 - -------------------------------------------------------------------------------- Withdrawing your account value 50 How withdrawals are taken from your account value 51 How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2 52 How withdrawals affect Principal Protector(SM) 52 Withdrawals treated as surrenders 52 Loans under Rollover TSA contracts 53 Surrendering your contract to receive its cash value 53 When to expect payments 53 Your annuity payout options 54 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 57 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 57 Charges that the Trusts deduct 61 Group or sponsored arrangements 61 Other distribution arrangements 61 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 62 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 62 How death benefit payment is made 63 Beneficiary continuation option 64 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 68 - -------------------------------------------------------------------------------- Overview 68 Contracts that fund a retirement arrangement 68 Transfers among investment options 68 Taxation of nonqualified annuities 68 Individual retirement arrangements (IRAs) 70 Tax-Sheltered Annuity contracts (TSAs) 79 Federal and state income tax withholding and information reporting 84 Special rules for contracts funding qualified plans 85 Impact of taxes to AXA Equitable 85 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 86 - -------------------------------------------------------------------------------- About our Separate Account No. 49 86 About the Trusts 86 About our fixed maturity options 86 About the general account 87 About other methods of payment 88 Dates and prices at which contract events occur 88 About your voting rights 89 About legal proceedings 89 Financial statements 89 Transfers of ownership, collateral assignments, loans and borrowing 89 Distribution of the contracts 90 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 92 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Enhanced death benefit example D-1 V -- Hypothetical illustrations E-1 VI -- Guaranteed principal benefit example F-1 VII -- Protection Plus(SM) example G-1 VIII -- State contract availability and/or variations of certain features and benefits H-1 IX -- Contract variations I-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page in Term Prospectus 6% Roll-Up to age 85 enhanced death benefit 34 account value 45 administrative charge 57 annual administrative charge 57 Annual Ratchet to age 85 enhanced death benefit 35 annuitant 21 annuitization 54 annuity maturity date 56 annuity payout options 51 annuity purchase factors 36 automatic investment program 88 beneficiary 62 Beneficiary continuation option ("BCO") 64 business day 88 cash value 45 charges for state premium and other applicable taxes 61 contract date 24 contract date anniversary 24 contract year 24 contributions to Roth IRAs 76 regular contributions 76 rollovers and direct transfers 77 conversion contributions 77 contributions to traditional IRAs 71 regular contributions 71 rollovers and transfers 72 disability, terminal illness or confinement to nursing home 59 disruptive transfer activity 47 distribution charge 57 EQAccess 7 ERISA 61 fixed-dollar option 34 fixed maturity options 30 free look 44 free withdrawal amount 58 general account 87 general dollar cost averaging 33 guaranteed interest option 30 Guaranteed minimum death benefit 38 Guaranteed minimum death benefit charge 59 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 34 Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset option 35 Guaranteed minimum income benefit 36 Guaranteed minimum income benefit charge 60 Guaranteed minimum income benefit "no lapse guarantee" 37 Guaranteed principal benefits 31 Inherited IRA cover investment options cover Investment simplifier 34 IRA cover IRS 68 lifetime required minimum distribution withdrawals 51 loan reserve account 53 loans under rollover TSA 53 market adjusted amount 30 market timing 47 market value adjustment 30 maturity dates 30 maturity value 30 Mortality and expense risks charge 57 NQ cover Optional step up charge 61 partial withdrawals 50 Portfolio cover Principal assurance 32 Principal Protector(SM) 40 Principal Protector(SM) charge 60 processing office 7 Protection Plus(SM) 39 Protection Plus(SM) charge 60 QP cover rate to maturity 30 Rebalancing 48 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 31 Separate Account No. 49 86 special dollar cost averaging 33 Spousal protection 64 standard death benefit 34 substantially equal withdrawals 51 Successor owner and annuitant 63 systematic withdrawals 50 TOPS 7 TSA cover traditional IRA cover Trusts 86 unit 45 variable investment options 24 wire transmittals and electronic applications 88 withdrawal charge 58 4 Index of key words and phrases To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract. Also, depending on when you purchased your contract, some of these may not apply to you or may be named differently under your contract. Your financial professional can provide further explanation about your contract or supplemental materials. - -------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - -------------------------------------------------------------------------------- fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guaranteed minimum income benefit Guaranteed Income Benefit or Living Benefit guaranteed interest option Guaranteed Interest Account Principal Protector(SM) Guaranteed withdrawal benefit GWB benefit base Principal Protector(SM) benefit base GWB Annual withdrawal amount Principal Protector(SM) Annual withdrawa amount GWB Annual withdrawal option Principal Protector(SM) Annual withdrawal option GWB Excess withdrawal Principal Protector(SM) Excess withdrawal - -------------------------------------------------------------------------------- Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) Elite(SM) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) Elite(SM) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) Elite(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) Elite(SM) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility to exercise the Guaranteed minimum income benefit and/or the Roll-Up benefit base reset option. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options (not available through EQAccess); o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or the Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of any transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. Who is AXA Equitable? 7 We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts; (7) tax withholding elections; (8) election of the beneficiary continuation option; (9) IRA contribution recharacterizations; (10) Section 1035 exchanges; (11) direct transfers and rollovers; (12) exercise of the Guaranteed minimum income benefit; (13) requests to reset your Roll-Up benefit base (for certain contracts with both the Guaranteed minimum income benefit and the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit); (14) requests to step up your Guaranteed withdrawal benefit ("GWB") benefit base, if applicable, under the Optional step up provision; (15) requests to terminate or reinstate your GWB, if applicable, under the Beneficiary continuation option, if applicable; (16) death claims; (17) purchase by, or change of ownership to, a non-natural person; (18) change in ownership (NQ only, if available under your contract); and (19) enrollment in our "automatic required minimum distribution (RMD) service." WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; (3) general dollar cost averaging (including the fixed dollar and interest sweep options); and (4) special dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging (including the fixed dollar and interest sweep options); (3) special dollar cost averaging; (4) substantially equal withdrawals; (5) systematic withdrawals; and (6) the date annuity payments are to begin. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners both must sign. 8 Who is AXA Equitable? Accumulator(R) Elite(SM) at a glance -- key features - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (Not all of the features listed are available under all contracts or in all states.) - -------------------------------------------------------------------------------- PROFESSIONAL INVESTMENT Accumulator(R) Elite(SM)'s variable investment options invest in different Portfolios managed by MANAGEMENT professional investment advisers. - ----------------------------------------------------------------------------------------------------------------------------------- FIXED MATURITY OPTIONS o Fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2 only). ------------------------------------------------------------------------------------------------------ If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ----------------------------------------------------------------------------------------------------------------------------------- GUARANTEED INTEREST o Principal and interest guarantees. OPTION o Principal and interest guarantees. o Interest rates set periodically. - ----------------------------------------------------------------------------------------------------------------------------------- ACCOUNT FOR SPECIAL DOLLAR Available for dollar cost averaging all or a portion of any eligible contribution to your COST AVERAGING contract. - ----------------------------------------------------------------------------------------------------------------------------------- TAX CONSIDERATIONS o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among investment options inside the contract. ------------------------------------------------------------------------------------------------------ You should be aware that annuity contracts that were purchased as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA) or to fund an employer retirement plan (QP or Qualified Plan) do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before you purchased your contract, you should have considered its features and benefits beyond tax deferral, as well as its features, benefits and costs relative to any other investment that you may have chosen in connection with your retirement plan or arrangement, to determine whether it would meet your needs and goals. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ----------------------------------------------------------------------------------------------------------------------------------- GUARANTEED MINIMUM The Guaranteed minimum income benefit provides income protection for you during the annuitant's INCOME BENEFIT life once you elect to annuitize the contract. - ----------------------------------------------------------------------------------------------------------------------------------- PRINCIPAL PROTECTOR(SM) Principal Protector(SM) is our optional Guaranteed withdrawal benefit ("GWB"), which provides for recovery of your total contributions through withdrawals, even if your account value falls to zero, provided that during each contract year, your total withdrawals do not exceed a specified amount. This feature may not have been available under your contract. - ----------------------------------------------------------------------------------------------------------------------------------- CONTRIBUTION AMOUNTS o Initial minimum: $10,000 o Additional minimum: $500 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $1,000 (Inherited IRA contracts) $50 (IRA contracts) Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million ($500,000 for certain owners or annuitants who are age 81 and older at contract issue). See "How you can contribute to your contract" in "Contract features and benefits" later in this Prospectus. - -----------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Elite(SM) at a glance -- key features 9 - ----------------------------------------------------------------------------------------------------------------------------------- ACCESS TO YOUR MONEY o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ----------------------------------------------------------------------------------------------------------------------------------- PAYOUT OPTIONS o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - ----------------------------------------------------------------------------------------------------------------------------------- ADDITIONAL FEATURES* o Guaranteed minimum death benefit options o Guaranteed principal benefit options (including Principal assurance) o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semi-annually, and annually) o Free transfers o Waiver of withdrawal charge for disability, terminal illness, confinement to a nursing home and certain other withdrawals o Protection Plus(SM), an optional death benefit available under certain contracts (subject to state availability) o Spousal protection (not available under certain contracts) o Successor owner/annuitant o Beneficiary continuation option o Guaranteed minimum income benefit no lapse guarantee (available under contracts with applications that were signed and submitted on or after January 1, 2005 subject to state availability) o Guaranteed minimum death benefit/guaranteed minimum income benefit roll- up benefit base reset (available under contracts with applications that were signed and submitted on or after October 1, 2005 subject to state availability) * Not all features are available under all contracts. Please see Appendix IX later in this Prospectus for more information. - -----------------------------------------------------------------------------------------------------------------------------------
10 Accumulator(R) Elite(SM) at a glance -- key features - ----------------------------------------------------------------------------------------------------------------------------------- FEES AND CHARGES+ o Daily charges on amounts invested in the variable investment options for mortality and expense risks, administrative charges, and distribution charges at an annual rate of 1.65%. o The charges for the Guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the applicable benefit base. The benefit base is described under "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" in "Contract features and benefits" later in this Prospectus. o An annual charge of 0.65% of the applicable benefit base charge for the optional Guaranteed minimum income benefit until you exercise the benefit, elect another annuity payout option, or the contract date anniversary after the annuitant reaches age 85, whichever occurs first. The benefit base is described under "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" in "Contract features and benefits" later in this Prospectus. o An annual charge for the optional Guaranteed principal benefit option 2 (if available) deducted on the first ten contract date anniversaries equal to 0.50% of the account value. o If your account value at the end of the contract year is less than $50,000, we deduct an annual administrative charge equal to $30, or during the first two contract years, 2% of your account value, if less. If your account value on the contract date anniversary is $50,000 or more, we will not deduct the charge. o An annual charge of 0.35% of your account value for the Protection Plus(SM) optional death benefit. o An annual charge of 0.35% of your account value for the 5% GWB Annual withdrawal option (if available) or 0.50% of your account value for the 7% GWB Annual withdrawal option (if available) for the optional Principal Protector(SM) benefit. If you "step up" your GWB benefit base, we reserve the right to raise the charge up to 0.60% and 0.80%, respectively. See "Principal Protector(SM)" in "Contract features and benefits" later in this Prospectus. o No sales charge is deducted at the time you make contributions. o During the first four contract years following a contribution, a charge of up to 8% will be deducted from amounts that you withdraw that exceed 10% of your account value. We use your account value at the beginning of each contract year to calculate the 10% amount available. There is no withdrawal charge in the fifth and later contract years following a contribution. Certain exemptions may apply. Certain contracts may provide for a higher free withdrawal amount. See Appendix IX later in this Prospectus for contract variations. -------------------------------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we eceived the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date appears in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. -------------------------------------------------------------------------------------------------------- o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. This charge is generally deducted from the amount applied to an annuity payout option. o We currently deduct a $350 annuity administrative fee from amounts applied to purchase the variable immediate annuitization payout option. This option is described in a separate prospectus that is available from your financial professional. o Annual expenses of the Trusts' Portfolios are calculated as a percentage of the average daily net assets invested in each Portfolio. Please see "Fee table" later in this Prospectus for details. + THE FEES AND CHARGES SHOWN IN THIS SECTION ARE THE MAXIMUM CHARGES A CONTRACT OWNER WILL PAY. PLEASE SEE YOUR CONTRACT FOR THE FEES AND CHARGES THAT APPLY TO YOU. ALSO, SOME OF THE OPTIONAL BENEFITS MAY NOT BE AVAILABLE UNDER YOUR CONTRACT. - ----------------------------------------------------------------------------------------------------------------------------------- ANNUITANT ISSUE AGES NQ: 0-85 Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85 Inherited IRA: 0-70 QP: 20-75
- -------------------------------------------------------------------------------- THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE CONTRACT. IN SOME CASES, RESTRICTIONS OR EXCEPTIONS APPLY. ALSO, ALL FEATURES OF THE CONTRACT ARE NOT NECESSARILY AVAILABLE IN YOUR STATE OR AT CERTAIN AGES. PLEASE SEE APPENDIX VIII LATER IN THIS PROSPECTUS FOR MORE INFORMATION ON STATE AVAILABILITY AND/OR VARIATIONS OF CERTAIN FEATURES AND BENEFITS. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. Accumulator(R) Elite(SM) at a glance -- key features 11 OTHER CONTRACTS We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. 12 Accumulator(R) Elite(SM) at a glance -- key features Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you pay when owning and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The fees and charges shown in this section are the maximum fees and charges that a contract owner will pay. Please see your contract and/or Appendix IX later in this Prospectus for the fees and charges that apply under your contract. All features listed below may not have been available at the time you purchased your contract. See Appendix IX later in this Prospectus for more information. The first table describes fees and expenses that you will pay at the time that you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply. - ----------------------------------------------------------------------------------------------------------------------------------- Charges we deduct from your account value at the time you request certain transactions - ----------------------------------------------------------------------------------------------------------------------------------- Maximum withdrawal charge as a percentage of contributions withdrawn (deducted if you surrender your contract or make certain withdrawals or apply your cash value to certain payout options).(1) 8.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - ----------------------------------------------------------------------------------------------------------------------------------- The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses. - ----------------------------------------------------------------------------------------------------------------------------------- Charges we deduct from your account value on each contract date anniversary - ----------------------------------------------------------------------------------------------------------------------------------- Maximum annual administrative charge(2) If your account value on a contract date anniversary is less than $50,000(3) $ 30 If your account value on a contract date anniversary is $50,000 or more $ 0 - ----------------------------------------------------------------------------------------------------------------------------------- Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - ----------------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT ANNUAL EXPENSES: Mortality and expense risks 1.10%(4) Administrative 0.30% Distribution 0.25% ----- Total Separate account annual expenses 1.65% - ----------------------------------------------------------------------------------------------------------------------------------- Charges we deduct from your account value each year if you elect any of the following optional benefits - ----------------------------------------------------------------------------------------------------------------------------------- GUARANTEED MINIMUM DEATH BENEFIT CHARGE (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) Standard death benefit 0.00% Annual Ratchet to age 85 0.30% of the Annual Ratchet to age 85 benefit base (maximum); 0.25% (current) 6% Roll-Up to age 85 0.45% of the 6% Roll-Up to age 85 benefit base Greater of 5% Roll-Up to age 85 or Annual Ratchet to age 85 0.50% of the greater of 5% Roll-Up to age 85 benefit base of the Annual Ratchet to age 85 benefit base as applicable. Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 0.60% of the greater of 6% Roll-Up to age 85 benefit base or the Annual Ratchet to age 85 benefit base, as applicable - -----------------------------------------------------------------------------------------------------------------------------------
Fee table 13 - ----------------------------------------------------------------------------------------------------------------------------------- GUARANTEED PRINCIPAL BENEFIT CHARGE FOR OPTION 2 (calculated as a percentage of the account value. Deducted annually(2) on the first 10 contract date anniversaries.) 0.50% - ----------------------------------------------------------------------------------------------------------------------------------- GUARANTEED MINIMUM INCOME BENEFIT (OR "LIVING BENEFIT") CHARGE (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) 0.65% - ----------------------------------------------------------------------------------------------------------------------------------- PROTECTION PLUS(SM) benefit charge (calculated as a percentage of the account value. Deducted annually(2) on each contract date anniver- sary for which the benefit is in effect.) 0.35% - ----------------------------------------------------------------------------------------------------------------------------------- PRINCIPAL PROTECTOR(SM) BENEFIT CHARGE (calculated as a percentage 0.35% for the 5% GWB of the account value. Deducted annually(2) on each contract date anni- Annual withdrawal option versary, provided your GWB benefit base is greater than zero.) 0.50% for the 7% GWB Annual withdrawal option If you "step up" your GWB benefit base, we reserve the right to 0.60% for the 5% GWB increase your charge up to: Annual withdrawal option 0.80% for the 7% GWB Annual withdrawal option Please see "Principal Protector(SM)" in "Contract features and benefits" for more information about this feature, including its benefit base and the optional step up provision, and "Principal Protector(SM) charge" in "Charges and expenses," both later in this Prospectus, for more information about when the charge applies. - ----------------------------------------------------------------------------------------------------------------------------------- NET LOAN INTEREST CHARGE - ROLLOVER TSA CONTRACTS ONLY (calcu- lated and deducted daily as a percentage of the outstanding loan amount) 2.00%(5) - -----------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio. - --------------------------------------------------------------------------------------------------------------------------- Portfolio operating expenses expressed as an annual percentage of daily net assets - --------------------------------------------------------------------------------------------------------------------------- Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ ------- other expenses) (6) 0.63% 3.56%
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- -------------------------------------------------------------------------------------------------------------------------- Acquired Fund Total Fees and Annual Fee Waiv- Expenses Expenses ers Annual (Underly- (Before and/or Expenses Manage- ing Expense Expense (After ment 12b-1 Other Portfo- Limita- Reimburse- Expense Portfolio Name Fees(7) Fees(8) Expenses(9) lios)(10) tions) ments(11) Limitations) - -------------------------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - -------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.10% 0.25% 0.17% 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.10% 0.25% 0.21% 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.10% 0.25% 0.17% 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity 0.60% 0.25% 0.19% -- 1.04% -- 1.04% Multimanager Core Bond 0.58% 0.25% 0.18% -- 1.01% (0.01)% 1.00% Multimanager Health Care 1.20% 0.25% 0.23% -- 1.68% 0.00% 1.68% Multimanager High Yield 0.57% 0.25% 0.19% -- 1.01% -- 1.01% Multimanager International Equity 1.00% 0.25% 0.23% -- 1.48% 0.00% 1.48% - --------------------------------------------------------------------------------------------------------------------------
14 Fee table This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- -------------------------------------------------------------------------------------------------------------------------- Acquired Fund Total Fees and Annual Fee Waiv- Expenses Expenses ers Annual (Underly- (Before and/or Expenses Manage- ing Expense Expense (After ment 12b-1 Other Portfo- Limita- Reimburse- Expense Portfolio Name Fees(7) Fees(8) Expenses(9) lios)(10) tions) ments(11) Limitations) - -------------------------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - -------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth 0.90% 0.25% 0.22% -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value 0.87% 0.25% 0.20% -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value 1.09% 0.25% 0.20% -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth 1.05% 0.25% 0.27% -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value 1.03% 0.25% 0.18% -- 1.46% 0.00% 1.46% Multimanager Technology 1.20% 0.25% 0.22% 0.01% 1.68% 0.00% 1.68% - -------------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% -- 0.88% -- 0.88% EQ/AllianceBernstein International 0.71% 0.25% 0.18% -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% -- 1.12% -- 1.12% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short -- 3.56% 0.00% 3.56% Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% -- 0.93% 0.00% 0.93% EQ/BlackRock International Value 0.81% 0.25% 0.19% -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research 0.63% 0.25% 0.13% -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture 0.85% 0.25% 0.18% -- 1.28% 0.00% 1.28% EQ/Equity 500 Index 0.25% 0.25% 0.13% -- 0.63% -- 0.63% EQ/Evergreen International Bond 0.70% 0.25% 0.17% -- 1.12% 0.00% 1.12% EQ/Evergreen Omega 0.65% 0.25% 0.25% -- 1.15% 0.00% 1.15% EQ/FI Mid Cap 0.68% 0.25% 0.13% -- 1.06% (0.06)% 1.00% EQ/Franklin Income 0.90% 0.25% 0.15% -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% -- 1.33% (0.03)% 1.30%( EQ/Franklin Templeton Founding 1.05% 1.57% (0.12)% 1.45% Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.60% 0.25% 0.30% 0.04% 1.19% (0.05)% 1.14% EQ/International Growth 0.85% 0.25% 0.27% -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% -- 1.07% (0.07)% 1.00% EQ/Long Term Bond 0.40% 0.25% 0.13% -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% -- 1.10% (0.05)% 1.05% EQ/Marsico Focus 0.85% 0.25% 0.13% -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% 0.02% 1.06% (0.04)% 1.02% EQ/Money Market 0.32% 0.25% 0.13% -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% -- 1.15% 0.00% 1.15% EQ/Mutual Shares 0.90% 0.25% 0.21% -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.95% 0.25% 0.51% 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return 0.55% 0.25% 0.14% -- 0.94% (0.04)% 0.90% - --------------------------------------------------------------------------------------------------------------------------
Fee table 15 This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- -------------------------------------------------------------------------------------------------------------------------- Acquired Fund Total Fees and Annual Fee Waiv- Expenses Expenses ers Annual (Underly- (Before and/or Expenses Manage- ing Expense Expense (After ment 12b-1 Other Portfo- Limita- Reimburse- Expense Portfolio Name Fees(7) Fees(8) Expenses(9) lios)(10) tions) ments(11) Limitations) - -------------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond 0.43% 0.25% 0.15% -- 0.83% 0.00% 0.83% EQ/Small Company Index 0.25% 0.25% 0.14% -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% -- 1.18% (0.03)% 1.15% EQ/Templeton Growth 0.95% 0.25% 0.20% -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% -- 1.36% (0.10)% 1.26% - --------------------------------------------------------------------------------------------------------------------------
Notes: (1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal amount, if applicable The withdrawal charge percentage we use is determined by the contract year in which you make the withdrawal or surrender your contract. For each contribution, Contract we consider the contract year in Year which we receive that contribution 1 ...................... 8.00% to be "contract year 1") 2 ...................... 7.00% 3 ...................... 6.00% 4 ...................... 5.00% 5+ ..................... 0.00% (2) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. If you are an existing contract owner, this pro rata deduction may not apply under your contract. See Appendix IX later in this Prospectus for more information. For Principal Protector(SM) only (if available), if the contract and benefit are continued under the Beneficiary continuation option with Principal Protector(SM), the pro rata deduction for the Principal Protector(SM) charge is waived. (3) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, if applicable, the charge is $30 for each contract year. (4) These charges compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. (5) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (6) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (7) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (11) and (12) for any expense limitation agreement information. (8) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. For the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust, the 12b-1 fees will not be increased for the life of the contract. (9) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (11) and (12) for any expense limitation agreement information. (10) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (11) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A"--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: - ---------------------------------------------- Portfolio Name - ---------------------------------------------- Multimanager Aggressive Equity 0.97% - ---------------------------------------------- Multimanager Health Care 1.67% - ---------------------------------------------- Multimanager Large Cap Core Equity 1.34% - ---------------------------------------------- Multimanager Large Cap Growth 1.29% - ---------------------------------------------- Multimanager Large Cap Value 1.26% - ---------------------------------------------- Multimanager Mid Cap Growth 1.52% - ---------------------------------------------- Multimanager Mid Cap Value 1.53% - ---------------------------------------------- Multimanager Small Cap Growth 1.35% - ---------------------------------------------- 16 Fee table - ---------------------------------------------- Portfolio Name - ---------------------------------------------- Multimanager Small Cap Value 1.45% - ---------------------------------------------- Multimanager Technology 1.67% - ---------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% - ---------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% - ---------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% - ---------------------------------------------- EQ/AllianceBernstein Value 0.87% - ---------------------------------------------- EQ/Ariel Appreciation II 1.09% - ---------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% - ---------------------------------------------- EQ/Davis New York Venture 1.25% - ---------------------------------------------- EQ/Evergreen Omega 1.12% - ---------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% - ---------------------------------------------- EQ/GAMCO Small Company Value 1.10% - ---------------------------------------------- EQ/International Core PLUS 1.05% - ---------------------------------------------- EQ/Large Cap Core PLUS 0.83% - ---------------------------------------------- EQ/Large Cap Growth PLUS 0.82% - ---------------------------------------------- EQ/Legg Mason Value Equity 0.97% - ---------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% - ---------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% - ---------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% - ---------------------------------------------- EQ/Mid Cap Value PLUS 0.81% - ---------------------------------------------- EQ/Montag & Caldwell Growth 1.13% - ---------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% - ---------------------------------------------- EQ/UBS Growth and Income 1.04% - ---------------------------------------------- EQ/Van Kampen Comstock 0.99% - ---------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% - ---------------------------------------------- (12) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and adminis tration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the Guaranteed minimum income benefit with the enhanced death benefit that provides for the greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 and Protection Plus) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.006% of contract value. The fixed maturity options, guaranteed interest option and the account for special dollar cost averaging are not covered by the fee table and example. However, the annual administrative charge, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options, guaranteed interest option and the account for special dollar cost averaging. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Fee table 17
- ------------------------------------------------------------------------------------------------------------------ If you surrender your contract at the end of the applicable time period Portfolio Name 1 year 3 years 5 years 10 years --------------------------------------------------------- AXA PREMIER TRUST: - ------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation $ 1,294.00 $ 2,108.00 $ 2,555.00 $ 5,335.00 AXA Conservative Allocation $ 1,274.00 $ 2,050.00 $ 2,462.00 $ 5,169.00 AXA Conservative-Plus Allocation $ 1,280.00 $ 2,065.00 $ 2,487.00 $ 5,213.00 AXA Moderate Allocation $ 1,284.00 $ 2,077.00 $ 2,506.00 $ 5,248.00 AXA Moderate-Plus Allocation $ 1,288.00 $ 2,089.00 $ 2,526.00 $ 5,283.00 Multimanager Aggressive Equity $ 1,252.00 $ 1,986.00 $ 2,359.00 $ 4,982.00 Multimanager Core Bond $ 1,249.00 $ 1,976.00 $ 2,344.00 $ 4,954.00 Multimanager Health Care $ 1,320.00 $ 2,180.00 $ 2,671.00 $ 5,540.00 Multimanager High Yield $ 1,249.00 $ 1,976.00 $ 2,344.00 $ 4,954.00 Multimanager International Equity $ 1,299.00 $ 2,120.00 $ 2,574.00 $ 5,369.00 Multimanager Large Cap Core Equity $ 1,285.00 $ 2,080.00 $ 2,511.00 $ 5,257.00 Multimanager Large Cap Growth $ 1,287.00 $ 2,086.00 $ 2,521.00 $ 5,274.00 Multimanager Large Cap Value $ 1,282.00 $ 2,071.00 $ 2,497.00 $ 5,230.00 Multimanager Mid Cap Growth $ 1,306.00 $ 2,141.00 $ 2,608.00 $ 5,429.00 Multimanager Mid Cap Value $ 1,305.00 $ 2,138.00 $ 2,604.00 $ 5,421.00 Multimanager Small Cap Growth $ 1,308.00 $ 2,147.00 $ 2,618.00 $ 5,446.00 Multimanager Small Cap Value $ 1,296.00 $ 2,114.00 $ 2,565.00 $ 5,352.00 Multimanager Technology $ 1,320.00 $ 2,180.00 $ 2,671.00 $ 5,540.00 - ------------------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock $ 1,232.00 $ 1,927.00 $ 2,264.00 $ 4,808.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,236.00 $ 1,937.00 $ 2,279.00 $ 4,836.00 EQ/AllianceBernstein International $ 1,263.00 $ 2,016.00 $ 2,408.00 $ 5,071.00 EQ/AllianceBernstein Large Cap Growth $ 1,278.00 $ 2,059.00 $ 2,477.00 $ 5,195.00 EQ/AllianceBernstein Quality Bond $ 1,237.00 $ 1,940.00 $ 2,284.00 $ 4,845.00 EQ/AllianceBernstein Small Cap Growth $ 1,261.00 $ 2,010.00 $ 2,398.00 $ 5,053.00 EQ/AllianceBernstein Value $ 1,244.00 $ 1,961.00 $ 2,319.00 $ 4,909.00 EQ/Ariel Appreciation II $ 1,275.00 $ 2,053.00 $ 2,467.00 $ 5,178.00 EQ/AXA Rosenberg Value Long/Short Equity $ 1,517.00 $ 2,737.00 $ 3,538.00 $ 6,971.00 EQ/BlackRock Basic Value Equity $ 1,241.00 $ 1,952.00 $ 2,304.00 $ 4,882.00 EQ/BlackRock International Value $ 1,274.00 $ 2,050.00 $ 2,462.00 $ 5,169.00 EQ/Boston Advisors Equity Income $ 1,263.00 $ 2,016.00 $ 2,408.00 $ 5,071.00 EQ/Calvert Socially Responsible $ 1,262.00 $ 2,013.00 $ 2,403.00 $ 5,062.00 EQ/Capital Guardian Growth $ 1,253.00 $ 1,989.00 $ 2,364.00 $ 4,991.00 EQ/Capital Guardian Research $ 1,249.00 $ 1,976.00 $ 2,344.00 $ 4,954.00 EQ/Caywood-Scholl High Yield Bond $ 1,249.00 $ 1,976.00 $ 2,344.00 $ 4,954.00 EQ/Davis New York Venture $ 1,278.00 $ 2,059.00 $ 2,477.00 $ 5,195.00 EQ/Equity 500 Index $ 1,209.00 $ 1,859.00 $ 2,154.00 $ 4,604.00 EQ/Evergreen International Bond $ 1,261.00 $ 2,010.00 $ 2,398.00 $ 5,053.00 EQ/Evergreen Omega $ 1,264.00 $ 2,019.00 $ 2,413.00 $ 5,080.00 EQ/FI Mid Cap $ 1,254.00 $ 1,992.00 $ 2,369.00 $ 5,000.00 - ------------------------------------------------------------------------------------------------------------------ - --------------------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period, and select a non-life contingent period certain annuity option with less than five years ------------------------------------------------------ Portfolio Name 1 year 3 years 5 years 10 years - --------------------------------------------------------------------------------------------------------------- AXA PREMIER TRUST: - --------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 2,108.00 $ 2,555.00 $ 5,335.00 AXA Conservative Allocation N/A $ 2,050.00 $ 2,462.00 $ 5,169.00 AXA Conservative-Plus Allocation N/A $ 2,065.00 $ 2,487.00 $ 5,213.00 AXA Moderate Allocation N/A $ 2,077.00 $ 2,506.00 $ 5,248.00 AXA Moderate-Plus Allocation N/A $ 2,089.00 $ 2,526.00 $ 5,283.00 Multimanager Aggressive Equity N/A $ 1,986.00 $ 2,359.00 $ 4,982.00 Multimanager Core Bond N/A $ 1,976.00 $ 2,344.00 $ 4,954.00 Multimanager Health Care N/A $ 2,180.00 $ 2,671.00 $ 5,540.00 Multimanager High Yield N/A $ 1,976.00 $ 2,344.00 $ 4,954.00 Multimanager International Equity N/A $ 2,120.00 $ 2,574.00 $ 5,369.00 Multimanager Large Cap Core Equity N/A $ 2,080.00 $ 2,511.00 $ 5,257.00 Multimanager Large Cap Growth N/A $ 2,086.00 $ 2,521.00 $ 5,274.00 Multimanager Large Cap Value N/A $ 2,071.00 $ 2,497.00 $ 5,230.00 Multimanager Mid Cap Growth N/A $ 2,141.00 $ 2,608.00 $ 5,429.00 Multimanager Mid Cap Value N/A $ 2,138.00 $ 2,604.00 $ 5,421.00 Multimanager Small Cap Growth N/A $ 2,147.00 $ 2,618.00 $ 5,446.00 Multimanager Small Cap Value N/A $ 2,114.00 $ 2,565.00 $ 5,352.00 Multimanager Technology N/A $ 2,180.00 $ 2,671.00 $ 5,540.00 - --------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 1,927.00 $ 2,264.00 $ 4,808.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,937.00 $ 2,279.00 $ 4,836.00 EQ/AllianceBernstein International N/A $ 2,016.00 $ 2,408.00 $ 5,071.00 EQ/AllianceBernstein Large Cap Growth N/A $ 2,059.00 $ 2,477.00 $ 5,195.00 EQ/AllianceBernstein Quality Bond N/A $ 1,940.00 $ 2,284.00 $ 4,845.00 EQ/AllianceBernstein Small Cap Growth N/A $ 2,010.00 $ 2,398.00 $ 5,053.00 EQ/AllianceBernstein Value N/A $ 1,961.00 $ 2,319.00 $ 4,909.00 EQ/Ariel Appreciation II N/A $ 2,053.00 $ 2,467.00 $ 5,178.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,737.00 $ 3,538.00 $ 6,971.00 EQ/BlackRock Basic Value Equity N/A $ 1,952.00 $ 2,304.00 $ 4,882.00 EQ/BlackRock International Value N/A $ 2,050.00 $ 2,462.00 $ 5,169.00 EQ/Boston Advisors Equity Income N/A $ 2,016.00 $ 2,408.00 $ 5,071.00 EQ/Calvert Socially Responsible N/A $ 2,013.00 $ 2,403.00 $ 5,062.00 EQ/Capital Guardian Growth N/A $ 1,989.00 $ 2,364.00 $ 4,991.00 EQ/Capital Guardian Research N/A $ 1,976.00 $ 2,344.00 $ 4,954.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,976.00 $ 2,344.00 $ 4,954.00 EQ/Davis New York Venture N/A $ 2,059.00 $ 2,477.00 $ 5,195.00 EQ/Equity 500 Index N/A $ 1,859.00 $ 2,154.00 $ 4,604.00 EQ/Evergreen International Bond N/A $ 2,010.00 $ 2,398.00 $ 5,053.00 EQ/Evergreen Omega N/A $ 2,019.00 $ 2,413.00 $ 5,080.00 EQ/FI Mid Cap N/A $ 1,992.00 $ 2,369.00 $ 5,000.00 - --------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------ If you do not surrender your contract at the end of the applicable time period -------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------------------ AXA PREMIER TRUST: - ------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation $ 494.00 $ 1,508.00 $ 2,555.00 $ 5,335.00 AXA Conservative Allocation $ 474.00 $ 1,450.00 $ 2,462.00 $ 5,169.00 AXA Conservative-Plus Allocation $ 480.00 $ 1,465.00 $ 2,487.00 $ 5,213.00 AXA Moderate Allocation $ 484.00 $ 1,477.00 $ 2,506.00 $ 5,248.00 AXA Moderate-Plus Allocation $ 488.00 $ 1,489.00 $ 2,526.00 $ 5,283.00 Multimanager Aggressive Equity $ 452.00 $ 1,386.00 $ 2,359.00 $ 4,982.00 Multimanager Core Bond $ 449.00 $ 1,376.00 $ 2,344.00 $ 4,954.00 Multimanager Health Care $ 520.00 $ 1,580.00 $ 2,671.00 $ 5,540.00 Multimanager High Yield $ 449.00 $ 1,376.00 $ 2,344.00 $ 4,954.00 Multimanager International Equity $ 499.00 $ 1,520.00 $ 2,574.00 $ 5,369.00 Multimanager Large Cap Core Equity $ 485.00 $ 1,480.00 $ 2,511.00 $ 5,257.00 Multimanager Large Cap Growth $ 487.00 $ 1,486.00 $ 2,521.00 $ 5,274.00 Multimanager Large Cap Value $ 482.00 $ 1,471.00 $ 2,497.00 $ 5,230.00 Multimanager Mid Cap Growth $ 506.00 $ 1,541.00 $ 2,608.00 $ 5,429.00 Multimanager Mid Cap Value $ 505.00 $ 1,538.00 $ 2,604.00 $ 5,421.00 Multimanager Small Cap Growth $ 508.00 $ 1,547.00 $ 2,618.00 $ 5,446.00 Multimanager Small Cap Value $ 496.00 $ 1,514.00 $ 2,565.00 $ 5,352.00 Multimanager Technology $ 520.00 $ 1,580.00 $ 2,671.00 $ 5,540.00 - ------------------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock $ 432.00 $ 1,327.00 $ 2,264.00 $ 4,808.00 EQ/AllianceBernstein Intermediate Government Securities $ 436.00 $ 1,337.00 $ 2,279.00 $ 4,836.00 EQ/AllianceBernstein International $ 463.00 $ 1,416.00 $ 2,408.00 $ 5,071.00 EQ/AllianceBernstein Large Cap Growth $ 478.00 $ 1,459.00 $ 2,477.00 $ 5,195.00 EQ/AllianceBernstein Quality Bond $ 437.00 $ 1,340.00 $ 2,284.00 $ 4,845.00 EQ/AllianceBernstein Small Cap Growth $ 461.00 $ 1,410.00 $ 2,398.00 $ 5,053.00 EQ/AllianceBernstein Value $ 444.00 $ 1,361.00 $ 2,319.00 $ 4,909.00 EQ/Ariel Appreciation II $ 475.00 $ 1,453.00 $ 2,467.00 $ 5,178.00 EQ/AXA Rosenberg Value Long/Short Equity $ 717.00 $ 2,137.00 $ 3,538.00 $ 6,971.00 EQ/BlackRock Basic Value Equity $ 441.00 $ 1,352.00 $ 2,304.00 $ 4,882.00 EQ/BlackRock International Value $ 474.00 $ 1,450.00 $ 2,462.00 $ 5,169.00 EQ/Boston Advisors Equity Income $ 463.00 $ 1,416.00 $ 2,408.00 $ 5,071.00 EQ/Calvert Socially Responsible $ 462.00 $ 1,413.00 $ 2,403.00 $ 5,062.00 EQ/Capital Guardian Growth $ 453.00 $ 1,389.00 $ 2,364.00 $ 4,991.00 EQ/Capital Guardian Research $ 449.00 $ 1,376.00 $ 2,344.00 $ 4,954.00 EQ/Caywood-Scholl High Yield Bond $ 449.00 $ 1,376.00 $ 2,344.00 $ 4,954.00 EQ/Davis New York Venture $ 478.00 $ 1,459.00 $ 2,477.00 $ 5,195.00 EQ/Equity 500 Index $ 409.00 $ 1,259.00 $ 2,154.00 $ 4,604.00 EQ/Evergreen International Bond $ 461.00 $ 1,410.00 $ 2,398.00 $ 5,053.00 EQ/Evergreen Omega $ 464.00 $ 1,419.00 $ 2,413.00 $ 5,080.00 EQ/FI Mid Cap $ 454.00 $ 1,392.00 $ 2,369.00 $ 5,000.00 - ------------------------------------------------------------------------------------------------------------------
18 Fee table
- --------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period Portfolio Name 1 year 3 years 5 years 10 years ---------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------------- EQ/Franklin Income $ 1,280.00 $ 2,065.00 $ 2,487.00 $ 5,213.00 EQ/Franklin Small Cap Value $ 1,283.00 $ 2,074.00 $ 2,501.00 $ 5,239.00 EQ/Franklin Templeton Founding Strategy $ 1,308.00 $ 2,147.00 $ 2,618.00 $ 5,446.00 EQ/GAMCO Mergers and Acquisitions $ 1,284.00 $ 2,077.00 $ 2,506.00 $ 5,248.00 EQ/GAMCO Small Company Value $ 1,262.00 $ 2,013.00 $ 2,403.00 $ 5,062.00 EQ/International Core PLUS $ 1,268.00 $ 2,031.00 $ 2,433.00 $ 5,116.00 EQ/International Growth $ 1,287.00 $ 2,086.00 $ 2,521.00 $ 5,274.00 EQ/JPMorgan Core Bond $ 1,228.00 $ 1,915.00 $ 2,244.00 $ 4,772.00 EQ/JPMorgan Value Opportunities $ 1,247.00 $ 1,970.00 $ 2,334.00 $ 4,936.00 EQ/Large Cap Core PLUS $ 1,250.00 $ 1,979.00 $ 2,349.00 $ 4,964.00 EQ/Large Cap Growth PLUS $ 1,249.00 $ 1,976.00 $ 2,344.00 $ 4,954.00 EQ/Legg Mason Value Equity $ 1,255.00 $ 1,995.00 $ 2,374.00 $ 5,009.00 EQ/Long Term Bond $ 1,225.00 $ 1,906.00 $ 2,229.00 $ 4,744.00 EQ/Lord Abbett Growth and Income $ 1,254.00 $ 1,992.00 $ 2,369.00 $ 5,000.00 EQ/Lord Abbett Large Cap Core $ 1,260.00 $ 2,007.00 $ 2,393.00 $ 5,044.00 EQ/Lord Abbett Mid Cap Value $ 1,259.00 $ 2,004.00 $ 2,389.00 $ 5,036.00 EQ/Marsico Focus $ 1,272.00 $ 2,044.00 $ 2,452.00 $ 5,151.00 EQ/Mid Cap Value PLUS $ 1,254.00 $ 1,992.00 $ 2,369.00 $ 5,000.00 EQ/Money Market $ 1,217.00 $ 1,881.00 $ 2,189.00 $ 4,669.00 EQ/Montag & Caldwell Growth $ 1,264.00 $ 2,019.00 $ 2,413.00 $ 5,080.00 EQ/Mutual Shares $ 1,286.00 $ 2,083.00 $ 2,516.00 $ 5,265.00 EQ/Oppenheimer Global $ 1,324.00 $ 2,192.00 $ 2,690.00 $ 5,573.00 EQ/Oppenheimer Main Street Opportunity $ 1,307.00 $ 2,144.00 $ 2,613.00 $ 5,438.00 EQ/Oppenheimer Main Street Small Cap $ 1,315.00 $ 2,168.00 $ 2,652.00 $ 5,506.00 EQ/PIMCO Real Return $ 1,242.00 $ 1,955.00 $ 2,309.00 $ 4,891.00 EQ/Short Duration Bond $ 1,230.00 $ 1,921.00 $ 2,254.00 $ 4,790.00 EQ/Small Company Index $ 1,210.00 $ 1,863.00 $ 2,159.00 $ 4,613.00 EQ/T. Rowe Price Growth Stock $ 1,267.00 $ 2,028.00 $ 2,428.00 $ 5,107.00 EQ/Templeton Growth $ 1,290.00 $ 2,095.00 $ 2,536.00 $ 5,300.00 EQ/UBS Growth and Income $ 1,265.00 $ 2,022.00 $ 2,418.00 $ 5,089.00 EQ/Van Kampen Comstock $ 1,253.00 $ 1,989.00 $ 2,364.00 $ 4,991.00 EQ/Van Kampen Emerging Markets Equity $ 1,315.00 $ 2,168.00 $ 2,652.00 $ 5,506.00 EQ/Van Kampen Mid Cap Growth $ 1,259.00 $ 2,004.00 $ 2,389.00 $ 5,036.00 EQ/Van Kampen Real Estate $ 1,286.00 $ 2,083.00 $ 2,516.00 $ 5,265.00 - --------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period, and select a non-life contingent period certain annuity option with less than five years ----------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------- EQ/Franklin Income N/A $ 2,065.00 $ 2,487.00 $ 5,213.00 EQ/Franklin Small Cap Value N/A $ 2,074.00 $ 2,501.00 $ 5,239.00 EQ/Franklin Templeton Founding Strategy N/A $ 2,147.00 $ 2,618.00 $ 5,446.00 EQ/GAMCO Mergers and Acquisitions N/A $ 2,077.00 $ 2,506.00 $ 5,248.00 EQ/GAMCO Small Company Value N/A $ 2,013.00 $ 2,403.00 $ 5,062.00 EQ/International Core PLUS N/A $ 2,031.00 $ 2,433.00 $ 5,116.00 EQ/International Growth N/A $ 2,086.00 $ 2,521.00 $ 5,274.00 EQ/JPMorgan Core Bond N/A $ 1,915.00 $ 2,244.00 $ 4,772.00 EQ/JPMorgan Value Opportunities N/A $ 1,970.00 $ 2,334.00 $ 4,936.00 EQ/Large Cap Core PLUS N/A $ 1,979.00 $ 2,349.00 $ 4,964.00 EQ/Large Cap Growth PLUS N/A $ 1,976.00 $ 2,344.00 $ 4,954.00 EQ/Legg Mason Value Equity N/A $ 1,995.00 $ 2,374.00 $ 5,009.00 EQ/Long Term Bond N/A $ 1,906.00 $ 2,229.00 $ 4,744.00 EQ/Lord Abbett Growth and Income N/A $ 1,992.00 $ 2,369.00 $ 5,000.00 EQ/Lord Abbett Large Cap Core N/A $ 2,007.00 $ 2,393.00 $ 5,044.00 EQ/Lord Abbett Mid Cap Value N/A $ 2,004.00 $ 2,389.00 $ 5,036.00 EQ/Marsico Focus N/A $ 2,044.00 $ 2,452.00 $ 5,151.00 EQ/Mid Cap Value PLUS N/A $ 1,992.00 $ 2,369.00 $ 5,000.00 EQ/Money Market N/A $ 1,881.00 $ 2,189.00 $ 4,669.00 EQ/Montag & Caldwell Growth N/A $ 2,019.00 $ 2,413.00 $ 5,080.00 EQ/Mutual Shares N/A $ 2,083.00 $ 2,516.00 $ 5,265.00 EQ/Oppenheimer Global N/A $ 2,192.00 $ 2,690.00 $ 5,573.00 EQ/Oppenheimer Main Street Opportunity N/A $ 2,144.00 $ 2,613.00 $ 5,438.00 EQ/Oppenheimer Main Street Small Cap N/A $ 2,168.00 $ 2,652.00 $ 5,506.00 EQ/PIMCO Real Return N/A $ 1,955.00 $ 2,309.00 $ 4,891.00 EQ/Short Duration Bond N/A $ 1,921.00 $ 2,254.00 $ 4,790.00 EQ/Small Company Index N/A $ 1,863.00 $ 2,159.00 $ 4,613.00 EQ/T. Rowe Price Growth Stock N/A $ 2,028.00 $ 2,428.00 $ 5,107.00 EQ/Templeton Growth N/A $ 2,095.00 $ 2,536.00 $ 5,300.00 EQ/UBS Growth and Income N/A $ 2,022.00 $ 2,418.00 $ 5,089.00 EQ/Van Kampen Comstock N/A $ 1,989.00 $ 2,364.00 $ 4,991.00 EQ/Van Kampen Emerging Markets Equity N/A $ 2,168.00 $ 2,652.00 $ 5,506.00 EQ/Van Kampen Mid Cap Growth N/A $ 2,004.00 $ 2,389.00 $ 5,036.00 EQ/Van Kampen Real Estate N/A $ 2,083.00 $ 2,516.00 $ 5,265.00 - ----------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period ------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - --------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------------- EQ/Franklin Income $ 480.00 $ 1,465.00 $ 2,487.00 $ 5,213.00 EQ/Franklin Small Cap Value $ 483.00 $ 1,474.00 $ 2,501.00 $ 5,239.00 EQ/Franklin Templeton Founding Strategy $ 508.00 $ 1,547.00 $ 2,618.00 $ 5,446.00 EQ/GAMCO Mergers and Acquisitions $ 484.00 $ 1,477.00 $ 2,506.00 $ 5,248.00 EQ/GAMCO Small Company Value $ 462.00 $ 1,413.00 $ 2,403.00 $ 5,062.00 EQ/International Core PLUS $ 468.00 $ 1,431.00 $ 2,433.00 $ 5,116.00 EQ/International Growth $ 487.00 $ 1,486.00 $ 2,521.00 $ 5,274.00 EQ/JPMorgan Core Bond $ 428.00 $ 1,315.00 $ 2,244.00 $ 4,772.00 EQ/JPMorgan Value Opportunities $ 447.00 $ 1,370.00 $ 2,334.00 $ 4,936.00 EQ/Large Cap Core PLUS $ 450.00 $ 1,379.00 $ 2,349.00 $ 4,964.00 EQ/Large Cap Growth PLUS $ 449.00 $ 1,376.00 $ 2,344.00 $ 4,954.00 EQ/Legg Mason Value Equity $ 455.00 $ 1,395.00 $ 2,374.00 $ 5,009.00 EQ/Long Term Bond $ 425.00 $ 1,306.00 $ 2,229.00 $ 4,744.00 EQ/Lord Abbett Growth and Income $ 454.00 $ 1,392.00 $ 2,369.00 $ 5,000.00 EQ/Lord Abbett Large Cap Core $ 460.00 $ 1,407.00 $ 2,393.00 $ 5,044.00 EQ/Lord Abbett Mid Cap Value $ 459.00 $ 1,404.00 $ 2,389.00 $ 5,036.00 EQ/Marsico Focus $ 472.00 $ 1,444.00 $ 2,452.00 $ 5,151.00 EQ/Mid Cap Value PLUS $ 454.00 $ 1,392.00 $ 2,369.00 $ 5,000.00 EQ/Money Market $ 417.00 $ 1,281.00 $ 2,189.00 $ 4,669.00 EQ/Montag & Caldwell Growth $ 464.00 $ 1,419.00 $ 2,413.00 $ 5,080.00 EQ/Mutual Shares $ 486.00 $ 1,483.00 $ 2,516.00 $ 5,265.00 EQ/Oppenheimer Global $ 524.00 $ 1,592.00 $ 2,690.00 $ 5,573.00 EQ/Oppenheimer Main Street Opportunity $ 507.00 $ 1,544.00 $ 2,613.00 $ 5,438.00 EQ/Oppenheimer Main Street Small Cap $ 515.00 $ 1,568.00 $ 2,652.00 $ 5,506.00 EQ/PIMCO Real Return $ 442.00 $ 1,355.00 $ 2,309.00 $ 4,891.00 EQ/Short Duration Bond $ 430.00 $ 1,321.00 $ 2,254.00 $ 4,790.00 EQ/Small Company Index $ 410.00 $ 1,263.00 $ 2,159.00 $ 4,613.00 EQ/T. Rowe Price Growth Stock $ 467.00 $ 1,428.00 $ 2,428.00 $ 5,107.00 EQ/Templeton Growth $ 490.00 $ 1,495.00 $ 2,536.00 $ 5,300.00 EQ/UBS Growth and Income $ 465.00 $ 1,422.00 $ 2,418.00 $ 5,089.00 EQ/Van Kampen Comstock $ 453.00 $ 1,389.00 $ 2,364.00 $ 4,991.00 EQ/Van Kampen Emerging Markets Equity $ 515.00 $ 1,568.00 $ 2,652.00 $ 5,506.00 EQ/Van Kampen Mid Cap Growth $ 459.00 $ 1,404.00 $ 2,389.00 $ 5,036.00 EQ/Van Kampen Real Estate $ 486.00 $ 1,483.00 $ 2,516.00 $ 5,265.00 - ---------------------------------------------------------------------------------------------------
Fee table 19 CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. 20 Fee table 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT You may make additional contributions of: (i) at least $500 each for NQ, QP and Rollover TSA contracts; (ii) $50 each for Rollover IRA and Roth conversion IRA contracts; and (iii) $1,000 for Inherited IRA contracts, subject to limitations noted below. The following table summarizes our rules regarding contributions to your contract. In some states, our rules may vary. All ages in the table refer to the age of the annuitant named in the contract. Initial contribution amounts are provided for informational purposes only. This contract is no longer available to new purchasers. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000 ($500,000 for owners or annuitants who are ages 81 and older at contract issue)--depending on your contract, this restriction may not apply to you. See Appendix IX later in this Prospectus for more information. We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. - -------------------------------------------------------------------------------- The "annuitant" is the person who is the measuring life for determining contract benefits. The annuitant is not necessarily the contract owner. - --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------- Available for annuitant Minimum Contract type issue ages* contributions Source of contributions Limitations on contributions+ - ----------------------------------------------------------------------------------------------------------------------------------- NQ 0 through 85 o $10,000 (initial). o After-tax money. o No additional contributions after attainment of age 87.* o $500 (additional) o Paid to us by check or transfer of contract value in o $100 monthly and a tax-deferred exchange $300 quarterly under our under Section 1035 of the automatic investment pro- Internal Revenue Code. gram (additional) - ----------------------------------------------------------------------------------------------------------------------------------- Rollover IRA 20 through 85 o $10,000 (initial) o Eligible rollover distribu- o No rollover or direct transfer tions from 403(b) plans, contributions after attain- o $50 (additional) qualified plans, and govern- ment of age 87.* mental employer 457(b) plans. o Contributions after age 70-1/2 must be net of required o Rollovers from another minimum distributions. traditional individual retirement arrangement. o Although we accept regular IRA contributions (limited to o Direct custodian-to- $5,000), under the Rollover custodian transfers from IRA contracts, we intend another traditional indi- that this contract be used vidual retirement primarily for rollover and arrangement. direct transfer contributions. o Regular IRA contributions. o Additional catch-up contri- butions of up to $1,000 per o Additional catch-up calendar year where the contributions. owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
- ----------------------------------------------------------------------------------------------------------------------------------- Available for annuitant Minimum Contract type issue ages* contributions Source of contributions Limitations on contributions+ - ----------------------------------------------------------------------------------------------------------------------------------- Roth Conversion 20 through 85 o $10,000 (initial) o Rollovers from another o No additional rollover or IRA Roth IRA. direct transfer contributions o $50 (additional) after attainment of age 87.* o Rollovers from a "desig- nated Roth contribution o Conversion rollovers after account" under a 401(k) age 70-1/2 must be net of plan or 403(b) plan. required minimum distribu- tions for the traditional IRA o Conversion rollovers from a or other eligible retirement traditional IRA or other plan which is the source of eligible retirement plan. the conversion rollover. o Direct transfers from o You cannot roll over funds another Roth IRA. from a traditional IRA or other eligible retirement o Regular Roth IRA plan if your adjusted gross contributions. income is $100,000 or more. o Additional catch-up contri- butions. o Although we accept regular Roth IRA contributions (lim- ited to $5,000) under the Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contri- butions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribu- tion is made. - ----------------------------------------------------------------------------------------------------------------------------------- Rollover TSA 20 through 85 o $10,000 (initial) o With documentation of o No additional rollover or employer or plan approval, direct transfer contributions o $500 (additional) and limited to pre-tax after attainment of age 87.* funds, direct plan-to-plan transfers from another o Contributions after age 70-1/2 403(b) plan or contract must be net of any required exchanges from another minimum distributions. 403(b) contract under the same plan. o We do not accept employer- remitted contributions. o With documentation of o We do not accept after tax employer or plan approval, contributions, including des- and limited to pre-tax ignated Roth contributions. funds, eligible rollover dis- tributions from other 403(b) plans, qualified plans, gov- ernmental employer 457(b) plans or traditional IRAs. - -----------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
- ----------------------------------------------------------------------------------------------------------------------------------- Available for annuitant Minimum Contract type issue ages* contributions Source of contributions Limitations on contributions+ - ----------------------------------------------------------------------------------------------------------------------------------- QP 20 through 75 o $10,000 (initial) o Only transfer contributions o A separate QP contract must from other investments be established for each plan o $500 (additional) within an existing defined participant. contribution qualified plan trust. o We do not accept regular ongoing payroll o The plan must be qualified contributions or contribu- under Section 401(a) of the tions directly from the Internal Revenue Code. employer. o For 401(k) plans, trans- o Only one additional transfer ferred contributions may contribution may be made not include any after-tax during a contract year. contributions, including designated Roth contribu- o No additional transfer con- tions. tributions after participant's attainment of age 76 or, if later, the first contract date anniversary. o Contributions after age 70-1/2 must be net of any required minimum distributions. o We do not accept contribu- tions from defined benefit plans. Please refer to Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. - ----------------------------------------------------------------------------------------------------------------------------------- Inherited IRA 0 through 70 o $10,000 (initial) o Direct custodian-to- o Any additional contributions Beneficiary Con- o $1,000 (additional) custodian transfers of your must be from the same type tinuation interest as a death benefi- of IRA of the same deceased Contract (tradi- ciary of the deceased owner. tional IRA or owner's traditional indi- o Non-spousal beneficiary Roth IRA) vidual retirement direct rollover contributions arrangement or Roth IRA to from qualified plans, 403(b) an IRA of the same type. plans and governmental employer 457(b) plans may - -----------------------------------------------------------------------------------------------------------------------------------
+ Additional contributions may not be permitted under certain conditions in your state. If you purchase Guaranteed principal benefit option 2, no contributions are permitted after the six month period beginning on the contract date. Please see Appendix VIII later in the Prospectus to see if additional contributions are permitted in your state. * Please see Appendix IX for variations that may apply to your contract. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. Contract features and benefits 23 OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. If the Spousal protection feature is available under your contract and elected, the spouses must be joint owners, one of the spouses must be the annuitant and both must be named as the only primary beneficiaries. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. In general, we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your state. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. See "Inherited IRA beneficiary continuation contract" later in this section for Inherited IRA owner and annuitant requirements. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II later in this Prospectus for more information on QP contracts. PURCHASE CONSIDERATIONS FOR A CHARITABLE REMAINDER TRUST. If you purchased this contract to fund a charitable remainder trust and elected either the Guaranteed minimum income benefit ("GMIB") or an enhanced death benefit, you should strongly consider "split-funding": that is, the trust holds investments in addition to this Accumulator(R) Elite(SM) contract. Charitable remainder trusts are required to take specific distributions. The charitable remainder trust annual withdrawal requirement may be equal to a percentage of the donated amount or a percentage of the current value of the donated amount. If your Accumulator(R) contract is the only source for such distributions, the payments you need to take may significantly reduce the value of those guaranteed benefits. Such amount may be greater than the annual increase in the GMIB and/or the enhanced death benefit base. See the discussion of these benefits later in this section. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealer. Additional contributions may also be made under our automatic investment program. These methods of payment, are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option, the fixed maturity options and the account for special dollar cost averaging. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. 24 Contract features and benefits PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives. - -------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - -------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. - -------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. - -------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a ALLOCATION greater emphasis on current income. - -------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. - -------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current ALLOCATION income, with a greater emphasis on capital appreciation. - -------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. EQUITY - -------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital appreciation, consistent with a prudent level of risk. - -------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. - -------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current income and capital appreciation. - -------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. EQUITY - -------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. CORE EQUITY - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS o AXA Equitable ALLOCATION - -------------------------------------------------------------------------------- AXA MODERATE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------- AXA MODERATE-PLUS o AXA Equitable ALLOCATION - -------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - -------------------------------------------------------------------------------- MULTIMANAGER CORE BOND o BlackRock Financial Management, Inc. o Pacific Investment Management Company LLC - -------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - -------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD o Pacific Investment Management Company LLC o Post Advisory Group, LLC - -------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - -------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - -------------------------------------------------------------------------------- Contract features and benefits 25 - -------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - -------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. GROWTH - -------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. VALUE - -------------------------------------------------------------------------------- MULTIMANAGER MID CAP Long-term growth of capital. GROWTH - -------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE Long-term growth of capital. - -------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. GROWTH - -------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. VALUE - -------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY Long-term growth of capital. EQ Advisors Trust - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - -------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - -------------------------------------------------------------------------------- MULTIMANAGER MID CAP o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - -------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - -------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - -------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - -------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. MON STOCK - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent MEDIATE GOVERNMENT with relative stability of principal. SECURITIES - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. NATIONAL - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. CAP GROWTH - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent BOND with moderate risk to capital. - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. CAP GROWTH - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. - -------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. - -------------------------------------------------------------------------------- EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and LONG/SHORT EQUITY bear markets using strategies that are designed to limit exposure to general equity market risk. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- o AllianceBernstein L.P. MON STOCK - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- o AllianceBernstein L.P. MEDIATE GOVERNMENT SECURITIES - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- o AllianceBernstein L.P. NATIONAL - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE o AllianceBernstein L.P. CAP GROWTH - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY o AllianceBernstein L.P. BOND - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL o AllianceBernstein L.P. CAP GROWTH - -------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE o AllianceBernstein L.P. - -------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II o Ariel Capital Management, LLC - -------------------------------------------------------------------------------- EQ/AXA ROSENBERG VALUE o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY - -------------------------------------------------------------------------------- 26 Contract features and benefits
- ------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - ------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondar- EQUITY ily income. - ------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth VALUE of income, accompanied by growth of capital. - ------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to INCOME achieve an above-average and consistent total return. - ------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. RESPONSIBLE - ------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. RESEARCH - ------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. YIELD BOND - ------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. BOND - ------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. - ------------------------------------------------------------------------------------- EQ/FI MID CAP Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects for capital appreciation. - ------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. - ------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily FOUNDING STRATEGY seeks income. - ------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. ACQUISITIONS - ------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. VALUE - ------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with moderate risk to capital and maintenance of liquidity. - ------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. OPPORTUNITIES - ------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE o BlackRock Investment Management, LLC EQUITY - ------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL o BlackRock Investment Management VALUE International Limited - ------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY o Boston Advisors, LLC INCOME - ------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH o Capital Guardian Trust Company - ------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company RESEARCH - ------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH o Caywood-Scholl Capital Management YIELD BOND - ------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE o Davis Selected Advisers, L.P. - ------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX o AllianceBernstein L.P. - ------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA o Evergreen Investment Management Company, LLC - ------------------------------------------------------------------------------------- EQ/FI MID CAP o Fidelity Management & Research Company - ------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME o Franklin Advisers, Inc. - ------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE o Franklin Advisory Services, LLC - ------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON o AXA Equitable FOUNDING STRATEGY - ------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND o GAMCO Asset Management Inc. ACQUISITIONS - ------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY o GAMCO Asset Management Inc. VALUE - ------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH o MFS Investment Management - ------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND o JPMorgan Investment Management Inc. - ------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE o JPMorgan Investment Management Inc. OPPORTUNITIES - -------------------------------------------------------------------------------------
Contract features and benefits 27
- ------------------------------------------------------------------------------------------ EQ Advisors Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- ondary objective to seek reasonable current income. For purposes of this Portfolio, the words "reasonable current income" mean moderate income. - ------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. - ------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------ EQ/LONG TERM BOND Seeks to maximize income and capital appreciation through investment in long-maturity debt obligations. - ------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of INCOME income without excessive fluctuation in market value. - ------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of CORE income with reasonable risk. - ------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. - ------------------------------------------------------------------------------------------ EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve its assets and maintain liquidity. - ------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. GROWTH - ------------------------------------------------------------------------------------------ EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- sionally be short-term, and secondarily, income. - ------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. OPPORTUNITY - ------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. SMALL CAP - ------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with preservation of real capital and prudent investment man- agement. - ------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility of principal. - ------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and STOCK secondarily, income. - ------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS o AXA Equitable o Institutional Capital LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY o Legg Mason Capital Management, Inc. - ------------------------------------------------------------------------------------------ EQ/LONG TERM BOND o BlackRock Financial Management, Inc. - ------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND o Lord, Abbett & Co. LLC INCOME - ------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP o Lord, Abbett & Co. LLC CORE - ------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE o Lord, Abbett & Co. LLC - ------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ------------------------------------------------------------------------------------------ EQ/MONEY MARKET o The Dreyfus Corporation - ------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL o Montag & Caldwell, Inc. GROWTH EQ/MUTUAL SHARES o Franklin Mutual Advisers, LLC - ------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL o OppenheimerFunds, Inc. - ------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. OPPORTUNITY - ------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. SMALL CAP - ------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN o Pacific Investment Management Company, LLC - ------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND o BlackRock Financial Management, Inc. - ------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH o T. Rowe Price Associates, Inc. STOCK - ------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH o Templeton Global Advisors Limited - ------------------------------------------------------------------------------------------
28 Contract features and benefits - -------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation with income as a secondary consideration. - -------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. - -------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. MARKETS EQUITY - -------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. GROWTH - -------------------------------------------------------------------------------- EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long-term capital appreciation. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME o UBS Global Asset Management (Americas) Inc. - -------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK o Morgan Stanley Investment Management Inc. - -------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING o Morgan Stanley Investment Management Inc. MARKETS EQUITY - -------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP o Morgan Stanley Investment Management Inc. GROWTH - -------------------------------------------------------------------------------- EQ/VAN KAMPEN REAL ESTATE o Morgan Stanley Investment Management Inc. - -------------------------------------------------------------------------------- YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS AND CHARGES AND EXPENSES OF THE PORTFOLIOS CAREFULLY BEFORE INVESTING. THE PROSPECTUSES FOR THE TRUSTS CONTAIN THIS AND OTHER IMPORTANT INFORMATION ABOUT THE PORTFOLIOS. THE PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE INVESTING. Contract features and benefits 29 GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges, any withdrawal charges, and any optional benefit charges. See Appendix VIII later in this Prospectus for state variations. Depending on the state where your contract was issued, your lifetime minimum rate ranges from 1.50% to 3.00%. The data page for your contract shows the lifetime minimum rate. Check with your financial professional as to which rate applies in your state. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75% or 3.00%, depending on your lifetime minimum rate. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfer from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if, on the date the contribution or transfer is to be applied, the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional or see Appendix VIII later in this Prospectus to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options range from one to ten years to maturity. - -------------------------------------------------------------------------------- Under the Special 10 year fixed maturity option (which is available only under contracts that offer GPB Option 2), additional contributions will have the same maturity date as your initial contribution (see "The Guaranteed Principal Benefits," below). The rate to maturity you will receive for each additional contribution is the rate to maturity in effect for new contributions allocated to that fixed maturity option on the date we apply your contribution. On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you applied for an Accumulator(R) Elite(SM) contract, a 60-day rate lock-in was applied from the date the application was signed. Any contributions received and designated for a fixed maturity option during that period received the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever had been greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from any of the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed below in "Allocating your contributions," would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value (there may be a withdrawal charge). If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that 30 Contract features and benefits date. As of February 15, 2008 the next available maturity date was February 15, 2015. If no fixed maturity options are available we will transfer your maturity value to the EQ/Money Market Option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for withdrawal charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options (adjusted to reflect a similar maturity date), and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amounts of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING The account for special dollar cost averaging is part of our general account. We pay interest at guaranteed rates in this account. We will credit interest to the amounts that you have in the account for special dollar cost averaging every day. We set the interest rates periodically, according to procedures that we have. We reserve the right to change these procedures. We guarantee to pay our current interest rate that is in effect on the date that your contribution is allocated to this account. Your guaranteed interest rate for the time period you selected was shown in your contract for an initial contribution. The rate will never be less than the lifetime minimum rate for the guaranteed interest option. See "Allocating your contributions" below for rules and restrictions that apply to the special dollar cost averaging program. ALLOCATING YOUR CONTRIBUTIONS You may choose from among three ways to allocate your contributions under your contract: self-directed, the guaranteed principal benefits (at contract issue only) or dollar cost averaging. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, the guaranteed interest option (subject to restrictions in certain states -- See Appendix VIII later in this Prospectus for state variations) and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. No more than 25% of any contribution may be allocated to the guaranteed interest option. The total of your allocations into all available investment options must equal 100%. If the annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. THE GUARANTEED PRINCIPAL BENEFITS (INCLUDING PRINCIPAL ASSURANCE) We offered a guaranteed principal benefit ("GPB") with two options. See Appendix VIII later in this Prospectus for more information on state availability and Appendix IX for contract variation and/or availability of these benefits. You could only elect one of the GPBs. Neither GPB was available under Inherited IRA contracts. We did not offer either GPB when the rate to maturity for the applicable fixed maturity option was 3%. Both GPB options allow you to allocate a portion of your total contributions to the variable investment options, while ensuring that your account value will at least equal your contributions adjusted for withdrawals and transfers on a specified date. GPB Option Contract features and benefits 31 2 generally provides you with the ability to allocate more of your contributions to the variable investment options than could be allocated using GPB Option 1 (also known as Principal assurance). If you elected either GPB you could not elect the Guaranteed minimum income benefit, Principal Protector(SM), the systematic withdrawals option or the substantially equal withdrawals option. However, certain contract owners who elected GPB are not subject to these restrictions. See Appendix IX for information on what applies under your contract. You could elect GPB Option 1 only if the annuitant was age 80 or younger when the contract was issued (after age 75, only the 7-year fixed maturity option was available). You could elect GPB Option 2 only if the annuitant was age 75 or younger when the contract was issued. If you purchased an IRA, QP or Rollover TSA contract, before you either purchased GPB Option 2 or elected GPB Option 1 with a maturity year that would extend beyond the year in which you will reach age 70-1/2, you should have considered whether your value in the variable investment options, guaranteed interest option and permissible funds outside this contract were sufficient to meet your required minimum distributions. See "Tax information" later in this Prospectus. If you elected GPB Option 2 and change ownership of the contract, GPB Option 2 will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. GUARANTEED PRINCIPAL BENEFIT OPTION 1 (UNDER CERTAIN CONTRACTS, THIS FEATURE IS CALLED "PRINCIPAL ASSURANCE"). GPB Option 1 was only available at contract issue. Under GPB Option 1, you selected a fixed maturity option at the time you signed your application. We specified a portion of your initial contribution and allocated it to that fixed maturity option in an amount that will cause the maturity value to equal the amount of your entire initial contribution on the fixed maturity option's maturity date. The amount of your contribution allocated to the fixed maturity option was calculated based upon the rate to maturity then in effect for the fixed maturity option you chose. Your contract contains information on the percentage of your contribution allocated to the fixed maturity option. The maturity date you selected generally could not be later than 10 years, or earlier than 7 years from your contract date. If you were to make any withdrawals or transfers from the fixed maturity option before the option's maturity date, the amount in the fixed maturity option will be adjusted and may no longer grow to equal your initial contribution under GPB Option 1. You allocated the remainder of your initial contribution to the investment options however you chose (unless you elected a dollar cost averaging program, in which case the remainder of your initial contribution was allocated to the dollar cost averaging program). Upon the maturity date of the fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." There is no charge for GPB Option 1. GUARANTEED PRINCIPAL BENEFIT OPTION 2. GPB Option 2 was only available at contract issue. IF YOU PURCHASED GPB OPTION 2, YOU MAY NOT MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE RATE TO MATURITY ON THE SPECIAL 10-YEAR FIXED MATURITY OPTION IS 3%. Therefore, any discussion in this Prospectus that involves any additional contributions after the first six months will be inapplicable. This feature was not available under all contracts. We have specified the portion of your initial contribution, and any additional permitted contributions, to be allocated to a Special 10 year fixed maturity option. Your contract contains information on the percentage of applicable contributions allocated to the Special 10 year fixed maturity option. You may allocate the rest of your contributions among the investment options (other than the Special 10 year fixed maturity option) however you choose, as permitted under your contract and other than the Investment simplifier (unless you elect a dollar cost averaging program, in which case all contributions, other than amounts allocated to the Special 10 year fixed maturity option, must be allocated to the dollar cost averaging program). The Special 10 year fixed maturity option will earn interest at the specified rate to maturity then in effect. If on the 10th contract date anniversary, your annuity account value is less than the amount that is guaranteed under GPB Option 2, we will increase your annuity account value to be equal to the guaranteed amount under GPB Option 2. Any such additional amounts added to your annuity account value will be allocated to the EQ/Money Market investment option. After the maturity date of the Special 10 year fixed maturity option, the guarantee under GPB Option 2 will terminate. Upon the maturity date of the Special 10 year fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." The guaranteed amount under GPB Option 2 is equal to your initial contribution adjusted for any additional permitted contributions, transfers out of the Special 10 year fixed maturity option and withdrawals from the contract (see "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus). Any transfers or withdrawals from the Special 10 year fixed maturity option will also be subject to a market value adjustment (see "Market value adjustment" under "Fixed maturity options" above in this section). If you purchased the Guaranteed principal benefit option 2, you cannot voluntarily terminate this benefit. GPB Option 2 will terminate if the contract terminates before the maturity date of the Special 10 year fixed maturity option. If the owner and the annuitant are different people and the owner dies before the maturity date of the Special 10 year fixed maturity option, we will continue GPB Option 2 only if the contract can continue through the maturity date of the Special 10 year fixed maturity option. If the contract cannot so continue, we will terminate GPB Option 2. GPB Option 2 will continue where there is a successor owner/annuitant. GPB Option 2 will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a fee associated with GPB Option 2 (see "Charges and expenses" later in this Prospectus). You should note that the purchase 32 Contract features and benefits of GPB Option 2 would not have been appropriate if you wanted to make additional contributions to your contract beyond the first six months after your contract was issued. If you later decide that you would like to make additional contributions to the Accumulator(R) Elite(SM) contract, we may permit you to purchase another contract. If we do, however, you should note that we do not reduce or waive any of the charges on the new contract, nor do we guarantee that the features available under this contract will be available under the new contract. This means that you might end up paying more with respect to certain charges than if you had simply purchased a single contract (for example, the administrative charge). The purchase of GPB Option 2 also would not have been appropriate if you planned on terminating your contract before the maturity date of the Special 10 year fixed maturity option. In addition, because we prohibit contributions to your contract after the first six months, certain contract benefits that are dependent upon contributions or account value will be limited (for example, the Guaranteed death benefits and Protection Plus(SM)). You should also note that if you intended to allocate a large percentage of your contributions to the guaranteed interest option or other fixed maturity options, the purchase of GPB Option 2 would not have been appropriate because of the guarantees already provided by these options. An example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract is included in Appendix VI later in this Prospectus. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- SPECIAL DOLLAR COST AVERAGING PROGRAM. Under the special dollar cost averaging program, you may choose to allocate all or a portion of any eligible contribution to the account for special dollar cost averaging. Contributions into the account for special dollar cost averaging may not be transfers from other investment options. Your initial allocation to any special dollar cost averaging program time period must be at least $2,000 and any subsequent contribution to that same time period must be at least $250. You may only have one time period in effect at any time and once you select a time period, you may not change it. In Pennsylvania, we refer to this program as "enhanced rate dollar cost averaging." If you elect Principal Protector(SM), you may not participate in the special dollar cost averaging program. You may have your account value transferred to any of the variable investment options. We will transfer amounts from the account for special dollar cost averaging into the variable investment options over an available time period that you select. We offer time periods of 3, 6 or 12 months during which you will receive an enhanced interest rate. We may also offer other time periods. Your financial professional can provide information on the time periods and interest rates currently available in your state, or you may contact our processing office. If the special dollar cost averaging program was selected at the time you applied to purchase the Accumulator(R) Elite(SM) contract, a 60 day rate lock was applied from the date of application. Any contribution(s) received during this 60 day period were credited with the interest rate offered on the date of application for the remainder of the time period selected at application. Any contribution(s) received after the 60 day rate lock period ended will be credited with the then current interest rate for the remainder of the time period selected at application. Contribution(s) made to a special dollar cost averaging program selected after the Accumulator(R) Elite(SM) contract has been issued will be credited with the then current interest rate on the date the contribution is received by AXA Equitable for the time period initially selected by you. Once the time period you selected has run, you may then select another time period for future contributions. At that time, you may also select a different allocation for transfers to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, your account value will be transferred from the account for special dollar cost averaging into the variable investment options on a monthly basis. We may offer this program in the future with transfers on a different basis. We will transfer all amounts out of the account for special dollar cost averaging by the end of the chosen time period. The transfer date will be the same day of the month as the contract date, but not later than the 28th day of the month. For a special dollar cost averaging program selected after application, the first transfer date and each subsequent transfer date for the time period selected will be one month from the date the first contribution is made into the special dollar cost averaging program, but not later than the 28th day of the month. If you choose to allocate only a portion of an eligible contribution to the account for special dollar cost averaging, the remaining balance of that contribution will be allocated to the variable investment options, guaranteed interest option or fixed maturity options according to your instructions. The only transfers that will be made from the account for special dollar cost averaging are your regularly scheduled transfers to the variable investment options. No amounts may be transferred from the account for special dollar cost averaging to the guaranteed interest option or the fixed maturity options. If you request to transfer or withdraw any other amounts from the account for special dollar averaging, we will transfer all of the value that you have remaining in the account for special dollar cost averaging to the investment options according to the allocation percentages for special dollar cost averaging we have on file for you. You may ask us to cancel your participation at any time. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the Contract features and benefits 33 month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. INVESTMENT SIMPLIFIER FIXED-DOLLAR OPTION. Under this option, you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. Unlike the account for special dollar cost averaging, this option does not offer enhanced rates. Also, this option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date, your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. INTEREST SWEEP OPTION. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. On the last day of each month, we check to see whether you have at least $7,500 in the guaranteed interest option. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not currently participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Under the Option 1 rebalancing program you may participate in any of the dollar cost averaging programs except general dollar cost averaging. If you elect a GPB, you may also elect the General dollar cost averaging program. If you elect either of these programs, everything other than amounts allocated to the fixed maturity option under the GPB must be allocated to that dollar cost averaging program. You may still elect the Investment simplifier for amounts transferred from investment options (other than the fixed maturity option under the GPB you have elected), and, for GPB Option 1, you may also elect Investment simplifier for subsequent contributions. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits. See "Guaranteed minimum death benefit and Guaranteed minimum income benefit (or the "Living Benefit") base" immediately below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. Not all dollar cost averaging programs are available in all states (see Appendix VIII later in this Prospectus for more information on state availability). GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit (known as the "Living Benefit" under certain existing contracts) and the death benefits, as described in this section. The benefit base for the Guaranteed minimum income benefit and an enhanced death benefit will be calculated as described below in this section whether these options are elected individually or in combination. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 6% (OR 5%) ROLL-UP TO AGE 85 (USED FOR THE 6% ROLL-UP TO AGE 85 ENHANCED DEATH BENEFIT AND THE GREATER OF THE 6% (OR 5%) ROLL-UP TO AGE 85 ENHANCED DEATH BENEFIT OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED 34 Contract features and benefits MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to this benefit base is: o 6% (or 5%) with respect to the variable investment options (other than EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond) and the account for special dollar cost averaging; the effective annual rate is 4% in Washington. Please see Appendix VIII later in this Prospectus to see what roll-up rate applies in your state or Appendix IX for what applies to your contract; and o 3% with respect to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond, the fixed maturity options, the Special 10 year fixed maturity option, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up after the contract date anniversary following the annuitant's 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND THE GREATER OF THE 6% (OR 5%) ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: o your initial contribution to the contract (plus any additional contributions), or o your highest account value of any contract date anniversary up to the contract date anniversary following the annuitant's 85th birthday plus any contributions made since the most recent Annual Ratchet, less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of the deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. GREATER OF THE 6% (OR 5%) ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6% (or 5%) Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. For the Guaranteed minimum income benefit, the benefit base is reduced by any applicable withdrawal charge remaining when the option is exercised. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. GUARANTEED MINIMUM DEATH BENEFIT/GUARANTEED MINIMUM INCOME BENEFIT ROLL-UP BENEFIT BASE RESET. If both the Guaranteed minimum income benefit AND the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit (the "Greater of enhanced death benefit") are elected, you may reset the roll-up benefit base for these guaranteed benefits to equal the account value as of the 5th or later contract date anniversary. The reset amount would equal the account value as of the contract date anniversary on which you reset your Roll-Up benefit base. The 6% Roll-Up continues to age 85 on any reset benefit base. We will send you a notice in each year that the Roll-Up benefit base is eligible to be reset, and you will have 30 days from your contract date anniversary to reset your Roll-Up benefit base. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset for five years. If after your death your spouse continues this contract as Successor owner/annuitant, the benefit base will be eligible to be reset either five years from the contract date or from the last reset date, if applicable. The last age at which the benefit base is eligible to be reset is annuitant age 75. It is important to note that once you have reset your Roll-Up benefit base, a new waiting period to exercise the Guaranteed minimum income benefit will apply from the date of reset; you may not exercise until the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. See "Exercise rules" under "Guaranteed minimum income benefit option" below for more information. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the exercise waiting period. Also, even when there is no additional charge when you reset your Roll-Up benefit base, the total dollar amount charged on future contract date anniversaries may increase as a result of the reset since the charges may be applied to a higher benefit base than would have been otherwise applied. See "Charges and expenses" in the Prospectus. The Roll-Up benefit base for both the Greater of enhanced death benefit and the Guaranteed minimum income benefit are reset simultaneously when you request a Roll-Up benefit base reset. You cannot elect a Roll-Up benefit base reset for one benefit and not the other. For information about whether the Guaranteed death benefit/ Guaranteed minimum income benefit roll-up benefit base reset is available under your contract, please see Appendix IX later in this Prospectus. The availability of the Guaranteed minimum death benefit/ guaranteed minimum income benefit roll-up benefit base reset is also Contract features and benefits 35 subject to state approval. Please contact your financial professional for more information about availability in your state. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed in "Guaranteed minimum income benefit option" below and annuity payout options are discussed in "Accessing your money" later in this Prospectus. Your contract specifies different guaranteed annuity purchase factors for the Guaranteed minimum income benefit and the annuity payout options. We may provide more favorable current annuity purchase factors for the annuity payout options. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in certain instances. GUARANTEED MINIMUM INCOME BENEFIT OPTION (DEPENDING ON WHEN YOU PURCHASED YOUR CONTRACT, THIS BENEFIT MAY BE CALLED THE "LIVING BENEFIT." SEE APPENDIX IX LATER IN THIS PROSPECTUS FOR MORE INFORMATION.) The Guaranteed minimum income benefit was available if the annuitant was age 20 through 75 at the time the contract was issued. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. If you purchased this contract as an Inherited IRA, or if you elected a GPB option or Principal Protector(SM), the Guaranteed minimum income benefit is not available. Depending on when you purchased your contract, the Guaranteed minimum income benefit rider may have been available with Principal assurance. See Appendix IX later in this Prospectus for more information. If you purchased this contract to fund a charitable remainder trust, you must take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your guaranteed minimum income benefit. See "Owner and annuitant requirements" earlier in this section. If the annuitant was older than age 60 at the time an IRA, QP or Rollover TSA contract was issued, the Guaranteed minimum income benefit may not be an appropriate feature because the minimum distributions required by tax law generally must begin before the Guaranteed minimum income benefit can be exercised. If the owner and annuitant are different in an NQ contract, there may be circumstances where the benefit may not be exercisable after an owner's death. Depending on when you purchased your contract, if you elected the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Also, for more information about when the Guaranteed minimum income benefit will terminate under your contract, please see Appendix IX later in this Prospectus. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option. Depending on when you purchased your contract, your options may be different. See Appendix IX later in this Prospectus for more information. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the annuitant's age as follows: - ------------------------------------------- Level payments Period certain years ---------------------- Annuitant's age at exercise IRAs NQ - ------------------------------------------- 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - ------------------------------------------- We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit should be regarded as a safety net only. It provides income protection if you elect an income payout while the annuitant is alive. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base, less any applicable withdrawal charge remaining, to guaranteed annuity purchase factors, or (ii) the income provided by applying your account value to our then current annuity purchase factors. For Rollover TSA only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. 36 Contract features and benefits The Guaranteed minimum income benefit provides a form of insurance and is based on conservative actuarial factors. The guaranteed annuity purchase factors we use to determine your payout annuity benefit under the Guaranteed minimum income benefit are more conservative than the guaranteed annuity purchase factors we use for our standard payout annuity options. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the Guaranteed minimum income benefit payout annuity will be smaller than each periodic payment under our standard payout annuity options. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. GUARANTEED MINIMUM INCOME BENEFIT "NO LAPSE GUARANTEE". Subject to state availability, in general, if your account value falls to zero (except, as discussed below, if your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base as of the beginning of the contract year), the Guaranteed minimum income benefit will be exercised automatically, based on the annuitant's current age and benefit base, as follows: o You will be issued a supplementary contract based on a single life with a maximum 10 year period certain. Payments will be made annually starting one year from the date the account value fell to zero. o You will have 30 days from when we notify you to change the payout option and/or the payment frequency. Please note that we will not automatically exercise the Guaranteed minimum income benefit, as described above, if you have a TSA contract and withdrawal restrictions apply. The no lapse guarantee will terminate under the following circumstances: o If your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year); o If your aggregate withdrawals during any contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year); o On the contract date anniversary following annuitant's 85th birthday. For information about whether the Guaranteed minimum income benefit no lapse guarantee is available under your contract, please see Appendix IX later in this Prospectus. The availability of the Guaranteed minimum income benefit no lapse guarantee is dependent on when, and in what state, you purchased your contract. Please see Appendices VIII and IX, later in this Prospectus. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male annuitant age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options (including the Special 10 year fixed maturity option) or the loan reserve account under rollover TSA contracts. - ------------------------------------------------------ Guaranteed minimum income Contract date benefit -- annual income anniversary at exercise payable for life - ------------------------------------------------------ 10 $11,891 15 $18,597 - ------------------------------------------------------ EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us, along with all required information within 30 days following your contract date anniversary, in order to exercise this benefit. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payment contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death, or if later, the end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income benefit during your life and the annuitant's life, as follows: o If the annuitant was at least age 20 and not older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If the annuitant was at least age 45 and not older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after the annuitant is age 60. o If the annuitant was at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum Contract features and benefits 37 income benefit is within 30 days following the contract date anniversary following the annuitant's 85th birthday; (ii) if the annuitant was age 75 when the contract was issued or the Roll-Up benefit base was reset, if applicable the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's attainment of age 85; (iii) for Accumulator(R) Elite(SM) QP contracts, the Plan participant can exercise the Guaranteed minimum income benefit only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) Elite(SM) QP contract into an Accumulator(R) Elite(SM) Rollover IRA. This process must be completed within the 30-day time frame following the contract date anniversary in order for the Plan participant to be eligible to exercise. However, if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee (if available), a rollover into an IRA will not be effected and payments will be made directly to the trustee; (iv) for Accumulator(R) Elite(SM) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Elite(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (v) if you reset the Roll-Up benefit base (if available and as described earlier in this section), your new exercise date will be the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the waiting period; (vi) a successor owner/annuitant may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original annuitant could have exercised the benefit. In addition, the successor owner/annuitant must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The successor owner/annuitant's age on the date of the annuitant's death replaces the annuitant's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules. If Spousal Protection is available under your contract and is elected, and the spouse who is the annuitant dies, the above rules apply if the contract is continued by the surviving spouse as the successor owner/annuitant; and (vii) if you are the owner but not the annuitant and you die prior to exercise, then the following applies: o A successor owner who is not the annuitant may not be able to exercise the Guaranteed minimum income benefit without causing a tax problem. You should consider naming the annuitant as successor owner, or if you do not name a successor owner, as the sole primary beneficiary. You should carefully review your successor owner and/or beneficiary designations at least one year prior to the first contract date anniversary on which you could exercise the benefit. o If the successor owner is the annuitant, the Guaranteed mini mum income benefit continues only if the benefit could be exercised under the rules described above on a contract date anniversary that is within one year following the owner's death. This would be the only opportunity for the successor owner to exercise. If the Guaranteed minimum income benefit cannot be exercised within this timeframe, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. o If you designate your surviving spouse as successor owner, the Guaranteed minimum income benefit continues and your surviving spouse may exercise the benefit according to the rules described above, even if your spouse is not the annuitant and even if the benefit is exercised more than one year after your death. If your surviving spouse dies prior to exercise, the rule described in the previous bullet applies. o A successor owner or beneficiary that is a trust or other non- natural person may not exercise the benefit; in this case, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT Your contract provides a standard death benefit. If you did not elect one of the enhanced death benefits described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions, adjusted for any withdrawals (and any associated withdrawal charges) and any taxes that apply. The standard death benefit was the only death benefit available for annuitants who were ages 76 through 85 at issue. The applicable issue ages may be different for certain contract owners, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus for more information. Once your contract has been issued, you may not change or voluntarily terminate your death benefit. If you elected one of the enhanced death benefits, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we 38 Contract features and benefits receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment, OR your elected enhanced death benefit on the date of the annuitant's death (adjusted for any subsequent withdrawals, withdrawal charges and taxes that apply), whichever provides the higher amount. If you elected the Spousal protection option, if applicable, the Guaranteed minimum death benefit is based on the age of the older spouse, who may or may not be the annuitant, for the life of the contract. See "Spousal protection" in "Payment of death benefit" later in this Prospectus for more information. Any of the enhanced death benefits or the standard death benefit can be elected by themselves or with the Guaranteed minimum income benefit. If you elected one of the enhanced death benefit options described below and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, any enhanced death benefit elected will be replaced with the standard death benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANTS AGES 0 THROUGH 75 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; 0 THROUGH 70 AT ISSUE OF INHERITED IRA CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS. DEPENDING ON WHEN YOU PURCHASED YOUR CONTRACT, YOUR AVAILABLE ISSUE AGES MAY HAVE BEEN OLDER AT THE TIME YOU PURCHASED YOUR CONTRACT. Subject to state and contract availability (please see Appendix VIII for state availability of these benefits and Appendix IX for contract variations later in this Prospectus), the following enhanced death benefits were available: o ANNUAL RATCHET TO AGE 85. o 6% ROLL-UP TO AGE 85. o THE GREATER OF 5% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 o THE GREATER OF THE 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85. Each enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Once you have made your enhanced death benefit election, you may not change it. If you elected Principal Protector(SM), only the standard death benefit and the Annual Ratchet to Age 85 enhanced death benefit were available. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. If you are using this contract to fund a charitable remainder trust, you must take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your enhanced death benefit. See "Owner and annuitant requirements" earlier in this section. See Appendix IV later in this Prospectus for an example of how we calculate an enhanced death benefit. PROTECTION PLUS(SM) The following section provides information about the Protection Plus(SM) option, which was only available at the time you purchased your contract. If Protection Plus(SM) was not elected when the contract was first issued, neither the owner nor the successor owner/annuitant can add it subsequently. Protection Plus(SM) is an additional death benefit as described below. See "Tax information" later in this Prospectus for the potential tax consequences of having purchased the Protection Plus(SM) feature in an NQ, IRA or Rollover TSA contract. If you purchased the Protection Plus(SM) feature, you may not voluntarily terminate this feature. If you elected Principal Protector(SM), the Protection Plus(SM) feature is not available. Depending on when you purchased your contract, if you elected the Protection Plus(SM) option described below and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the annuitant was 70 or younger when we issued your contract (or if the successor owner/annuitant is 70 or younger when he or she becomes the successor owner/annuitant and Protection Plus(SM) had been elected at issue), the death benefit will be: the greater of: o the account value or o any applicable death benefit Increased by: o such death benefit less total net contributions, multiplied by 40%. For purposes of calculating your Protection Plus(SM) benefit, the following applies: (i) "Net contributions" are the total contributions made (or if applicable, the total amount that would otherwise have been paid as a death benefit had the successor owner/annuitant election not been made plus any subsequent contributions) adjusted for each withdrawal that exceeds your Protection Plus(SM) earnings. "Net contributions" are reduced by the amount of that excess. Protection Plus(SM) earnings are equal to (a) minus (b) where (a) is the greater of the account value and the death benefit immediately prior to the withdrawal and (b) is the net contributions as adjusted by any prior withdrawals; and (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable Guaranteed minimum death benefit as of the date of death. If you are an existing contract owner, your net contributions may be reduced on a pro rata basis to reflect withdrawals (including withdrawal charges and any TSA loans). For information about what applies to your contract, see Appendix IX later in this Prospectus. Contract features and benefits 39 If the annuitant was age 71 through 75 (this age may be higher for certain contract owners, depending on when you purchased your contract) when we issued your contract (or if the successor owner/ annuitant is between the ages of 71 and 75 when he or she becomes the successor owner/annuitant and Protection Plus(SM) had been elected at issue), the death benefit will be: the greater of: o the account value or o any applicable death benefit Increased by: o such death benefit (as described above) less total net contributions, multiplied by 25%. The value of the Protection Plus(SM) death benefit is frozen on the first contract date anniversary after the annuitant turns age 80, except that the benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce the benefit by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If the benefit is $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and the benefit after the withdrawal would be $24,000 ($40,000 - $16,000). For an example of how the Protection Plus(SM) death benefit is calculated, please see Appendix VII. If you elected Spousal protection, the Protection Plus(SM) benefit is based on the age of the older spouse, who may or may not be the annuitant. Upon the death of the non-annuitant spouse, the account value will be increased by the value of the Protection Plus(SM) benefit as of the date we receive due proof of death. Upon the death of the annuitant, the value of the Protection Plus(SM) benefit is either added to the death benefit payment or to the account value if successor owner/annuitant is elected. If the surviving spouse elects to continue the contract, the benefit will be based on the age of the surviving spouse as of the date of the deceased spouse's death for the remainder of the contract. If the surviving spouse is age 76 or older, the benefit will terminate and the charge will no longer be in effect. See "Spousal protection" in "Payment of death benefit" later in this Prospectus for more information. Ask your financial professional or see Appendix VIII later in this Prospectus to see if this feature was available in your state. PRINCIPAL PROTECTOR(SM) The following section provides information about the Principal Protector(SM) option, which was only available at the time you purchased your contract. If Principal Protector(SM) was not elected when the contract was first issued, neither the owner nor the successor owner/annuitant can add it subsequently. As described below, Principal Protector(SM) provides for recovery of your total contributions through withdrawals, even if your account value falls to zero, provided that during each contract year, your total withdrawals do not exceed your GWB Annual withdrawal amount. Principal Protector(SM) is not an automated withdrawal program. You may request a withdrawal through any of our available withdrawal methods. See "Withdrawing your account value" in "Accessing your money" later in this Prospectus. All withdrawals reduce your account value and the guaranteed minimum death benefit. Principal Protector(SM) could be elected at contract issue, for an additional charge, if the annuitant was age 0 through 85 for NQ contracts or age 20 through 75 for all IRA contracts. Please see "Principal Protector(SM) charge" in "Charges and expenses" later in this Prospectus for a description of the charge and when it applies. If you elected this benefit, you cannot terminate it. Depending on when you purchased your contract, this feature may not have been available. See Appendix IX later in this Prospectus for more information. If you die, and your beneficiary elects the Beneficiary continuation option, if available, your beneficiary may continue Principal Protector(SM) provided that the beneficiary was 75 or younger on the original contract date. If the beneficiary was older, Principal Protector(SM) will terminate without value even if the GWB benefit base is greater than zero. In the case of multiple beneficiaries, any beneficiary older than 75 may not continue Principal Protector(SM) and that beneficiary's portion of the GWB benefit base will terminate without value, even if it was greater than zero. The ability to continue Principal Protector(SM) under the Beneficiary continuation option is subject to state availability. If it was approved in your state, it was added to your contract if you had already elected GWB. See "Beneficiary continuation option" under "Payment of death benefit" later in the Prospectus for more information on continuing Principal Protector(SM) under the Beneficiary continuation option. If you purchased this contract as a TSA, QP or Inherited IRA, Principal Protector(SM) was not available. This benefit was also not available if you elected the Guaranteed minimum income benefit, the Greater of 6% Roll- Up to age 85 and Annual Ratchet to Age 85 enhanced death benefit, Protection Plus(SM), GPB Option 1 or GPB Option 2 or the special dollar cost averaging program. This benefit may not have been available under your contract. For more information, please see Appendix IX later in this Prospectus. If you elected the Principal Protector(SM) option and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Withdrawals in excess of your GWB Annual withdrawal amount significantly reduce or eliminate the value of the benefit. See "Effect of GWB Excess withdrawals" below. For traditional IRAs, the Principal Protector(SM) makes provision for you to take lifetime required minimum distributions ("RMDs") without losing the value of the Principal Protector(SM) guarantee, provided you comply with the conditions under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, including utilization of our Automatic RMD service, this benefit may have limited usefulness for you. Please consult your tax adviser. 40 Contract features and benefits YOUR GWB BENEFIT BASE At issue, your GWB benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWB benefit base increases by the dollar amount of any additional contributions. o Your GWB benefit base decreases by the dollar amount of withdrawals. o Your GWB benefit base may be further decreased if a withdrawal is taken in excess of your GWB Annual withdrawal amount. o Your GWB benefit base may also be increased under the Optional step up provision. o Your GWB benefit base may also be increased under the one time step up applicable with the Beneficiary continuation option. Each of these events is described in detail below. Once your GWB benefit base is depleted, you may continue to make withdrawals from your account value, but they are not guaranteed under Principal Protector(SM). YOUR GWB ANNUAL WITHDRAWAL AMOUNT Your GWB Annual withdrawal amount is equal to either 5% or 7% ("Applicable percentage"), as applicable, of your initial GWB benefit base, and is the maximum amount that you can withdraw each year without making a GWB Excess withdrawal, as described below. When you purchased your contract, you chose between two available GWB Annual withdrawal options: o 7% GWB ANNUAL WITHDRAWAL OPTION o 5% GWB ANNUAL WITHDRAWAL OPTION The GWB Annual withdrawal amount may decrease as a result of a GWB Excess withdrawal and may increase as a result of an Automatic reset, additional contributions or a "step up" of the GWB benefit base; each of these transactions are discussed below in detail. Once you elect a GWB Annual withdrawal option, it cannot be changed. Your GWB Annual withdrawal amounts are not cumulative. If you withdraw less than the GWB Annual withdrawal amount in any contract year, you may not add the remainder to your GWB Annual withdrawal amount in any subsequent year. The withdrawal charge, if applicable, is waived for withdrawals up to the GWB Annual withdrawal amount, but all withdrawals are counted toward your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. EFFECT OF GWB EXCESS WITHDRAWALS A GWB Excess withdrawal is caused when you withdraw more than your GWB Annual withdrawal amount in any contract year. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your GWB Annual withdrawal amount, the entire amount of the withdrawal and each subsequent withdrawal in that contract year are GWB Excess withdrawals. A GWB Excess withdrawal can cause a significant reduction in both your GWB benefit base and your GWB Annual withdrawal amount. If you make a GWB Excess withdrawal, we will recalculate your GWB benefit base and the GWB Annual withdrawal amount. As of the date of the GWB Excess withdrawal, the GWB benefit base is first reduced by the dollar amount of the withdrawal (including any applicable withdrawal charge), and the reduced GWB benefit base and the GWB Annual withdrawal amount are then further adjusted, as follows: o If the account value after the deduction of the withdrawal is less than the GWB benefit base, then the GWB benefit base is reset equal to the account value. o If the account value after the deduction of the withdrawal is greater than or equal to the GWB benefit base, then the GWB benefit base is not adjusted further. o The GWB Annual withdrawal amount equals the lesser of: (i) the Applicable percentage of the adjusted GWB benefit base and (ii) the GWB Annual withdrawal amount prior to the GWB Excess withdrawal. Withdrawals in excess of your GWB Annual withdrawal amount significantly reduce or eliminate the value of Principal Protector(SM). If your account value is less than your GWB benefit base (due, for example, to negative market performance), a GWB Excess withdrawal, even one that is only slightly more than your GWB Annual withdrawal amount, can significantly reduce your GWB benefit base and the GWB Annual withdrawal amount. For example, if you contribute $100,000 at contract issue, your initial GWB benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option, your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume in contract year four that your account value is $80,000, you have not made any prior withdrawals, and you request an $8,000 withdrawal. Your $100,000 benefit base is first reduced by $8,000 to now equal $92,000. Your GWB benefit base is then further reduced to equal the new account value: $72,000 ($80,000 minus $8,000). In addition, your GWB Annual withdrawal amount is reduced to $5,040 (7% of $72,000), instead of the original $7,000. Withdrawal charges, if applicable, are applied to the amount of the withdrawal exceeding the Guaranteed annual withdrawal amount, assuming the Guaranteed annual withdrawal amount is greater than the 10% free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. Using the example above, if the $8,000 withdrawal is a withdrawal of contributions subject to the withdrawal charge, the withdrawal charge would apply to the $3,000 (the amount of the withdrawal charge above the Guaranteed annual withdrawal amount of $5,000). See "Certain withdrawals" in "Charges and expenses" later in this Prospectus. You should further note that a GWB Excess withdrawal that reduces your account value to zero eliminates any remaining value in your GWB benefit base. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA and participate in our Automatic RMD service, and you do not take any other withdrawals, an automatic withdrawal under that program will not cause a GWB Excess withdrawal, even if it exceeds your GWB Annual Contract features and benefits 41 withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. If you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option and chooses scheduled payments, such payments will not cause a GWB Excess withdrawal, provided no additional withdrawals are taken. If your beneficiary chooses the "5-year rule" instead of scheduled payments, this waiver does not apply and a GWB Excess withdrawal may occur if withdrawals exceed the GWB Annual withdrawal amounts. EFFECT OF AUTOMATIC RESET If you take no withdrawals in the first five contract years, the Applicable percentage to determine your GWB Annual withdrawal amount will be automatically reset at no additional charge. The Applicable percentage under the 7% GWB Annual withdrawal option will be increased to 10%, and the Applicable percentage under the 5% GWB Annual withdrawal option will be increased to 7%. The Applicable percentage is automatically reset on your fifth contract date anniversary, and your GWB Annual withdrawal amount will be recalculated. If you die before the fifth contract date anniversary, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, if available, the Automatic reset will apply on the fifth contract date anniversary if you have not taken any withdrawals and: (1) your beneficiary chooses scheduled payments and payments have not yet started; or, (2) if your beneficiary chooses the "5-year rule" option and has not taken withdrawals. See "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. EFFECT OF ADDITIONAL CONTRIBUTIONS Anytime you make an additional contribution, we will recalculate your GWB benefit base and your GWB Annual withdrawal amount. Your GWB benefit base will be increased by the amount of the contribution and your GWB Annual withdrawal amount will be equal to the greater of (i) the Applicable percentage of the new GWB benefit base, or (ii) the GWB Annual withdrawal amount in effect immediately prior to the additional contribution. If you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, no additional contributions will be permitted. OPTIONAL STEP UP PROVISION Except as stated below, any time after the fifth contract date anniversary, you may request a step up in the GWB benefit base to equal your account value. If your GWB benefit base is higher than the account value as of the date we receive your step up request, no step up will be made. If a step up is made, we may increase the charge for the benefit. For a description of the charge increase, see "Principal Protector(SM) charge" in "Charges and expenses" later in this Prospectus. Once you elect to step up the GWB benefit base, you may not do so again for five complete contract years from the next contract date anniversary. Under both the Spousal protection and the successor owner annuitant features, upon the first death, the surviving spouse must wait five complete contract years from the last step up or from contract issue, whichever is later, to be eligible for a step up. As of the date of your GWB benefit base step up, your GWB Annual withdrawal amount will be equal to the greater of (i) your GWB Annual withdrawal amount before the step up, and (ii) your GWB Applicable percentage applied to your stepped up GWB benefit base. It is important to note that a step up in your GWB benefit base may not increase your GWB Annual withdrawal amount. In that situation, the effect of the step up is only to increase your GWB benefit base and support future withdrawals. We will process your step up request even if it does not increase your GWB Annual withdrawal amount, and we will increase the Principal Protector(SM) charge, if applicable. In addition, you will not be eligible to request another step up for five complete contract years. After processing your request, we will send you a confirmation showing the amount of your GWB benefit base and your GWB Annual withdrawal amount. For example, if you contribute $100,000 at contract issue, your initial GWB benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option, your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume you take withdrawals of $7,000 in each of the first five contract years, reducing the GWB benefit base to $65,000. After five contract years, further assume that your account value is $92,000, and you elect to step up the GWB benefit base from $65,000 to $92,000. The GWB Annual withdrawal amount is recalculated to equal the greater of 7% of the new GWB benefit base, which is $6,440 (7% of $92,000), or the current GWB Annual withdrawal amount, $7,000. Therefore, following the step up, even though your GWB benefit base has increased, your GWB Annual withdrawal amount does not increase and remains $7,000. The Optional step up provision is not available once your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option. However, if you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, the GWB benefit base will be stepped up to equal the account value, if higher, as of the transaction date that we receive the Beneficiary continuation option election. As of the date of the GWB benefit base step up, your beneficiary's GWB Annual withdrawal amount will be equal to the greater of (i) your GWB Annual withdrawal amount before the step up, and (ii) your GWB Applicable percentage applied to the stepped up GWB benefit base. This is a one-time step up at no additional charge. OTHER IMPORTANT CONSIDERATIONS o Principal Protector(SM) protects your principal only through withdrawals. Your account value may be less than your total contributions. o You can take withdrawals under your contract without purchasing Principal Protector(SM). In other words, you do not need this benefit to make withdrawals. o Amounts withdrawn in excess of your GWB Annual withdrawal amount may be subject to a withdrawal charge, if applicable, as described in "Charges and expenses" later in the Prospectus. In addition, all withdrawals count toward your free withdrawal amount for that contract year. 42 Contract features and benefits o Withdrawals made under Principal Protector(SM) will be treated, for tax purposes, in the same way as other withdrawals under your contract. o All withdrawals are subject to all of the terms and conditions of the contract. Principal Protector(SM) does not change the effect of withdrawals on your account value or guaranteed minimum death benefit; both are reduced by withdrawals whether or not you elect Principal Protector(SM). See "How withdrawals are taken from your account value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. o If you withdraw less than the GWB Annual withdrawal amount in any contract year, you may not add the remainder to your GWB Annual withdrawal amount in any subsequent year. o GWB Excess withdrawals can significantly reduce or completely eliminate the value of this benefit. See "Effect of GWB Excess withdrawals" above in this section and "Withdrawing your account value" in "Accessing your money" later in this Prospectus. o If you surrender your contract to receive its cash value, all benefits under the contract will terminate, including Principal Protector(SM) if your cash value is greater than your GWB Annual withdrawal amount. Therefore, when surrendering your contract, you should seriously consider the impact on Principal Protector(SM) when you have a GWB benefit base that is greater than zero. o If you die and your beneficiary elects the Beneficiary continuation option, then your beneficiary should consult with a tax adviser before choosing to use the "5-year rule." The "5-year rule" is described in "Payment of death benefit" under "Beneficiary continuation option" later in this Prospectus. The GWB benefit base may be adversely affected if the beneficiary makes any withdrawals that cause a GWB Excess withdrawal. Also, when the contract terminates at the end of 5 years, any remaining GWB benefit base would be lost. INHERITED IRA BENEFICIARY CONTINUATION CONTRACT This contract was available to an individual beneficiary of a traditional IRA or a Roth IRA where the deceased owner held the individual retirement account or annuity (or Roth individual retirement account or annuity) with an insurance company or financial institution other than AXA Equitable. The purpose of the inherited IRA beneficiary continuation contract is to permit the beneficiary to change the funding vehicle that the deceased owner selected ("original IRA") while taking the required minimum distribution payments that must be made to the beneficiary after the deceased owner's death. See the discussion of required minimum distributions under "Tax information." This contract is intended only for beneficiaries who want to take payments at least annually over their life expectancy. These payments generally must begin (or must have begun) no later than December 31 of the calendar year following the year the deceased owner died. This contract is not suitable for beneficiaries electing the "5-year rule." See "Beneficiary continuation option for IRA and Roth IRA contracts" under "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. You should discuss with your tax adviser your own personal situation. This contract may not have been available in all states. Please speak with your financial professional for further information. Depending on when you purchased your contract, this contract may not have been available. See Appendix IX later in this Prospectus for more information. The inherited IRA beneficiary continuation contract could only have been purchased by a direct transfer of the beneficiary's interest under the deceased owner's original IRA. The owner of the inherited IRA beneficiary continuation contract is the individual who is the beneficiary of the original IRA. (Certain trusts with only individual beneficiaries are treated as individuals for this purpose). The contract must also contain the name of the deceased owner. In this discussion, "you" refers to the owner of the inherited IRA beneficiary continuation contract. The inherited IRA beneficiary continuation contract could have been purchased whether or not the deceased owner had begun taking required minimum distribution payments during his or her life from the original IRA or whether you had already begun taking required minimum distribution payments of your interest as a beneficiary from the deceased owner's original IRA. You should discuss with your own tax adviser when payments must begin or must be made. Under the inherited IRA beneficiary continuation contract: o You must receive payments at least annually (but may have elected to receive payments monthly or quarterly). Payments are generally made over your life expectancy determined in the calendar year after the deceased owner's death and determined on a term certain basis. o You must receive payments from this contract even if you are receiving payments from another IRA of the deceased owner in an amount that would otherwise satisfy the amount required to be distributed from this contract. o The beneficiary of the original IRA is the annuitant under the inherited IRA beneficiary continuation contract. In the case where the beneficiary is a "see-through trust," the oldest beneficiary of the trust is the annuitant. o An inherited IRA beneficiary continuation contract was not available for annuitants over age 70. o The initial contribution had to be a direct transfer from the deceased owner's original IRA and was subject to minimum contribution amounts. See "How you can contribute to your contract" earlier in this section. o Subsequent contributions of at least $1,000 are permitted but must be direct transfers of your interest as a beneficiary from another IRA with a financial institution other than AXA Equitable, where the deceased owner is the same as under the original IRA contract. o You may make transfers among the investment options. o You may choose at any time to withdraw all or a portion of the account value. Any partial withdrawal must be at least $300. With- Contract features and benefits 43 drawal charges if applicable under your contract, will apply as described in "Charges and expenses" later in this Prospectus. o The Guaranteed minimum income benefit, successor owner/ annuitant feature, special dollar cost averaging program (if applicable), automatic investment program, GPB Options 1 and 2, Principal Protector(SM) and systematic withdrawals are not available under the Inherited IRA beneficiary continuation contract. o If you die, we will pay to a beneficiary that you choose the greater of the annuity account value or the applicable death benefit. o Upon your death, your beneficiary has the option to continue taking required minimum distributions based on your remaining life expectancy or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If your beneficiary elects to continue to take distributions, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value as of the date we receive satisfactory proof of death and any required instructions, information and forms. Thereafter, withdrawal charges (if applicable under your contract) will no longer apply. If you had elected any enhanced death benefits, they will no longer be in effect and charges for such benefits will stop. The Guaranteed minimum death benefit will also no longer be in effect. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS This is provided for informational purposes only. Since these contracts are no longer available to new purchasers, this cancellation provision is no longer applicable. If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law requires, this "free look" period may be longer. Other state variations may apply. Please contact your financial professional to find out what applies in your state. Generally, your refund will equal your account value (less loan reserve account under Rollover TSA contracts) under the contract on the day we receive notification of your decision to cancel the contract and will reflect (i) any investment gain or loss in the variable investment options (less the daily charges we deduct), (ii) any guaranteed interest in the guaranteed interest option, (iii) any positive or negative market value adjustments in the fixed maturity options through the date we receive your contract, and (iv) any interest in the account for special dollar cost averaging through the date we receive your contract. Some states require that we refund the full amount of your contribution (not reflecting (i), (ii), (iii), or (iv) above). For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract, whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. In addition to the cancellation right described above, if you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office, or your financial professional, can provide you with the cancellation instructions. 44 Contract features and benefits 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; (iv) the account for special dollar cost averaging and (v) the loan reserve account (applicable to Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less: (i) the total amount or a pro rata portion of the annual administrative charge as well as optional benefit charges*; (ii) any applicable withdrawal charges and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. - ---------------------- * Depending on when you purchased your contract, your account value will be reduced by a pro rata portion of the administrative charge only. See Appendix IX later in this Prospectus for more information. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, if applicable, when we deduct the enhanced death benefit, Guaranteed minimum income benefit, GPB Option 2, Principal Protector(SM) and/or the Protection Plus(SM) benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest option at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING Your value in the account for special dollar cost averaging at any time will equal your contribution allocated to that option, plus interest, less the sum of all amounts that have been transferred to the variable investment options you have selected. INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all your rights under your contract and any applicable guaranteed benefits, except as discussed below. See Appendix VIII later in this Prospectus for any state variations with regard to the termination of your contract. GUARANTEED MINIMUM INCOME BENEFIT NO LAPSE GUARANTEE (not available under all contracts). In certain circumstances, even if your account value falls to zero, your Guaranteed minimum income benefit Determining your contract's value 45 will still have value. Please see "Contract features and benefits" earlier in this Prospectus for information on this feature. PRINCIPAL PROTECTOR (SM) (not available under all contracts) If you elected Principal Protector(SM) and your account value falls to zero due to a GWB Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary annuity contract, as discussed below, even if your GWB benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not a GWB Excess withdrawal or due to a deduction of charges, please note the following: o If your GWB benefit base equals zero, we will terminate your contract and make no payment. o If your GWB benefit base is greater than zero but less than or equal to the balance of your GWB Annual withdrawal amount, if any, for that contract year, we will terminate your contract and pay you any remaining GWB benefit base. o If your GWB benefit base is greater than the balance of your remaining GWB Annual withdrawal amount, if any, for that contract year, we will pay you your GWB Annual withdrawal amount balance and terminate your contract, and we will pay you your remaining GWB benefit base as an annuity benefit, as described below. o If the Beneficiary continuation option is elected (not available in all states), and the account value falls to zero while there is a remaining GWB benefit base, we will make payments to the beneficiary as follows: o If the beneficiary had elected scheduled payments we will continue to make scheduled payments over remaining life expectancy until the GWB benefit base is zero, and the Principal Protector(SM) charge will no longer apply. o If the beneficiary had elected the "5-year rule" and the GWB benefit base is greater than the remaining GWB Annual withdrawal amount, if any, for that contract year, we will pay the beneficiary the GWB Annual withdrawal amount balance. We will continue to pay the beneficiary the remaining GWB Annual withdrawal amount each year until the GWB benefit base equals zero, or the contract terminates at the end of the fifth contract year, whichever comes first. Any remaining GWB benefit base at the end of the fifth contract year will terminate without value. ANNUITY BENEFIT. If the contract terminates and the remaining GWB benefit base is to be paid in installments, we will issue you an annuity benefit contract and make annual payments equal to your GWB Annual withdrawal amount on your contract date anniversary beginning on the next contract date anniversary, until the cumulative amount of such payments equals the remaining GWB benefit base (as of the date the contract terminates). The last installment payment may be smaller than the previous installment payments in order for the total of such payments to equal the remaining GWB benefit base. The annuity benefit supplemental contract will carry over the same owner, annuitant and beneficiary as under your contract. If you die before receiving all of your payments, we will make any remaining payments to your beneficiary. The charge for Principal Protector(SM) will no longer apply If at the time of your death the GWB Annual withdrawal amount was being paid to you as an annuity benefit, your beneficiary may not elect the Beneficiary continuation option. 46 Determining your contract's value 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer any amount to the account for special dollar cost averaging. o You may not transfer to a fixed maturity option that has a rate to maturity of 3% or less. o If the annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied, the rate to maturity is 3%. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment and affect your GPB. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the annuity account value being allocated to the guaranteed interest option, based on the annuity account value as of the previous business day. If you are an existing contractowner, this restriction may not apply. See Appendix IX later in this Prospectus for contract variations. o No transfers are permitted into the Special 10 year fixed maturity option. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option, the interest sweep option and dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the investment options in the prior contract year; or (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that Transferring your money among investment options 47 do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We offer rebalancing, which you can use to automatically reallocate your account value among your investment options. We currently offer two options: "Option I" and "Option II." Option I, allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semi annually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. 48 Transferring your money among investment options If you select Option II, you will be subject to our rules regarding transfers between the guaranteed interest option and the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into or out of the guaranteed interest option to initiate the rebalancing program will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. You may not elect Option II if you are participating in any dollar cost averaging program. You may not elect Option I if you are participating in general dollar cost averaging. Transferring your money among investment options 49 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. If you withdraw more than 90% of your contract's current cash value, we will treat it as a request to surrender your contract for its cash value. See "Surrendering your contract to receive its cash value" below. For the potential tax consequences of withdrawals, see "Tax information" later in this Prospectus. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2," below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. - -------------------------------------------------------------------------------- Method of withdrawal - -------------------------------------------------------------------------------- Lifetime Pre-age 59-1/2 required substantially minimum Contract Partial Systematic equal distribution - -------------------------------------------------------------------------------- NQ Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes Roth Conversion IRA Yes Yes Yes No - -------------------------------------------------------------------------------- Inherited IRA No No No * - -------------------------------------------------------------------------------- QP** Yes No No Yes - -------------------------------------------------------------------------------- Rollover TSA*** Yes Yes No Yes - -------------------------------------------------------------------------------- * This contract pays out post-death required minimum distributions. See "Inherited IRA beneficiary continuation contract" in "Contract features and benefits" earlier in this Prospectus. ** All payments are made to the trust as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. *** Employer or plan approval is required for all transactions. Your ability to take withdrawals, or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Partial withdrawals will be subject to a withdrawal charge if they exceed the 10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). If you already own your contract, the applicable free withdrawal percentage may be higher. See Appendix IX later in this Prospectus for the free withdrawal amount that applies to your contract. Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. SYSTEMATIC WITHDRAWALS (All contracts except Inherited IRA and QP) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval required). You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If you already own your contract, the applicable percentages may be higher. See Appendix IX later in this Prospectus for information on what applies to your contract. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of your account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 10% free withdrawal amount. This option is not available if you have elected a Guaranteed principal benefit - -- this restriction may not 50 Accessing your money apply to certain contract owners, depending on when you purchased your contract. See Appendix IX later in this Prospectus for more information. SUBSTANTIALLY EQUAL WITHDRAWALS (Rollover IRA and Roth Conversion IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals that we calculate for you are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Depending on when you purchased your contract, this option may not be available if you have elected a guaranteed principal benefit. This restriction may not apply to all contract owners. See Appendix IX later in this Prospectus for more information. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- We do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our automatic RMD service except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 10% free withdrawal amount. Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH PRINCIPAL PROTECTOR(SM). If you elected Principal Protector(SM), provided no other withdrawals are taken during a contract year in which you participate in our Automatic RMD service, an automatic withdrawal using our service will not cause a GWB Excess withdrawal, even if it exceeds your GWB Annual withdrawal amount. If you take any other withdrawal while you participate in the service, however, this GWB Excess withdrawal exception terminates permanently. In order to take advantage of this exception, you must elect and maintain participation in our Automatic RMD service at your required beginning date, or the contract date, if your required beginning date has occurred before the contract was purchased. See "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus for further information. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options and the guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options Accessing your money 51 (other than the Special 10 year fixed maturity option, if applicable) in the order of the earliest maturity date(s) first. If the FMO amounts are insufficient, we will deduct all or a portion of the withdrawal from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option). HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2 In general, withdrawals will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000 - $16,000). Transfers out of the Special 10 year fixed maturity option will reduce the GPB Option 2 amount on a pro rata basis. In addition, if you make a contract withdrawal from the Special 10 year fixed maturity option, we will reduce your GPB Option 2 in a similar manner; however, the reduction will reflect both a transfer out of the Special 10 year fixed maturity option and a withdrawal from the contract. Therefore, the reduction in GPB Option 2 is greater when you take a contract withdrawal from the Special 10 year fixed maturity option than it would be if you took the withdrawal from another investment option. Similar to the example above, if your account value is $30,000 and you withdraw $12,000 from the Special 10 year fixed maturity option, you have withdrawn 40% of your account value. If your GPB Option 2 benefit was $40,000 before the withdrawal, the reduction to reflect the transfer out of the Special 10 year fixed maturity option would equal $16,000 ($40,000 x .40). The amount used to calculate the reduction to reflect the withdrawal from the contract is $24,000 ($40,000 - $16,000). The reduction to reflect the withdrawal would equal $9,600 ($24,000 x .40), and your new benefit after the withdrawal would be $14,400 ($24,000 - $9,600). For purposes of calculating the adjustment to your guaranteed benefits, the amount of the withdrawal will include the amount of any applicable withdrawal charge. Using the example above, the $12,000 withdrawal would include the withdrawal amount paid to you and the amount of any applicable withdrawal charge deducted from your account value. For more information on the calculation of the charge, see "Withdrawal charge" later in the Prospectus. With respect to the Guaranteed minimum income benefit and the Greater of 6% (or 5%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' 6% (or 5%) Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6% (or 5%) or less of the 6% (or 5%) Roll-Up benefit base on the most recent contract date anniversary. Additional contributions made during the contract year do not affect the amount of withdrawals that can be taken on a dollar-for dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6% (or 5%) of the benefit base on the most recent anniversary, that entire withdrawal and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6% (or 5%) Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for each Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. The effect of withdrawals on your Guaranteed minimum income benefit and Guaranteed minimum death benefit (including the Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit) may be different. See Appendix IX later in this Prospectus for information on what applies to your contract. HOW WITHDRAWALS AFFECT PRINCIPAL PROTECTOR(SM) If you elected Principal Protector(SM), any withdrawal reduces your GWB benefit base by the amount of the withdrawal. In addition, a GWB Excess withdrawal can significantly reduce your GWB Annual withdrawal amount and further reduce your GWB benefit base. For more information, see "Effect of GWB Excess withdrawals" and "Other important considerations" under "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. WITHDRAWALS TREATED AS SURRENDERS If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. Also, under certain contracts, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. If you are an existing contract owner, the rules in the preceding sentence may not apply under your contract or if the Guaranteed minimum income benefit no lapse guarantee is available and in effect on your contract. See Appendix IX later in this Prospectus for information on what applies to your contract. See also "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR PRINCIPAL PROTECTOR(SM). If you elected Principal Protector(SM), all withdrawal methods described above can be used. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is a GWB Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to a GWB Excess withdrawal. In other words, if you take a GWB Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWB benefit base is greater than zero. Please also see "Insufficient account value" 52 Accessing your money in "Determining your contract value" earlier in this Prospectus. Please also see "Principal Protector(SM)" in "Contract features and benefits," earlier in this Prospectus, for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see Appendix VIII later in this Prospectus for any state restrictions you may be subject to if you take a loan from a Rollover TSA contract. Also, see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan including any accrued and unpaid loan interest, will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the loan reserve account. Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options (other than the Special 10 year fixed maturity option), in the order of the earliest maturity date(s) first. A market value adjustment may apply. If the FMO amounts are insufficient, we will deduct all or a portion of the loan from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option). If the amounts are withdrawn from the Special 10 year fixed maturity option, the guaranteed benefit will be adversely affected. See "Guaranteed principal benefit option 2" in "Contract features and benefits" earlier in this Prospectus. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while the annuitant is living and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of the date we receive the required information, including Principal Protector(SM) (if applicable), if your cash value is greater than your GWB Annual withdrawal amount. If you have a GWB benefit base greater than zero, you should consider the impact of a contract surrender on the Principal Protector(SM) benefit. If your surrender request does not constitute a GWB Excess withdrawal, you may be eligible for additional benefits. If, however, your surrender request constitutes a GWB Excess withdrawal, you will lose those benefits. Also, if the Guaranteed minimum income benefit no lapse guarantee is in effect under your contract, the Guaranteed minimum income benefit will terminate without value if your cash value plus any other withdrawals taken in the contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year). For more information, please see "Annuity benefit" under "Insufficient account value" in "Determining your contract value" and "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal Accessing your money 53 charges) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of which sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option, fixed maturity options and the account for special dollar cost averaging (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Elite(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) Elite(SM) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Elite(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Elite(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. Please see Appendix VIII later in this Prospectus for variations that may apply to your state. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the annuitant's age when the contract was issued. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect Principal Protector(SM) and choose to annuitize your contract, Principal Protector(SM) will terminate without value even if your GWB benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under Principal Protector(SM). See "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus for further information. - -------------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------------- Income Manager(R) payout options Life annuity with period (available for annuitants age 83 certain or less at contract issue) Period certain annuity - -------------------------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the ------------ annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for -------------------------------- the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for -------------------------------- the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific ---------------------- period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. 54 Accessing your money FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager(R) payout option without life contingencies unless withdrawal charges are no longer in effect under your contract. For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply your account value of your Accumulator(R) Elite(SM) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) Elite(SM), and we will deduct any applicable withdrawal charge. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income option (or "Living Benefit" option), different payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any withdrawal charges. If amounts in a fixed maturity option are used to purchase any annuity payout option prior to the maturity date, a market value adjustment will apply. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. The withdrawal charge applicable under your Accumulator(R) Elite(SM) contract is imposed if you select a non-life contingent period certain payout annuity. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For the Income Manager(R) life contingent payout options no withdrawal charge is imposed under your contract. If the withdrawal charge that otherwise would have been applied to your account value under your contract is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager(R) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin. In most states, it may not be earlier than thirteen months from the Accumulator(R) Elite(SM) contract date. Please see Appendix VIII later in this Prospectus for information on state variations. Except with respect to the Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments, or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. Accessing your money 55 If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elected Principal Protector(SM) and your contract is annuitized at maturity, we will offer an annuity payout option for life that guarantees you will receive payments that are at least equal to what you would have received under Principal Protector until the point at which your GWB Benefit Base is depleted. After your GWB Benefit Base is depleted, you will continue to receive periodic payments while you are living. The amount of each payment will be the same as the payment amount that you would have received if you had applied your account value on the maturity date to purchase a life annuity at the annuity purchase rate guaranteed in your contract; this payment amount may be more or less than your GWB Annual Withdrawal amount. Please see Appendix VIII later in this Prospectus for variations that may apply in your state. 56 Accessing your money 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o On each contract date anniversary, a charge for each optional benefit that you have elected: a death benefit (other than the Standard death benefit); the Guaranteed minimum income benefit; Principal Protector(SM); and Protection Plus(SM). o On the first 10 contract date anniversaries -- a charge for GPB Option 2, if you have elected this optional benefit. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. The fees and charges described are the maximum fees and charges that a contract owner will pay. Please see your contract and/or Appendix IX for the fees and charges that apply under your contract. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES MORTALITY AND EXPENSE RISKS CHARGE. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 1.10% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the Guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. ADMINISTRATIVE CHARGE. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.30% of the net assets in each variable investment option. DISTRIBUTION CHARGE. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed Charges and expenses 57 maturity option) in order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceeds the 10% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or to apply your cash value to a non-life contingent annuity payout option. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options--The amount applied to purchase an annuity payout option" in "Accessing your money" earlier in the Prospectus. The withdrawal charge equals a percentage of the contributions withdrawn in any of the first four years after we receive a contribution. We determine the withdrawal charge separately for each contribution according to the following table: - -------------------------------------------------------------------------------- Contract year - -------------------------------------------------------------------------------- 1 2 3 4 5 - -------------------------------------------------------------------------------- Percentage of contribution 8% 7% 6% 5% 0% - -------------------------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1" and the withdrawal charge is reduced or expires on each applicable contract date anniversary. Amounts withdrawn up to the free withdrawal amount are not considered withdrawals of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. For contracts issued in New York, please see Appendix VIII later in this Prospectus for the New York withdrawal charge schedule applicable to monies withdrawn from and transferred among the fixed maturity options. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and withdrawal charge from your account value. The amount deducted to pay withdrawal charges is also subject to that same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each investment option. The withdrawal charge helps cover sales expenses. For purposes of calculating reductions in your guaranteed benefits and associated benefit bases, the withdrawal amount includes both the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information, see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier in the Prospectus. The withdrawal charge does not apply in the circumstances described below. 10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10% of your account value without paying a withdrawal charge. The 10% free withdrawal amount is determined using your account value at the beginning of each contract year. In the first contract year, the 10% free withdrawal amount is determined using all contributions received in the first 90 days of the contract year. Additional contributions during the contract year do not increase the 10% free withdrawal amount. The 10% free withdrawal amount does not apply if you surrender your contract except where required by law. For NQ contracts issued to a charitable remainder trust, the free withdrawal amount will equal the greater of: (1) the current account value less contributions that have not been withdrawn (earnings in the contract), and (2) the 10% free withdrawal amount defined above. If you elected Principal Protector(SM), we will waive any withdrawal charge for any withdrawal during the contract year up to the GWB Annual withdrawal amount, even if such withdrawals exceed the free withdrawal amount. However, each withdrawal reduces the free withdrawal amount for that contract year by the amount of the withdrawal. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds the GWB Annual withdrawal amount. The applicable free withdrawal percentage may be higher for certain contract owners, depending on when you purchased your contract. See Appendix IX later in this Prospectus for the free withdrawal amount that applies under your contract. CERTAIN WITHDRAWALS. If you elected the Guaranteed minimum income benefit and/or the Greater of 6% Roll-Up to age 85 or the annual ratchet to age 85 enhanced death benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6% of the beginning of contract year 6% to age 85 Roll-Up benefit base, even if such withdrawals exceed the free withdrawal amount. Also, a withdrawal charge does not apply to a withdrawal that exceeds 6% of the beginning of contract year 6% to age 85 Roll-Up benefit base as long as it does not exceed the free withdrawal amount. If your withdrawal exceeds the amount described above, this waiver is not applicable to that withdrawal, nor to any subsequent withdrawal for the life of the contract. See Appendix IX later in this Prospectus to see if this waiver of the withdrawal charge applies under your contract. 58 Charges and expenses DISABILITY, TERMINAL ILLNESS OR CONFINEMENT TO NURSING HOME. The withdrawal charge also does not apply if: (i) The annuitant has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or (ii) We receive proof satisfactory to us (including certification by a licensed physician) that the annuitant's life expectancy is six months or less; or (iii) The annuitant has been confined to a nursing home for more than 90 days (or such other period, as required in your state) as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: -- its main function is to provide skilled, intermediate, or custodial nursing care; -- it provides continuous room and board to three or more persons; -- it is supervised by a registered nurse or licensed practical nurse; -- it keeps daily medical records of each patient; -- it controls and records all medications dispensed; and -- its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions as described in (i), (ii) or (iii) above existed at the time a contribution was remitted or if the condition began within 12 months of the period following remittance. Some states may not permit us to waive the withdrawal charge in the above circumstances, or may limit the circumstances for which the withdrawal charge may be waived. Your financial professional can provide more information or you may contact our processing office. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elected the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. If you are an existing contract owner, the charge may be as much as to 0.30% of the Annual Ratchet to age 85 benefit base. Please see Appendix IX later in this Prospectus or your contract for the charge that applies under your contract. GREATER OF 5% ROLL-UP TO AGE 85. If you elected this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.50% of the Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elected this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.60% of the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. For certain contract owners, your charge may be less, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus or your contract for more information. 6% ROLL-UP TO AGE 85. If you elected the 6% Roll-Up to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.45% of the 6% Roll-Up to age 85 benefit base. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If these amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply, depending on when you purchased your contract. See Appendix IX later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. There is no charge if you exercise the Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset option. STANDARD DEATH BENEFIT. There is no additional charge for the standard death benefit. GUARANTEED PRINCIPAL BENEFIT OPTION 2 If you purchased GPB Option 2, we deduct a charge annually from your account value on the first 10 contract date anniversaries. The charge is equal to 0.50% of the account value. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If these amounts are insufficient, we will deduct any remaining portion of the charge from amounts in any fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are insufficient, we will deduct all or a portion from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniver- Charges and expenses 59 sary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply , depending on when you purchased your contract. See Appendix IX later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. GUARANTEED MINIMUM INCOME BENEFIT (THE "LIVING BENEFIT") CHARGE If you elected the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary after the annuitant reaches 85, whichever occurs first. The charge is equal to 0.65% of the applicable benefit base in effect on the contract date anniversary. For certain contract owners, your charge may be less, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus or your contract for more information. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis (See Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state.) If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are still insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply, depending on when you purchased your contract. See Appendix IX later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option, if available). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. There is no charge if you exercise the Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset option or for the Guaranteed minimum income benefit no lapse guarantee. This option is not available under all contracts. PROTECTION PLUS(SM) CHARGE If you elected Protection Plus(SM), we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.35% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply, depending on when you purchased your contract. See Appendix IX later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. PRINCIPAL PROTECTOR(SM) CHARGE If you elected Principal Protector(SM), we deduct a charge annually as a percentage of your account value on each contract date anniversary. If you elect the 5% GWB Annual withdrawal option, the charge is equal to 0.35%. If you elect the 7% GWB Annual withdrawal option, the charge is equal to 0.50%. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (See Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply, depending on when you purchased your contract. See Appendix IX later in this Prospectus for more information. If you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, we will not deduct a pro rata portion of the charge upon your death. However, the Principal Protector(SM) charge will continue. A market value adjustment will apply to deductions from the fixed maturity options. If your GWB benefit base falls to zero but your contract is still in force, the charge will be suspended as of the next contract date anniversary. The charge will be reinstated, as follows: (i) if you make a subsequent contribution, we will reinstate the charge that was in effect at the time your GWB benefit base became depleted, (ii) if you elect to exercise the Optional step up provision, we will reinstate a charge, as discussed immediately below, and (iii) if your beneficiary elects the Beneficiary continuation option and reinstates the Principal Protector(SM) benefit with a one time step up, we will reinstate the charge that was in effect when the GWB benefit base fell to zero. 60 Charges and expenses If your beneficiary elects the Beneficiary continuation option, and is eligible to continue Principal Protector(SM), the benefit and the charge will continue unless your beneficiary tells us to terminate the benefit at the time of election. OPTIONAL STEP UP CHARGE. Every time you elect the Optional step up, we reserve the right to raise the benefit charge at the time of the step up. The maximum charge for Principal Protector(SM) with a 5% GWB Annual withdrawal option is 0.60%. The maximum charge for Principal Protector(SM) with a 7% GWB Annual withdrawal amount option is 0.80%. The increased charge, if any, will apply as of the next contract date anniversary following the step up and on all contract anniversaries thereafter. If you die and your beneficiary elects the Beneficiary continuation option, if available, a one time step up only (at no additional charge) is applicable. For more information on the Optional step up, one time step up and Automatic reset provisions, see "Principal Protector(SM)" in "Contract features and benefits." If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY ANNUITIZATION PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity annuitization payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to 12b-1 fees. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. Charges and expenses 61 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designated your beneficiary when you applied for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) and any amount applicable under the Protection Plus(SM) feature, as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the annuitant's death, adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. EFFECT OF THE ANNUITANT'S DEATH If the annuitant dies before the annuity payments begin, we will pay the death benefit to your beneficiary. Generally, the death of the annuitant terminates the contract. However, a surviving spouse who is the sole primary beneficiary, of the deceased owner/annuitant can choose to be treated as the successor owner/annuitant and continue the contract. The Successor owner/ annuitant feature is only available under NQ and individually owned IRA (other than Inherited IRAs) contracts. See "Inherited IRA beneficiary continuation contract" in "Contract features and benefits" earlier in this Prospectus. For NQ and all types of IRA contracts, a beneficiary may be able to have limited ownership as discussed under "Beneficiary continuation option" below. WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT Under certain conditions the owner changes after the original owner's death for the purposes of receiving required distributions from the contract. When you are not the annuitant under an NQ contract and you die before annuity payments begin, unless you specify otherwise, the beneficiary named to receive this death benefit upon the annuitant's death will become the successor owner. If you do not want this beneficiary to be the successor owner, you should name a specific successor owner. You may name a successor owner at any time during your life by sending satisfactory notice to our processing office. If the contract is jointly owned and the first owner to die is not the annuitant, the surviving owner becomes the sole contract owner. This person will be considered the successor owner for purposes of the distribution rules described in this section. The surviving owner automatically takes the place of any other beneficiary designation. You should carefully consider the following if you have elected the Guaranteed minimum income benefit and you are the owner, but not the annuitant. Because the payments under the Guaranteed minimum income benefit are based on the life of the annuitant, and the federal tax law required distributions described below are based on the life of the successor owner, a successor owner who is not also the annuitant may not be able to exercise the Guaranteed minimum income benefit, if you die before annuity payments begin. Therefore, one year before you become eligible to exercise the Guaranteed minimum income benefit, you should consider the effect of your beneficiary designations on potential payments after your death. For more information, see "Exercise rules" under "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus. Unless the surviving spouse of the owner who has died (or in the case of a joint ownership situation, the surviving spouse of the first owner to die) is the successor owner for this purpose, the entire interest in the contract must be distributed under the following rules: o The cash value of the contract must be fully paid to the successor owner (new owner) within five years after your death (the "5-year rule"), or in a joint ownership situation, the death of the first owner to die. 62 Payment of death benefit o If Principal Protector(SM) was elected and if the "5-year rule" is elected and the successor owner dies prior to the end of the fifth year, we will pay any remaining account value in a lump sum and the contract and any remaining GWB benefit base will terminate without value. The successor owner should consult with a tax adviser before choosing to use the "5-year rule." The GWB benefit base may be adversely affected if the successor owner makes any withdrawals that cause a GWB Excess withdrawal. Also, when the contract terminates at the end of 5 years, any remaining GWB benefit base would be lost. If you elected Principal Protector(SM), the successor owner has the option to terminate the benefit and charge upon receipt by us of due proof of death and notice to discontinue the benefit; otherwise, the benefit and charge will automatically continue. o The successor owner may instead elect to receive the cash value as a life annuity (or payments for a period certain of not longer than the successor owner's life expectancy). Payments must begin within one year after the non-annuitant owner's death. Unless this alternative is elected, we will pay any cash value five years after your death (or the death of the first owner to die). o A successor owner should consider naming a new beneficiary. If the surviving spouse is the successor owner or joint owner, the spouse may elect to continue the contract. No distributions are required as long as the surviving spouse and annuitant are living. An eligible successor owner, including a surviving joint owner after the first owner dies, may elect the beneficiary continuation option for NQ contracts discussed in "Beneficiary continuation option" below. HOW DEATH BENEFIT PAYMENT IS MADE We will pay the death benefit to the beneficiary in the form of the annuity payout option you have chosen. If you have not chosen an annuity payout option as of the time of the annuitant's death, the beneficiary will receive the death benefit in a single sum. Payment of the death benefit in a lump sum terminates all rights and any applicable guarantees under the contract, including Guaranteed minimum income benefit, GPB Options 1 and 2, and Principal Protector(SM). However, subject to any exceptions in the contract, our rules and any applicable requirements under federal income tax rules, the beneficiary may elect to apply the death benefit to one or more annuity payout options we offer at the time. SUCCESSOR OWNER AND ANNUITANT If you are both the contract owner and the annuitant, and your spouse is the sole primary beneficiary or the joint owner, then your spouse may elect to receive the death benefit or continue the contract as successor owner/annuitant. The successor owner/annuitant must be 85 or younger as of the date of the non-surviving spouse's death. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. If your surviving spouse decides to continue the contract, then as of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary to effect the Successor owner/annuitant feature, we will increase the account value to equal your elected guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. Thereafter, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. These additional contributions will be considered to be withdrawn only after all other amounts have been withdrawn. In determining whether your applicable Guaranteed minimum death benefit option will continue to grow, we will use your surviving spouse's age as of the date we receive satisfactory proof of your death, any required instructions and the information and forms necessary to effect the successor owner/annuitant feature. We will determine whether your applicable Guaranteed minimum death benefit option will continue as follows: o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 84 or younger at death, the Guaranteed minimum death benefit continues based upon the option that was elected by the original owner/annuitant and will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 85 or older at death, we will reinstate the Guaranteed minimum death benefit that was elected by the original owner/annuitant. The benefit will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 76 or over on the date of the original owner/annuitant's death, the Guaranteed minimum death benefit will no longer grow, and we will no longer charge for the benefit. If you elected Principal Protector(SM), the benefit and charge will remain in effect. If the GWB benefit base is zero at the time of your death, and the charge had been suspended, the charge will be reinstated if any of the events, described in "Principal Protector(SM) charge" in "Charges and expenses" earlier in this Prospectus, occur. The GWB benefit base will not automatically be stepped up to equal the account value, if higher, upon your death. Your spouse must wait five complete years from the prior step up or from contract issue, whichever is later, in order to be eligible for the Optional step up. For more information, see "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Payment of death benefit 63 Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For information on the operation of successor owner/annuitant feature with the Guaranteed minimum income benefit, see "Exercise of Guaranteed minimum income benefit" under "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus. For information on the operation of this feature with Protection Plus(SM), see "Protection Plus(SM)" in "Guaranteed minimum death benefit" under "Contract features and benefits," earlier in this Prospectus. SPOUSAL PROTECTION SPOUSAL PROTECTION OPTION FOR NQ CONTRACTS ONLY. This feature permits spouses who are joint contract owners to increase the account value to equal the guaranteed minimum death benefit, if higher, and by the value of any Protection Plus(SM) benefit, if elected, upon the death of either spouse. This account value "step up" occurs even if the surviving spouse was the named annuitant. If you and your spouse jointly own the contract and one of you is the named annuitant, you had the right to elect the Spousal protection option at the time you purchased your contract at no additional charge. Both spouses must have been between the ages of 20 and 70 at the time the contract was issued and must each have been named the primary beneficiary in the event of the other's death. The annuitant's age is generally used for the purpose of determining contract benefits. However, for the Annual Ratchet to age 85 and the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 guaranteed minimum death benefits and the Protection Plus(SM) benefit, the benefit is based on the older spouse's age. The older spouse may or may not be the annuitant. However, for purposes of the Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset option, the last age at which the benefit base may be reset is based on the annuitant's age, not the older spouse's age. If the annuitant dies prior to annuitization, the surviving spouse may elect to receive the death benefit, including the value of the Protection Plus(SM) benefit, or if eligible, continue the contract as the sole owner/ annuitant by electing the successor owner/annuitant option. If the non-annuitant spouse dies prior to annuitization, the surviving spouse continues the contract automatically as the sole owner/annuitant. In either case, the contract would continue, as follows: o As of the date we receive due proof of the spouse's death, the account value will be reset to equal the Guaranteed minimum death benefit as of the date of the non-surviving spouse's death, if higher, increased by the value of the Protection Plus(SM) benefit. o The Guaranteed minimum death benefit continues to be based on the older spouse's age for the life of the contract, even if the younger spouse is originally or becomes the sole owner/annuitant. o The Protection Plus(SM) benefit will now be based on the surviving spouse's age at the date of the non-surviving spouse's death for the remainder of the life of the contract. If the benefit had been previously frozen because the older spouse had attained age 80, it will be reinstated if the surviving spouse is age 75 or younger. The benefit is then frozen on the contract date anniversary after the surviving spouse reaches age 80. If the surviving spouse is age 76 or older, the benefit will be discontinued even if the surviving spouse is the older spouse (upon whose age the benefit was originally based). o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the successor owner/annuitant, if applicable. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If the annuitant dies first, withdrawal charges will no longer apply to any contributions made prior to the annuitant's death. If the non-annuitant spouse dies first, the withdrawal charge schedule remains in effect with regard to all contributions. o If you elected Principal Protector(SM), the benefit and charge will remain in effect. If the GWB benefit base is zero at the time of your death, and the charge had been suspended, the charge will be reinstated if any of the events, described in "Principal Protector(SM) charge" in "Charges and expenses" earlier in this Prospectus, occur. The GWB benefit base will not automatically be stepped up to equal the account value, if higher, upon your death. Your spouse must wait five complete years from the prior step up or from contract issue, whichever is later, in order to be eligible for the Optional step up. For more information, see "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. We will not allow Spousal protection to be added after contract issue. If there is a change in owner or primary beneficiary, the Spousal protection benefit will be terminated. If you divorce, but do not change the owner or primary beneficiary, Spousal protection continues. Depending on when you purchased your contract, this feature may not be available to you. See Appendix IX later in this Prospectus for more information about your contract. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state availability. Please speak with your financial professional or see Appendix VIII later in this Prospectus for further information. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the 64 Payment of death benefit election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature, adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain circumstances) under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. See below for certain circumstances where Principal Protector(SM) may continue to apply. o The beneficiary may choose at any time to withdraw all or a portion of the account value and no withdrawal charges, if any, will apply. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. o If you had elected Principal Protector(SM), your spousal beneficiary may not continue Principal Protector(SM), and the benefit will terminate without value, even if the GWB benefit base is greater than zero. In general, spousal beneficiaries who wish to continue Principal Protector(SM) should consider continuing the contract under the Successor owner and annuitant feature, if eligible. In general, eligibility requires that your spouse must be the sole primary beneficiary. Please see "Successor owner and annuitant" in "How death benefit payment is made" under "Payment of death benefit" earlier in this Prospectus for further details. If there are multiple beneficiaries who elect the Beneficiary continuation option, the spousal beneficiary may continue the contract without Principal Protector(SM) and non-spousal beneficiaries may continue with Principal Protector(SM). In this case, the spouse's portion of the GWB benefit base will terminate without value. o If you had elected Principal Protector(SM), your non-spousal beneficiary may continue the benefit, as follows: o The beneficiary was 75 or younger on the original contract date. o The benefit and charge will remain in effect unless your benefi ciary tells us to terminate the benefit at the time of the Beneficiary continuation option election. o One time step up: Upon your death, if your account value is greater than the GWB benefit base, the GWB benefit base will be automatically stepped up to equal the account value, at no additional charge. If Principal Protector(SM) is not in effect at the time of your death because the GWB benefit base is zero, the beneficiary may reinstate the benefit (at the charge that was last in effect) with the one time step up. If the beneficiary chooses not to reinstate the Principal Protector(SM) at the time the Beneficiary continuation option is elected, Principal Protector(SM) will terminate. o If there are multiple beneficiaries each beneficiary's interest in the GWB benefit base will be separately accounted for. o As long as the GWB benefit base is $5,000 or greater, the ben eficiary may elect the Beneficiary continuation option and continue Principal Protector(SM) even if the account value is less than $5,000. o If scheduled payments are elected, the beneficiary's scheduled payments will be calculated, using the greater of the account value or the GWB benefit base, as of each December 31. If the beneficiary dies prior to receiving all payments, we will make the remaining payments to the person designated by the deceased non-spousal beneficiary, unless that person elects to take any remaining account value in a lump sum, in which case any remaining GWB benefit base will terminate without value. o If the "5-year rule" is elected and the beneficiary dies prior to the Payment of death benefit 65 end of the fifth year, we will pay any remaining account value in a lump sum and the contract and any remaining GWB benefit base will terminate without value. o Provided no other withdrawals are taken during a contract year while the beneficiary receives scheduled payments, the scheduled payments will not cause a GWB Excess withdrawal, even if they exceed the GWB Annual withdrawal amount. If the beneficiary takes any other withdrawals while the Beneficiary continuation option scheduled payments are in effect, the GWB Excess withdrawal exception terminates permanently. In order to take advantage of this exception, the beneficiary must elect the scheduled payments rather than the "5-year rule." If the beneficiary elects the "5-year rule," there is no exception. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. If the owner and annuitant are different and the owner dies before the annuitant, for purposes of this discussion, "beneficiary" refers to the successor owner. For a discussion of successor owner, see "When an NQ contract owner dies before the annuitant" earlier in this section. This feature must be elected within 9 months following the date of your death and before any inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts (regardless of whether the owner and the annuitant are the same person): o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain circumstances) under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. See below for certain circumstances where Principal Protector(SM) may continue to apply. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. o If you had elected Principal Protector(SM), your spousal beneficiary may not continue Principal Protector(SM), and the benefit will terminate without value, even if the GWB benefit base is greater than zero. In general, spousal beneficiaries who wish to continue Principal Protector(SM) should consider continuing the contract under the Successor owner and annuitant feature, if eligible. In general, eligibility requires that you must be the owner and annuitant and your spouse must be the sole primary beneficiary. Please see "Successor owner and annuitant" in "How death benefit payment is made" under "Payment of death benefit" earlier in this Prospectus for further details. If there are multiple beneficiaries who elect the Beneficiary continuation option, the spousal beneficiary may continue the contract without Principal Protector(SM) and non-spousal beneficiaries may continue with Principal Protector(SM). In this case, the spouse's portion of the GWB benefit base will terminate without value. o If the non-spousal beneficiary chooses scheduled payments under "Withdrawal Option 1," as discussed above in this section, Principal Protector(SM) may not be continued and will automatically terminate without value even if the GWB benefit base is greater than zero. o If you had elected Principal Protector(SM), your non-spousal beneficiary may continue the benefit, as follows: 66 Payment of death benefit o The beneficiary was 75 or younger on the original contract date. o The benefit and charge will remain in effect unless your benefi ciary tells us to terminate the benefit at the time of the Beneficiary continuation option election. o One time step up: Upon your death, if your account value is greater than the GWB benefit base, the GWB benefit base will be automatically stepped up to equal the account value, at no additional charge. If Principal Protector(SM) is not in effect at the time of your death because the GWB benefit base is zero, the beneficiary may reinstate the benefit (at the charge that was last in effect) with the one time step up. If the beneficiary chooses not to reinstate the Principal Protector(SM) at the time the Beneficiary continuation option is elected, Principal Protector(SM) will terminate. o If there are multiple beneficiaries, each beneficiary's interest in the GWB benefit base will be separately accounted for. o As long as the GWB benefit base is $5,000 or greater, the ben eficiary may elect the Beneficiary continuation option and continue Principal Protector(SM) even if the account value is less than $5,000. o If scheduled payments under "Withdrawal Option 2" is elected, the beneficiary's scheduled payments will be calculated, using the greater of the account value or the GWB benefit base, as of each December 31. If the beneficiary dies prior to receiving all payments, we will make the remaining payments to the person designated by the deceased non-spousal beneficiary, unless that person elects to take any remaining account value in a lump sum, in which case any remaining GWB benefit base will terminate without value. o If the "5-year rule" is elected and the beneficiary dies prior to the end of the fifth year, we will pay any remaining account value in a lump sum and the contract and any remaining GWB benefit base will terminate without value. o Provided no other withdrawals are taken during a contract year while the beneficiary receives scheduled payments, the scheduled payments will not cause a GWB Excess withdrawal, even if they exceed the GWB Annual withdrawal amount. If the beneficiary takes any other withdrawals while the Beneficiary continuation option scheduled payments are in effect, the GWB Excess withdrawal exception terminates permanently. In order to take advantage of this exception, the beneficiary must elect the scheduled payments under "Withdrawal Option 2" rather than the "5-year rule." If the beneficiary elects the "5-year rule," there is no exception. If you are both the owner and annuitant: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the annuity account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature, adjusted for any subsequent withdrawals. o No withdrawal charges, if any, will apply to any withdrawals by the beneficiary. If the owner and annuitant are not the same person: o If the beneficiary continuation option is elected, the beneficiary automatically becomes the new annuitant of the contract, replacing the existing annuitant. o The annuity account value will not be reset to the death benefit amount. o The contract's withdrawal charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments; the contract's free corridor amount will continue to apply to withdrawals but does not apply to surrenders. o We do not impose a withdrawal charge on scheduled payments except if, when added to any withdrawals previously taken in the same contract year, including for this purpose a contract surrender, the total amount of withdrawals and scheduled payments exceed the free corridor amount. See the "Withdrawal charges" in "Charges and expenses" earlier in this Prospectus. If a contract is jointly owned: o The surviving owner supersedes any other named beneficiary and may elect the beneficiary continuation option. o If the deceased joint owner was also the annuitant, see "If you are both the owner and annuitant" earlier in this section. o If the deceased joint owner was not the annuitant, see "If the owner and annuitant are not the same person" earlier in this section. Payment of death benefit 67 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Elite(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth Conversion IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Elite(SM)'s Guaranteed minimum income benefit, the Principal Protector(SM) benefit, dollar cost averaging, choice of death benefits, selection of variable investment options, guaranteed interest option, fixed maturity options and its choices of payout options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, the guaranteed minimum income benefit and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase additional features under this annuity contract. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. 68 Tax information ANNUITY PAYMENTS Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your "investment in the contract." Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. PROTECTION PLUS(SM) FEATURE In order to enhance the amount of the death benefit to be paid at the Annuitant's death, you may have purchased a Protection Plus(SM) rider for your NQ contract. Although we regard this benefit as an investment protection feature which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Protection Plus(SM) rider is not part of the contract. In such a case, the charges for the Protection Plus(SM) rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable, and for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, AXA Equitable would take all reasonable steps to attempt to avoid this result, which could include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES The following information applies if you purchased your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange was not taxable under Section 1035 of the Internal Revenue Code if: o the contract that was the source of the funds you used to purchase the NQ contract was another nonqualified deferred annuity contract (or life insurance or endowment contract). o The owner and the annuitant were the same under the source contract and the Accumulator(R) Elite(SM) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must have been the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carried over to the Accumulator(R) Elite(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between carriers, and provision of cost basis information may be required to process this type of an exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. BENEFICIARY CONTINUATION OPTION We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for NQ contracts. See the discussion "Beneficiary continuation option for NQ Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2;" o scheduled payments, any additional withdrawals under "Withdrawal Option 2," or contract surrenders under "Withdrawal Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the Withdrawal Option selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling does not specifically address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether Tax information 69 scheduled payments or any withdrawal that might be taken). The ruling also does not address the effect of the retention of the Principal Protector(SM) feature discussed earlier in this Prospectus under "Contract features and benefits," which a non-spousal beneficiary may elect under certain conditions. Before electing the beneficiary continuation option feature, the individuals you designate as beneficiary or successor owner should discuss with their tax advisers the consequences of such elections. The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Accounts 45 and 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Accounts 45 and 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Accounts 45 and 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets for the benefit of the IRA owner. The assets funding the account typically include mutual funds and/or individual stocks and/or securities in a custodial account and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may have purchased the contract as either a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We also offered the Inherited IRA for payment of post-death required minimum distributions from traditional IRAs and Roth IRAs. We currently do not offer traditional IRA contracts for use as employer-funded SEP-IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS required you to have before you purchased an IRA. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). For some of the contracts covered by this Prospectus, we have received an opinion letter from the IRS approving the respective forms of the Accumulator(R) Elite(SM) traditional and Roth IRA contracts for use as a traditional IRA and a Roth IRA, respectively. For others, we have not applied for an opinion letter from the IRS to approve the respective forms of the Accumulator(R) Elite(SM) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. We have submitted 70 Tax information the respective forms of the Accumulator(R) Elite(SM) Inherited IRA beneficiary continuation contract to the IRS for approval as to form for use as a traditional IRA or Roth IRA, respectively. We do not know if and when any such approval may be granted. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under any series of Accumulator(R) Elite(SM) traditional and Roth IRA contracts. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS This is provided for informational purposes only. Since this contract is no longer available to new purchasers, this cancellation provision is no longer applicable. You can cancel any version of the Accumulator(R) Elite(SM) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel with in a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS) CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers") REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS LIMITS ON CONTRIBUTIONS. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch up contributions" of up to $1,000 to your traditional IRA. SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored-tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. IF YOU ARE NOT COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, you can make FULLY DEDUCTIBLE contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions." That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your adjusted gross income (AGI) is BELOW THE LOWER DOLLAR FIGURE IN A PHASE-OUT RANGE, you can make FULLY DEDUCTIBLE contributions to your traditional IRAs. IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your AGI falls WITHIN A PHASE-OUT RANGE, you can make PARTIALLY DEDUCTIBLE contributions to your traditional IRAs. IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your AGI falls ABOVE THE HIGHER FIGURE IN THE PHASE-OUT RANGE, you MAY NOT DEDUCT any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits to deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-- Tax information 71 sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted -------------------- x regular = deductible divided by $10,000 contribution contribution for the year limit ADDITIONAL "SAVER'S CREDIT" FOR CONTRIBUTIONS TO A TRADITIONAL IRA OR ROTH IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000 ($53,000 after cost of living indexing adjustment for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution, and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. ROLLOVER AND TRANSFER CONTRIBUTIONS TO TRADITIONAL IRAS Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. ROLLOVERS FROM "ELIGIBLE RETIREMENT PLANS" OTHER THAN TRADITIONAL IRAS Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A nonspousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. 72 Tax information o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan, or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN TRADITIONAL IRAS Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan, or governmental employer 457(b) plan. ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A nonspousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. EXCESS CONTRIBUTIONS Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contribution amount for the applicable taxable year); or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. RECHARACTERIZATIONS Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as tradi- Tax information 73 tional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan, or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, 403(b) plan, or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. REQUIRED MINIMUM DISTRIBUTIONS BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing, Please consult your tax adviser concerning applicability of these complex rules to your situation. LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. WHEN YOU HAVE TO TAKE THE FIRST LIFETIME REQUIRED MINIMUM DISTRIBUTION. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year--the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional 74 Tax information IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON THE METHOD YOU CHOOSE? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. HOWEVER, NOTE THAT WE NEED AN INDIVIDUAL ANNUITANT TO KEEP AN ANNUITY CONTRACT IN FORCE. IF THE BENEFICIARY IS NOT AN INDIVIDUAL, WE MUST DISTRIBUTE AMOUNTS REMAINING IN THE ANNUITY CONTRACT AFTER THE DEATH OF THE ANNUITANT. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." PLEASE NOTE THAT WE NEED AN INDIVIDUAL ANNUITANT TO KEEP AN ANNUITY CONTRACT IN FORCE. IF THE BENEFICIARY IS NOT AN INDIVIDUAL, WE MUST DISTRIBUTE AMOUNTS REMAINING IN THE ANNUITY CONTRACT AFTER THE DEATH OF THE ANNUITANT. Tax information 75 SUCCESSOR OWNER AND ANNUITANT If your spouse is the sole primary beneficiary and elects to become the successor owner and annuitant, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH IRA death benefits are taxed the same as IRA distributions. BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special federal income tax definition); or o used to pay medical insurance premiums for unemployed individuals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special federal income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies using an IRS-approved distribution method. To meet the substantially equal periodic payment exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" above. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under this option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Elite(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. CONTRIBUTIONS TO ROTH IRAS Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eligible retirement plans ("conversion rollover" contributions); or o tax-free rollover contributions from other Roth individual retirement arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. REGULAR CONTRIBUTIONS TO ROTH IRAS LIMITS ON REGULAR CONTRIBUTIONS. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the years is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions totaling of up to $1,000. 76 Tax information With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008 $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. WHEN YOU CAN MAKE CONTRIBUTIONS. Same as traditional IRAs. DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible. ROLLOVERS AND DIRECT TRANSFERS WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make a rollover between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. CONVERSION ROLLOVER CONTRIBUTIONS TO ROTH IRAS In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA--whether or not it is the traditional IRA you are converting--a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) Tax information 77 You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. RECHARACTERIZATIONS You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. HOW TO RECHARACTERIZE. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. DISTRIBUTIONS FROM ROTH IRAS Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. QUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or 78 Tax information o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contributions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. REQUIRED MINIMUM DISTRIBUTIONS DURING LIFE Lifetime required minimum distributions do not apply. REQUIRED MINIMUM DISTRIBUTIONS AT DEATH Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the required Beginning Date. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS Same as traditional IRA. EXCESS CONTRIBUTIONS Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. EARLY DISTRIBUTION PENALTY TAX Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL The following information reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- Tax information 79 FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) ELITE(SM) TSA CONTRACT Because the Accumulator(R) Elite(SM) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Elite(SM) TSA contract are extremely limited as described below. Accumulator(R) Elite(SM) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Elite(SM) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Elite(SM) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Elite(SM) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Elite(SM) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as 80 Tax information well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) annuity contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) Elite(SM) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Elite(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary Tax information 81 reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Elite(SM) Rollover TSA contract, we do not track your investment in the contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Plus(SM) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. 82 Tax information In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Elite(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Elite(SM) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or Tax information 83 o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribution from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or 84 Tax information o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT ON TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. Tax information 85 8. More information - -------------------------------------------------------------------------------- ABOUT OUR SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts we have earned. The results of the Separate Account's operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Account invests solely in class IB/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from the Separate Account or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in the prospectuses for each Trust, which generally accompany this Prospectus, or in the respective SAIs which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below: - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 - -------------------------------------------------------------------------------- 86 More information - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2013 3.00%* $ 86.25 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - -------------------------------------------------------------------------------- * Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw any of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMOs maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. Any withdrawal charges that are deducted from a fixed maturity option will result in a market value adjustment calculated in the same way. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) above would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined by using a widely published index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and the fixed maturity options, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is not registered as an investment company under the Investment Com- More information 87 pany Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accepted the wire order and essential information, a contract generally was not issued until we received and accepted a properly completed application. In certain cases, we may have issued a contract based on information provided through certain broker-dealers with whom we have established electronic facilities. In any such cases, you must have signed our Acknowledgement of Receipt form. Where we required a signed application, the above procedures did not apply and no financial transactions were permitted until we received the signed application and issued the contract. Where we issued a contract based on information provided through electronic facilities, we required an Acknowledgement of Receipt form. Financial transactions were only permitted if you requested them in writing, signed the request and have it signature guaranteed, until we received the signed Acknowledgement of Receipt form. After a contract is issued, additional contributions are allowed by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, QP, Inherited IRA Beneficiary Continuation (traditional IRA or Roth IRA) or Rollover TSA contracts, nor is it available with GPB Option 2. Please see Appendix VIII later in this Prospectus to see if the automatic investment program is available in your state. The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance 88 More information with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Initial contributions allocated to the account for special dollar cost averaging received the interest rate in effect on that business day. At certain times, we may have offered the opportunity to lock in the interest rate for an initial contribution to be received under Section 1035 exchanges and trustee to trustee transfers. Your financial professional can provide information, or you can call our processing office. o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; or o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in the prospectuses for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustee or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. One result of proportional voting is that a small number of contract owners may control the outcome of a vote. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or distribution of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until More information 89 we receive written notification of any change at our processing office. You cannot assign your NQ contract as collateral or security for a loan. Loans are also not available under your NQ contract. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. For NQ contracts only, subject to regulatory approval, if you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, Protection Plus(SM) death benefit, Guaranteed principal benefit option 2 and/or the Principal Protector(SM) ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made - -- for certain contract owners, this restriction may not apply to you, depending on when you purchased your contract. See Appendix IX later in this Prospectus for more information. However, the Benefit will not terminate if the ownership of the contract is transferred to: (i) a family member (as defined in the contract); (ii) a trust created for the benefit of a family member or members; (iii) a trust qualified under section 501(c) of the Internal Revenue Code; or (iv) a successor by operation of law, such as an executor or guardian. Please speak with your financial professional for further information. See Appendix VIII later in this Prospectus for any state variations with regard to terminating any benefits under your contract. You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available (except for Rollover TSA contracts) and you cannot assign Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts as security for a loan or other obligation. If the employer that provided the funds does not restrict them, loans are available under a Rollover TSA contract. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract to another similar arrangement under federal income tax rules. In the case of such a transfer, which involves a surrender of your contract, we will impose a withdrawal charge, if one applies. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 1.20% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 6.50% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based 90 More information compensation which AXA Distributors pays to the Selling broker-dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) Elite(SM) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable product. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. More information 91 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa- equitable.com. 92 Incorporation of certain documents by reference Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.65%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------ 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.09 $ 14.45 $ 12.46 $ 11.72 $ 10.66 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 64,596 32,813 12,508 4,674 195 - ------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.79 $ 11.33 $ 10.83 $ 10.75 $ 10.31 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 10,068 5,935 3,738 1,736 116 - ------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.43 $ 11.98 $ 11.20 $ 11.03 $ 10.41 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 23,580 16,150 9,271 3,928 215 - ------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.13 $ 12.57 $ 11.58 $ 11.24 $ 10.51 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 117,390 83,885 52,197 21,440 970 - ------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.48 $ 13.84 $ 12.29 $ 11.72 $ 10.67 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 240,939 152,231 69,680 21,528 560 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.93 $ 13.69 $ 12.58 $ 12.26 $ 10.92 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,057 7,207 5,402 2,957 158 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.74 $ 10.22 $ 10.07 $ 10.12 $ 10.09 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,177 1,691 1,398 905 69 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.68 $ 17.91 $ 14.74 $ 13.00 $ 11.19 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 12,529 7,675 3,716 1,270 66 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.66 $ 12.19 $ 12.46 $ 11.02 $ 10.34 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,311 2,506 1,386 595 44 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.96 $ 10.66 $ 10.44 $ 10.40 $ 10.20 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,138 3,340 2,303 1,119 95 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.27 $ 14.18 $ 13.22 $ 12.06 $ 10.75 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,846 2,926 1,783 913 81 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.17 $ 15.10 $ 12.65 $ 12.20 $ 10.93 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 19,894 14,100 9,522 5,080 310 - ------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.00 $ 11.32 $ 10.35 -- -- - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,556 907 118 -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.10 $ 10.92 $ 10.95 $ 10.35 $ 10.16 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,847 3,611 2,568 878 43 - ------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.23 $ 14.30 $ 12.02 $ 11.87 $ 10.92 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,001 5,785 4,888 3,020 210 - ------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.38 $ 17.89 $ 14.47 $ 13.27 $ 11.09 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,184 7,223 4,026 1,161 30 - ------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.74 $ 6.61 $ 5.80 $ 5.55 -- - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,771 4,814 3,177 208 -- - ------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.04 $ 11.83 $ 11.43 $ 10.68 $ 10.49 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 982 894 571 194 5 - ------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.24 $ 11.80 $ 11.17 $ 10.80 $ 10.41 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,279 6,225 2,419 273 15 - ------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.44 $ 13.44 $ 12.20 $ 11.69 $ 10.72 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 17,200 6,674 4,879 2,900 86 - ------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.14 $ 11.02 $ 10.38 -- -- - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,709 1,957 563 -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.06 $ 10.84 -- -- -- - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,823 1,788 -- -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.00 $ 13.56 $ 11.98 $ 11.67 $ 10.76 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 11,756 9,866 7,495 4,181 204 - ------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.65 $ 9.91 $ 9.74 -- -- - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,959 2,013 172 -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.11 $ 11.98 $ 11.50 $ 11.25 $ 10.69 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,691 1,979 1,528 1,146 126 - ------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.77 $ 14.84 $ 13.53 $ 12.93 $ 11.33 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 10,337 8,706 5,920 3,260 291 - ------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.46 $ 10.42 -- -- -- - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 19,931 3,992 -- -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.71 $ 10.81 -- -- -- - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,069 384 -- -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.50 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 36,003 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.77 $ 11.57 $ 10.48 -- -- - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,502 1,759 442 -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 27.94 $ 26.00 $ 22.24 $ 21.68 -- - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,011 1,796 802 76 -- - ------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------- Unit value $ 19.11 $ 16.87 $ 14.38 $ 12.48 $ 11.17 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,092 11,624 7,243 3,564 178 - ------------------------------------------------------------------------------------------------------------- EQ/International Growth - ------------------------------------------------------------------------------------------------------------- Unit value $ 16.21 $ 14.18 $ 11.48 -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,860 1,674 373 -- -- - ------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------- Unit value $ 10.89 $ 10.74 $ 10.50 $ 10.44 $ 10.20 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 14,134 11,680 7,995 3,501 284 - ------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------- Unit value $ 14.06 $ 14.47 $ 12.22 $ 11.96 $ 10.97 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,094 1,769 1,018 473 42 - ------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------- Unit value $ 13.85 $ 13.56 $ 12.21 $ 11.58 $ 10.57 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,364 1,455 1,271 643 69 - ------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------- Unit value $ 14.66 $ 12.89 $ 12.16 $ 11.34 $ 10.24 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,960 1,215 705 369 29 - ------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------- Unit value $ 10.34 $ 11.17 $ 10.63 -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,005 5,957 563 -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------- Unit value $ 10.55 $ 9.99 $ 9.98 -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,635 878 743 -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------- Unit value $ 12.41 $ 12.19 $ 10.58 -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,773 3,163 874 -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------- Unit value $ 12.71 $ 11.68 $ 10.54 -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,698 1,248 527 -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------- Unit value $ 12.17 $ 12.30 $ 11.13 -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,885 5,585 2,163 -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------- Unit value $ 15.09 $ 13.45 $ 12.51 $ 11.49 $ 10.57 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 25,093 20,022 11,881 5,249 435 - ------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------- Unit value $ 15.00 $ 15.51 $ 14.02 $ 12.80 $ 11.04 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,668 6,490 4,526 2,213 149 - ------------------------------------------------------------------------------------------------------------- EQ/Money Market - ------------------------------------------------------------------------------------------------------------- Unit value $ 10.55 $ 10.24 $ 9.97 $ 9.87 $ 9.96 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 8,854 4,632 2,041 1,005 42 - ------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------- Unit value $ 5.69 $ 4.79 $ 4.51 $ 4.35 -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,503 1,430 883 38 -- - ------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------- Unit value $ 10.70 $ 10.70 -- -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,811 2,470 -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------- Unit value $ 11.52 $ 11.08 -- -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,779 367 -- -- -- - -------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------- Unit value $ 11.11 $ 10.92 -- -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 743 133 -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------- Unit value $ 10.71 $ 11.09 -- -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,662 182 -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------- Unit value $ 10.73 $ 9.79 $ 9.91 -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 14,527 8,303 3,300 -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------- Unit value $ 10.55 $ 10.18 $ 9.96 -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,217 1,594 402 -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------- Unit value $ 14.21 $ 14.72 $ 12.72 $ 12.40 $ 10.71 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,773 4,061 2,210 1,215 79 - ------------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------- Unit value $ 16.46 $ 15.61 $ 16.53 $ 16.17 -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,120 907 526 22 -- - ------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------- Unit value $ 10.79 $ 10.75 -- -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,518 2,001 -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------- Unit value $ 6.07 $ 6.10 $ 5.43 $ 5.07 -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,079 2,346 952 71 -- - ------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------- Unit value $ 11.38 $ 11.86 $ 10.41 -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,921 7,856 2,852 -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------- Unit value $ 34.34 $ 24.59 $ 18.24 $ 13.97 $ 11.48 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 8,306 6,050 3,408 1,047 46 - ------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------- Unit value $ 15.97 $ 13.27 $ 12.35 -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,059 2,350 533 -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------- Unit value $ 8.27 -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 11,901 -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------- Unit value $ 14.17 $ 12.93 $ 12.51 $ 11.75 $ 10.66 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,191 976 442 210 15 - ------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------- Unit value $ 11.08 $ 10.61 $ 10.39 $ 10.38 $ 10.16 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,566 5,315 4,566 2,210 301 - ------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ------------------------------------------------------------------------------------------------------------- Unit value $ 13.61 $ 12.70 $ 12.28 $ 11.67 $ 10.59 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,083 3,143 1,765 716 86 - ------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ------------------------------------------------------------------------------------------------------------- Unit value $ 12.58 $ 12.40 $ 11.47 $ 11.32 $ 10.59 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,716 6,956 5,292 3,135 282 - ------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ------------------------------------------------------------------------------------------------------------- Unit value $ 20.15 $ 18.23 $ 14.79 $ 13.02 $ 11.23 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,136 5,220 2,536 1,127 65 - -------------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------- Unit value $ 13.82 $ 13.38 $ 11.98 $ 11.41 $ 10.58 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,624 1,487 1,016 456 20 - ------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------- Unit value $ 12.49 $ 11.42 $ 11.59 $ 10.97 $ 10.45 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,875 3,137 2,204 1,141 59 - ------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------- Unit value $ 15.69 $ 15.40 $ 13.12 $ 12.46 $ 11.07 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,335 5,165 3,109 1,455 59 - ------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------- Unit value $ 14.63 $ 13.30 $ 12.33 $ 11.57 $ 10.53 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,883 3,570 2,515 1,381 97 - ------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------- Unit value $ 14.60 $ 14.83 $ 13.15 $ 12.45 $ 10.99 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,025 3,627 2,566 1,506 103 - ------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------- Unit value $ 8.75 $ 8.58 $ 7.91 $ 7.49 -- - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,231 3,530 1,416 31 -- - ------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------- Unit value $ 13.12 $ 14.80 $ 12.96 $ 12.59 $ 10.93 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,224 7,719 5,307 2,979 191 - ------------------------------------------------------------------------------------------------------------- Multimanager Technology - ------------------------------------------------------------------------------------------------------------- Unit value $ 14.29 $ 12.29 $ 11.65 $ 10.64 $ 10.31 - ------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,743 2,164 1,431 675 35 - -------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-5 The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.60%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ---------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------- 2007 2006 2005 2004 2003 - ---------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 13.65 $ 13.07 $ 11.26 $ 10.59 -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,517 3,308 1,298 726 -- - ---------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 11.28 $ 10.84 $ 10.35 $ 10.27 -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,731 1,508 1,073 686 -- - ---------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 11.71 $ 11.28 $ 10.54 $ 10.37 -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,825 1,741 1,299 787 -- - ---------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 49.36 $ 47.21 $ 43.48 $ 42.17 $ 39.41 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,439 3,955 4,167 3,907 2,733 - ---------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 13.14 $ 12.55 $ 11.14 $ 10.61 -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 10,293 11,247 7,926 3,664 -- - ---------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 251.49 $ 247.00 $ 226.77 $ 220.94 $ 196.75 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 377 490 586 683 689 - ---------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 19.14 $ 18.20 $ 17.94 $ 18.01 $ 17.95 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,956 2,358 2,881 3,326 3,448 - ---------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 19.66 $ 17.88 $ 14.71 $ 12.97 $ 11.15 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,456 4,168 4,498 4,337 4,026 - ---------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 7.69 $ 6.86 $ 7.01 $ 6.19 $ 5.81 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 9,407 11,991 14,352 15,822 17,115 - ---------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 16.29 $ 15.84 $ 15.50 $ 15.45 $ 15.13 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,861 2,329 2,753 2,951 3,122 - ---------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 20.36 $ 17.73 $ 16.53 $ 15.07 $ 13.43 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,356 3,069 3,839 4,346 4,534 - ---------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 16.48 $ 17.54 $ 14.69 $ 14.16 $ 12.68 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 13,726 13,777 15,585 17,155 15,959 - ---------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 11.02 $ 11.33 $ 10.36 -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 89 99 53 -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 10.86 $ 10.69 $ 10.71 -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 344 669 1,084 -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 23.49 $ 23.60 $ 19.83 $ 19.58 $ 17.99 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,711 3,644 4,227 4,909 4,335 - ---------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 24.23 $ 22.35 $ 18.07 $ 16.57 $ 13.84 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,272 4311 4,992 5,077 5,316 - ---------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 6.78 $ 6.64 $ 5.82 $ 5.57 -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 684 907 1,277 370 -- - ---------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------- 2002 2001 2000 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 33.62 $ 39.15 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 598 97 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 133.70 $ 203.81 $ 232.08 $ 275.01 $ 223.79 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 581 661 618 255 35 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.86 $ 16.72 $ 15.75 $ 14.70 -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,501 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.38 $ 9.48 $ 12.56 $ 16.61 -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 604 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 4.79 $ 7.07 $ 9.45 $ 11.77 -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 16,550 18,765 17,412 5,630 -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.85 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,064 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.69 $ 14.11 $ 16.53 $ 14.78 $ 11.77 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,377 3,423 3,189 818 211 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.01 $ 11.78 $ 11.61 $ 12.04 $ 11.81 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 8,615 6,000 3,700 1,532 315 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.94 $ 17.00 $ 16.37 $ 14.88 $ 12.71 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,235 1,559 1,079 173 -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.98 $ 13.39 $ 17.34 $ 20.10 $ 12.75 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,555 3,126 2,033 771 422 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------
A-6 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------- Unit value $ 9.79 $ 8.87 $ 8.57 $ 8.01 $ 7.86 - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 250 367 468 498 478 - ------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------- Unit value $ 13.28 $ 12.80 $ 12.11 $ 11.71 $ 11.27 - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,030 2,547 2,581 2,715 2,971 - ------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------- Unit value $ 12.83 $ 12.82 $ 11.63 $ 11.14 $ 10.21 - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 16,294 9,568 11,228 12,694 12,682 - ------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------- Unit value $ 11.15 $ 11.03 $ 10.38 -- -- - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 246 247 113 -- -- - ------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------- Unit value $ 11.06 $ 10.84 -- -- -- - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 634 332 -- -- -- - ------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------- Unit value $ 29.96 $ 29.01 $ 25.62 $ 24.94 $ 22.99 - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,391 8,474 10,127 11,584 11,512 - ------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------- Unit value $ 10.66 $ 9.92 $ 9.74 -- -- - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 777 471 36 -- -- - ------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------- Unit value $ 9.58 $ 8.74 $ 8.39 $ 8.20 $ 7.79 - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,455 1,731 2,184 2,500 2,016 - ------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------- Unit value $ 13.45 $ 12.66 $ 11.53 $ 11.02 $ 9.65 - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,276 8,561 10,309 11,422 10,509 - ------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------- Unit value $ 10.46 $ 10.42 -- -- -- - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,051 730 -- -- -- - ------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------- Unit value $ 9.72 $ 10.81 -- -- -- - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 73 51 -- -- -- - ------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------- Unit value $ 9.50 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,153 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------- Unit value $ 11.78 $ 11.58 $ 10.49 -- -- - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 230 268 107 -- -- - ------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------- Unit value $ 28.22 $ 26.24 $ 22.44 $ 21.86 -- - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 300 291 339 74 -- - ------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------- Unit value $ 16.15 $ 14.24 $ 12.14 $ 10.53 $ 9.42 - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 7,394 9,957 11,032 11,933 10,611 - ------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ------------------------------------------------------------------------------------------------------------------- Unit value $ 16.23 $ 14.19 $ 11.48 -- -- - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 409 273 98 -- -- - ------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------- Unit value $ 14.21 $ 14.01 $ 13.68 $ 13.60 $ 13.28 - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 10,140 12,428 14,021 15,208 16,175 - ------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------- Unit value $ 15.24 $ 15.68 $ 13.24 $ 12.94 $ 11.86 - ------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,182 4,115 4,803 5,325 5,701 - ------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------- 2002 2001 2000 1999 1998 - ----------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 6.24 $ 8.62 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 128 13 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 9.24 $ 12.75 $ 17.16 $ 21.20 $ 16.54 - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,171 2,221 1,658 576 282 - ----------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 7.89 $ 10.65 $ 11.04 $ 10.60 -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 9,408 3,151 2,953 987 -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ----------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ----------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 18.28 $ 23.93 $ 27.69 -- -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 7,152 6,601 6,057 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ----------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 5.73 $ 7.66 $ 9.38 $ 10.80 -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 424 141 78 6 -- - ----------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 6.83 $ 8.51 $ 9.99 -- -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,322 2,644 617 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ----------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ----------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ----------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ----------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ----------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 7.22 $ 8.64 $ 11.09 $ 13.93 -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 5,973 5,697 5,514 1,286 -- - ----------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ----------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 13.05 $ 12.10 $ 11.40 $ 10.39 $ 10.73 - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 13,419 10,537 5,112 2,026 379 - ----------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 9.51 $ 11.94 $ 13.02 $ 12.39 $ 12.76 - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,777 4,156 1,755 978 714 - -----------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-7 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.60 $ 10.37 $ 9.33 $ 8.84 $ 8.07 $ 6.72 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 5,022 6,684 7,849 8,941 9,707 8,237 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.75 $ 14.72 $ 13.88 $ 12.94 $ 11.68 $ 9.18 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,691 3,075 3,566 4,258 4,710 4,661 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.35 $ 11.18 $ 10.63 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 503 784 195 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.57 $ 10.00 $ 9.98 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 315 390 431 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.42 $ 12.20 $ 10.58 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 368 502 135 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.73 $ 11.69 $ 10.54 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 161 166 132 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.18 $ 12.31 $ 11.13 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 480 519 490 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.20 $ 16.22 $ 15.07 $ 13.84 $ 12.72 $ 9.86 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 7,491 10,192 11,276 11,463 10,296 2,423 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.58 $ 17.13 $ 15.47 $ 14.13 $ 12.18 $ 9.29 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,320 6,178 7,278 7,736 7,229 3,714 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 28.40 $ 27.57 $ 26.81 $ 26.55 $ 26.78 $ 27.06 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,889 3,996 4,058 4,693 6,370 9,288 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.72 $ 4.81 $ 4.53 $ 4.36 -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 656 206 172 19 -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.70 $ 10.70 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 748 372 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.53 $ 11.09 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 230 61 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.11 $ 10.92 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 66 21 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.72 $ 11.09 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 123 30 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.75 $ 9.80 $ 9.92 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,098 1,411 848 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.56 $ 10.19 $ 9.96 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 588 593 132 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.18 $ 16.75 $ 14.46 $ 14.10 $ 12.18 $ 8.48 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,100 2,912 3,372 3.996 4,084 1,913 - ---------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ----------------------------------------------------------------- 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.72 $ 8.64 $ 10.45 $ 10.70 -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 8,237 8,655 7,052 2,906 -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.18 $ 14.20 $ 21.88 $ 27.40 $ 16.03 - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,661 5,707 5,759 1,680 200 - ------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.86 $ 11.33 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,423 78 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.29 $ 11.07 $ 10.82 $ 10.45 -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,714 2,090 251 -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------ Unit value $ 27.06 $ 27.16 $ 26.65 $ 25.55 $ 24.80 - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 9,288 13,759 -- 9,875 5,805 - ------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.48 $ 10.90 $ 10.86 $ 11.42 $ 9.61 - ------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,913 1,535 1,382 522 211 - ------------------------------------------------------------------------------------------------------------------------------
A-8 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------------------- 2007 2006 2005 2004 2003 - --------------------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - --------------------------------------------------------------------------------------------------------------------- Unit value $ 16.62 $ 15.76 $ 16.68 $ 16.30 -- - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,641 104 146 19 -- - --------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - --------------------------------------------------------------------------------------------------------------------- Unit value $ 10.80 $ 10.75 -- -- -- - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 572 298 -- -- -- - --------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - --------------------------------------------------------------------------------------------------------------------- Unit value $ 6.10 $ 6.12 $ 5.45 $ 5.08 -- - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 300 397 286 69 -- - --------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - --------------------------------------------------------------------------------------------------------------------- Unit value $ 11.39 $ 11.87 $ 10.41 -- -- - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 424 647 410 -- -- - --------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - --------------------------------------------------------------------------------------------------------------------- Unit value $ 25.72 $ 18.41 $ 13.65 $ 10.45 $ 8.58 - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,354 4,518 5,043 4,587 4,232 - --------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - --------------------------------------------------------------------------------------------------------------------- Unit value $ 16.00 $ 13.28 $ 12.35 -- -- - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 507 322 172 -- -- - --------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - --------------------------------------------------------------------------------------------------------------------- Unit value $ 8.28 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 720 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - --------------------------------------------------------------------------------------------------------------------- Unit value $ 61.99 $ 56.56 $ 54.68 $ 51.36 $ 46.56 - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 233 292 331 388 429 - --------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - --------------------------------------------------------------------------------------------------------------------- Unit value $ 11.87 $ 11.36 $ 11.12 $ 11.11 $ 10.87 - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 5,230 6,686 7,527 8,293 8,217 - --------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - --------------------------------------------------------------------------------------------------------------------- Unit value $ 12.79 $ 11.94 $ 11.53 $ 10.96 $ 9.93 - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,241 1,865 2,078 2,231 1,758 - --------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - --------------------------------------------------------------------------------------------------------------------- Unit value $ 31.34 $ 30.88 $ 28.55 $ 28.15 $ 26.32 - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,743 3,798 4,585 5,526 5,467 - --------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - --------------------------------------------------------------------------------------------------------------------- Unit value $ 18.51 $ 16.73 $ 13.57 $ 11.94 $ 10.29 - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,972 2,676 2,300 2,160 1,684 - --------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - --------------------------------------------------------------------------------------------------------------------- Unit value $ 12.58 $ 12.18 $ 10.89 $ 10.37 $ 9.61 - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,291 1,745 1,956 2,038 1,850 - --------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - --------------------------------------------------------------------------------------------------------------------- Unit value $ 10.42 $ 9.52 $ 9.66 $ 9.13 $ 8.70 - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,015 4,202 4,551 4,852 4,258 - --------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - --------------------------------------------------------------------------------------------------------------------- Unit value $ 14.46 $ 14.18 $ 12.07 $ 11.46 $ 10.17 - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,218 4,325 4,766 4,712 3,848 - --------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - --------------------------------------------------------------------------------------------------------------------- Unit value $ 11.88 $ 10.79 $ 10.01 $ 9.38 $ 8.53 - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,156 4,520 5,281 6,078 5,628 - --------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - --------------------------------------------------------------------------------------------------------------------- Unit value $ 13.54 $ 13.75 $ 12.18 $ 11.53 $ 10.17 - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,710 3,885 4,432 5,059 3,927 - --------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - --------------------------------------------------------------------------------------------------------------------- Unit value $ 8.79 $ 8.61 $ 7.94 $ 7.51 -- - --------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 436 605 410 22 -- - --------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------------------------------- 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.59 $ 6.04 $ 6.47 $ 10.97 $ 5.70 - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,823 3,043 2,958 962 203 - ------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 34.41 $ 49.16 $ 66.77 $ 78.30 $ 67.13 - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 338 402 420 141 16 - ------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.64 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,282 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.88 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 398 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 21.83 $ 22.86 $ 23.07 $ 25.73 $ 27.12 - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,248 1,835 1,211 574 170 - ------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.79 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 553 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.62 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 635 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.77 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,299 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.89 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,272 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.18 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,488 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.35 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,262 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-9 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------------------------------- 2007 2006 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 17.05 $ 19.22 $ 16.83 $ 16.33 $ 14.17 - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,968 5,693 6,888 7,850 7,354 - ----------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 12.17 $ 10.46 $ 9.91 $ 9.05 $ 8.76 - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,564 3,343 4,090 4,725 1,117 - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------------------------- 2002 2001 2000 1999 1998 - ----------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.49 $ 12.37 $ 10.68 $ 9.15 $ 9.14 - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 5,021 3,274 2,109 98 344 - ----------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 5.65 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 205 -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------
A-10 Appendix I: Condensed financial information Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- This information is provided for historical purposes only. This contract is no longer available to new purchasers. Trustees who are considering the purchase of an Accumulator(R) Elite(SM) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the guaranteed minimum income benefit, and other guaranteed benefits and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) Elite(SM) QP contract or another annuity contracts. Therefore, you should purchase an Accumulator(R) Elite(SM) QP contract to fund a plan for the contract's features and benefits other than tax deferral, after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. We will not accept defined benefit plans. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or other contributions from the employer. For 401(k) plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge and/or market value adjustment may apply. AXA Equitable will not perform or provide any plan recordkeeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for participants after age 70-1/2, trustees should consider: o whether required minimum distributions under QP contracts would cause withdrawals in excess of 6% of the Guaranteed minimum income benefit Roll-Up benefit base; o that provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This may increase the amounts required to be distributed from the contract; and o that if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, payments will be made to the trustee. Finally, because the method of purchasing the QP contract, including the large initial contribution and the features of the QP contract may appeal more to plan participants who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisors whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. Appendix II: Purchase considerations for QP contracts B-1 Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00% ("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a).
- ------------------------------------------------------------------------------------------------------ Hypothetical assumed rate to maturity ("j" in the calculations below) February 15, 2012 ------------------------ 5.00% 9.00% - ------------------------------------------------------------------------------------------------------ As of February 15, 2012 before withdrawal - ------------------------------------------------------------------------------------------------------ (1) Market adjusted amount(b) $141,389 $121,737 - ------------------------------------------------------------------------------------------------------ (2) Fixed maturity amount(c) $131,104 $131,104 - ------------------------------------------------------------------------------------------------------ (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ------------------------------------------------------------------------------------------------------ On February 15, 2012 after $50,000 withdrawal - ------------------------------------------------------------------------------------------------------ (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ------------------------------------------------------------------------------------------------------ (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ------------------------------------------------------------------------------------------------------ (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ------------------------------------------------------------------------------------------------------ (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ------------------------------------------------------------------------------------------------------ (8) Maturity value(d) $111,099 $101,287 - ------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ where j is either 5% or 9% (1+j)(1,461/365) (1+j)(D/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) x (1+0.07)(1,461/365)
C-1 Appendix III: Market value adjustment example Appendix IV: Enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the enhanced death benefit, if elected. The following illustrates the enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option or the fixed maturity options or the Special 10 year fixed maturity option), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the enhanced death benefit for an annuitant age 45 would be calculated as follows: - -------------------------------------------------------------------------------- End of contract 6% Roll-Up to age 85 Annual Ratchet to age 85 year Account value benefit base(1) benefit base - -------------------------------------------------------------------------------- 1 $105,000 $ 106,000(1) $ 105,000(3) - -------------------------------------------------------------------------------- 2 $115,500 $ 112,360(2) $ 115,500(3) - -------------------------------------------------------------------------------- 3 $129,360 $ 119,102(2) $ 129,360(3) - -------------------------------------------------------------------------------- 4 $103,488 $ 126,248(1) $ 129,360(4) - -------------------------------------------------------------------------------- 5 $113,837 $ 133,823(1) $ 129,360(4) - -------------------------------------------------------------------------------- 6 $127,497 $ 141,852(1) $ 129,360(4) - -------------------------------------------------------------------------------- 7 $127,497 $ 150,363(1) $ 129,360(4) - -------------------------------------------------------------------------------- The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. 6% ROLL-UP TO AGE 85 (1) At the end of contract years 1 and 4 through 7, the 6% Roll-Up to age 85 enhanced death benefit is greater than the current account value. (2) At the end of contract years 2 and 3, the 6% Roll-Up to age 85 enhanced death benefit is equal to the current account value. ANNUAL RATCHET TO AGE 85 (3) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (4) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. GREATER OF 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown is the greater of the amounts shown under the 6% Roll-Up to age 85. Appendix IV: Enhanced death benefit example D-1 Appendix V: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85" Guaranteed minimum death benefit, the Protection Plus(SM) benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Elite(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying portfolios (as described below), the corresponding net annual rates of return would be (2.88)% and 3.12% for the Accumulator(R) Elite(SM) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges, but they do not reflect the charges we deduct from your account value annually for the optional Guaranteed minimum death benefit, Protection Plus(SM) benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return would be lower; however, the values shown in the following tables reflect the following contract charges: the "Greater of 6% Roll-Up to age 85 and the Annual Ratchet to age 85" Guaranteed minimum death benefit charge, the Protection Plus(SM) benefit charge and the Guaranteed minimum income benefit charge and any applicable administrative charge and withdrawal charge. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios, as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this Prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. E-1 Appendix V: Hypothetical illustrations I Variable deferred annuity Accumulator(R) Elite(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Greater of 6% Roll-Up or the Annual Ratchet to age 85 Guaranteed minimum death benefit Protection Plus Guaranteed minimum income benefit
Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 Guaranteed Minimum Death Benefit ------------------- Account Value Cash Value Contract ------------------- ------------------ Age Year 0% 6% 0% 6% 0% 6% - ----- --------- --------- --------- -------- --------- --------- --------- 60 1 100,000 100,000 92,000 92,000 100,000 100,000 61 2 95,455 101,434 88,455 94,434 106,000 106,000 62 3 90,977 102,828 84,977 96,828 112,360 112,360 63 4 86,559 104,177 81,559 99,177 119,102 119,102 64 5 82,194 105,473 82,194 105,473 126,248 126,248 65 6 77,874 106,710 77,874 106,710 133,823 133,823 66 7 73,594 107,881 73,594 107,881 141,852 141,852 67 8 69,344 108,978 69,344 108,978 150,363 150,363 68 9 65,119 109,993 65,119 109,993 159,385 159,385 69 10 60,911 110,916 60,911 110,916 168,948 168,948 74 15 39,780 113,792 39,780 113,792 226,090 226,090 79 20 17,740 112,592 17,740 112,592 302,560 302,560 84 25 0 105,201 0 105,201 0 404,893 89 30 0 103,820 0 103,820 0 429,187 94 35 0 105,349 0 105,349 0 429,187 95 36 0 105,681 0 105,681 0 429,187 Lifetime Annual Guaranteed Minimum Income Benefit ------------------------------------ Total Death Benefit with Protection Guaranteed Hypothetical Plus Income Income ------------------- ------------------ ----------------- Age 0% 6% 0% 6% 0% 6% - ----- --------- --------- --------- -------- --------- ------- 60 100,000 100,000 N/A N/A N/A N/A 61 108,400 108,400 N/A N/A N/A N/A 62 117,304 117,304 N/A N/A N/A N/A 63 126,742 126,742 N/A N/A N/A N/A 64 136,747 136,747 N/A N/A N/A N/A 65 147,352 147,352 N/A N/A N/A N/A 66 158,593 158,593 N/A N/A N/A N/A 67 170,508 170,508 N/A N/A N/A N/A 68 183,139 183,139 N/A N/A N/A N/A 69 196,527 196,527 N/A N/A N/A N/A 74 276,527 276,527 14,266 14,266 14,266 14,266 79 383,584 383,584 20,393 20,393 20,393 20,393 84 0 493,179 0 34,821 0 34,821 89 0 517,472 N/A N/A N/A N/A 94 0 517,472 N/A N/A N/A N/A 95 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. Appendix V: Hypothetical illustrations E-2 Appendix VI: Guaranteed principal benefit example - -------------------------------------------------------------------------------- For purposes of these examples, we assume that there was an initial contribution of $100,000, made to the contract on February 15, 2008. We also assume that no additional contributions, no transfers among options and no withdrawals from the contract are made. For GPB Option 1, the example also assumes that a 10 year fixed maturity option is chosen. The hypothetical gross rates of return with respect to amounts allocated to the variable investment options are 0%, 6% and 10%. The numbers below reflect the deduction of all applicable separate account and contract charges and also reflect the charge for GPB Option 2. Also, for any given performance of your variable investment options, GPB Option 1 produces higher account values than GPB Option 2 unless investment performance has been significantly positive. The examples should not be considered a representation of past or future expenses. Similarly, the annual rates of return assumed in the example are not an estimate or guarantee of future investment performance. GPB Options 1 and 2 were only available at issue. The dates in the example are provided for illustrative purposes only. - ----------------------------------------------------------------------------------------------------------- Assuming 100% in variable Assuming 100% Under GPB Under GPB investment in FMO Option 1 Option 2 options - ----------------------------------------------------------------------------------------------------------- Amount allocated to FMO on February 15, 2008 based upon a 4.01% rate to maturity 100,000 67,470 40,000 - - ----------------------------------------------------------------------------------------------------------- Initial account value allocated to the variable investment options on February 15, 2008 0 32,530 60,000 100,000 - ----------------------------------------------------------------------------------------------------------- Account value in the fixed maturity option on Feb- ruary 15, 2018 148,215 100,000 59,286 0 - ----------------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018 , assuming a 0% gross rate of return) 148,215 124,287 100,000 * 74,660 - ----------------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018 , assuming a 6% gross rate of return) 148,215 144,230 134,087 ** 135,966 - ----------------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018 , assuming a 10% gross rate of return) 148,215 164,713 169,494 ** 198,932 - -----------------------------------------------------------------------------------------------------------
* Since the annuity account value is less than the alternate benefit under GPB Option 2, the annuity account value is adjusted upward to the guaranteed amount or an increase of $3,150 in this example ** Since the annuity account value is greater than the alternate benefit under GPB Option 2, GPB Option 2 will not affect the annuity account value. F-1 Appendix VI: Guaranteed principal benefit example Appendix VII: Protection Plus(SM) example - -------------------------------------------------------------------------------- The following illustrates the calculation of a death benefit that includes Protection Plus for an annuitant age 45. The example assumes a contribution of $100,000 and no additional contributions. Where noted, a single withdrawal in the amount shown is also assumed. If you purchased your contract after approximately September 2003, the example shown in the second and third columns apply. For all other contract owners, the example in the last two columns apply. The calculation is as follows: - -------------------------------------------------------------------------------- A Initial Contribution - -------------------------------------------------------------------------------- B Death Benefit: prior to withdrawal.* - -------------------------------------------------------------------------------- Protection Plus Earnings: Death Benefit less net C contributions (prior to the withdrawal in D). B minus A. - -------------------------------------------------------------------------------- D Withdrawal - -------------------------------------------------------------------------------- Withdrawal % as a % of AV (assuming Death E Benefit = AV) greater of D divided by B - -------------------------------------------------------------------------------- Excess of the withdrawal over the Protection Plus F earnings greater of D minus C or zero - -------------------------------------------------------------------------------- G Net Contributions (adjusted for the withdrawal in D) A reduced for E or F - -------------------------------------------------------------------------------- H Death Benefit (adjusted for the withdrawal in D) B minus D - -------------------------------------------------------------------------------- I Death Benefit less Net Contributions H minus G - -------------------------------------------------------------------------------- J Protection Plus Factor - -------------------------------------------------------------------------------- K Protection Plus Benefit I times J - -------------------------------------------------------------------------------- L Death Benefit: Including Protection Plus H plus K - --------------------------------------------------------------------------------
$3000 $6000 withdrawal - withdrawal - No $3000 $6000 Pro rata Pro rata Withdrawal withdrawal withdrawal Treatment Treatment - -------------------------------------------------------------------------------- A 100,000 100,000 100,000 100,000 100,000 - -------------------------------------------------------------------------------- B 104,000 104,000 104,000 104,000 104,000 - -------------------------------------------------------------------------------- C 4,000 4,000 4,000 N/A N/A - -------------------------------------------------------------------------------- D 0 3,000 6,000 3,000 6,000 - -------------------------------------------------------------------------------- E 0.00% N/A N/A 2.88% 5.77% - -------------------------------------------------------------------------------- F 0 0 2,000 N/A N/A - -------------------------------------------------------------------------------- G 100,000 100,000 98,000 97,115 94,231 - -------------------------------------------------------------------------------- H 104,000 101,000 98,000 101,000 98,000 - -------------------------------------------------------------------------------- I 4,000 1,000 0 3,885 3,769 - -------------------------------------------------------------------------------- J 40% 40% 40% 40% 40% - -------------------------------------------------------------------------------- K 1,600 400 0 1,554 1,508 - -------------------------------------------------------------------------------- L 105,600 101,400 98,000 102,554 99,508 - --------------------------------------------------------------------------------
* The Death Benefit is the greater of the Account Value or any applicable death benefit Appendix VII: Protection Plus(SM) example G-1 Appendix VIII: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- Certain information is provided for historical purposes only. This contract is no longer available to new purchasers. The following information is a summary of the states where the Accumulator(R) Elite(SM) contract or certain features and/or benefits are either not available or vary from the contract's features and benefits as previously described in this Prospectus. Certain features and/or benefits may have been approved in your state after your contract was issued and can not be added. Please contact your financial professional for more information about availability in your state. See also the "Contract Variations" appendix later in this Prospectus for information about the availability of certain features and their charges, if applicable, under your contract. STATES WHERE CERTAIN ACCUMULATOR(R) ELITE(SM) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE OR HAVE CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- ------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------- CALIFORNIA See "Contract features and benefits"--"Your right to If you reside in the state of cancel within a certain number of days" California and you are age 60 and older at the time the contract is issued, you may return your vari- able annuity contract within 30 days from the date that you receive it and receive a refund as described below. If you allocate your entire initial contribution to the money market account (and/or guaranteed interest option, if available), the amount of your refund will be equal to your contribution less interest, unless you make a transfer, in which case the amount of your refund will be equal to your account value on the date we receive your request to cancel at our processing office. This amount could be less than your initial contribution. If you allocate any portion of your initial contribution to the variable investment options (other than the money market account) and/or fixed maturity options, your refund will be equal to your account value on the date we receive your request to cancel at our processing office. - ------------------------------------------------------------------------------------------------------------- FLORIDA See "Transfers of ownership, collateral assignments, The second paragraph in this loans and borrowing" in "More information section is deleted. - ------------------------------------------------------------------------------------------------------------- ILLINOIS See "Selecting an annuity payout option" under "Your Annuity payments may be elected annuity payout options" in "Accessing your money" twelve months from the con- tract date. - ------------------------------------------------------------------------------------------------------------- MARYLAND Fixed maturity options Not Available Guaranteed principal benefit option1 and Guaranteed Not Available principal benefit option 2 - ------------------------------------------------------------------------------------------------------------- MASSACHUSETTS Automatic investment program Not Available Annual administrative charge The annual administrative charge will not be deducted from amounts allocated to the Guaranteed interest option. See "How you can purchase and contribute to your Additional contributions are contract" in "Contract features and benefits" limited to the first two years after the contract issue date only. See "Disability, terminal illness or confinement to This section is deleted in its nursing home" under "Withdrawal charge" in entirety. "Charges and expenses" - ------------------------------------------------------------------------------------------------------------- MINNESOTA See "Principal Protector(SM)" in "Contract features and Principal Protector(SM) is benefits" and "Beneficiary continuation option" in discontinued if the Beneficiary "Payment of death benefit" continuation option is elected. - -------------------------------------------------------------------------------------------------------------
H-1 Appendix VIII: State contract availability and/or variations of certain features and benefits
- ---------------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ---------------------------------------------------------------------------------------------------------------------- NEW YORK Greater of the 6% Roll-Up or Annual Ratchet Guaran- Not Available (you have a choice teed minimum death benefit of the standard death benefit or the Annual Ratchet to age 85 guaranteed minimum death benefit), as described earlier in this Prospectus. Guaranteed minimum death benefit/guaranteed mini- Not Available mum income benefit roll-up benefit base reset Guaranteed minimum income benefit no lapse guar- Not Available antee Principal Protector(SM) Not Available Protection Plus(SM) Not Available See "Insufficient account value" in "Determining your If your account value in the contract's value" variable investment options and the fixed maturity options is insufficient to pay the annual administrative charge, or either enhanced death benefit charge, and you have no account value in the guaranteed interest option, your contract will terminate without value, and you will lose any applicable benefits. See "Charges and expenses" earlier in this Prospectus. See "The amount applied to purchase an annuity For fixed annuity period certain payout option" in "Accessing your money" payout options only, the amount applied to the annuity benefit is the greater of the cash value or 95% of what the account value would be if no withdrawal charge applied. See "Annuity maturity date" in "accessing your The maturity date by which you money" must take a lump sum withdrawal or select an annuity payout option is as follows: Maximum Issue age Annuitization age --------- ----------------- 0-80 90 81 91 82 92 83 93 84 94 85 95 Please see this section earlier in this Prospectus for more information. See "Charges and expenses" With regard to the Annual administrative, Annual Ratchet to age 85 death benefit, Guaranteed principal benefit option 2 and Guaranteed minimum income benefit charges, respectively, we will deduct the related charge, as follows for each: we will deduct the charge from your value in the variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such fixed matu- rity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging (not available if the Guaranteed principal benefit option is elected). If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). - ----------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or variations of certain features and benefits H-2
- ---------------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ---------------------------------------------------------------------------------------------------------------------- NEW YORK, Deductions from the fixed maturity options (including the CONTINUED Special 10 year fixed maturity option) cannot cause the credited net interest for the contract year to fall below 1.5%. With regard to the Annual administrative, and either enhanced death benefit and the Guaranteed minimum income benefit charges only, if your account value in the variable investment options and the fixed maturity options is insufficient to pay the applicable charge, and you have no account value in the guaran- teed interest option, your contract will terminate without value and you will lose any applicable guaranteed benefits. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. Fixed maturity options -- withdrawal charges The withdrawal charge that applies to withdrawals taken from amounts in the fixed maturity options will never exceed 7% and will be determined by applying the New York Alternate Scale I shown below. If you withdraw amounts that have been transferred from one fixed maturity option to another, we use the New York Alternate Scale II (also shown below) if it produces a higher charge than Alternate Scale I. The withdrawal charge may not exceed the withdrawal charge that would normally apply to the contract. If a contribution has been in the contract for more than 4 years and therefore would have no withdrawal charge, no withdrawal charge will apply. Use of a New York Alternate Scale can only result in a lower charge. We will compare the result of applying Alternate Scale I or II, as the case may be, to the result of applying the normal withdrawal charge, and will charge the lower withdrawal charge. ----------------------------------------------------------- Fixed maturity options -- withdrawal charges NY Alternate Scale I NY Alternate Scale II (continued) Year of investment in fixed Year of transfer within fixed maturity option* maturity option* ----------------------------------------------------------- Within year 1 7% Within year 1 5% ----------------------------------------------------------- 2 6% 2 4% ----------------------------------------------------------- 3 5% 3 3% ----------------------------------------------------------- 4 4% 4 2% ----------------------------------------------------------- After year 5 0% After year 5 0% ----------------------------------------------------------- Not to exceed 1% times the number of years remaining in the fixed maturity option, rounded to the higher number of years. In other words, if 4.3 years remain, it would be a 5% charge. * Measured from the contract date anniversary prior to the date of the contribution or transfer. If you take a withdrawal from an investment option other than the fixed maturity options, the amount available for withdrawal without a withdrawal charge is reduced. It will be reduced by the amount of the contribution in the fixed maturity options to which no withdrawal charge applies. - -----------------------------------------------------------------------------------------------------------------------------------
H-3 Appendix VIII: State contract availability and/or variations of certain features and benefits
- ----------------------------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ----------------------------------------------------------------------------------------------------------------------------------- NEW YORK, You should consider that on the maturity date of a fixed CONTINUED maturity option if we have not received your instructions for allocation of your maturity value, we will transfer your maturity value to the fixed maturity option with the shortest available maturity. If we are not offering other fixed maturity options, we will transfer your maturity value to the EQ/Money Market option. The potential for lower withdrawal charges for withdrawals from the fixed maturity options and the potential for a lower "free withdrawal amount" than what would normally apply, should be taken into account when deciding whether to allocate amounts to, or transfer amounts to or from, the fixed maturity options. - ----------------------------------------------------------------------------------------------------------------------------------- OREGON Guaranteed minimum death benefit/guaranteed mini- Not Available mum income benefit roll-up benefit base reset Guaranteed minimum income benefit no lapse guar- Not Available antee Fixed maturity options Not Available Guaranteed principal benefit option 1 and Guaranteed Not Available principal benefit option 2 See "How you can purchase and contribute to your o Subsequent contributions are not permitted. contract" in "Contract features and benefits" This is a single premium product. o Section 1035 exchanges, rollovers, multiple assignments and/or transfers are permitted provided that all documenta- tion is complete and received with the application. See "Lifetime required minimum distribution with- We generally will not impose a withdrawal charge on minimum drawals" in "Accessing your money" distribution withdrawals even if your are not enrolled in our automatic RMD service except if, when added to a lump sum withdrawal previously taken in the same contract year, the mini-mum distribution withdrawals exceed the 10% free withdrawal amount. In order to avoid a withdrawal charge in connection with minimum distribution withdrawals outside of our automatic RMD service, you must notify us using our request form. Such minimum distribution withdrawals must be based solely on your contract's account value. See "Selecting an annuity payout option" in "Access- The annuity commencement date may not be earlier than four ing your money" years from the contract issuedate. See "Disability, terminal illness, or confinement to Item (i) is deleted in its entirety. nursing home" under "Withdrawal charge" in "Charges and expenses" Automatic Investment Program Not Available See "Special dollar cost averaging program" in "Con- The special dollar cost averaging program may only be selected tract Features and Benefits" at the time of application. See "We require that the following types of communi- The following is added: cations be on specific forms we provide for that (20) requests for required minimum distributions, other than purpose:" in "Who is AXA Equitable?" pursuant to our automatic RMD service. - -----------------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or variations of certain features and benefits H-4
- ----------------------------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ----------------------------------------------------------------------------------------------------------------------------------- PENNSYLVANIA Contributions Your contract refers to contributions as premiums. Contribution age limitations The following contribution limits apply: Maximum Issue age contribution age --------- ---------------- 0-75 82 76 83 77 84 78-80 85 81-85 87 Special dollar cost averaging program In Pennsylvania, we refer to this program as "enhanced rate dollar cost averaging." See "Annuity maturity date" in "Accessing your The maturity date by which you money" must take a lump sum with- drawal or select an annuity payout option is as follows: Maximum Issue age annuitization age --------- ---------------- 0-75 85 76 86 77 87 78-80 88 81-85 90 Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code limits may result in adverse tax consequences. Please consult your tax adviser before taking a loan that exceeds the Internal Revenue Code limits. - ----------------------------------------------------------------------------------------------------------------------------------- PUERTO RICO IRA, Roth IRA, Inherited IRA, QP and Rollover TSA Not Available contracts Beneficiary continuation option (IRA) Not Available Tax Information -- Special rules for NQ contracts Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico source income of Puerto Rico residents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable portion of amounts distributed from a contract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally pro- vides a credit against Puerto Rico tax for U.S. tax paid. Depending on your personal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. - ----------------------------------------------------------------------------------------------------------------------------------- TEXAS See "Annual administrative charge" in "Charges and The annual administrative expenses" charge will not be deducted from amounts allocated to the Guaranteed interest option. - ----------------------------------------------------------------------------------------------------------------------------------- UTAH See " Transfer of ownership, collateral assignments, The second paragraph in this loans and borrowing" in "More information" section is deleted. - ----------------------------------------------------------------------------------------------------------------------------------- VERMONT Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code limits may result in adverse tax consequences. Please consult your tax adviser before taking a loan that exceeds the Internal Revenue Code limits. - -----------------------------------------------------------------------------------------------------------------------------------
H-5 Appendix VIII: State contract availability and/or variations of certain features and benefits
- ----------------------------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ----------------------------------------------------------------------------------------------------------------------------------- WASHINGTON Guaranteed interest option (for contracts issued from Not Available approximately December 2004 to December 2006) Investment simplifier -- Fixed-dollar option Not Available and Interest sweep option Fixed maturity options Not Available Guaranteed Principal Benefit Options 1 and 2 Not Available Income Manager(R) payout option Not Available Protection Plus(SM) Not Available Special dollar cost averaging program (for contracts o Available only at issue. issued from approximately December 2004 to Decem- o Subsequent contributions cannot be used to elect new ber 2006) programs. You may make subsequent make subsequent contributions to the initial programs while they are still running. See "Guaranteed minimum death benefit" (SM) in "Con- You have a choice of the standard death benefit, the tract features and benefits" Annual Ratchet to age 85 enhanced death benefit, or the Greater of 4% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. See "Annual administrative charge" in "Charges and The annual administrative charge will be deducted from the expenses" value in the variable investment options on apro rata basis. See "Withdrawal charge" in "Charges and expenses" The 10% free withdrawal amount applies to full surrenders. See "Withdrawal charge" in "Charges and expenses" The annuitant has qualified to receive Social Security under "Disability, terminal illness, or confinement to disability benefits as certified by the Social Security nursing home" an independent U.S. licensed physician stating that the annuitant meets the definition of total disability for at least 6 continuous months prior to the notice of claim. Such dis-ability must be re-certified every 12 months. - -----------------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or variations of certain features and benefits H-6 Appendix IX: Contract variations - -------------------------------------------------------------------------------- The contract described in this Prospectus is no longer sold. You should note that your contract's options, features and charges may vary from what is described in this Prospectus depending on the approximate date on which you purchased your contract. You may not change your contract or its features after issue. This Appendix reflects contract variations that differ from what is described in this Prospectus but may have been in effect at the time your contract was issued. If you purchased your contract during the "Approximate Time Period" below, the noted variation may apply to you. In addition, options and/or features may vary among states in light of applicable regulations or state approvals. Any such state variations are generally not included here but instead included in Appendix VIII earlier in this section. For more information about state variations applicable to you, as well as particular features, charges and options available under your contract based upon when you purchased it, please contact your financial
professional and/or refer to your contract. - ------------------------------------------------------------------------------------------------------------------------- Approximate Time Period Feature/Benefit Variation - ------------------------------------------------------------------------------------------------------------------------- April 2002 - November 2002 Inherited IRA beneficiary Continuation Unavailable -- accordingly, all references in contract this Prospectus to "Inherited IRA beneficiary Continuation contract" are deleted in their entirety - ------------------------------------------------------------------------------------------------------------------------- April 2002 - February 2003 Guaranteed minimum income benefit The fee for this benefit is 0.45% Annual Ratchet to age 85 The fee for this benefit is 0.20% 6% Roll-Up to age 85 The fee for this benefit is 0.35% The Greater of 6% Roll-Up to age 85 of the The fee for this benefit is 0.45% Annual Ratchet to age 85 - ------------------------------------------------------------------------------------------------------------------------- April 2002 - July 2003 See "Transferring your account value" in The fifth bullet is deleted in its entirety. "Transferring your money among investment options" - ------------------------------------------------------------------------------------------------------------------------- April 2002 - September 2003 The guaranteed principal benefits GPB 2 -- unavailable GPB 1 known as Principal assurance GPB 1 available with both systematic and substantially equal withdrawals GPB 1 available with the Guaranteed minimum income benefit. Spousal protection Unavailable -- accordingly, all references in this Prospectus to "Spousal protection" are deleted in their entirety Maximum contributions The maximum contributions permitted under all Accumulator series contracts with the same owner or annuitant is $1,500,000. Guaranteed minimum death benefit maximum 84 (not including QP contracts) issue age Protection Plus The maximum issue age for this benefit was 79. For issue ages 71-79, the applicable death benefit will be multiplied by 25% In calculating the death benefit, contributions are decreased for withdrawals on a pro rata basis - -------------------------------------------------------------------------------------------------------------------------
I-1 Appendix IX: Contract variations
- ------------------------------------------------------------------------------------------------------------------------- April 2002 - September 2003 Guaranteed option charges If the contract is surrendered or annuitized or continued the a death benefit is paid on a date other than the contract date anniversary, we will not deduct a pro rata portion of the charge for any applicable guaranteed benefit. Withdrawals treated as surrenders We will not treat a withdrawal that results in a cash value of less than $500 as a request for a surrender. We will not terminate your contract if you do not make contributions for three contract years. Guaranteed minimum income benefit option Subject to state availability, this option guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or an Income Manager level payment life with a period certain payout option Known as the Living Benefit. Annuitant issue age Ages 86-90. For contracts with an annuitant who was age 86-90 at issue, the following apply: (1) standard death benefit only was available, and (2) no withdrawal charge applies. Systematic withdrawals Your systematic withdrawal may not exceed 1.20% (monthly), 3.60% (quarterly) or 15% (annually) of account value. - ------------------------------------------------------------------------------------------------------------------------- April 2002 - July 2004 Principal Protector(SM) benefit Unavailable -- accordingly, all references in this Prospectus to "Principal Protector" are deleted in their entirety. - ------------------------------------------------------------------------------------------------------------------------- April 2002 - December 2004 Termination of guaranteed benefits Your guaranteed benefits will not automatically terminate if you change ownership of your NQ contract. Ownership Transfer of NQ If you transfer ownership of your NQ contract, your guaranteed benefit options will not be automatically terminated. - ------------------------------------------------------------------------------------------------------------------------- April 2002 - January 2005 No lapse guarantee Unavailable. - ------------------------------------------------------------------------------------------------------------------------- April 2002 - October 2005 Roll-Up benefit base reset Unavailable. - ------------------------------------------------------------------------------------------------------------------------- April 2002 - current Guaranteed interest option Your lifetime minimum interest rate is either 1.5%, 2.25% or 3.0% (depending on the state and time where your contract was issued). - ------------------------------------------------------------------------------------------------------------------------- April 2002 - July 2003 Guaranteed interest option No limitations regarding allocations or transfers into the guaranteed interest account. - ------------------------------------------------------------------------------------------------------------------------- March 2003 - September 2003 Annual Ratchet to age 85 The fee for this benefit is 0.30% 6% Roll-Up to age 85 The fee for this benefit is 0.45% Guaranteed minimum income benefit The fee for this benefit is 0.60% - -------------------------------------------------------------------------------------------------------------------------
Appendix IX: Contract variations I-2
- ------------------------------------------------------------------------------------------------------------------------- September 2003 - January 2004 Guaranteed minimum income benefit and Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit: o Benefit base crediting rate o Fee table Effect of withdrawals on your Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit - ------------------------------------------------------------------------------------------------------------------------- September 2003 - February 2004 (for the How withdrawals affect your Guaranteed Guaranteed minimum income benefit) and minimum income benefit and Greater of the January 2004 - February 2005 (for the Greater 6% Roll-Up to age 85 or the Annual Ratchet of the 6% Roll-Up to age 85 or the Annual to age 85 enhanced death benefit: Ratchet to age 85 enhanced death benefit:) - ------------------------------------------------------------------------------------------------------------------------- January 2004 - present Greater of 5% Roll-up to age 85 or the Annual Ratchet to age 85 enhanced death benefit September 2003 - January 2004 The effective annual interest credited to the applicable benefit base is 5%.* Accordingly, all references in this Prospectus to the "6% Roll-Up benefit base" are deleted in their entirety and replaced with "5% Roll-Up benefit base." Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit charge: 0.50%.* Guaranteed minimum income benefit charge: 0.55%* Withdrawals will reduce each of the benefit bases on a pro rata basis only. - ------------------------------------------------------------------------------------------------------------------------- September 2003 - February 2004 (for the In calculating whether your withdrawal will Guaranteed minimum income benefit) and reduce your the Roll-Up benefit base portion of January 2004 - February 2005 (for the Greater your Guaranteed minimum income benefit base of the 6% Roll-Up to age 85 or the Annual on a pro rata or dollar-for-dollar basis, Ratchet to age 85 enhanced death benefit:) withdrawal charges will be included in the withdrawal amount. - ------------------------------------------------------------------------------------------------------------------------- January 2004 - present Unavailable -- accordingly all references to this feature are deleted in their entirety - -------------------------------------------------------------------------------------------------------------------------
* Contract owners who elected the Guaranteed minimum income benefit and/or the Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit had a limited opportunity to change to the new versions of these benefits, as they are described in "Contract features and benefits" and "Accessing your money," earlier in this Prospectus. I-3 Appendix IX: Contract variations Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to obtain an Accumulator(R) Elite(SM) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) Elite(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Please send me an Accumulator(R) Elite(SM) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip x1890/Elite '02/04, `04(NY), '06/'06.5 and '07 Series Accumulator(R) Elite(SM) A combination variable and fixed deferred annuity contract PROSPECTUS MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing, or taking any other action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) ELITE(SM)? Accumulator(R) Elite(SM) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option, fixed maturity options or the account for special dollar cost averaging ("investment options"). All features and benefits may not be available in all contracts and from all selling broker-dealers. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street Small o EQ/Ariel Appreciation II Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option, the fixed maturity option and the account for special dollar cost averaging, which are discussed later in this Prospectus. If you elect the Guaranteed withdrawal benefit for life, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and certain permitted variable investment option(s). The permitted variable investment options are described later in this Prospectus. TYPES OF CONTRACTS. We offer the contracts for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An annuity that is an investment vehicle for a qualified defined contribution plan ("QP") (rollover and direct transfer contributions only). o Traditional and Roth Inherited IRA beneficiary continuation contract ("Inherited IRA") (direct transfer contributions only). o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $10,000 is required to purchase a contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01882/Elite '04 New York Series (R-4/15) Contents of this Prospectus - -------------------------------------------------------------------------------- ACCUMULATOR(R) ELITE(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) Elite(SM) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 11 - -------------------------------------------------------------------------------- Example 15 Condensed financial information 18 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 19 - -------------------------------------------------------------------------------- How you can purchase and contribute to your contract 19 Owner and annuitant requirements 22 How you can make your contributions 22 What are your investment options under the contract? 23 Portfolios of the Trusts 24 Allocating your contributions 30 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 33 Annuity purchase factors 34 Guaranteed minimum income benefit option 34 Guaranteed minimum death benefit 36 Guaranteed withdrawal benefit for life ("GWBL") 37 Inherited IRA beneficiary continuation contract 40 Your right to cancel within a certain number of days 41 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 43 - -------------------------------------------------------------------------------- Your account value and cash value 43 Your contract's value in the variable investment options 43 Your contract's value in the guaranteed interest option 43 Your contract's value in the fixed maturity options 43 Your contract's value in the account for special dollar cost averaging 43 Insufficient account value 43 - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 44 - -------------------------------------------------------------------------------- Transferring your account value 44 Disruptive transfer activity 44 Rebalancing your account value 45 - ---------------------- "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 47 - -------------------------------------------------------------------------------- Withdrawing your account value 47 How withdrawals are taken from your account value 49 How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2 49 How withdrawals affect your GWBL 50 Withdrawals treated as surrenders 50 Loans under Rollover TSA contracts 50 Surrendering your contract to receive its cash value 51 When to expect payments 51 Your annuity payout options 51 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 54 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 54 Charges that the Trusts deduct 57 Group or sponsored arrangements 57 Other distribution arrangements 57 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 58 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit if GWBL is not elected 58 Your beneficiary and payment of benefit if GWBL is elected 60 Beneficiary continuation option 61 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 64 - -------------------------------------------------------------------------------- Overview 64 Buying a contract to fund a retirement arrangement 64 Transfers among investment options 64 Taxation of nonqualified annuities 64 Individual retirement arrangements (IRAs) 66 Tax-Sheltered Annuity contracts (TSAs) 75 Federal and state income tax withholding and information reporting 80 Special rules for contracts funding qualified plans 81 Impact of taxes to AXA Equitable 81 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 82 - -------------------------------------------------------------------------------- About our Separate Account No. 49 82 About the Trusts 82 About our fixed maturity options 82 About the general account 83 About other methods of payment 84 Dates and prices at which contract events occur 84 About your voting rights 85 About legal proceedings 85 Financial statements 85 Transfers of ownership, collateral assignments, loans and borrowing 85 Distribution of the contracts 86 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 88 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Enhanced death benefit example D-1 V -- Hypothetical illustrations E-1 VI -- Guaranteed principal benefit example F-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page in Term Prospectus 6% Roll-Up to age 85 33 account value 43 administrative charge 54 annual administrative charge 55 Annual Ratchet to age 85 enhanced death benefit 33 annuitant 19 annuitization 51 annuity maturity date 53 annuity payout options 51 annuity purchase factors 34 automatic investment program 84 AXA Allocation Portfolios cover beneficiary if GWBL is not elected 58 beneficiary if GWBL is elected 60 Beneficiary continuation option ("BCO") 61 business day 84 cash value 43 charges for state premium and other applicable taxes 57 contract date 22 contract date anniversary 22 contract year 22 contributions to Roth IRAs 72 regular contributions 72 rollovers and direct transfers 73 conversion rollover contributions 73 contributions to traditional IRAs 67 regular contributions 67 rollovers and transfers 68 disability, terminal illness or confinement to nursing home 56 disruptive transfer activity 44 distribution charge 54 EQAccess 7 ERISA 57 fixed-dollar option 32 fixed maturity options 29 fixed maturity options -- withdrawal charges 55 free look 41 free withdrawal amount 56 general account 83 general dollar cost averaging 32 guaranteed interest option 29 Guaranteed minimum death benefit 36 Guaranteed minimum death benefit charge 56 Guaranteed minimum death benefit and Guaranteed minimum benefit base 33 Guaranteed minimum income benefit 34 Guaranteed minimum income benefit charge 56 Guaranteed principal benefits 30 GWBL benefit base 37 GWBL benefit base Annual Ratchet charge 57 Guaranteed withdrawal benefit for life ("GWBL") 37 Guaranteed withdrawal benefit for life charge 57 Inherited IRA cover investment options cover Investment simplifier 32 IRA cover IRS 64 lifetime required minimum distribution withdrawals 48 loan reserve account 50 loans under rollover TSA 50 market adjusted amount 29 market timing 44 market value adjustment 29 maturity dates 29 maturity value 29 Mortality and expense risks charge 54 NQ cover partial withdrawals 47 permitted variable investment options 23 Portfolio cover processing office 7 QP cover rate to maturity 29 Rebalancing 45 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 30 Separate Account No. 49 82 special dollar cost averaging 32 Spousal protection 59 standard death benefit 33 substantially equal withdrawals 48 Successor owner and annuitant 59 systematic withdrawals 48 TOPS 7 TSA cover traditional IRA cover Trusts 82 unit 43 variable investment options 23 wire transmittals and electronic applications 84 withdrawal charge 55 4 Index of key words and phrases To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract. Your financial professional can provide further explanation about your contract or supplemental materials.
- ------------------------------------------------------------------------------------------------------------------------------ Prospectus Contract or Supplemental Materials - ------------------------------------------------------------------------------------------------------------------------------ fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guaranteed minimum income benefit Guaranteed Income Benefit Guaranteed interest option Guaranteed Interest Account Guaranteed withdrawal benefit for life Guaranteed withdrawal benefit GWBL benefit base Guaranteed withdrawal benefit for life benefit base Guaranteed annual withdrawal Guaranteed withdrawal benefit for life Annual withdrawal amount amount Excess withdrawal Guaranteed withdrawal benefit for life Excess withdrawal - ------------------------------------------------------------------------------------------------------------------------------
Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses as listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) Elite(SM) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) Elite(SM) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) Elite(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) Elite(SM) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility to exercise the Guaranteed minimum income benefit. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options (not available through EQAccess); o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or the Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of any transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any Who is AXA Equitable? 7 act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts (employer or plan approval required); (7) requests for withdrawals or surrenders from contracts with the Guaranteed withdrawal benefit for life ("GWBL"); (8) tax withholding elections; (9) election of the Beneficiary continuation option; (10) IRA contribution recharacterizations; (11) Section 1035 exchanges; (12) direct transfers and rollovers; (13) exercise of the Guaranteed minimum income benefit; (14) death claims; (15) change in ownership (NQ only); (16) enrollment in our "automatic required minimum distribution (RMD) service;" (17) purchase by, or change of ownership to, a nonnatural owner; (18) requests to opt out of or back into the annual ratchet of the Guaranteed withdrawal benefit for life ("GWBL") benefit base; and (19) requests for enrollment in either our Maximum payment plan or Customized payment plan under the Guaranteed withdrawal benefit for life ("GWBL"). WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; (3) general dollar cost averaging (including the fixed dollar and interest sweep options); and (4) special dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging (including the fixed dollar and interest sweep options); (3) special dollar cost averaging; (4) substantially equal withdrawals; (5) systematic withdrawals; and (6) the date annuity payments are to begin. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners both must sign. 8 Who is AXA Equitable? Accumulator(R) Elite(SM) at a glance -- key features - --------------------------------------------------------------------------------------------------------------------------------- Professional investment Accumulator(R)Elite(SM)'s variable investment options invest in different Portfolios managed by management professional investment advisers. - --------------------------------------------------------------------------------------------------------------------------------- Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2 only). ------------------------------------------------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - --------------------------------------------------------------------------------------------------------------------------------- Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - --------------------------------------------------------------------------------------------------------------------------------- Account for special dollar Available for dollar cost averaging all or a portion of any eligible contribution to your cost averaging contract. - --------------------------------------------------------------------------------------------------------------------------------- Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among investment options inside the contract. ------------------------------------------------------------------------------------------------- If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA) or to fund an employer retirement plan (QP or Qualified Plan), you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before purchasing one of these contracts, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities compared with any other investment that you may use in connection with your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - --------------------------------------------------------------------------------------------------------------------------------- Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during the annuitant's income benefit life once you elect to annuitize the contract. - --------------------------------------------------------------------------------------------------------------------------------- Guaranteed withdrawal The Guaranteed withdrawal benefit for life option ("GWBL") guarantees that you can take benefit for life withdrawals of up to a maximum amount each contract year (your "Guaranteed annual withdrawal amount") beginning at owner age 59-1/2 or later. Withdrawals are taken from your account value and continue during your lifetime even if your account value falls to zero (unless it is caused by a withdrawal that exceeds your Guaranteed annual withdrawal amount). - --------------------------------------------------------------------------------------------------------------------------------- Contribution amounts o Initial minimum: $10,000 o Additional minimum: $500 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $1,000 (Inherited IRA contracts) $50 (IRA contracts) Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million ($500,000 for owners or annuitants who are age 81 and older at contract issue). We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. See "How you can purchase and contribute to your contract" in "Contract features and benefits" later in this Prospectus. - ---------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Elite(SM) at a glance -- key features 9 - --------------------------------------------------------------------------------------------------------------------------------- Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required; not available under contracts with GWBL) o Contract surrender o Maximum payment plan (only under contracts with GWBL) o Customized payment plan (only under contracts with GWBL) You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - --------------------------------------------------------------------------------------------------------------------------------- Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - --------------------------------------------------------------------------------------------------------------------------------- Additional features o Guaranteed minimum death benefit options o Guaranteed principal benefit options o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually, and annually) o Free transfers o Waiver of withdrawal charge for disability, terminal illness, confinement to a nursing home and certain other withdrawals o Spousal continuation (if GWBL is not elected) o Spousal protection (NQ only, if GWBL is not elected) o Successor owner/annuitant (if GWBL is not elected) o Beneficiary continuation option - --------------------------------------------------------------------------------------------------------------------------------- Fees and charges o Please see "Fee table" later in this section for complete details. - --------------------------------------------------------------------------------------------------------------------------------- Annuitant issue ages NQ: 0-85 (if GWBL is not elected) Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85 Inherited IRA: 0-70 QP: 20-75 - --------------------------------------------------------------------------------------------------------------------------------- Owner and annuitant issue NQ, Rollover IRA, Roth Conversion IRA, Rollover TSA: 56-85 ages (if GWBL is elected) QP: 56-75 - ---------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available at certain ages. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund within a certain number of days. Please see "Your right to cancel within a certain number of days" later in this Prospectus for additional information. Other contracts We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. A version of this contract (that includes credits) may be available to eligible employees and financial professionals of AXA Equitable and their spouses with modified optional benefits and/or reduced fees and charges. If you are an employee or financial professional of AXA Equitable, you should contact your human resources representative for more information. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. 10 Accumulator(R) Elite(SM) at a glance -- key features Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay at the time that you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes, may also apply. Charges for certain features shown in the fee table are mutually exclusive. - -------------------------------------------------------------------------------------------------------------------------------- Charges we deduct from your account value at the time you request certain transactions - -------------------------------------------------------------------------------------------------------------------------------- Maximum withdrawal charge as a percentage of contributions with- drawn (deducted if you surrender your contract or make certain withdrawals or apply your cash value to certain payout options).(1) 8.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - -------------------------------------------------------------------------------------------------------------------------------- The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses. - -------------------------------------------------------------------------------------------------------------------------------- Charges we deduct from your account value on each contract date anniversary - -------------------------------------------------------------------------------------------------------------------------------- Maximum annual administrative charge(2) If your account value on a contract date anniversary is less than $ 50,000(3) $ 30 If your account value on a contract date anniversary is $50,000 or more $ 0 - -------------------------------------------------------------------------------------------------------------------------------- Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - -------------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks 1.10%(4) Administrative 0.30% Distribution 0.25% ----- Total separate annual expenses 1.65% - -------------------------------------------------------------------------------------------------------------------------------- Charges we deduct from your account value each year if you elect any of the following optional benefits - -------------------------------------------------------------------------------------------------------------------------------- Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) Standard death benefit 0.00% Annual Ratchet to age 85 0.25% of the Annual Ratchet to age 85 benefit base - -------------------------------------------------------------------------------------------------------------------------------- Guaranteed principal benefit charge for option 2 (calculated as a percentage of the account value. Deducted annually(2) on the first 10 contract date anniversaries.) 0.50% - -------------------------------------------------------------------------------------------------------------------------------- Guaranteed minimum income benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect) 0.65% - --------------------------------------------------------------------------------------------------------------------------------
Fee table 11 - -------------------------------------------------------------------------------------------------------------------------------- Guaranteed withdrawal benefit for life benefit charge (calculated as a percentage of the GWBL benefit base. Deducted 0.65% (for the Single life or Joint annually(2) on each contract date anniversary). life option) If your GWBL benefit base ratchets, we reserve the right to increase your charge up to: 0.80% (for the Single life or Joint life option) Please see "Guaranteed withdrawal benefit for life" in "Contract features and benefits" for more information about this feature, including its life benefit charge" in "Charges and expenses," both in this Prospectus. - -------------------------------------------------------------------------------------------------------------------------------- Net loan interest charge - Rollover TSA contracts only (calcu- lated and deducted daily as a percentage of the outstanding loan amount) 2.00%(5) - --------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio.
- -------------------------------------------------------------------------------------------------------- Portfolio operating expenses expressed as an annual percentage of daily net assets - -------------------------------------------------------------------------------------------------------- Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ ------- other expenses 0.63% 3.56% - --------------------------------------------------------------------------------------------------------
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- ---------------------------------------------------------------------------------------- Management 12b-1 Other Portfolio Name Fees(7) Fees(8) Expenses(9) - ---------------------------------------------------------------------------------------- AXA Premier VIP Trust: - ---------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.10% 0.25% 0.17% AXA Conservative Allocation 0.10% 0.25% 0.21% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% AXA Moderate Allocation 0.10% 0.25% 0.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - ---------------------------------------------------------------------------------------- EQ Advisors Trust: - ---------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% - ---------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- Acquired Fund Fees and Total Fee Waiv- Expenses Annual ers Net Annual (Under- Expenses and/or Expenses lying (Before Expense (After Portfo- Expense Reimburse- Expense Portfolio Name lios)(10) Limitation) ments(11) Limitations) - ----------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - ----------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - ----------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ----------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% - -----------------------------------------------------------------------------------------------------------
12 Fee table This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- ------------------------------------------------------------------------- Manage- ment 12b-1 Other Portfolio Name Fees(7) Fees(8) Expenses(9) - ------------------------------------------------------------------------- EQ Advisors Trust: - ------------------------------------------------------------------------- EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% - ------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------- Acquired Fund Fees and Total Fee Waiv- Expenses Annual ers Net Annual (Under- Expenses and/or Expenses lying (Before Expense (After Portfo- Expense Reimburse- Expense Portfolio Name lios)(10) Limitation) ments(11) Limitations) - ------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(12) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate -- 1.36% (0.10)% 1.26% - -------------------------------------------------------------------------------------------------
Fee table 13 Notes: (1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal amount, if applicable The withdrawal charge percentage we use is determined by the contract year in which you Contract make the withdrawal or surrender your contract. For each contribution, we consider the Year contract year in which we receive that contribution to be "contract year 1") 1 8.00% 2 7.00% 3 6.00% 4 5.00% 5+ 0.00%
(2) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. (3) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, if applicable, the charge is $30 for each contract year. (4) These charges compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. (5) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (6) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (7) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (11) and (12) for any expense limitation agreement information. (8) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. (9) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (11) and (12) for any expense limitation agreement information. (10) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (11) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolio in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below:
- -------------------------------------------------- Portfolio Name - -------------------------------------------------- Multimanager Aggressive Equity 0.97% Multimanager Health Care 1.67% Multimanager Large Cap Core Equity 1.34% Multimanager Large Cap Growth 1.29% Multimanager Large Cap Value 1.26% Multimanager Mid Cap Growth 1.52% Multimanager Mid Cap Value 1.53% Multimanager Small Cap Growth 1.35% Multimanager Small Cap Value 1.45% Multimanager Technology 1.67% EQ/AllianceBernstein Common Stock 0.84% EQ/AllianceBernstein Large Cap Growth 1.03% EQ/AllianceBernstein Small Cap Growth 1.11% EQ/AllianceBernstein Value 0.87% EQ/Ariel Appreciation II 1.09% EQ/BlackRock Basic Value Equity 0.92% EQ/Davis New York Venture 1.25% EQ/Evergreen Omega 1.12% EQ/GAMCO Mergers and Acquisitions 1.33% EQ/GAMCO Small Company Value 1.10% EQ/International Core PLUS 1.05% EQ/Large Cap Core PLUS 0.83% EQ/Large Cap Growth PLUS 0.82% EQ/Legg Mason Value Equity 0.97% EQ/Lord Abbett Growth and Income 0.98% EQ/Lord Abbett Large Cap Core 0.99% - --------------------------------------------------
14 Fee table
- --------------------------------------------- Portfolio Name - --------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% EQ/Mid Cap Value PLUS 0.81% EQ/Montag & Caldwell Growth 1.13% EQ/T. Rowe Price Growth Stock 0.87% EQ/UBS Growth and Income 1.04% EQ/Van Kampen Comstock 0.99% EQ/Van Kampen Mid Cap Growth 1.04% - ---------------------------------------------
(12) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and adminis tration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the Guaranteed minimum income benefit with the Annual Ratchet to age 85 enhanced death benefit) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.006% of contract value. The fixed maturity options, guaranteed interest option and the account for special dollar cost averaging are not covered by the fee table and example. However, the annual administrative charge, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options, guaranteed interest option and the account for special dollar cost averaging. A market value adjustment (positive or negative) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Fee table 15
- -------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period ---------------------------------------------------------- 1 year 3 years 5 years 10 years - -------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - -------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,220.00 $ 1,887.00 $ 2,187.00 $ 4,604.00 AXA Conservative Allocation $ 1,201.00 $ 1,828.00 $ 2,092.00 $ 4,428.00 AXA Conservative-Plus Allocation $ 1,206.00 $ 1,843.00 $ 2,118.00 $ 4,475.00 AXA Moderate Allocation $ 1,210.00 $ 1,856.00 $ 2,138.00 $ 4,512.00 AXA Moderate-Plus Allocation $ 1,214.00 $ 1,868.00 $ 2,158.00 $ 4,549.00 Multimanager Aggressive Equity $ 1,178.00 $ 1,763.00 $ 1,987.00 $ 4,230.00 Multimanager Core Bond $ 1,175.00 $ 1,754.00 $ 1,971.00 $ 4,201.00 Multimanager Health Care $ 1,246.00 $ 1,960.00 $ 2,306.00 $ 4,822.00 Multimanager High Yield $ 1,175.00 $ 1,754.00 $ 1,971.00 $ 4,201.00 Multimanager International Equity $ 1,225.00 $ 1,899.00 $ 2,207.00 $ 4,641.00 Multimanager Large Cap Core Equity $ 1,211.00 $ 1,859.00 $ 2,143.00 $ 4,521.00 Multimanager Large Cap Growth $ 1,213.00 $ 1,865.00 $ 2,153.00 $ 4,540.00 Multimanager Large Cap Value $ 1,208.00 $ 1,850.00 $ 2,128.00 $ 4,494.00 Multimanager Mid Cap Growth $ 1,232.00 $ 1,920.00 $ 2,242.00 $ 4,705.00 Multimanager Mid Cap Value $ 1,231.00 $ 1,917.00 $ 2,237.00 $ 4,696.00 Multimanager Small Cap Growth $ 1,234.00 $ 1,926.00 $ 2,252.00 $ 4,723.00 Multimanager Small Cap Value $ 1,223.00 $ 1,893.00 $ 2,197.00 $ 4,623.00 Multimanager Technology $ 1,246.00 $ 1,960.00 $ 2,306.00 $ 4,822.00 - -------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,159.00 $ 1,704.00 $ 1,890.00 $ 4,046.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,162.00 $ 1,713.00 $ 1,905.00 $ 4,075.00 EQ/AllianceBernstein International $ 1,189.00 $ 1,794.00 $ 2,037.00 $ 4,325.00 EQ/AllianceBernstein Large Cap Growth $ 1,204.00 $ 1,837.00 $ 2,108.00 $ 4,456.00 EQ/AllianceBernstein Quality Bond $ 1,163.00 $ 1,717.00 $ 1,910.00 $ 4,085.00 EQ/AllianceBernstein Small Cap Growth $ 1,187.00 $ 1,788.00 $ 2,027.00 $ 4,306.00 EQ/AllianceBernstein Value $ 1,170.00 $ 1,738.00 $ 1,946.00 $ 4,153.00 EQ/Ariel Appreciation II $ 1,202.00 $ 1,831.00 $ 2,097.00 $ 4,438.00 EQ/AXA Rosenberg Value Long/Short Equity $ 1,443.00 $ 2,523.00 $ 3,195.00 $ 6,344.00 EQ/BlackRock Basic Value Equity $ 1,167.00 $ 1,729.00 $ 1,931.00 $ 4,124.00 EQ/BlackRock International Value $ 1,201.00 $ 1,828.00 $ 2,092.00 $ 4,428.00 EQ/Boston Advisors Equity Income $ 1,189.00 $ 1,794.00 $ 2,037.00 $ 4,325.00 EQ/Calvert Socially Responsible $ 1,188.00 $ 1,791.00 $ 2,032.00 $ 4,315.00 EQ/Capital Guardian Growth $ 1,180.00 $ 1,766.00 $ 1,992.00 $ 4,239.00 EQ/Capital Guardian Research $ 1,175.00 $ 1,754.00 $ 1,971.00 $ 4,201.00 EQ/Caywood-Scholl High Yield Bond $ 1,175.00 $ 1,754.00 $ 1,971.00 $ 4,201.00 EQ/Davis New York Venture $ 1,204.00 $ 1,837.00 $ 2,108.00 $ 4,456.00 EQ/Equity 500 Index $ 1,135.00 $ 1,636.00 $ 1,777.00 $ 3,829.00 EQ/Evergreen International Bond $ 1,187.00 $ 1,788.00 $ 2,027.00 $ 4,306.00 EQ/Evergreen Omega $ 1,190.00 $ 1,797.00 $ 2,042.00 $ 4,334.00 EQ/FI Mid Cap $ 1,181.00 $ 1,769.00 $ 1,997.00 $ 4,249.00 - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period, and select a non-life contingent period certain annuity option with less than five years ----------------------------------------------------- 1 year 3 years 5 years 10 years - -------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - -------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 1,887.00 $ 2,187.00 $ 4,604.00 AXA Conservative Allocation N/A $ 1,828.00 $ 2,092.00 $ 4,428.00 AXA Conservative-Plus Allocation N/A $ 1,843.00 $ 2,118.00 $ 4,475.00 AXA Moderate Allocation N/A $ 1,856.00 $ 2,138.00 $ 4,512.00 AXA Moderate-Plus Allocation N/A $ 1,868.00 $ 2,158.00 $ 4,549.00 Multimanager Aggressive Equity N/A $ 1,763.00 $ 1,987.00 $ 4,230.00 Multimanager Core Bond N/A $ 1,754.00 $ 1,971.00 $ 4,201.00 Multimanager Health Care N/A $ 1,960.00 $ 2,306.00 $ 4,822.00 Multimanager High Yield N/A $ 1,754.00 $ 1,971.00 $ 4,201.00 Multimanager International Equity N/A $ 1,899.00 $ 2,207.00 $ 4,641.00 Multimanager Large Cap Core Equity N/A $ 1,859.00 $ 2,143.00 $ 4,521.00 Multimanager Large Cap Growth N/A $ 1,865.00 $ 2,153.00 $ 4,540.00 Multimanager Large Cap Value N/A $ 1,850.00 $ 2,128.00 $ 4,494.00 Multimanager Mid Cap Growth N/A $ 1,920.00 $ 2,242.00 $ 4,705.00 Multimanager Mid Cap Value N/A $ 1,917.00 $ 2,237.00 $ 4,696.00 Multimanager Small Cap Growth N/A $ 1,926.00 $ 2,252.00 $ 4,723.00 Multimanager Small Cap Value N/A $ 1,893.00 $ 2,197.00 $ 4,623.00 Multimanager Technology N/A $ 1,960.00 $ 2,306.00 $ 4,822.00 - -------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 1,704.00 $ 1,890.00 $ 4,046.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,713.00 $ 1,905.00 $ 4,075.00 EQ/AllianceBernstein International N/A $ 1,794.00 $ 2,037.00 $ 4,325.00 EQ/AllianceBernstein Large Cap Growth N/A $ 1,837.00 $ 2,108.00 $ 4,456.00 EQ/AllianceBernstein Quality Bond N/A $ 1,717.00 $ 1,910.00 $ 4,085.00 EQ/AllianceBernstein Small Cap Growth N/A $ 1,788.00 $ 2,027.00 $ 4,306.00 EQ/AllianceBernstein Value N/A $ 1,738.00 $ 1,946.00 $ 4,153.00 EQ/Ariel Appreciation II N/A $ 1,831.00 $ 2,097.00 $ 4,438.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,523.00 $ 3,195.00 $ 6,344.00 EQ/BlackRock Basic Value Equity N/A $ 1,729.00 $ 1,931.00 $ 4,124.00 EQ/BlackRock International Value N/A $ 1,828.00 $ 2,092.00 $ 4,428.00 EQ/Boston Advisors Equity Income N/A $ 1,794.00 $ 2,037.00 $ 4,325.00 EQ/Calvert Socially Responsible N/A $ 1,791.00 $ 2,032.00 $ 4,315.00 EQ/Capital Guardian Growth N/A $ 1,766.00 $ 1,992.00 $ 4,239.00 EQ/Capital Guardian Research N/A $ 1,754.00 $ 1,971.00 $ 4,201.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,754.00 $ 1,971.00 $ 4,201.00 EQ/Davis New York Venture N/A $ 1,837.00 $ 2,108.00 $ 4,456.00 EQ/Equity 500 Index N/A $ 1,636.00 $ 1,777.00 $ 3,829.00 EQ/Evergreen International Bond N/A $ 1,788.00 $ 2,027.00 $ 4,306.00 EQ/Evergreen Omega N/A $ 1,797.00 $ 2,042.00 $ 4,334.00 EQ/FI Mid Cap N/A $ 1,769.00 $ 1,997.00 $ 4,249.00 - -------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period ------------------------------------------------------ 1 year 3 years 5 years 10 years - --------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - --------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 420.00 $ 1,287.00 $ 2,187.00 $ 4,604.00 AXA Conservative Allocation $ 401.00 $ 1,228.00 $ 2,092.00 $ 4,428.00 AXA Conservative-Plus Allocation $ 406.00 $ 1,243.00 $ 2,118.00 $ 4,475.00 AXA Moderate Allocation $ 410.00 $ 1,256.00 $ 2,138.00 $ 4,512.00 AXA Moderate-Plus Allocation $ 414.00 $ 1,268.00 $ 2,158.00 $ 4,549.00 Multimanager Aggressive Equity $ 378.00 $ 1,163.00 $ 1,987.00 $ 4,230.00 Multimanager Core Bond $ 375.00 $ 1,154.00 $ 1,971.00 $ 4,201.00 Multimanager Health Care $ 446.00 $ 1,360.00 $ 2,306.00 $ 4,822.00 Multimanager High Yield $ 375.00 $ 1,154.00 $ 1,971.00 $ 4,201.00 Multimanager International Equity $ 425.00 $ 1,299.00 $ 2,207.00 $ 4,641.00 Multimanager Large Cap Core Equity $ 411.00 $ 1,259.00 $ 2,143.00 $ 4,521.00 Multimanager Large Cap Growth $ 413.00 $ 1,265.00 $ 2,153.00 $ 4,540.00 Multimanager Large Cap Value $ 408.00 $ 1,250.00 $ 2,128.00 $ 4,494.00 Multimanager Mid Cap Growth $ 432.00 $ 1,320.00 $ 2,242.00 $ 4,705.00 Multimanager Mid Cap Value $ 431.00 $ 1,317.00 $ 2,237.00 $ 4,696.00 Multimanager Small Cap Growth $ 434.00 $ 1,326.00 $ 2,252.00 $ 4,723.00 Multimanager Small Cap Value $ 423.00 $ 1,293.00 $ 2,197.00 $ 4,623.00 Multimanager Technology $ 446.00 $ 1,360.00 $ 2,306.00 $ 4,822.00 - --------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 359.00 $ 1,104.00 $ 1,890.00 $ 4,046.00 EQ/AllianceBernstein Intermediate Government Securities $ 362.00 $ 1,113.00 $ 1,905.00 $ 4,075.00 EQ/AllianceBernstein International $ 389.00 $ 1,194.00 $ 2,037.00 $ 4,325.00 EQ/AllianceBernstein Large Cap Growth $ 404.00 $ 1,237.00 $ 2,108.00 $ 4,456.00 EQ/AllianceBernstein Quality Bond $ 363.00 $ 1,117.00 $ 1,910.00 $ 4,085.00 EQ/AllianceBernstein Small Cap Growth $ 387.00 $ 1,188.00 $ 2,027.00 $ 4,306.00 EQ/AllianceBernstein Value $ 370.00 $ 1,138.00 $ 1,946.00 $ 4,153.00 EQ/Ariel Appreciation II $ 402.00 $ 1,231.00 $ 2,097.00 $ 4,438.00 EQ/AXA Rosenberg Value Long/Short Equity $ 643.00 $ 1,923.00 $ 3,195.00 $ 6,344.00 EQ/BlackRock Basic Value Equity $ 367.00 $ 1,129.00 $ 1,931.00 $ 4,124.00 EQ/BlackRock International Value $ 401.00 $ 1,228.00 $ 2,092.00 $ 4,428.00 EQ/Boston Advisors Equity Income $ 389.00 $ 1,194.00 $ 2,037.00 $ 4,325.00 EQ/Calvert Socially Responsible $ 388.00 $ 1,191.00 $ 2,032.00 $ 4,315.00 EQ/Capital Guardian Growth $ 380.00 $ 1,166.00 $ 1,992.00 $ 4,239.00 EQ/Capital Guardian Research $ 375.00 $ 1,154.00 $ 1,971.00 $ 4,201.00 EQ/Caywood-Scholl High Yield Bond $ 375.00 $ 1,154.00 $ 1,971.00 $ 4,201.00 EQ/Davis New York Venture $ 404.00 $ 1,237.00 $ 2,108.00 $ 4,456.00 EQ/Equity 500 Index $ 335.00 $ 1,036.00 $ 1,777.00 $ 3,829.00 EQ/Evergreen International Bond $ 387.00 $ 1,188.00 $ 2,027.00 $ 4,306.00 EQ/Evergreen Omega $ 390.00 $ 1,197.00 $ 2,042.00 $ 4,334.00 EQ/FI Mid Cap $ 381.00 $ 1,169.00 $ 1,997.00 $ 4,249.00 - ---------------------------------------------------------------------------------------------------
16 Fee table
- --------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period ---------------------------------------------------------- 1 year 3 years 5 years 10 years - --------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------------- EQ/Franklin Income $ 1,206.00 $ 1,843.00 $ 2,118.00 $ 4,475.00 EQ/Franklin Small Cap Value $ 1,209.00 $ 1,853.00 $ 2,133.00 $ 4,503.00 EQ/Franklin Templeton Founding Strategy $ 1,234.00 $ 1,926.00 $ 2,252.00 $ 4,723.00 EQ/GAMCO Mergers and Acquisitions $ 1,210.00 $ 1,856.00 $ 2,138.00 $ 4,512.00 EQ/GAMCO Small Company Value $ 1,188.00 $ 1,791.00 $ 2,032.00 $ 4,315.00 EQ/International Core PLUS $ 1,194.00 $ 1,810.00 $ 2,062.00 $ 4,372.00 EQ/International Growth $ 1,213.00 $ 1,865.00 $ 2,153.00 $ 4,540.00 EQ/JPMorgan Core Bond $ 1,154.00 $ 1,692.00 $ 1,869.00 $ 4,007.00 EQ/JPMorgan Value Opportunities $ 1,173.00 $ 1,748.00 $ 1,961.00 $ 4,182.00 EQ/Large Cap Core PLUS $ 1,176.00 $ 1,757.00 $ 1,976.00 $ 4,211.00 EQ/Large Cap Growth PLUS $ 1,175.00 $ 1,754.00 $ 1,971.00 $ 4,201.00 EQ/Legg Mason Value Equity $ 1,182.00 $ 1,772.00 $ 2,002.00 $ 4,258.00 EQ/Long Term Bond $ 1,151.00 $ 1,682.00 $ 1,854.00 $ 3,978.00 EQ/Lord Abbett Growth and Income $ 1,181.00 $ 1,769.00 $ 1,997.00 $ 4,249.00 EQ/Lord Abbett Large Cap Core $ 1,186.00 $ 1,785.00 $ 2,022.00 $ 4,296.00 EQ/Lord Abbett Mid Cap Value $ 1,185.00 $ 1,782.00 $ 2,017.00 $ 4,287.00 EQ/Marsico Focus $ 1,198.00 $ 1,822.00 $ 2,082.00 $ 4,410.00 EQ/Mid Cap Value PLUS $ 1,181.00 $ 1,769.00 $ 1,997.00 $ 4,249.00 EQ/Money Market $ 1,143.00 $ 1,657.00 $ 1,813.00 $ 3,899.00 EQ/Montag & Caldwell Growth $ 1,190.00 $ 1,797.00 $ 2,042.00 $ 4,334.00 EQ/Mutual Shares $ 1,212.00 $ 1,862.00 $ 2,148.00 $ 4,531.00 EQ/Oppenheimer Global $ 1,250.00 $ 1,972.00 $ 2,326.00 $ 4,857.00 EQ/Oppenheimer Main Street Opportunity $ 1,233.00 $ 1,923.00 $ 2,247.00 $ 4,714.00 EQ/Oppenheimer Main Street Small Cap $ 1,241.00 $ 1,948.00 $ 2,287.00 $ 4,786.00 EQ/PIMCO Real Return $ 1,168.00 $ 1,732.00 $ 1,936.00 $ 4,134.00 EQ/Short Duration Bond $ 1,156.00 $ 1,698.00 $ 1,880.00 $ 4,027.00 EQ/Small Company Index $ 1,136.00 $ 1,639.00 $ 1,782.00 $ 3,839.00 EQ/T. Rowe Price Growth Stock $ 1,193.00 $ 1,806.00 $ 2,057.00 $ 4,363.00 EQ/Templeton Growth $ 1,216.00 $ 1,874.00 $ 2,168.00 $ 4,568.00 EQ/UBS Growth and Income $ 1,191.00 $ 1,800.00 $ 2,047.00 $ 4,344.00 EQ/Van Kampen Comstock $ 1,180.00 $ 1,766.00 $ 1,992.00 $ 4,239.00 EQ/Van Kampen Emerging Markets Equity $ 1,241.00 $ 1,948.00 $ 2,287.00 $ 4,786.00 EQ/Van Kampen Mid Cap Growth $ 1,185.00 $ 1,782.00 $ 2,017.00 $ 4,287.00 EQ/Van Kampen Real Estate $ 1,212.00 $ 1,862.00 $ 2,148.00 $ 4,531.00 - --------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period, and select a non-life contingent period certain annuity option with less than five years ------------------------------------------------------ 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------- EQ/Franklin Income N/A $ 1,843.00 $ 2,118.00 $ 4,475.00 EQ/Franklin Small Cap Value N/A $ 1,853.00 $ 2,133.00 $ 4,503.00 EQ/Franklin Templeton Founding Strategy N/A $ 1,926.00 $ 2,252.00 $ 4,723.00 EQ/GAMCO Mergers and Acquisitions N/A $ 1,856.00 $ 2,138.00 $ 4,512.00 EQ/GAMCO Small Company Value N/A $ 1,791.00 $ 2,032.00 $ 4,315.00 EQ/International Core PLUS N/A $ 1,810.00 $ 2,062.00 $ 4,372.00 EQ/International Growth N/A $ 1,865.00 $ 2,153.00 $ 4,540.00 EQ/JPMorgan Core Bond N/A $ 1,692.00 $ 1,869.00 $ 4,007.00 EQ/JPMorgan Value Opportunities N/A $ 1,748.00 $ 1,961.00 $ 4,182.00 EQ/Large Cap Core PLUS N/A $ 1,757.00 $ 1,976.00 $ 4,211.00 EQ/Large Cap Growth PLUS N/A $ 1,754.00 $ 1,971.00 $ 4,201.00 EQ/Legg Mason Value Equity N/A $ 1,772.00 $ 2,002.00 $ 4,258.00 EQ/Long Term Bond N/A $ 1,682.00 $ 1,854.00 $ 3,978.00 EQ/Lord Abbett Growth and Income N/A $ 1,769.00 $ 1,997.00 $ 4,249.00 EQ/Lord Abbett Large Cap Core N/A $ 1,785.00 $ 2,022.00 $ 4,296.00 EQ/Lord Abbett Mid Cap Value N/A $ 1,782.00 $ 2,017.00 $ 4,287.00 EQ/Marsico Focus N/A $ 1,822.00 $ 2,082.00 $ 4,410.00 EQ/Mid Cap Value PLUS N/A $ 1,769.00 $ 1,997.00 $ 4,249.00 EQ/Money Market N/A $ 1,657.00 $ 1,813.00 $ 3,899.00 EQ/Montag & Caldwell Growth N/A $ 1,797.00 $ 2,042.00 $ 4,334.00 EQ/Mutual Shares N/A $ 1,862.00 $ 2,148.00 $ 4,531.00 EQ/Oppenheimer Global N/A $ 1,972.00 $ 2,326.00 $ 4,857.00 EQ/Oppenheimer Main Street Opportunity N/A $ 1,923.00 $ 2,247.00 $ 4,714.00 EQ/Oppenheimer Main Street Small Cap N/A $ 1,948.00 $ 2,287.00 $ 4,786.00 EQ/PIMCO Real Return N/A $ 1,732.00 $ 1,936.00 $ 4,134.00 EQ/Short Duration Bond N/A $ 1,698.00 $ 1,880.00 $ 4,027.00 EQ/Small Company Index N/A $ 1,639.00 $ 1,782.00 $ 3,839.00 EQ/T. Rowe Price Growth Stock N/A $ 1,806.00 $ 2,057.00 $ 4,363.00 EQ/Templeton Growth N/A $ 1,874.00 $ 2,168.00 $ 4,568.00 EQ/UBS Growth and Income N/A $ 1,800.00 $ 2,047.00 $ 4,344.00 EQ/Van Kampen Comstock N/A $ 1,766.00 $ 1,992.00 $ 4,239.00 EQ/Van Kampen Emerging Markets Equity N/A $ 1,948.00 $ 2,287.00 $ 4,786.00 EQ/Van Kampen Mid Cap Growth N/A $ 1,782.00 $ 2,017.00 $ 4,287.00 EQ/Van Kampen Real Estate N/A $ 1,862.00 $ 2,148.00 $ 4,531.00 - ----------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------ If you do not surrender your contract at the end of the applicable time period -------------------------------------------------------- 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------ EQ/Franklin Income $ 406.00 $ 1,243.00 $ 2,118.00 $ 4,475.00 EQ/Franklin Small Cap Value $ 409.00 $ 1,253.00 $ 2,133.00 $ 4,503.00 EQ/Franklin Templeton Founding Strategy $ 434.00 $ 1,326.00 $ 2,252.00 $ 4,723.00 EQ/GAMCO Mergers and Acquisitions $ 410.00 $ 1,256.00 $ 2,138.00 $ 4,512.00 EQ/GAMCO Small Company Value $ 388.00 $ 1,191.00 $ 2,032.00 $ 4,315.00 EQ/International Core PLUS $ 394.00 $ 1,210.00 $ 2,062.00 $ 4,372.00 EQ/International Growth $ 413.00 $ 1,265.00 $ 2,153.00 $ 4,540.00 EQ/JPMorgan Core Bond $ 354.00 $ 1,092.00 $ 1,869.00 $ 4,007.00 EQ/JPMorgan Value Opportunities $ 373.00 $ 1,148.00 $ 1,961.00 $ 4,182.00 EQ/Large Cap Core PLUS $ 376.00 $ 1,157.00 $ 1,976.00 $ 4,211.00 EQ/Large Cap Growth PLUS $ 375.00 $ 1,154.00 $ 1,971.00 $ 4,201.00 EQ/Legg Mason Value Equity $ 382.00 $ 1,172.00 $ 2,002.00 $ 4,258.00 EQ/Long Term Bond $ 351.00 $ 1,082.00 $ 1,854.00 $ 3,978.00 EQ/Lord Abbett Growth and Income $ 381.00 $ 1,169.00 $ 1,997.00 $ 4,249.00 EQ/Lord Abbett Large Cap Core $ 386.00 $ 1,185.00 $ 2,022.00 $ 4,296.00 EQ/Lord Abbett Mid Cap Value $ 385.00 $ 1,182.00 $ 2,017.00 $ 4,287.00 EQ/Marsico Focus $ 398.00 $ 1,222.00 $ 2,082.00 $ 4,410.00 EQ/Mid Cap Value PLUS $ 381.00 $ 1,169.00 $ 1,997.00 $ 4,249.00 EQ/Money Market $ 343.00 $ 1,057.00 $ 1,813.00 $ 3,899.00 EQ/Montag & Caldwell Growth $ 390.00 $ 1,197.00 $ 2,042.00 $ 4,334.00 EQ/Mutual Shares $ 412.00 $ 1,262.00 $ 2,148.00 $ 4,531.00 EQ/Oppenheimer Global $ 450.00 $ 1,372.00 $ 2,326.00 $ 4,857.00 EQ/Oppenheimer Main Street Opportunity $ 433.00 $ 1,323.00 $ 2,247.00 $ 4,714.00 EQ/Oppenheimer Main Street Small Cap $ 441.00 $ 1,348.00 $ 2,287.00 $ 4,786.00 EQ/PIMCO Real Return $ 368.00 $ 1,132.00 $ 1,936.00 $ 4,134.00 EQ/Short Duration Bond $ 356.00 $ 1,098.00 $ 1,880.00 $ 4,027.00 EQ/Small Company Index $ 336.00 $ 1,039.00 $ 1,782.00 $ 3,839.00 EQ/T. Rowe Price Growth Stock $ 393.00 $ 1,206.00 $ 2,057.00 $ 4,363.00 EQ/Templeton Growth $ 416.00 $ 1,274.00 $ 2,168.00 $ 4,568.00 EQ/UBS Growth and Income $ 391.00 $ 1,200.00 $ 2,047.00 $ 4,344.00 EQ/Van Kampen Comstock $ 380.00 $ 1,166.00 $ 1,992.00 $ 4,239.00 EQ/Van Kampen Emerging Markets Equity $ 441.00 $ 1,348.00 $ 2,287.00 $ 4,786.00 EQ/Van Kampen Mid Cap Growth $ 385.00 $ 1,182.00 $ 2,017.00 $ 4,287.00 EQ/Van Kampen Real Estate $ 412.00 $ 1,262.00 $ 2,148.00 $ 4,531.00 - ------------------------------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix V at the end of this Prospectus. Fee table 17 CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. 18 Fee table 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT You may purchase a contract by making payments to us that we call "contributions." We require a minimum initial contribution of $10,000 for you to purchase a contract. You may make additional contributions of: (i) at least $500 each for NQ, QP and Rollover TSA contracts; (ii) $50 each for Rollover IRA and Roth conversion IRA contracts; and (iii) $1,000 for Inherited IRA contracts, subject to limitations noted below. The following table summarizes our rules regarding contributions to your contract. All ages in the table refer to the age of the annuitant named in the contract. If the Guaranteed withdrawal benefit for life is elected, both the owner and the annuitant named in the contract must meet the issue age requirements shown in the table, and contributions are based on the age of the older of the original owner and annuitant. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000 ($500,000 for owners or annuitants who are ages 81 and older at contract issue). We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We may accept less than the minimum initial contribution under a contract if an aggregate amount of contracts purchased at the same time by an individual (including spouse) meets the minimum. - -------------------------------------------------------------------------------- The "owner" is the person who is the measuring life for GWBL. The "annuitant" is the person who is the measuring life for all other contract benefits. The annuitant is not necessarily the contract owner. - --------------------------------------------------------------------------------
- ----------------------------------------------------------- Available for Minimum Contract type issue ages contributions - ----------------------------------------------------------- NQ 0 through 85 o $10,000 (initial) o $500 (additional) o $100 monthly and $300 quarterly under our automatic investment program (additional). - ----------------------------------------------------------- Rollover IRA 20 through 85 o $10,000 (initial) o $50 (additional) - ----------------------------------------------------------- - -------------------------------------------------------------------------------------- Limitations on Contract type Source of contributions contributions(+) - -------------------------------------------------------------------------------------- NQ o After-tax money. o No additional contributions after attainment of age 87. o Paid to us by check or transfer of contract value in a tax- deferred exchange under Section 1035 of the Internal Revenue Code. - -------------------------------------------------------------------------------------- Rollover IRA o Eligible rollover distributions o No rollover or direct transfer from 403(b) plans, qualified contributions after attainment plans, and governmental of age 87. employer 457(b) plans. o Contributions after age 70-1/2 o Rollovers from another tradi- must be net of required mini- tional individual retirement mum distributions. arrangement. o Although we accept regular o Direct custodian-to-custodian IRA contributions (limited to transfers from another tradi- $5,000), under the rollover IRA tional individual retirement contracts, we intend that this arrangement. contract be used primarily for rollover and direct transfer o Regular IRA contributions. contributions. o Additional catch-up o Additional catch-up contribu- contributions. tions of up to $1,000 per calendar year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - --------------------------------------------------------------------------------------
Contract features and benefits 19
- ------------------------------------------------------- Available for Minimum Contract type issue ages contributions - ------------------------------------------------------- Roth Conversion 20 through 85 o $10,000 (initial) IRA o $50 (additional) - ------------------------------------------------------- Rollover TSA* 20 through 85 o $10,000 (initial) o $500 (additional) - ------------------------------------------------------- - ------------------------------------------------------------------------------------------- Limitations on Contract type Source of contributions contributions(+) - ------------------------------------------------------------------------------------------- Roth Conversion o Rollovers from another Roth o No additional rollover or direct IRA IRA. transfer contributions after attainment of age 87. o Rollovers from a "designated Roth contribution account" o Conversion rollovers after under a 401(k) plan or 403(b) age 70-1/2 must be net of plan. required minimum distributions for the traditional IRA or other o Conversion rollovers from a eligible retirement plan, which traditional IRA or other is the source of the conversion eligible retirement plan. rollover. o Direct transfers from another o You cannot roll over funds from Roth IRA. a traditional IRA or other eli- gible retirement plan if your o Regular Roth IRA adjusted gross income is contributions. $100,000 or more. o Additional "catch-up" contri- o Although we accept regular butions. Roth IRA contributions (limited to $5,000) under the Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contribu- tions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribution is made. - ------------------------------------------------------------------------------------------- Rollover TSA* o With documentation of o No additional contributions employer or plan approval, after attainment of age 87. and limited to pre-tax funds, direct plan-to-plan transfers o Contributions after age 70-1/2 from another 403(b) plan or must be net of any required contract exchanges from minimum distributions. another 403(b) contract under the same plan. o We do not accept employer- remitted contributions. o With documentation of employer or plan approval, o We do not accept after-tax and limited to pre-tax funds, contributions, including desig- eligible rollover distributions nated Roth contributions. from other 403(b) plans, quali- fied plans, governmental employer 457(b) plans or tra- ditional IRAs. - -------------------------------------------------------------------------------------------
20 Contract features and benefits
- ------------------------------------------------------------ Available for Minimum Contract type issue ages contributions - ------------------------------------------------------------ QP 20 through 75 o $10,000 (initial) o $500 (additional) - ------------------------------------------------------------ Inherited IRA 0 through 70 o $10,000 (initial) Beneficiary Con- tinuation Contract o $1,000 (additional) (traditional IRA or Roth IRA) - ------------------------------------------------------------ - -------------------------------------------------------------------------------------------- Limitations on Contract type Source of contributions contributions(+) - -------------------------------------------------------------------------------------------- QP o Only transfer contributions o A separate QP contract must be from other investments within established for each plan an existing defined contribu- participant. tion qualified plan trust. o We do not accept regular o The plan must be qualified ongoing payroll contributions under Section 401(a) of the or contributions directly from Internal Revenue Code. the employer. o For 401(k) plans, transferred o Only one additional transfer contributions may not include contribution may be made any after-tax contributions, during a contract year. including designated Roth contributions. o No additional transfer contribu- tions after participant's attainment of age 76 or, if later, the first contract date anniversary. o We do not accept contributions from defined benefit plans. - -------------------------------------------------------------------------------------------- Inherited IRA o Direct custodian-to-custodian o Any additional contributions Beneficiary Con- transfers of your interest as a must be from the same type of tinuation Contract death beneficiary of the IRA of the same deceased (traditional IRA or deceased owner's traditional owner. Roth IRA) individual retirement arrange- ment or Roth IRA to an IRA o o Non-spousal beneficiary direct the same type. rollover contributions from qualified plans, 403(b) plans and governmental employer 457(b) plans may be made to a traditional Inherited IRA con- tract under specified circumstances. - --------------------------------------------------------------------------------------------
Please refer to Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. + If you purchase Guaranteed principal benefit option 2, no contributions are permitted after the six month period beginning on the contract date. For the Guaranteed withdrawal ben efit for life option, additional contributions are not permitted after the later of: (i) the end of the first contract year, and (ii) the date you make your first withdrawal. * Rollover TSA contracts may not be available from all selling broker-dealers. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. Contract features and benefits 21 OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. If the Spousal protection feature is elected, the spouses must be joint owners, one of the spouses must be the annuitant and both must be named as the only primary beneficiaries. If the Spousal continuation feature is available under your contract, for Single life contracts, the surviving spouse must be the sole primary beneficiary for it to apply. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. In general, we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your state. For NQ contracts in which the Guaranteed withdrawal benefit for life is elected (with a single owner, Joint life, or a non-natural owner) that are purchased through an exchange that is not taxable under Section 1035 of the Internal Revenue Code, we permit joint annuitants. We also permit joint annuitants in non-exchange sales if you elect the Guaranteed withdrawal benefit for life on a Joint life basis, and the contract is owned by a non-natural owner. In all cases, the joint annuitants must be spouses. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. See "Inherited IRA beneficiary continuation contract" later in this section for Inherited IRA owner and annuitant requirements. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II at the end of this Prospectus for more information on QP contracts. Certain benefits under your contract, as described later in this Prospectus, are based on the age of the owner, if GWBL is elected. If the owner of the contract is not a natural person, these benefits will be based on the age of the annuitant. Under QP contracts and contracts in which GWBL is not elected all benefits are based on the age of the annuitant. In this Prospectus, when we use the terms owner and joint owner, we intend these to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If GWBL is elected, the terms owner and successor owner are intended to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. PURCHASE CONSIDERATIONS FOR CHARITABLE REMAINDER TRUSTS If you are purchasing this contract to fund a charitable remainder trust and elect the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life ("GWBL"), or the Annual Ratchet to age 85 enhanced death benefit, you should strongly consider "split-funding": that is the trust holds investments in addition to this Accumulator(R) Elite(SM) contract. Charitable remainder trusts are required to take specific distributions. The charitable remainder trust annual withdrawal requirement may be equal to a percentage of the donated amount or a percentage of the current value of the donated amount. If your Accumulator(R) Elite(SM) contract is the only source for such distributions, the payments you need to take may significantly reduce the value of those guaranteed benefits. Such amount may be greater than the annual increase in the GMIB, the GWBL and/or the death benefit base and/or greater than the Guaranteed annual withdrawal amount under GWBL. See the discussion of these benefits later in this section. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept initial and additional contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealer. Additional contributions may also be made under our automatic investment program. These methods of payment, are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- Your initial contribution must generally be accompanied by an application and any other form we need to process the payments. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain this information. If we are unable to obtain all of the information we require within five business days after we receive an incomplete application or form, we will inform the financial professional submitting the application on your behalf. We will then return the contribution to you unless you specifically direct us to 22 Contract features and benefits keep your contribution until we receive the required information. The contribution will be applied as of the date we receive the missing information. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option, the fixed maturity options and the account for special dollar cost averaging. If you elect the Guaranteed withdrawal benefit for life, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the following variable investment options: the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio ("permitted variable investment options"). VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. Contract features and benefits 23 PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features including the Guaranteed withdrawal benefit for life which restricts allocations to the permitted variable investment options. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable ALLOCATION greater emphasis on current income. - ----------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable ALLOCATION with a greater emphasis on capital appreciation. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital o BlackRock Financial Management, Inc. appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current o Pacific Investment Management Company income and capital appreciation. LLC o Post Advisory Group, LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - -----------------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
- --------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - --------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - --------------------------------------------------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - ---------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 25
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY markets using strategies that are designed to limit expo- sure to general equity market risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, o BlackRock Investment Management, LLC EQUITY income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of o BlackRock Investment Management VALUE income, accompanied by growth of capital. International Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to o Boston Advisors, LLC INCOME achieve an above-average and consistent total return. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company RESEARCH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management YIELD BOND - ------------------------------------------------------------------------------------------------------------------------------------ EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. o Davis Selected Advisers, L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that o AllianceBernstein L.P. approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. o Evergreen Investment Management Company, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI MID CAP Seeks to achieve long-term growth of capital. o Fidelity Management & Research Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects o Franklin Advisers, Inc. for capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. o Franklin Advisory Services, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily seeks o AXA Equitable FOUNDING STRATEGY income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. o GAMCO Asset Management Inc. ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. o GAMCO Asset Management Inc. VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------
26 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with mod- o JPMorgan Investment Management Inc. erate risk to capital and maintenance of liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. o JPMorgan Investment Management Inc. OPPORTUNITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- o AXA Equitable ondary objective to seek reasonable current income. For o Institutional Capital LLC purposes of this Portfolio, the words "reasonable current o Mellon Capital Management Corporation income" mean moderate income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. o Legg Mason Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o BlackRock Financial Management, Inc. through investment in long-maturity debt obligations. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC INCOME income without excessive fluctuation in market value. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC CORE income with reasonable risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. o Lord, Abbett & Co. LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o The Dreyfus Corporation its assets and maintain liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- o Franklin Mutual Advisers, LLC sionally be short-term, and secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. o OppenheimerFunds, Inc. OPPORTUNITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. SMALL CAP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with o Pacific Investment Management Company, preservation of real capital and prudent investment man- LLC agement. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility o BlackRock Financial Management, Inc. of principal. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o AllianceBernstein L.P. deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 27
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and o T. Rowe Price Associates, Inc. STOCK secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. o Templeton Global Advisors Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation o UBS Global Asset Management with income as a secondary consideration. (Americas) Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. o Morgan Stanley Investment Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. o Morgan Stanley Investment Management Inc. MARKETS EQUITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. o Morgan Stanley Investment Management Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- o Morgan Stanley Investment Management Inc. term capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. 28 Contract features and benefits GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges, any withdrawal charges, and any optional benefit charges. Your lifetime minimum rate ranges from 1.00% to 3.00%. The data page for your contract shows the lifetime minimum rate. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75%. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfer from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." - -------------------------------------------------------------------------------- Fixed maturity options range from one to ten years to maturity. - -------------------------------------------------------------------------------- Under the Special 10 year fixed maturity option, additional contributions will have the same maturity date as your initial contribution (see "The Guaranteed Principal Benefits," below). The rate to maturity you will receive for each additional contribution is the rate to maturity in effect for new contributions allocated to that fixed maturity option on the date we apply your contribution. On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you apply for an Accumulator(R) Elite(SM) contract, a 60-day rate lock-in will apply from the date the application is signed. Any contributions received and designated for a fixed maturity option during this period will receive the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever is greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from any of the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed below in "Allocating your contributions," would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value (there may be a withdrawal charge). If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008 the next available maturity date was February 15, 2015. If no fixed maturity options are available we will transfer your maturity value to the EQ/Money Market Option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for withdrawal charges) of a portion of the amount in the fixed maturity option will be a percentage of the market Contract features and benefits 29 value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options (adjusted to reflect a similar maturity date), and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING The account for special dollar cost averaging is part of our general account. We pay interest at guaranteed rates in this account. We will credit interest to the amounts that you have in the account for special dollar cost averaging every day. We set the interest rates periodically, according to procedures that we have. We reserve the right to change these procedures. We guarantee to pay our current interest rate that is in effect on the date that your contribution is allocated to this account. Your guaranteed interest rate for the time period you select will be shown in your contract for an initial contribution. The rate will never be less than the lifetime minimum rate for the guaranteed interest option. See "Allocating your contributions" below for rules and restrictions that apply to the special dollar cost averaging program. ALLOCATING YOUR CONTRIBUTIONS You may choose from among three ways to allocate your contributions under your contract: self-directed, the guaranteed principal benefits or dollar cost averaging. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, the guaranteed interest option and fixed maturity options. No more than 25% of any contribution may be allocated to the guaranteed interest option. Allocations must be in whole percentages and you may change your allocations at any time. The total of your allocations into all available investment options must equal 100%. If the annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. THE GUARANTEED PRINCIPAL BENEFITS We offer a guaranteed principal benefit ("GPB") with two options. You may only elect one of the GPBs. Neither GPB is available under Inherited IRA contracts. We will not offer either GPB when the rate to maturity for the applicable fixed maturity option is 3%. If you elect either GPB, you may not elect the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, the systematic withdrawals option or the substantially equal withdrawals option. Both GPB options allow you to allocate a portion of your contribution or contributions to the variable investment options, while ensuring that your account value will at least equal your contributions adjusted for withdrawals and transfers on a specified date. GPB Option 2 generally provides you with the ability to allocate more of your contributions to the variable investment options than could be allocated using GPB Option 1. You may elect GPB Option 1 only if the annuitant age is 80 or younger when the contract is issued (after age 75, only the 7-year fixed maturity option is available). You may elect GPB Option 2 only if the annuitant is age 75 or younger when the contract is issued. If you are purchasing an IRA, QP or Rollover TSA contract, before you either purchase GPB Option 2 or elect GPB Option 1 with a maturity year that would extend beyond the year in which you will reach age 70-1/2, you should consider whether your value in the variable investment options, guaranteed interest option and permissible funds outside this contract are sufficient to meet your required minimum distributions. See "Tax information" later in this Prospectus. If you elect GPB Option 2 and change ownership of the contract, GPB Option 2 will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. 30 Contract features and benefits GUARANTEED PRINCIPAL BENEFIT OPTION 1. Under GPB Option 1, you select a fixed maturity option at the time you sign your application. We specify the portion of your initial contribution to be allocated to that fixed maturity option in an amount that will cause the maturity value to equal the amount of your entire initial contribution on the fixed maturity option's maturity date. The amount of your contribution allocated to the fixed maturity option will be calculated based upon the rate to maturity then in effect for the fixed maturity option you choose. Your contract will contain information on the percentage of your contribution allocated to the fixed maturity option. If you make any withdrawals or transfers from the fixed maturity option before the option's maturity date, the amount in the fixed maturity option will be adjusted and may no longer grow to equal your initial contribution under GPB Option 1. The maturity date you select generally may not be later than 10 years, or earlier than 7 years from your contract date. You may allocate the rest of your initial contribution to the investment options however you choose (unless you elect a dollar cost averaging program, in which case the remainder of your initial contribution must be allocated to the dollar cost averaging program). Upon the maturity date of the fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." There is no charge for GPB Option 1. GUARANTEED PRINCIPAL BENEFIT OPTION 2. You may purchase GPB Option 2 at the time you apply for your contract. IF YOU PURCHASE GPB OPTION 2, YOU MAY NOT MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE RATE TO MATURITY ON THE SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore, any discussion in this Prospectus that involves any additional contributions after the first six months will be inapplicable. We specify the portion of your initial contribution, and any additional permitted contributions, to be allocated to a Special 10 year fixed maturity option. Your contract will contain information on the percentage of applicable contributions allocated to the Special 10 year fixed maturity option. You may allocate the rest of your contributions among the investment options (other than the Special 10 year fixed maturity option) however you choose, as permitted under your contract and other than the Investment simplifier (unless you elect a dollar cost averaging program, in which case all contributions, other than amounts allocated to the Special 10 year fixed maturity option, must be allocated to the dollar cost averaging program). The Special 10 year fixed maturity option will earn interest at the specified rate to maturity then in effect. If on the 10th contract date anniversary, your annuity account value is less than the amount that is guaranteed under GPB Option 2, we will increase your annuity account value to be equal to the guaranteed amount under GPB Option 2. Any such additional amounts added to your annuity account value will be allocated to the EQ/Money Market investment option. After the maturity date of the Special 10 year fixed maturity option, the guarantee under GPB Option 2 will terminate. Upon the maturity date of the Special 10 year fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." The guaranteed amount under GPB Option 2 is equal to your initial contribution adjusted for any additional permitted contributions, transfers out of the Special 10 year fixed maturity option and withdrawals from the contract (see "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus). Any transfers or withdrawals from the Special 10 year fixed maturity option will also be subject to a market value adjustment (see "Market value adjustment" under "Fixed maturity options" above in this section). Once you purchase the Guaranteed principal benefit option 2, you may not voluntarily terminate this benefit. GPB Option 2 will terminate if the contract terminates before the maturity date of the Special 10 year fixed maturity option. If the owner and the annuitant are different people and the owner dies before the maturity date of the Special 10 year fixed maturity option, we will continue GPB Option 2 only if the contract can continue through the maturity date of the Special 10 year fixed maturity option. If the contract cannot so continue, we will terminate GPB Option 2. GPB Option 2 will continue where there is a successor owner/annuitant. GPB Option 2 will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a fee associated with GPB Option 2 (see "Charges and expenses" later in this Prospectus). You should note that the purchase of GPB Option 2 is not appropriate if you want to make additional contributions to your contract beyond the first six months after your contract is issued. If you later decide that you would like to make additional contributions to the Accumulator(R) Elite(SM) contract, we may permit you to purchase another contract. If we do, however, you should note that we do not reduce or waive any of the charges on the new contract, nor do we guarantee that the features available under this contract will be available under the new contract. This means that you might end up paying more with respect to certain charges than if you had simply purchased a single contract (for example the administrative charge). The purchase of GPB Option 2 is also not appropriate if you plan on terminating your contract before the maturity date of the special 10 year fixed maturity option. In addition, because we prohibit contributions to your contract after the first six months, certain contract benefits that are dependent upon contributions or account value will be limited (for example, the Guaranteed death benefits). You should also note that if you intend to allocate a large percentage of your contributions to the guaranteed interest option or other fixed maturity options, the purchase of GPB Option 2 may not be appropriate because of the guarantees already provided by these options. An example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract is included in Appendix VI later in this Prospectus. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to Contract features and benefits 31 gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- SPECIAL DOLLAR COST AVERAGING PROGRAM. Under the special dollar cost averaging program, you may choose to allocate all or a portion of any eligible contribution to the account for special dollar cost averaging. Contributions into the account for special dollar cost averaging may not be transfers from other investment options. Your initial allocation to any special dollar cost averaging program time period must be at least $2,000 and any subsequent contribution to that same time period must be at least $250. You may only have one time period in effect at any time and once you select a time period, you may not change it. You may have your account value transferred to any of the variable investment options available under your contract. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life. We will transfer amounts from the account for special dollar cost averaging into the variable investment options over an available time period that you select. We offer time periods of 3, 6 or 12 months during which you will receive an enhanced interest rate. We may also offer other time periods. Your financial professional can provide information on the time periods and interest rates or you may contact our processing office. If the special dollar cost averaging program is selected at the time of application to purchase the Accumulator(R) Elite(SM) contract, a 60 day rate lock will apply from the date of application. Any contribution(s) received during this 60 day period will be credited with the interest rate offered on the date of application for the remainder of the time period selected at application. Any contribution(s) received after the 60 day rate lock period has ended will be credited with the then current interest rate for the remainder of the time period selected at application. Contribution(s) made to a special dollar cost averaging program selected after the Accumulator(R) Elite(SM) contract has been issued will be credited with the then current interest rate on the date the contribution is received by AXA Equitable for the time period initially selected by you. Once the time period you selected has run, you may then select another time period for future contributions. At that time, you may also select a different allocation for transfers to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, your account value will be transferred from the account for special dollar cost averaging into the variable investment options on a monthly basis. We may offer this program in the future with transfers on a different basis. We will transfer all amounts out of the account for special dollar cost averaging by the end of the chosen time period. The transfer date will be the same day of the month as the contract date, but not later than the 28th day of the month. For a special dollar cost averaging program selected after application, the first transfer date and each subsequent transfer date for the time period selected will be one month from the date the first contribution is made into the special dollar cost averaging program, but not later than the 28th day of the month. If you choose to allocate only a portion of an eligible contribution to the account for special dollar cost averaging, the remaining balance of that contribution will be allocated to the variable investment options, guaranteed interest option or fixed maturity options according to your instructions. The only transfers that will be made from the account for special dollar cost averaging are your regularly scheduled transfers to the variable investment options. No amounts may be transferred from the account for special dollar cost averaging to the guaranteed interest option or the fixed maturity options. If you request to transfer or withdraw any other amounts from the account for special dollar averaging, we will transfer all of the value that you have remaining in the account for special dollar cost averaging to the investment options according to the allocation percentages for special dollar cost averaging we have on file for you. You may ask us to cancel your participation at any time. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. If you elect the Guaranteed withdrawal benefit for life, general dollar cost averaging is not available. INVESTMENT SIMPLIFIER Fixed-dollar option. Under this option, you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. Unlike 32 Contract features and benefits the account for special dollar cost averaging, this option does not offer enhanced rates. Also, this option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date, your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. Interest sweep option. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. On the last day of each month, we check to see whether you have at least $7,500 in the guaranteed interest option. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not currently participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Under the Option I rebalancing program, you may participate in any of the dollar cost averaging programs except general dollar cost averaging. If you elect a GPB and a dollar cost averaging program, 100% of your contributions not allocated to the fixed maturity option under the GPB must be allocated to the dollar cost averaging program you elect. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" immediately below. You may still elect the Investment simplifier for amounts transferred from investment options (other than the fixed maturity option under the GPB you have elected), and, for GPB Option 1, you may also elect Investment simplifier for subsequent contributions. See "Transferring your money among investment options" later in this Prospectus. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit and the death benefits, as described in this section. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 6% ROLL-UP TO AGE 85 (USED FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to this benefit base is: o 6% with respect to the variable investment options (other than EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond) and the account for special dollar cost averaging; and o 3% with respect to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond, the fixed maturity options, the Special 10 year fixed maturity option, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up on the contract date anniversary following the annuitant's 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: Contract features and benefits 33 o your initial contribution to the contract (plus any additional contributions), or o your highest account value on any contract date anniversary up to the contract date anniversary following the annuitant's 85th birthday, if GWBL is not elected (following the owner's or older spouse's (for Joint life contracts) 85th birthday if GWBL is elected) plus any contributions made since the most recent ratchet, less o a deduction that reflects any withdrawals you make (the amount of the deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus). GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6% Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. The benefit base is reduced by any applicable withdrawal charge remaining when the option is exercised. For more information, see "Withdrawal charge" in "Charges and expenses" later in this Prospectus. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed in "Guaranteed minimum income benefit option" below and annuity payout options are discussed in "Accessing your money" later in this Prospectus. Your contract specifies different guaranteed annuity purchase factors for the Guaranteed minimum income benefit and the annuity payout options. We may provide more favorable current annuity purchase factors for the annuity payout options. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in certain instances. GUARANTEED MINIMUM INCOME BENEFIT OPTION The Guaranteed minimum income benefit is available if the annuitant is age 20 through 75 at the time the contract is issued. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. If you are purchasing this contract as an inherited IRA, or if you elect a GPB option or the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit is not available. If you are purchasing this contract to fund a Charitable Remainder Trust, the Guaranteed minimum income benefit is not available except for certain split-funded Charitable Remainder Trusts. For IRA, QP and Rollover TSA contracts, owners over age 60 at contract issue should consider the impact of the minimum distributions required by tax law in relation to the withdrawal limitations under the Guaranteed minimum income benefit. See "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. If the owner and annuitant are different in an NQ contract, there may be circumstances where the benefit may not be exercisable after an owner's death. If you elect the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the annuitant's age as follows:
- -------------------------------------------- Level payments - -------------------------------------------- Period certain years ----------------------- Annuitant's age at exercise IRAs NQ - -------------------------------------------- 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - --------------------------------------------
We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit should be regarded as a safety net only. It provides income protection if you elect an income payout while the annuitant is alive. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base, less any applicable withdrawal charge remaining, at guaranteed annuity purchase factors, or (ii) the income provided by applying your account value at our then current annuity purchase factors. For Rollover TSA only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the 34 Contract features and benefits annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. Before you elect the Guaranteed minimum income benefit, you should consider the fact that the it provides a form of insurance and is based on conservative actuarial factors. The guaranteed annuity purchase factors we use to determine your payout annuity benefit under the Guaranteed minimum income benefit are more conservative than the guaranteed annuity purchase factors we use for our standard payout annuity options. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the Guaranteed minimum income benefit payout annuity will be smaller than each periodic payment under our standard payout annuity options. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male annuitant age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options (including the Special 10 year fixed maturity option) or the loan reserve account under rollover TSA contracts.
- ------------------------------------------------------- Guaranteed minimum income Contract date benefit -- annual income anniversary at exercise payable for life - ------------------------------------------------------- 10 $11,891 15 $18,597 - -------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us, along with all required information within 30 days following your contract date anniversary, in order to exercise this benefit. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payment contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death, or if later, the end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income benefit during your life and the annuitant's life, as follows: o If the annuitant was at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If the annuitant was at least age 45 and no older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after the annuitant is age 60. o If the annuitant was at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's 85th birthday; (ii) if the annuitant was age 75 when the contract was issued the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's attainment of age 85; (iii) for Accumulator(R) Elite(SM) QP contracts, the Plan participant can exercise the Guaranteed minimum income benefit only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) Elite(SM) QP contract into an Accumulator(R) Elite(SM) Rollover IRA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for the Plan participant to be eligible to exercise; (iv) for Accumulator(R) Elite(SM) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Elite(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (v) a successor owner/annuitant may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original annuitant could have exercised the benefit. Contract features and benefits 35 In addition, the successor owner/annuitant must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The successor owner/annuitant's age on the date of the annuitant's death replaces the annuitant's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules. If you elect Spousal Protection and the spouse who is the annuitant dies, the above rules apply if the contract is continued by the surviving spouse as the successor owner/annuitant; and (vi) if you are the owner but not the annuitant and you die prior to exercise, then the following applies: o A successor owner who is not the annuitant may not be able to exercise the guaranteed minimum income benefit without causing a tax problem. You should consider naming the annuitant as successor owner, or if you do not name a successor owner, as the sole primary beneficiary. You should carefully review your successor owner and/or beneficiary designations at least one year prior to the first contract date anniversary on which you could exercise the benefit. o If the successor owner is the annuitant, the guaranteed minimum income benefit continues only if the benefit could be exercised under the rules described above on a contract date anniversary that is within one year following the owner's death. This would be the only opportunity for the successor owner to exercise. If the guaranteed minimum income benefit cannot be exercised within this timeframe, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. o If you designate your surviving spouse as successor owner, the guaranteed minimum income benefit continues and your surviving spouse may exercise the benefit according to the rules described above even if your spouse is not the annuitant and even if the benefit is exercised more than one year after your death. If your surviving spouse dies prior to exercise, the rule described in the previous bullet applies. o A successor owner or beneficiary that is a trust or other non- natural person may not exercise the benefit; in this case, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT Your contract provides a standard death benefit. If you do not elect the Annual Ratchet to age 85 enhanced death benefit described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions, adjusted for any withdrawals (and any associated withdrawal charges) and any taxes that apply. The standard death benefit is the only death benefit available for annuitants ages 76 through 85 at issue (or owner ages 76 through 85 at issue, if GWBL is elected). Once your contract is issued, you may not change or voluntarily terminate your death benefit. If you elect the Annual Ratchet to age 85 enhanced death benefit, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment, OR your Annual Ratchet to age 85 enhanced death benefit on the date of the annuitant's death (adjusted for any subsequent withdrawals, withdrawal charges and taxes that apply), whichever provides the higher amount. If you elect GWBL, the death benefit is payable upon the owner's death or the second to die of the owner and successor owner (or upon the annuitant's death or the second to die of joint annuitants under a contract with a non-natural owner). If you elect the Spousal protection option, the guaranteed minimum death benefit is based on the age of the older spouse, who may or may not be the annuitant, for the life of the contract. See "Spousal protection" in "Payment of death benefit" later in this Prospectus for more information. If you elect the Annual Ratchet to age 85 enhanced death benefit option described below and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, the Annual Ratchet to age 85 enhanced death benefit elected will be replaced with the standard death benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFITS APPLICABLE FOR AGES 0 THROUGH 75 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; 0 THROUGH 70 AT ISSUE OF INHERITED IRA CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS. The Annual Ratchet to age 85 enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. 36 Contract features and benefits GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL") For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL") guarantees that you can take withdrawals up to a maximum amount per year (your "Guaranteed annual withdrawal amount"). GWBL is only available at issue. This benefit is not available at issue ages younger than 56. GWBL is not available if you have elected the Guaranteed minimum income benefit, either guaranteed principal benefit option or Spousal protection. You may elect one of our automated payment plans or you may take partial withdrawals. All withdrawals reduce your account value and Guaranteed minimum death benefit. See "Accessing your money" later in this Prospectus. Your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this Prospectus. Although you may make withdrawals from your contract prior to reaching age 59-1/2, such a withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount and therefore significantly reduce or eliminate the value of the GWBL. Please see "Effect of Excess withdrawals" below. You may buy this benefit on a single life ("Single life") or a joint life ("Joint life") basis. Under a Joint life contract, lifetime withdrawals are guaranteed for the life of both the owner and successor owner. For Joint life contracts, a successor owner may be named at contract issue only. The successor owner must be the owner's spouse. If you and the successor owner are no longer married, you may either: (i) drop the original successor owner or (ii) replace the original successor owner with your new spouse. This can only be done before the later of age 59-1/2 or when the first withdrawal is made from the contract. If the successor owner is dropped before the later of age 59-1/2 or when the first withdrawal is made from the contract, the Applicable percentage will be based on the owner's life on a Single life basis. After the later of age 59-1/2 or when the first withdrawal is made, the successor owner can be dropped but cannot be replaced. If the successor owner is dropped after the later of age 59-1/2 or when the first withdrawal is made, the Applicable percentage will continue to be based on the Joint life tier described later in this Prospectus. For NQ contracts, you have the option to designate the successor owner as a joint owner. For Joint life contracts owned by a non-natural owner, a joint annuitant may be named at contract issue only. The annuitant and joint annuitant must be spouses. If the annuitant and joint annuitant are no longer married, you may either: (i) drop the joint annuitant or (ii) replace the original joint annuitant with the annuitant's new spouse. This can only be done before the later of age 59-1/2 or when the first withdrawal is made. If the Joint annuitant is dropped before the later of age 59-1/2 or when the first withdrawal is made from the contract, the applicable percentage will be based on the annuitant's life on a Single life basis. After the later of age 59-1/2 or when the first withdrawal is made, the joint annuitant may be dropped but cannot be replaced. If the joint annuitant is dropped after the later of age 59-1/2 or when the first withdrawal is made, the Applicable percentage will continue to be based on the Joint life tier described later in this Prospectus. Joint life QP and TSA contracts are not permitted. This benefit is not available under an Inherited IRA contract. Loans are not available under TSA contracts. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your guaranteed withdrawal benefit for life. See "Owner and Annuitant requirements" earlier in this Prospectus for more information about charitable remainder trusts. The charge for the GWBL benefit will be deducted from your account value on each contract date anniversary. Please see "Guaranteed withdrawal benefit for life charge" later in this Prospectus for a description of the charge. You should not purchase this benefit if: o You plan to take withdrawals prior to age 59-1/2 or in excess of your Guaranteed annual withdrawal amount because those withdrawals may significantly reduce or eliminate the value of the benefit (see "Effect of Excess withdrawals" below in this section); o You are not interested in taking withdrawals prior to the contract's maturity date; o You are using the contract to fund a Rollover TSA or QP contract where withdrawal restrictions will apply; or o You plan to take withdrawals prior to age 59-1/2, as the taxable amount of the withdrawal will be includible in income and subject to an additional 10% federal income tax penalty, as discussed later in this Prospectus. The Federal Defense of Marriage Act precludes same-sex married couples, domestic partners, and civil union partners from being considered married under federal law. Such individuals, therefore, are not entitled to the favorable tax treatment accorded spouses under federal tax law. As a result, mandatory distributions from the contract must be made after the death of the first individual. Accordingly, the GWBL will have little or no value to the surviving same-gender spouse or partner. You should consult with your tax adviser for more information on this subject. For traditional IRAs and TSA and QP contracts, you may take your lifetime required minimum distributions ("RMDs") without losing the value of the GWBL benefit, provided you comply with the conditions described under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, this benefit may have limited usefulness for you and you should consider whether it is appropriate. Please consult your tax adviser. GWBL BENEFIT BASE At issue, your GWBL benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL benefit base increases by any subsequent contributions. o Your GWBL benefit base may be increased on each contract date anniversary, as described below under "Annual ratchet" and "7% deferral bonus." Contract features and benefits 37 o Your GWBL benefit base may be increased by the 200% Initial GWBL benefit base guarantee, as described later in this Prospectus. o Your GWBL benefit base is not reduced by withdrawals except any withdrawal made prior to age 59-1/2 and those withdrawals that cause total withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess withdrawals" below in this section. GUARANTEED ANNUAL WITHDRAWAL AMOUNT Your initial Guaranteed annual withdrawal amount is equal to a percentage of the GWBL benefit base. The initial applicable percentage ("Applicable percentage") is based on the owner's age at the time of the first withdrawal made at or after age 59-1/2. For Joint life contracts, the initial Applicable percentage is based on the age of the younger owner or successor owner, at the time of the first withdrawal made at or after age 59-1/2. If your GWBL benefit base ratchets, as described below in this section under "Annual ratchet," on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. The Applicable percentages are as follows:
- ------------------------------------------- Age Applicable percentage* - ------------------------------------------- Single life Joint life - ------------------------------------------- 59-1/2-75 5.0% 4.5% 76-85 6.0% 5.5% 86 and older 7.0% 6.5% - -------------------------------------------
* Prior to age 59-1/2, the Applicable percentage is 0%. Under a Joint life contract, if the owner or successor owner dies prior to the first withdrawal being taken from the contract at or after age 59-1/2, the survivor may notify us to change the status of the contract to a Single life contract, and the Applicable percentage will be based on the survivor's life on a Single life basis. If the owner or successor owner dies after the first withdrawal is taken from the contract at or after age 59-1/2, the Applicable percentage will continue to be on a Joint life basis. We will recalculate the Guaranteed annual withdrawal amount on each contract date anniversary and as of the date of any subsequent contribution or Excess withdrawal, as described below under "Effect of Excess withdrawals" and "Subsequent contributions." The withdrawal amount is guaranteed never to decrease as long as there are no Excess withdrawals. Your Guaranteed annual withdrawals are not cumulative. If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. The withdrawal charge, if applicable, is waived for withdrawals up to the Guaranteed annual withdrawal amount, but all withdrawals are counted toward your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" in your Prospectus. EFFECT OF EXCESS WITHDRAWALS An Excess withdrawal is caused when you withdraw any amount before age 59-1/2 or more than your Guaranteed annual withdrawal amount in any contract year. For any withdrawal made prior to age 59-1/2 and any withdrawal that causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, the entire amount of that withdrawal and each subsequent withdrawal in that contract year are considered Excess withdrawals. An Excess withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount. If you make an Excess withdrawal, we will recalculate your GWBL benefit base and the Guaranteed annual withdrawal amount, as follows: o The GWBL benefit base is reset as of the date of the Excess withdrawal to equal the lesser of: (i) the GWBL benefit base immediately prior to the Excess withdrawal and (ii) the account value immediately following the Excess withdrawal. o The Guaranteed annual withdrawal amount is recalculated to equal the Applicable percentage multiplied by the reset GWBL benefit base. You should not purchase this contract if you plan to take withdrawals in excess of your Guaranteed annual withdrawal amount as such withdrawals may significantly reduce or eliminate the value of the GWBL benefit. If your account value is less than your GWBL benefit base (due, for example, to negative market performance), an Excess withdrawal, even one that is only slightly more than your Guaranteed annual withdrawal amount, can significantly reduce your GWBL benefit base and the Guaranteed annual withdrawal amount. For example, assume your GWBL benefit base is $100,000 and your account value is $80,000 when you decide to begin taking withdrawals at age 65. Your Guaranteed annual withdrawal amount is equal to $5,000 (5.0% of $100,000). You take an initial withdrawal of $8,000. Since your GWBL benefit base is immediately reset to equal the lesser of your GWBL benefit base prior to the Excess withdrawal ($100,000) and your account value immediately following the Excess withdrawal ($80,000 minus $8,000), your GWBL benefit base is now $72,000. In addition, your Guaranteed annual withdrawal amount is reduced to $3,600 (5.0% of $72,000), instead of the original $5,000. See "How withdrawals affect your GWBL" later in this Prospectus. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds the greater of (i) the Guaranteed annual withdrawal amount or (ii) the 10% free withdrawal amount. A withdrawal charge would not be applied in the example above since the $8,000 withdrawal (equal to 10% of the contract's account value as of the beginning of the contract year) falls within the 10% free withdrawal amount. Under the example above, additional withdrawals during the same contract year could result in a further reduction of the GWBL benefit base and the Guaranteed annual withdrawal amount, as well as an application of withdrawal charges, if applicable. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. You should note that an Excess withdrawal that reduces your account value to zero terminates the contract, including all benefits, without value. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. 38 Contract features and benefits In general, if you purchase this contract as a traditional IRA, QP or TSA and participate in our Automatic RMD service, an automatic withdrawal under that program will not cause an Excess withdrawal, even if it exceeds your Guaranteed annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. Loans are not available under Rollover TSA contracts if GWBL is elected. ANNUAL RATCHET Your GWBL benefit base is recalculated on each contract date anniversary to equal the greater of: (i) the account value and (ii) the most recent GWBL benefit base. If your account value is greater, we will ratchet up your GWBL benefit base to equal your account value. If your GWBL benefit base ratchets on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. Your Guaranteed annual withdrawal amount will also be increased, if applicable, to equal your Applicable percentage times your new GWBL benefit base. If your GWBL benefit base ratchets, we may increase the charge for the benefit. Once we increase the charge, it is increased for the life of the contract. We will permit you to opt out of the ratchet if the charge increases. If you choose to opt out, your charge will stay the same but your GWBL benefit base will no longer ratchet. Upon request, we will permit you to accept a GWBL benefit base ratchet with the charge increase on a subsequent contract date anniversary. For a description of the charge increase, see "Guaranteed withdrawal benefit for life benefit charge" later in this Prospectus. 7% DEFERRAL BONUS At no additional charge, in each contract year in which you have not taken a withdrawal, we will increase your GWBL benefit base by an amount equal to 7% of your total contributions. This 7% deferral bonus is applicable for the life of the contract, subject to certain restrictions. We will apply the 7% deferral bonus to your GWBL benefit base on each contract date anniversary until you make a withdrawal from your contract. In a contract year following an Annual Ratchet (described above), the deferral bonus will be applied to your GWBL benefit base on each contract date anniversary until you make a withdrawal. However, no deferral bonus is applied on a contract date anniversary on which an Annual Ratchet occurs. Once you make a withdrawal, we will not apply the deferral bonus in future years unless you meet one of the exceptions that would allow you to continue to receive the deferral bonus. Those exceptions are described as follows: o You are eligible to receive the 7% deferral bonus for any of your first ten contract years that you have not taken a withdrawal, even if you had taken a withdrawal in a prior year. For example, if you take your first withdrawal in the second contract year, you are still eligible to receive the deferral bonus in contract years three through ten. The deferral bonus is not applied in the contract year in which a withdrawal was made. o You are eligible to receive the 7% deferral bonus to your GWBL benefit base on a contract date anniversary during the ten years following an Annual Ratchet, as long as no withdrawal is made in the same contract year. If a withdrawal is made during this ten-year period, no deferral bonus is applied in the contract year in which the withdrawal was made. If the Annual Ratchet occurs on any contract date anniversary, for the next and subsequent contract years, the deferral bonus will be 7% of the most recent ratcheted GWBL benefit base, plus any subsequent contributions. If the GWBL benefit base is reduced due to an Excess withdrawal, the 7% deferral bonus will be calculated using the reset GWBL benefit base, plus any applicable contributions. The 7% deferral bonus generally excludes contributions made in the prior 12 months. In the first contract year, the deferral bonus is determined using all contributions received in the first 90 days of the contract year. On any contract date anniversary on which you are eligible for a 7% deferral bonus, we will calculate the applicable bonus amount. If, when added to the current GWBL benefit base, the amount is greater than your account value, that amount will become your new GWBL benefit base but, as this adjustment is the result of the 7% deferral bonus rather than the Annual Ratchet, a new ten-year period, as described above, is not started by this adjustment to the GWBL benefit base. If that amount is less than or equal to your account value, your GWBL benefit base will be ratcheted to equal your account value (if higher), and the 7% deferral bonus will not apply. If you opt out of the Annual Ratchet (as discussed immediately above), the 7% deferral bonus will still apply. MATURITY DATE. The last deferral bonus will be applicable on the contract's maturity date. (See "Annuity maturity date" under "Accessing your money" later in this Prospectus.) 200% INITIAL GWBL BENEFIT BASE GUARANTEE If you have not taken a withdrawal from the contract before the later of (i) the tenth contract date anniversary, or (ii) the contract date anniversary following the owner's (or younger joint life's) attained age 70, the GWBL benefit base will be increased to equal 200% of contributions made to the contract during the first 90 days, plus 100% of any subsequent contributions received after the first 90 days. There will be no increase if your GWBL benefit base already exceeds this initial GWBL benefit base guarantee. This is the only time that this special increase to the GWBL benefit base is available. However, you will continue to be eligible for the 7% deferral bonuses following this one-time increase. SUBSEQUENT CONTRIBUTIONS Subsequent contributions are not permitted after the later of: (i) the end of the first contract year and (ii) the date the first withdrawal is taken. Anytime you make an additional contribution, your GWBL benefit base will be increased by the amount of the contribution. Your Guaranteed annual withdrawal amount will be equal to the Applicable percentage of the increased GWBL benefit base. GUARANTEED MINIMUM DEATH BENEFIT There are two guaranteed minimum death benefits available if you elect the GWBL option: (i) the Standard death benefit, which is avail- Contract features and benefits 39 able at no additional charge for owner issue ages 56-85, and (ii) the Annual Ratchet to Age 85 enhanced death benefit, which is available for an additional charge for owner issue ages 56-75. For Joint life contracts, both spouses must meet the issue age requirements. See "Guaranteed minimum death benefit" earlier in this Prospectus for more information. EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO If your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no further payments or benefits. If an Excess withdrawal results in a withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. However, if your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, please note the following: o Your contract terminates and you will receive a supplementary life annuity contract setting forth your continuing benefits. The owner of the contract will be the owner and annuitant. The successor owner, if applicable, will be the joint annuitant. If the owner is non-natural, the annuitant and joint annuitant, if applicable, will be the same as under your contract. o No subsequent contributions will be permitted. o If you were taking withdrawals through the "Maximum payment plan," we will continue the scheduled withdrawal payments on the same basis. o If you were taking withdrawals through the "Customized payment plan" or in unscheduled partial withdrawals, we will pay the balance of the Guaranteed annual withdrawal amount for that contract year in a lump sum. Payment of the Guaranteed annual withdrawal amount will begin on the next contract date anniversary. o Payments will continue at the same frequency for Single or Joint life contracts, as applicable, or annually if automatic payments were not being made. o Any guaranteed minimum death benefit remaining under the original contract will be carried over to the supplementary life annuity contract. The death benefit will no longer grow and will be reduced on a dollar-for-dollar basis as payments are made. If there is any remaining death benefit upon the death of the owner and successor owner, if applicable, we will pay it to the beneficiary. o The charge for the Guaranteed withdrawal benefit for life benefit and the Annual Ratchet to age 85 enhanced death benefit will no longer apply. o If at the time of your death the Guaranteed annual withdrawal amount was being paid to you as a supplementary life annuity contract, your beneficiary may not elect the Beneficiary continuation option. OTHER IMPORTANT CONSIDERATIONS o This benefit is not appropriate if you do not intend to take withdrawals prior to annuitization. o Amounts withdrawn in excess of your Guaranteed annual withdrawal amount, including any withdrawal made before age 59-1/2, may be subject to a withdrawal charge, if applicable, as described in "Charges and expenses" in your Prospectus. In addition, all withdrawals count toward your free withdrawal amount for that contract year. Excess withdrawals can significantly reduce or completely eliminate the value of the GWBL. See "Effect of Excess withdrawals" above in this section and "How withdrawals affect your GWBL" in "Accessing your money" later in this Prospectus. o Withdrawals are not considered as annuity payments for tax purposes, and may be subject to an additional 10% Federal income tax penalty before age 59-1/2. See "Tax information" later in this Prospectus. o All withdrawals reduce your account value and Guaranteed minimum death benefit. See "How withdrawals are taken from your account value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. o If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. o The GWBL benefit terminates if the contract is continued under the beneficiary continuation option or under the Spousal continuation feature if the spouse is not the successor owner. o If you surrender your contract to receive its cash value and your cash value is greater than your Guaranteed annual withdrawal amount, all benefits under the contract will terminate, including the GWBL benefit. o If you transfer ownership of this contract, you terminate the GWBL benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. o Withdrawals are available under other annuity contracts we offer and this contract without purchasing a withdrawal benefit. o For IRA, QP and TSA contracts, if you have to take a required minimum distribution ('`RMD") and it is your first withdrawal under the contract, the RMD will be considered your "first withdrawal" for the purposes of establishing your GWBL Applicable percentage. o If you elect GWBL on a Joint life basis and subsequently get divorced, your divorce will not automatically terminate the contract. For both Joint life and Single life contracts, it is possible that the terms of your divorce decree could significantly reduce or completely eliminate the value of this benefit. INHERITED IRA BENEFICIARY CONTINUATION CONTRACT This contract is available to an individual beneficiary of a traditional IRA or a Roth IRA where the deceased owner held the individual retirement account or annuity (or Roth individual retirement account or annuity) with an insurance company or financial institution other than AXA Equitable. The purpose of the inherited IRA beneficiary continua- 40 Contract features and benefits tion contract is to permit the beneficiary to change the funding vehicle that the deceased owner selected ("original IRA") while taking the required minimum distribution payments that must be made to the beneficiary after the deceased owner's death. See the discussion of required minimum distributions under "Tax information." This contract is intended only for beneficiaries who want to take payments at least annually over their life expectancy. These payments generally must begin (or must have begun) no later than December 31 of the calendar year following the year the deceased owner died. This contract is not suitable for beneficiaries electing the "5-year rule." See "Beneficiary continuation option for IRA and Roth IRA contracts" under "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. You should discuss with your tax adviser your own personal situation. Please speak with your financial professional for further information. The inherited IRA beneficiary continuation contract can only be purchased by a direct transfer of the beneficiary's interest under the deceased owner's original IRA. The owner of the inherited IRA beneficiary continuation contract is the individual who is the beneficiary of the original IRA. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. The contract must also contain the name of the deceased owner. In this discussion, "you" refers to the owner of the inherited IRA beneficiary continuation contract. The inherited IRA beneficiary continuation contract can be purchased whether or not the deceased owner had begun taking required minimum distribution payments during his or her life from the original IRA or whether you had already begun taking required minimum distribution payments of your interest as a beneficiary from the deceased owner's original IRA. You should discuss with your own tax adviser when payments must begin or must be made. Under the inherited IRA beneficiary continuation contract: o You must receive payments at least annually (but can elect to receive payments monthly or quarterly). Payments are generally made over your life expectancy determined in the calendar year after the deceased owner's death and determined on a term certain basis. o You must receive payments from this contract even if you are receiving payments from another IRA of the deceased owner in an amount that would otherwise satisfy the amount required to be distributed from this contract. o The beneficiary of the original IRA will be the annuitant under the inherited IRA beneficiary continuation contract. In the case where the beneficiary is a "see-through-trust," the oldest beneficiary of the trust will be the annuitant. o An inherited IRA beneficiary continuation contract is not available for annuitants over age 70. o The initial contribution must be a direct transfer from the deceased owner's original IRA and is subject to minimum contribution amounts. See "How you can purchase and contribute to your contract" earlier in this section. o Subsequent contributions of at least $1,000 are permitted but must be direct transfers of your interest as a beneficiary from another IRA with a financial institution other than AXA Equitable, where the deceased owner is the same as under the original IRA contract. o You may make transfers among the investment options. o You may choose at any time to withdraw all or a portion of the account value. Any partial withdrawal must be at least $300. Withdrawal charges, if applicable under your contract, will apply as described in "Charges and expenses" later in this Prospectus. o The Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, successor owner/annuitant feature, special dollar cost averaging program, automatic investment program, GPB Options 1 and 2, and systematic withdrawals are not available under the Inherited IRA beneficiary continuation contract. o If you die, we will pay to a beneficiary that you choose the greater of the annuity account value or the applicable death benefit. o Upon your death, your beneficiary has the option to continue taking required minimum distributions based on your remaining life expectancy or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If your beneficiary elects to continue to take distributions, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value as of the date we receive satisfactory proof of death and any required instructions, information and forms. Thereafter, withdrawal charges (if applicable under your contract) will no longer apply. If you had elected the Annual Ratchet to age 85 enhanced death benefit, it will no longer be in effect and the charges for the benefit will stop. The Guaranteed minimum death benefit will also no longer be in effect. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If for any reason you are not satisfied with your contract, you may return it to us for a refund. We will refund the full amount of your contribution. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. Under certain circumstances, this "free look" period may be longer. For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. If you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA Contract features and benefits 41 contract and return to a Rollover IRA contract. Our processing office, or your financial professional, can provide you with the cancellation instructions. In addition to the cancellation right described above, you have the right to surrender your contract, rather than cancel it. Please see "Surrendering your contract to receive its cash value," later in this Prospectus. Surrendering your contract may yield results different than canceling your contract, including a greater potential for taxable income. In some cases, your cash value upon surrender may be greater than your contributions to the contract. Please see "Tax information," later in this Prospectus. 42 Contract features and benefits 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; (iv) the account for special dollar cost averaging and (v) the loan reserve account (applicable to Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less: (i) the total amount or a pro rata portion of the annual administrative charge as well as optional benefit charges; (ii) any applicable withdrawal charges and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, if applicable, when we deduct the enhanced death benefit, Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, and/or GPB Option 2 benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest option at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING Your value in the account for special dollar cost averaging at any time will equal your contribution allocated to that option, plus interest, less the sum of all amounts that have been transferred to the variable investment options you have selected. INSUFFICIENT ACCOUNT VALUE If your account value in the variable investment options and the fixed maturity options is insufficient to pay the annual administrative charge, or any applicable charges for the guaranteed benefits, and you have no account value in the guaranteed interest option, your contract will terminate without value, and you will lose any applicable guaranteed benefits. See "Charges and expenses" later in this Prospectus. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. If you elect the Guaranteed withdrawal benefit for life and your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary life annuity contract, even if your GWBL benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, the benefit will still have value. See "Contract features and benefits" earlier in this Prospectus. Determining your contract's value 43 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer any amount to the account for special dollar cost averaging. o You may not transfer to a fixed maturity option that has a rate to maturity of 3%. o If the annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied, the rate to maturity is 3%. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment and affect your GPB. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the annuity account value being allocated to the guaranteed interest option, based on the annuity account value as of the previous business day. o No transfers are permitted into the Special 10 year fixed maturity option. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the annuity account value being allocated to the guaranteed interest option, based on the annuity account value as of the previous business day. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option and interest sweep option dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or, (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the investment options in the prior contract year; or (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign 44 Transferring your money among investment options securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We offer rebalancing, which you can use to automatically reallocate your account value among your investment options. We currently offer two options: "Option I" and "Option II." Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. Transferring your money among investment options 45 If you select Option II, you will be subject to our rules regarding transfers between the guaranteed interest option and the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into or a transfer out of the guaranteed interest option to initiate the rebalancing program will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. You may not elect Option I if you are participating in general dollar cost averaging. You may not elect Option II if you are participating in any dollar cost averaging program. If you elect a benefit that limits your variable investment options, those limitations will also apply to the rebalancing programs. 46 Transferring your money among investment options 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. If you withdraw more than 90% of your contract's current cash value, we will treat it as a request to surrender your contract for its cash value. See "Surrendering your contract to receive its cash value" below. For the potential tax consequences of withdrawals, see "Tax information" later in this Prospectus. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" and "How withdrawals affect your GWBL," below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate.
- ------------------------------------------------------------------------------------ Method of withdrawal - ------------------------------------------------------------------------------------ Automatic payment Pre-Age 59-1/2 Lifetime plans substan- required (GWBL tially minimum Contract only) Lump sum Systematic equal distribution - ------------------------------------------------------------------------------------ NQ Yes Yes Yes No No - ------------------------------------------------------------------------------------ Rollover IRA Yes Yes Yes Yes Yes - ------------------------------------------------------------------------------------ Roth Conversion IRA Yes Yes Yes Yes No - ------------------------------------------------------------------------------------ Inherited IRA No Yes No No *** - ------------------------------------------------------------------------------------ QP* Yes Yes No No Yes - ------------------------------------------------------------------------------------ Rollover TSA** Yes Yes Yes No Yes - ------------------------------------------------------------------------------------
* For QP contracts, all payments are made to the trust, as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. ** Employer or plan approval required for all transactions. Your ability to take withdrawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. *** This contract pays out post-death required minimum distributions. See "Inherited IRA beneficiary continuation contract" in "Contract features and benefits" earlier in this Prospectus. AUTOMATIC PAYMENT PLANS (For contracts with GWBL only) You may take automatic withdrawals under either the Maximum payment plan or the Customized payment plan, as described below. Under either plan, you may take withdrawals on a monthly, quarterly or annual basis. You may change the payment frequency of your withdrawals at any time, and the change will become effective on the next contract date anniversary. You may elect either the Maximum payment plan or the Customized payment plan at any time after you become eligible to receive Guaranteed annual withdrawals. You must wait at least 28 days from contract issue before automatic payments begin. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will increase following any Annual Ratchet, 7% deferral bonus or by the one-time 200% Initial GWBL Benefit base guarantee. If you elect the Maximum payment plan and start monthly or quarterly payments after the beginning of a contract year, the payments you take that year will be less than your Guaranteed annual withdrawal amount. If you take a partial withdrawal while the Maximum payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will not be increased following any Annual Ratchet, 7% deferral bonus or by the one-time 200% Initial GWBL Benefit base guarantee. You must elect to change the scheduled payment amount. It is important to note that if you elect the Customized payment plan and start monthly or quarterly withdrawals after the beginning of a contract year, you could select scheduled payment amounts that would cause an Excess withdrawal. If your selected scheduled payment would cause an Excess withdrawal, we will notify you. As discussed earlier in this Prospectus, Excess withdrawals may significantly reduce the value of the Guaranteed withdrawal benefit for life benefit. If you take a partial withdrawal while the Customized payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Partial withdrawals will be subject to a withdrawal charge if they exceed the 10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is outstanding, you may only take par- Accessing your money 47 tial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. Any request for a partial withdrawal will terminate your participation in either the Maximum payment plan or Customized payment plan, if applicable. SYSTEMATIC WITHDRAWALS (All contracts except Inherited IRA and QP) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required). You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of your account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 10% free withdrawal amount. This option is not available if you have elected a guaranteed principal benefit or the Guaranteed withdrawal benefit for life. SUBSTANTIALLY EQUAL WITHDRAWALS (Rollover IRA and Roth Conversion IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals that we calculate for you are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). The substantially equal withdrawal option is not available if you have elected a guaranteed principal benefit or the Guaranteed withdrawal benefit for life. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base 48 Accessing your money and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- We do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our automatic RMD service except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 10% free withdrawal amount. Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH GWBL. Generally, if you elect our Automatic RMD service, any lifetime required minimum distribution payment we make to you under our Automatic RMD service will not be treated as an Excess withdrawal. If you elect either the Maximum payment plan or the Customized payment plan AND our Automatic RMD service, we will make an extra payment, if necessary, on December 1st that will equal your lifetime required minimum distribution less all payments made through November 30 and any scheduled December payment. The combined automatic plan payments and lifetime required minimum distribution payment will not be treated as Excess withdrawals, if applicable. However, if you take any partial withdrawals in addition to your lifetime required minimum distribution and automatic payment plan payments, your applicable automatic payment plan will be terminated. The partial withdrawal may cause an Excess withdrawal and may be subject to a withdrawal charge. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. Further, your GWBL benefit base and Guaranteed annual withdrawal amount may be reduced. See "Effect of Excess Withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you elect our Automatic RMD service and elect to take your Guaranteed annual withdrawal amount in partial withdrawals without electing one of our available automatic payment plans, we will make a payment, if necessary, on December 1st that will equal your required minimum distribution less all withdrawals made through November 30th. If prior to December 1st you make a partial withdrawal that exceeds your Guaranteed annual withdrawal amount, but not your RMD amount, that partial withdrawal will be treated as an Excess withdrawal, as well as any subsequent partial withdrawals made during the same contract year. However, if by December 1st your withdrawals have not exceeded your RMD amount, the RMD payment we make to you will not be treated as an Excess withdrawal. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options and guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If the FMO amounts are insufficient, we will deduct all or a portion of the withdrawal from the account for special dollar cost averaging. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option). HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2 In general, withdrawals (including RMDs) will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000 - $16,000). Transfers out of the Special 10 year fixed maturity option will reduce the GPB Option 2 amount on a pro rata basis. In addition, if you make a contract withdrawal from the Special 10 year fixed maturity option, we will reduce your GPB Option 2 in a similar manner; however, the reduction will reflect both a transfer out of the Special 10 year fixed maturity option and a withdrawal from the contract. Therefore, the reduction in GPB Option 2 is greater when you take a contract withdrawal from the Special 10 year fixed maturity option than it would be if you took the withdrawal from another investment option. Similar to the example above, if your account value is $30,000 and you withdraw $12,000 from the Special 10 year fixed maturity option, you have withdrawn 40% of your account value. If your GPB Option 2 benefit was $40,000 before the withdrawal, the reduction to reflect the transfer out of the Special 10 year fixed maturity option would equal $16,000 ($40,000 x .40). The amount used to calculate the reduction to reflect the withdrawal from the contract is $24,000 ($40,000 - $16,000). The reduction to reflect the withdrawal would equal $9,600 ($24,000 x .40), and your new benefit after the withdrawal would be $14,400 ($24,000 - $9,600). Accessing your money 49 For purposes of calculating the adjustment to your guaranteed benefits, the amount of the withdrawal will include the amount of any applicable withdrawal charge. Using the first example above, the $12,000 withdrawal would include the withdrawal amount paid to you and the amount of any applicable withdrawal charge deducted from your account value. For more information on the calculation of the charge, see "Withdrawal charge" later in this Prospectus. With respect to the Guaranteed minimum income benefit, withdrawals will reduce the benefit's 6% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6% or less of the 6% Roll-Up benefit base on the most recent contract date anniversary. Additional contributions made during the contract year do not affect the amount of withdrawals that can be taken on a dollar-for dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6% of the benefit base on the most recent anniversary, that entire withdrawal and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6% Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for the Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. HOW WITHDRAWALS AFFECT YOUR GWBL Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes cumulative withdrawals in a contract year to exceed the Guaranteed annual withdrawal amount. As the Guaranteed annual withdrawal amount before age 59-1/2 is zero, any withdrawal you make before that age will exceed the Guaranteed annual withdrawal amount, and will be considered an Excess withdrawal. Excess withdrawals can significantly reduce your GWBL benefit base and Guaranteed annual withdrawal amount. For more information, see "Effect of Excess withdrawals" and "Other important considerations" under "Guaranteed withdrawal benefit for life ("GWBL") " in "Contract features and benefits" earlier in this Prospectus. For purposes of calculating your GWBL, the amount of the excess withdrawal will include the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information on calculation of the charge, see "Withdrawal charge" in "Charges and expenses" later in this Prospectus. WITHDRAWALS TREATED AS SURRENDERS If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. In addition, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is an Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to an Excess withdrawal. In other words, if you take an Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Guaranteed withdrawal benefit for life " in "Contract features and benefits," earlier in this Prospectus for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." If you elect the GWBL option or a GPB, loans are not permitted. You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan, including any accrued and unpaid loan interest will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the loan reserve account. Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options (other than the Special 10 year fixed maturity option), in the order of the earliest maturity date(s) first. A market value adjustment may apply. If the FMO amounts are insufficient, we will deduct all or a portion of the loan from the account for special dollar cost averaging. If 50 Accessing your money such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option). If the amounts are withdrawn from the Special 10 year fixed maturity option, the guaranteed benefit will be adversely affected. See "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" earlier in this section. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE If you do not elect GWBL, you may surrender your contract to receive its cash value at any time while the annuitant is living and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. If you elect GWBL, you may surrender your contract to receive its cash value at any time while an owner is living and before you begin to receive annuity payments. All benefits under the contract will terminate as of the date we receive the required information, including the Guaranteed withdrawal benefit for life (if applicable) if your cash value is greater than your Guaranteed annual withdrawal amount remaining that year. If your cash value is not greater than your Guaranteed annual withdrawal amount remaining that year, then you will receive a supplementary life annuity contract. For more information, please see "Effect of your account value falling to zero" under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" and "Annuity benefit" under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal charges) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of which sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option, fixed maturity options and the account for special dollar cost averaging (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery or wire transfer service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Elite(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract annuitized, your Accumulator(R) Elite(SM) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Elite(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Elite(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the owner's and annuitant's ages at contract issue. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect the Guaranteed withdrawal benefit for life and choose to annuitize your contract, the Guaranteed withdrawal benefit for life will terminate without value even if your GWBL benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under GWBL. See Accessing your money 51 "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus for further information. - -------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------- Income Manager(R) payout options Life annuity with period (available for annuitants age 83 certain or less at contract issue) Period certain annuity - -------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager(R) payout option without life contingencies unless withdrawal charges are no longer in effect under your contract. For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply your account value of your Accumulator(R) Elite(SM) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) Elite(SM), and we will deduct any applicable withdrawal charge. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income benefit option, different 52 Accessing your money payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any withdrawal charges or market value adjustments. If amounts in a fixed maturity option are used to purchase any annuity payout option, prior to the maturity date, a market value adjustment will apply. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. For the fixed annuity payout option, the withdrawal charge applicable under our contract is imposed if you select a period certain. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For fixed annuity period certain payout options only, the amount applied to the annuity benefit is the greater of the cash value or 95% of what the account value would be if no withdrawal charge applied. For the Income Manager(R) life contingent payout options no withdrawal charge is imposed under your contract. If the withdrawal charge that otherwise would have been applied to your account value under your contract is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager(R) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin but it may not be earlier than thirteen months from the Accumulator(R) Elite(SM) contract date. Except with respect to the Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. In no event will you ever receive payments under a fixed option or an initial payment under a variable option of less than the minimum amounts guaranteed by the contract. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date based on the annuitant's age by which you must either take a lump sum payment or select an annuity payout option. We will send a notice with the annual statement one year prior to the maturity age. If you elect the Guaranteed withdrawal benefit for life and your contract is annuitized at maturity, we will offer an annuity payout option that guarantees you will receive payments for life that are at least equal to what you would have received under the Guaranteed withdrawal benefit for life. You will not be able to take withdrawals in addition to the payments under this annuity payout option. You will still be able to surrender the contract at any time for the remaining account value. As described in "Contract features and benefits" under "Guaranteed withdrawal benefit for life ("GWBL")" earlier in this Prospectus, these payments will have the potential to increase with favorable investment performance. Any remaining Guaranteed minimum death benefit value will be transferred to the annuity payout contract as your "minimum death benefit." If the Annual Ratchet to age 85 enhanced death benefit had been elected, its value as of the date the annuity payout contract is issued will become your minimum death benefit. The minimum death benefit will be reduced pro rata by each payment. If you die while there is any minimum death benefit remaining, it will be paid to your beneficiary. The maturity date by which you must take a lump sum payment or select an annuity payout option is as follows: - ------------------------------- Maximum Issue age Annuitization age - ------------------------------- 0-80 90 81 91 82 92 83 93 84 94 85 95 - ------------------------------- Accessing your money 53 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o On each contract date anniversary, a charge for each optional benefit that you elect. o On the first 10 contract date anniversaries -- a charge for GPB Option 2, if you elect this optional benefit. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES MORTALITY AND EXPENSE RISKS CHARGE. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 1.10% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the Guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. ADMINISTRATIVE CHARGE. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.30% of the net assets in each variable investment option. DISTRIBUTION CHARGE. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. HOW CERTAIN CHARGES ARE DEDUCTED With regard to the annual administrative, Annual Ratchet to age 85 enhanced death benefit, Guaranteed principal benefit option 2 and Guaranteed minimum income benefit charges, respectively, we will deduct the related charge, as follows for each: we will deduct the charge from your value in the variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging (not available if the Guaranteed principal benefit option is elected). If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid, on a date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). Deductions from the fixed maturity options (including the Special 10 year fixed maturity option) cannot cause the credited net interest for the contract year to fall below 1.50%. 54 Charges and expenses With regard to the annual administrative, the Annual Ratchet to age 85 enhanced death benefit and the Guaranteed minimum income benefit charges only, if your account value in the variable investment options and the fixed maturity options is insufficient to pay the applicable charge, and you have no account value in the guaranteed interest option, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. For more information, see "How certain charges are deducted" earlier in this section. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceeds the 10% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or to apply your cash value to a non-life contingent annuity payout option. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options--The amount applied to purchase an annuity payout option" in "Accessing your money" earlier in the Prospectus. The withdrawal charge equals a percentage of the contributions withdrawn in any of the first four years after we receive a contribution. We determine the withdrawal charge separately for each contribution according to the following table:
- ----------------------------------------------------------------- Contract year - ----------------------------------------------------------------- 1 2 3 4 5 - ----------------------------------------------------------------- Percentage of contribution 8 % 7 % 6 % 5 % 0 % - -----------------------------------------------------------------
For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1" and the withdrawal charge is reduced or expires on each applicable contract date anniversary. Amounts withdrawn up to the free withdrawal amount are not considered withdrawals of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. Please see "Fixed maturity option withdrawal charge" below for the withdrawal charge schedule applicable to monies withdrawn from and transferred among the fixed maturity options. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and withdrawal charge from your account value. The amount deducted to pay withdrawal charges is also subject to that same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each investment option. The withdrawal charge helps cover sales expenses. Please see "Fixed maturity option withdrawal charge" below for the withdrawal charge schedule applicable to monies withdrawn from and transferred among the fixed maturity options. For purposes of calculating reductions in your guaranteed benefits and associated benefit bases, the withdrawal amount includes both the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information, see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier in the Prospectus. FIXED MATURITY OPTIONS -- WITHDRAWAL CHARGES The withdrawal charge that applies to withdrawals taken from amounts in the fixed maturity options will never exceed 7% and will be determined by applying Alternate Scale I shown below. If you withdraw amounts that have been transferred from one fixed maturity option to another, we use Alternate Scale II (also shown below) if it produces a higher charge than Alternate Scale I. The withdrawal charge may not exceed the withdrawal charge that would normally apply to the contract. If a contribution has been in the contract for more than 4 years and therefore would have no withdrawal charge, no withdrawal charge will apply. Use of an Alternate Scale can only result in a lower charge. We will compare the result of applying Alternate Scale I or II, as the case may be, to the result of applying the normal withdrawal charge, and will charge the lower withdrawal charge.
- ---------------------------------------------------------------------------- Alternate Scale I Alternate Scale II Year of investment in fixed maturity Year of transfer within fixed matu- option* rity option* - ---------------------------------------------------------------------------- Within year 1 7% Within year 1 5% - ---------------------------------------------------------------------------- 2 6% 2 4% 3 5% 3 3% 4 4% 4 2% After year 4 0% 0% - ----------------------------------------------------------------------------
Not to exceed 1% times the number of years remaining in the fixed maturity option, rounded to the higher number of years. In other words, if 4.3 years remains, it would be a 5% charge. * Measured from the contract date anniversary prior to the date of the contribution or transfer If you take a withdrawal from an investment option other than the fixed maturity options, the amount available for withdrawal without a withdrawal charge is reduced. It will be reduced by the amount of the contribution in the fixed maturity options to which no withdrawal charge applies. You should consider that on the maturity date of a fixed maturity option if we have not received your instructions for allocation of your maturity value, we will transfer your maturity value to the fixed matu- Charges and expenses 55 rity option with the shortest available maturity. If we are not offering other fixed maturity options, we will transfer your maturity value to the EQ/Money Market option. The potential for lower withdrawal charges for withdrawals from the fixed maturity options and the potential for a lower "free withdrawal amount" than what would normally apply, should be taken into account when deciding whether to allocate amounts to, or transfer amounts to or from, the fixed maturity options. The withdrawal charge does not apply in the circumstances described below. 10% free withdrawal amount. Each contract year you can withdraw up to 10% of your account value without paying a withdrawal charge. The 10% free withdrawal amount is determined using your account value at the beginning of each contract year. In the first contract year, the 10% free withdrawal amount is determined using all contributions received in the first 90 days of the contract year. Additional contributions during the contract year do not increase the 10% free withdrawal amount. The 10% free withdrawal amount does not apply if you surrender your contract except where required by law. For NQ contracts issued to a charitable remainder trust, the free withdrawal amount will equal the greater of: (1) the current account value less contributions that have not been withdrawn (earnings in the contract), and (2) the 10% free withdrawal amount defined above. Certain withdrawals. If you elected the Guaranteed minimum income benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6% of the beginning of contract year, 6% to age 85 Roll-Up benefit base, even if such withdrawals exceed the free withdrawal amount. Also, a withdrawal charge does not apply to a withdrawal that exceeds 6% of the beginning of contract year 6% to age 85 Roll-Up benefit base as long as it does not exceed the free withdrawal amount. If your withdrawal exceeds the amount described above, this waiver is not applicable to that withdrawal, nor to any subsequent withdrawal for the life of the contract. If you elect the Guaranteed withdrawal benefit for life, we will waive any withdrawal charge for any withdrawal during the contract year up to the Guaranteed annual withdrawal amount, even if such withdrawals exceed the free withdrawal amount. However, each withdrawal reduces the free withdrawal amount for that contract year by the amount of the withdrawal. Also, a withdrawal charge does not apply to a withdrawal that exceeds the Guaranteed annual withdrawal amount as long as it does not exceed the free withdrawal amount. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds both the free withdrawal amount and the Guaranteed annual withdrawal amount. Disability, terminal illness or confinement to nursing home. The withdrawal charge also does not apply if: (i) The annuitant, if GWBL is not elected, or the owner (or older spouse under Joint life, if applicable), if GWBL is elected, has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or (ii) We receive proof satisfactory to us (including certification by a licensed physician) that the annuitant's life expectancy, if GWBL is not elected, or the owner's life expectancy (or older spouse under Joint life, if applicable), if GWBL is elected, is six months or less; or (iii) The annuitant, if GWBL is not elected, or the owner (or older spouse under Joint life, if applicable), if GWBL is elected, has been confined to a nursing home for more than 90 days as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: -- its main function is to provide skilled, intermediate, or custodial nursing care; -- it provides continuous room and board to three or more persons; -- it is supervised by a registered nurse or licensed practical nurse; -- it keeps daily medical records of each patient; -- it controls and records all medications dispensed; and -- its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions as described in (i), (ii) or (iii) above existed at the time a contribution was remitted or if the condition began within 12 months of the period following remittance. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. For more information, see "How certain charges are deducted" earlier in this section. STANDARD DEATH BENEFIT. There is no additional charge for the standard death benefit. GUARANTEED PRINCIPAL BENEFIT OPTION 2 If you purchase GPB Option 2, we deduct a charge annually from your account value on the first 10 contract date anniversaries. The charge is equal to 0.50% of the account value. For more information, see "How certain charges are deducted" earlier in this section. GUARANTEED MINIMUM INCOME BENEFIT CHARGE If you elect the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary after the annuitant reaches 85, whichever occurs first. The charge is equal to 0.65% of the applicable benefit base in effect on the contract date anniversary. For more information, see "How certain charges are deducted" earlier in this section. 56 Charges and expenses GUARANTEED WITHDRAWAL BENEFIT FOR LIFE CHARGE If you elect the Guaranteed withdrawal benefit for life ("GWBL"), we deduct a charge annually as a percentage of your GWBL benefit base on each contract date anniversary. If you elect the Single Life or Joint Life options, the charge is equal to 0.65%. We will deduct this charge from your value in the permitted variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered, annuitized, or a death benefit is paid on the date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value in the permitted variable investment options is insufficient to pay this charge, and you have no account value in the guaranteed interest option, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. GWBL BENEFIT BASE ANNUAL RATCHET CHARGE If your GWBL benefit base ratchets, we reserve the right to raise the charge at the time of an Annual Ratchet. The maximum charge is 0.80%. The increased charge, if any will apply as of the contract date anniversary on which your GWBL benefit base ratchets and on all contract date anniversaries thereafter. We will permit you to opt out of the ratchet if the charge increases. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY ANNUITIZATION PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity annuitization payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to 12b-1 fees. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. Charges and expenses 57 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT IF GWBL IS NOT ELECTED You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit), as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the annuitant's death, adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. EFFECT OF THE ANNUITANT'S DEATH If the annuitant dies before the annuity payments begin, we will pay the death benefit to your beneficiary. Generally, the death of the annuitant terminates the contract. However, a surviving spouse who is the sole primary beneficiary, of the deceased owner/annuitant can choose to be treated as the successor owner/annuitant and continue the contract. The Successor owner/ annuitant feature is only available under NQ and individually owned IRA (other than Inherited IRAs) contracts. See "Inherited IRA beneficiary continuation contract" in "Contract features and benefits" earlier in this Prospectus. For NQ and all types of IRA contracts, a beneficiary may be able to have limited ownership as discussed under "Beneficiary continuation option" below. WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT Under certain conditions the owner changes after the original owner's death for the purposes of receiving required distributions from the contract. When you are not the annuitant under an NQ contract and you die before annuity payments begin, unless you specify otherwise, the beneficiary named to receive this death benefit upon the annuitant's death will become the successor owner. If you do not want this beneficiary to be the successor owner, you should name a specific successor owner. You may name a successor owner at any time during your life by sending satisfactory notice to our processing office. If the contract is jointly owned and the first owner to die is not the annuitant, the surviving owner becomes the sole contract owner. This person will be considered the successor owner for purposes of the distribution rules described in this section. The surviving owner automatically takes the place of any other beneficiary designation. You should carefully consider the following if you have elected the Guaranteed minimum income benefit and you are the owner, but not the annuitant. Because the payments under the Guaranteed minimum income benefit are based on the life of the annuitant, and the federal tax law required distributions described below are based on the life of the successor owner, a successor owner who is not also the annuitant may not be able to exercise the Guaranteed minimum income benefit, if you die before annuity payments begin. Therefore, one year before you become eligible to exercise the Guaranteed minimum income benefit, you should consider the effect of your beneficiary designations on potential payments after your death. For more information, see "Exercise rules" under "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus. Unless the surviving spouse of the owner who has died (or in the case of a joint ownership situation, the surviving spouse of the first owner to die) is the successor owner for this purpose, the entire interest in the contract must be distributed under the following rules: o The cash value of the contract must be fully paid to the successor owner (new owner) within five years after your death (the "5-year rule"), or in a joint ownership situation, the death of the first owner to die. 58 Payment of death benefit o The successor owner may instead elect to receive the cash value as a life annuity (or payments for a period certain of not longer than the successor owner's life expectancy). Payments must begin within one year after the non-annuitant owner's death. Unless this alternative is elected, we will pay any cash value five years after your death (or the death of the first owner to die). o A successor owner should consider naming a new beneficiary. If the surviving spouse is the successor owner or joint owner, the spouse may elect to continue the contract. No distributions are required as long as the surviving spouse and annuitant are living. An eligible successor owner, including a surviving joint owner after the first owner dies, may elect the beneficiary continuation option for NQ contracts discussed in "Beneficiary continuation option" below. HOW DEATH BENEFIT PAYMENT IS MADE We will pay the death benefit to the beneficiary in the form of the annuity payout option you have chosen. If you have not chosen an annuity payout option as of the time of the annuitant's death, the beneficiary will receive the death benefit in a single sum. Payment of the death benefit in a lump sum terminates all rights and any applicable guarantees under the contract, including the Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, and the Guaranteed principal benefit Options 1 and 2. Subject to any exceptions in the contract, our rules and any applicable requirements under federal income tax rules, the beneficiary may elect to apply the death benefit to one or more annuity payout options we offer at the time. SUCCESSOR OWNER AND ANNUITANT. If you are both the contract owner and the annuitant, and your spouse is the sole primary beneficiary or the joint owner, then your spouse may elect to receive the death benefit or continue the contract as successor owner/annuitant. The successor owner/annuitant must be 85 or younger as of the date of the non-surviving spouse's death. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. If your surviving spouse decides to continue the contract, then as of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary to effect the Successor owner/annuitant feature, we will increase the account value to equal your elected guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. Thereafter, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. These additional contributions will be considered to be withdrawn only after all other amounts have been withdrawn. We will determine whether your applicable Guaranteed minimum death benefit option will continue as follows: o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 84 or younger at death, the Guaranteed minimum death benefit continues based upon the option that was elected by the original owner/annuitant and will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 85 or older at death, we will reinstate the Guaranteed minimum death benefit that was elected by the original owner/annuitant. The benefit will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 76 or over on the date of the original owner/annuitant's death, the Guaranteed minimum death benefit will no longer grow, and we will no longer charge for the benefit. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For information on the operation of successor owner/annuitant feature with the Guaranteed minimum income benefit, see "Exercise of Guaranteed minimum income benefit" under "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus. SPOUSAL PROTECTION. Spousal protection is available for NQ contracts only. This feature permits spouses who are joint contract owners to increase the account value to equal the guaranteed minimum death benefit, if higher, upon the death of either spouse. This account value "step up" occurs even if the surviving spouse was the named annuitant. If you and your spouse jointly own the contract and one of you is the named annuitant, you may elect the Spousal protection option at the time you purchase your contract at no additional charge. Both spouses must be between the ages of 20 and 70 at the time the contract is issued and must each be named the primary beneficiary in the event of the other's death. The annuitant's age is generally used for the purpose of determining contract benefits. However, for the Annual Ratchet to age 85 enhanced death benefit, the benefit is based on the older spouse's age. The older spouse may or may not be the annuitant. If the annuitant dies prior to annuitization, the surviving spouse may elect to receive the death benefit, or if eligible, continue the contract as the sole owner/annuitant by electing the successor owner/annuitant option. If the non-annuitant spouse dies prior to annuitization, the surviving spouse continues the contract automatically as the sole owner/annuitant. In either case, the contract would continue, as follows: Payment of death benefit 59 o As of the date we receive due proof of the spouse's death, the account value will be reset to equal the Guaranteed minimum death benefit as of the date of the non-surviving spouse's death, if higher. o The Guaranteed minimum death benefit continues to be based on the older spouse's age for the life of the contract, even if the younger spouse is originally or becomes the sole owner/annuitant. o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the successor owner/annuitant, if applicable. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If the annuitant dies first, withdrawal charges will no longer apply to any contributions made prior to the annuitant's death. If the non-annuitant spouse dies first, the withdrawal charge schedule remains in effect with regard to all contributions. We will not allow Spousal protection to be added after contract issue. If there is a change in owner or primary beneficiary, the Spousal protection benefit will be terminated. If you divorce, but do not change the owner or primary beneficiary, Spousal protection continues. YOUR BENEFICIARY AND PAYMENT OF BENEFIT IF GWBL IS ELECTED You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under Joint life contracts, the surviving spouse is considered the beneficiary, and will take the place of any other beneficiary. Under a contract with a non-natural owner that has joint annuitants, the surviving annuitant is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value or, if greater, the applicable Guaranteed minimum death benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) as of the date we receive satisfactory proof of the owner's (or the second to die of the owner and successor owner's, if applicable) death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the owner's (or the second to die of the owner and successor owner's, if applicable) death adjusted for any subsequent withdrawals. - -------------------------------------------------------------------------------- Under contracts with GWBL, the terms Owner and Successor Owner are intended to be references to Annuitant and Joint Annuitant, respectively if the contract has a non-natural owner. - -------------------------------------------------------------------------------- Subject to applicable laws and regulations, you may impose restrictions on the timing and manner of the payment of the death benefit to your beneficiary. For example, your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period and (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law. In general, if the annuitant dies, the owner (or successor owner, if applicable and the owner is also deceased) will become the annuitant, and the death benefit is not payable. If the contract had joint annuitants, it will become a single annuitant contract. EFFECT OF THE OWNER'S DEATH In general, if the owner dies while the contract is in force, the contract terminates and the applicable death benefit is paid. For Joint Life contracts with GWBL, the death benefit is paid to the beneficiary at the death of the second to die of the owner and successor owner, as applicable. There are various circumstances, however, in which the contract can be continued by a successor owner or under a Beneficiary continuation option. For individually owned Joint life contracts, the successor owner becomes the sole owner upon the death of the owner. If you are the sole owner and your spouse is the sole primary beneficiary, your surviving spouse can continue the contract as a successor owner, under "Spousal continuation" or under our Beneficiary continuation option, as discussed below. Upon the death of the owner, for single owner contracts or, in the case of Joint life contracts, upon the death of the second of the owner or successor owner to die, if the beneficiary is not the surviving spouse, federal income tax rules generally require payments of amounts under the contract to be made within five years of an owner's death (the "5-year rule"). In certain cases, an individual beneficiary may opt to receive payments over his/her life (or over a period not in excess of his/her life expectancy) if payments commence within one year of the owner's death. Any such election must be made in accordance with 60 Payment of death benefit our rules at the time of death. If the beneficiary of a contract with one owner continues the contract under the 5-year rule, in general, all guaranteed benefits and their charges will end. For more information on non-spousal joint owner contract continuation, see the section immediately below. NON-SPOUSAL JOINT LIFE CONTRACT CONTINUATION This section applies only with regard to Joint life contracts in which the successor owner has joint ownership rights and the owner and successor owner have divorced, but the successor owner has been neither dropped nor replaced or the contract has not been split, as described in the contract. Upon the death of either the owner or the successor owner, the survivor becomes the surviving owner. The cash value of the contract must be paid to the surviving owner within five years. The surviving owner may instead elect to receive a life annuity, provided payments begin within one year of the deceased owner's or successor owner's death. If the life annuity is elected, the contract and all benefits terminate. If the surviving owner dies within five years of the owner or successor owner (as applicable), and the contract has continued in force, the guaranteed minimum death benefit will be paid to the beneficiary. If the successor owner did not have joint ownership rights as discussed in this Prospectus, then in the case of the death of the successor owner where the contract was not split after a divorce, the contract continues as is with the sole owner. However, if the owner dies first, then the cash value must be distributed to the successor owner as described above. SPOUSAL CONTINUATION If you are the contract owner under a Single life contract and your spouse is the sole primary beneficiary, your spouse may elect to continue the contract as successor owner upon your death. Spousal beneficiaries who are not also the Joint life must be 85 or younger as of the date of the deceased spouse's death in order to continue the contract under Spousal continuation. If you own a Joint life contract and your spouse survives you, the contract will automatically continue upon your death. For Single life contracts, the spouse beneficiary may elect to receive the death benefit or continue the contract, as follows: o As of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary, we will increase the account value to equal your Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. o Withdrawal charges will no longer apply to contributions made before your death. No additional contributions will be permitted. o The Guaranteed minimum death benefit will continue, as follows: o if you elected the Standard death benefit it will continue o if you elected the Annual Ratchet to age 85 enhanced death benefit, and your spouse is age 75 or younger as of the date of your death and you were 84 or younger at death, the death benefit and charge will continue based on your spouse's age. If you were age 85 or older at death, we will reinstate the Annual Ratchet to age 85 enhanced death benefit. The benefit base which had previously been frozen at age 85 will now continue to grow until the contract date anniversary following the date your surviving spouse reaches age 85. If your spouse is 76 or older as of the date of your death, we will discontinue the death benefit and charge; however, we will freeze the benefit base as of the date of your death (reduced pro rata for any subsequent withdrawals), and pay it upon your spouse's death. o The Guaranteed withdrawal benefit for life and its charge will terminate. For Joint life contracts: o No death benefit is payable until the death of the surviving spouse. Your guaranteed minimum death benefit (and charge, if applicable) continues. o if you elected the Annual Ratchet to age 85 enhanced death benefit, the benefit base will continue to ratchet until the contract date anniversary following the surviving spouse's age 85. o Withdrawal charges will continue to apply to all contributions made both prior and subsequent to the deceased spouse's death. The right to make additional contributions under the contract is not affected by your death. o The Guaranteed withdrawal benefit for life and its charge will remain in effect. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. If you divorce, Spousal continuation does not apply. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. This option is available to beneficiaries under traditional IRA, Roth IRA and NQ contracts. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. For Joint life contracts with GWBL, the Beneficiary continuation option is only available after the death of the second owner. Payment of death benefit 61 BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, the Annual Ratchet to age 85 enhanced death benefit or GPB Option 2 under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a portion of the account value and no withdrawal charges, if any, will apply. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. If the owner and annuitant are different and the owner dies before the annuitant, for purposes of this discussion, "beneficiary" refers to the successor owner. For a discussion of successor owner, see "When an NQ contract owner dies before the annuitant" earlier in this section. This feature must be elected within 9 months following the date of your death and before any inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts (regardless of whether the owner and the annuitant are the same person): o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, the Annual Ratchet to age 85 enhanced death benefit or GPB Option 2 under the contract, they 62 Payment of death benefit will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If you are both the owner and annuitant under a contract in which GWBL is not elected, or if the deceased is the owner or the older joint owner under a contract in which GWBL is elected: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the annuity account value to equal the applicable death benefit if such death benefit is greater than such account value, adjusted for any subsequent withdrawals. o No withdrawal charges, if any, will apply to any withdrawals by the beneficiary. If the owner and annuitant under a contract in which GWBL is not elected are not the same person: o If the beneficiary continuation option is elected, the beneficiary automatically becomes the new annuitant of the contract, replacing the existing annuitant. o The annuity account value will not be reset to the death benefit amount. o The contract's withdrawal charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments; the contract's free corridor amount will continue to apply to withdrawals but does not apply to surrenders. o We do not impose a withdrawal charge on scheduled payments except if, when added to any withdrawals previously taken in the same contract year, including for this purpose a contract surrender, the total amount of withdrawals and scheduled payments exceed the free corridor amount. See the "Withdrawal charges" in "Charges and expenses" earlier in this Prospectus. If a contract in which GWBL is not elected is jointly owned: o The surviving owner supersedes any other named beneficiary and may elect the beneficiary continuation option. o If the deceased joint owner was also the annuitant, see "If you are both the owner and annuitant under a contract in which GWBL is not elected, or if the deceased is the owner under a contract in which GWBL is elected" earlier in this section. o If the deceased joint owner was not the annuitant, see "If the owner and annuitant under a contract in which GWBL is not elected are not the same person" earlier in this section. Payment of death benefit 63 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Elite(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth Conversion IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted based on these options. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Elite(SM)'s choice of death benefits, the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit, special dollar cost averaging, selection of variable investment options, guaranteed interest option, fixed maturity options and its choices of pay-out options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, the guaranteed minimum income benefit and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the 64 Tax information same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. TAXATION OF LIFETIME WITHDRAWALS IF YOU ELECT GUARANTEED WITHDRAWAL BENEFIT FOR LIFE We treat Guaranteed annual withdrawal amounts and other withdrawals as non-annuity payments for income tax purposes. These withdrawals are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. It reduces the investment in the contract. ANNUITY PAYMENTS Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus, as well as GMIB and other annuitization payments that are based on life or life expectancy, are considered annuity payments for tax purposes. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your "investment in the contract." Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. CONTRACTS PURCHASED THROUGH EXCHANGES You may purchase your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that is the source of the funds you are using to purchase the NQ contract is another nonqualified deferred annuity contract (or life insurance or endowment contract). o The owner and the annuitant are the same under the source contract and the Accumulator(R) Elite(SM) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must be the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carries over to the Accumulator(R) Elite(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between carriers, and provision of cost basis information may be required to process this type of an exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. The IRS has not specifically addressed the tax treatment of the Spousal protection benefit. Please consult with your tax adviser before electing this feature. Beneficiary continuation option We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for NQ contracts. See the discussion "Beneficiary continuation option for NQ Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2;" o scheduled payments, any additional withdrawals under "Withdrawal Option 2," or contract surrenders under "Withdrawal Option Tax information 65 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the Withdrawal Option selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling does not specifically address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or any withdrawal that might be taken). Before electing the beneficiary continuation option feature, the individuals you designate as beneficiary or successor owner should discuss with their tax advisers the consequences of such elections. The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Account 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Account 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Account 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Account 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets for the benefit of the IRA owner. The assets funding the account typically include mutual funds and/or individual stocks and/or securities in a custodial account and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may purchase the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We also offer the Inherited IRA for payment of post-death required minimum distributions in traditional IRA and Roth IRA. We currently do not offer traditional IRA contracts for use as employer-funded SEP IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS requires you to have before you purchase an IRA. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing 66 Tax information your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). We have not applied for an opinion letter from the IRS to approve the respective forms of the Accumulator(R) Elite(SM) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. We have received IRS opinion letters approving the respective forms of a similar traditional IRA and Roth IRA endorsement for use as a traditional and Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) Elite(SM) traditional and Roth IRA contracts. We have submitted a form similar to the inherited IRA beneficiary continuation contract to the IRS for approval as to form for use as a traditional IRA and Roth IRA, respectively. We do not know if and when any such approval may be granted. Your right to cancel within a certain number of days You can cancel any version of the Accumulator(R) Elite(SM) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel with in a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. Traditional individual retirement annuities (traditional IRAs) Contributions to traditional IRAs. Individuals may make three different types of contributions to a traditional IRA: o regular contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers") Regular contributions to traditional IRAs Limits on contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch up contributions" of up to $1,000 to your traditional IRA. Special rules for spouses. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. Deductibility of contributions. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored-tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions." That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits to deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Tax information 67 Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted -------------------- x regular = deductible divided by $10,000 contribution contribution for the year limit Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000 ($53,000, after cost of living indexing adjustment for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution, and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. Nondeductible regular contributions. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. When you can make regular contributions. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. Rollover and transfer contributions to traditional IRAs Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. Rollovers from "eligible retirement plans" other than traditional IRAs Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to 68 Tax information send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Rollovers from traditional IRAs to traditional IRAs You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVER AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. Excess contributions Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contribution amount for the applicable taxable year); or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. Recharacterizations Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. Tax information 69 Withdrawals, payments and transfers of funds out of traditional IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Taxation of payments. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, a 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. Required minimum distributions BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing, Please consult your tax adviser concerning applicability of these complex rules to your situation. Lifetime required minimum distributions. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. When you have to take the first lifetime required minimum distribution. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year--the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. How you can calculate required minimum distributions. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. 70 Tax information ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. Do you have to pick the same method to calculate your required minimum distributions for all of your traditional IRAs and other retirement plans? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. Will we pay you the annual amount every year from your traditional IRA based on the method you choose? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. What if you take more than you need to for any year? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. What if you take less than you need to for any year? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. What are the required minimum distribution payments after you die? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. Individual beneficiary. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. Spousal beneficiary. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. Non-individual beneficiary. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. Tax information 71 Spousal continuation If the contract is continued under Spousal continuation, the required minimum distribution rules are applied as if your spouse is the contract owner. Successor owner and annuitant If your spouse is the sole primary beneficiary and elects to become the successor owner and annuitant, no death benefit is payable until your surviving spouse's death. The RMD rules are applied as if your spouse is the contract owner. Payments to a beneficiary after your death IRA death benefits are taxed the same as IRA distributions. Borrowing and loans are prohibited transactions You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. Early distribution penalty tax A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special federal income tax definition); or o used to pay medical insurance premiums for unemployed individuals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special federal income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies using an IRS-approved distribution method. To meet this last exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" above. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under this option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. Roth individual retirement annuities (Roth IRAs) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Elite(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. Contributions to Roth IRAs Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eligible retirement plans ("conversion" rollover contributions); or o tax-free rollover contributions from other Roth individual retirement arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. Regular contributions to Roth IRAs Limits on regular contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the years is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion under "Special rules for spouses" earlier in this section under traditional IRAs. 72 Tax information If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. When you can make contributions. Same as traditional IRAs. Deductibility of contributions. Roth IRA contributions are not tax deductible. Rollovers and direct transfers What is the difference between rollover and direct transfer transactions? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make rollover transactions between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Conversion rollover contributions to Roth IRAs In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting -- a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, Tax information 73 your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. How to recharacterize. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. Distributions from Roth IRAs Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). 74 Tax information You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contribu tions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. Required minimum distributions during life Lifetime required minimum distributions do not apply. Required minimum distributions at death Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the Required Beginning Date. Payments to a beneficiary after your death Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. Borrowing and loans are prohibited transactions Same as traditional IRA. Excess contributions Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. Early distribution penalty tax Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- Tax information 75 FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) ELITE(SM) TSA CONTRACT Because the Accumulator(R) Elite(SM) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Elite(SM) TSA contract are extremely limited as described below. Accumulator(R) Elite(SM) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Elite(SM) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Elite(SM) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Elite(SM) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as 76 Tax information well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) Elite(SM) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Elite(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary Tax information 77 reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Elite(SM) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. Annuity payments. Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" in this Prospectus, as well as GMIB and other annuitization payments that are based on the annuitant's life or life expectancy, are considered annuity payments for tax purposes. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. Payments to a beneficiary after your death. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous twelve months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Elite(SM) Rollover TSA contracts have a term limit of 10 years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or 78 Tax information o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. Tax-deferred rollovers and funding vehicle transfers. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Elite(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Elite(SM) Rollover TSA contract on the form used to establish the TSA, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: Tax information 79 o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribution from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. Federal income tax withholding on periodic annuity payments Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. Federal income tax withholding on non-periodic annuity payments (withdrawals) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. Mandatory withholding from TSA and qualified plan distributions Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is 80 Tax information responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT ON TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. Tax information 81 8. More information - -------------------------------------------------------------------------------- ABOUT OUR SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of the Separate Account's operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Account invests solely in class IB/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from the Separate Account or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in the prospectuses for each Trust, which generally accompany this Prospectus, or in the respective SAIs which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below:
- -------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 2013 3.00%* $ 86.25 - --------------------------------------------------------------
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- -------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------- 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - --------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw any of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMOs maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. Any withdrawal charges that are deducted from a fixed maturity option will result in a market value adjustment calculated in the same way. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) above would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined by using a widely published index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and the fixed maturity options, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA More information 83 Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept initial and subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information provided through certain broker-dealers with which we have established electronic facilities. In any such cases, you must sign our Acknowledgement of Receipt form. Where we require a signed application, the above procedures do not apply and no financial transactions will be permitted until we receive the signed application and have issued the contract. Where we issue a contract based on information provided through electronic facilities, we require an Acknowledgement of Receipt form, and financial transactions are only permitted if you request them in writing, sign the request and have it signature guaranteed, until we receive the signed Acknowledgement of Receipt form. After your contract has been issued, additional contributions may be transmitted by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. After your contract has been issued, additional contributions may be transmitted by wire. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, QP, Inherited IRA Beneficiary Continuation (traditional IRA or Roth IRA) or Rollover TSA contracts, nor is it available with GPB Option 2. The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. For contracts with GWBL, AIP will be automatically terminated after the later of: (i) the end of the first contract year, or (ii) the date the first withdrawal is taken. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. 84 More information Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Initial contributions allocated to the account for special dollar cost averaging receive the interest rate in effect on that business day. At certain times, we may offer the opportunity to lock in the interest rate for an initial contribution to be received under Section 1035 exchanges and trustee to trustee transfers. Your financial professional can provide information, or you can call our processing office. o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; or o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in the prospectuses for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustee or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. One result of proportional voting is that a small number of contract owners may control the outcome of a vote. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or distribution of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until More information 85 we receive written notification of any change at our processing office. Loans are not available under your NQ contract. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. For NQ contracts only, subject to regulatory approval, if you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, and/or Guaranteed principal benefit option 2 ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. However, the Benefit (other than the Guaranteed withdrawal benefit for life) will not terminate if the ownership of the contract is transferred to: (i) a family member (as defined in the contract); (ii) a trust created for the benefit of a family member or members; (iii) a trust qualified under section 501(c) of the Internal Revenue Code; or (iv) a successor by operation of law, such as an executor or guardian. The Guaranteed withdrawal benefit for life will not terminate if the ownership of the contract is transferred from a non-natural owner to an individual but the contract will continue to be based on the annuitant's life. The Guaranteed withdrawal benefit for life will also not terminate if you transfer your individually-owned contract to a trust held for your (or your and your immediate family's) benefit; the Guaranteed withdrawal benefit for life will continue to be based on your life. If you were not the annuitant under the individually-owned contract in which the Guaranteed withdrawal benefit for life is elected, you will become the annuitant under the new contract. Please speak with your financial professional for further information. For NQ contracts, if there is a change in owner, the Guaranteed withdrawal benefit for life will be terminated. However, if ownership is changed from a non-natural owner to an individual, the Guaranteed withdrawal benefit for life will not terminate and the benefit will continue to be determined by the annuitant. You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available (except for Rollover TSA contracts for which employer or plan approval is required) and you cannot assign Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts as security for a loan or other obligation. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract (employer or plan approval required) to another similar arrangement under federal income tax rules. In the case of such a transfer, which involves a surrender of your contract, we will impose a withdrawal charge, if one applies. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 1.20% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 6.50% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract 86 More information to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker-dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) Elite(SM) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. More information 87 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Guaranteed Interest Account with Market Value Adjustment (the "Registration Statement"). This Prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Guaranteed Interest Account with Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a web site that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to The AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa- equitable.com. 88 Incorporation of certain documents by reference Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.65%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.09 $ 14.45 $ 12.46 $ 11.72 $ 10.66 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 64,596 32,813 12,508 4,674 195 - ------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.79 $ 11.33 $ 10.83 $ 10.75 $ 10.31 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,068 5,935 3,738 1,736 116 - ------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.43 $ 11.98 $ 11.20 $ 11.03 $ 10.41 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 23,580 16,150 9,271 3,928 215 - ------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.13 $ 12.57 $ 11.58 $ 11.24 $ 10.51 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 117,390 83,885 52,197 21,440 970 - ------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.48 $ 13.84 $ 12.29 $ 11.72 $ 10.67 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 240,939 152,231 69,680 21,528 560 - ------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.93 $ 13.69 $ 12.58 $ 12.26 $ 10.92 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,057 7,207 5,402 2,957 158 - ------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.74 $ 10.22 $ 10.07 $ 10.12 $ 10.09 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,177 1,691 1,398 905 69 - ------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.68 $ 17.91 $ 14.74 $ 13.00 $ 11.19 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,529 7,675 3,716 1,270 66 - ------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.66 $ 12.19 $ 12.46 $ 11.02 $ 10.34 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,311 2,506 1,386 595 44 - ------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.96 $ 10.66 $ 10.44 $ 10.40 $ 10.20 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,138 3,340 2,303 1,119 95 - ------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.27 $ 14.18 $ 13.22 $ 12.06 $ 10.75 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,846 2,926 1,783 913 81 - ------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.17 $ 15.10 $ 12.65 $ 12.20 $ 10.93 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 19,894 14,100 9,522 5,080 310 - ------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.00 $ 11.32 $ 10.35 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,556 907 118 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.10 $ 10.92 $ 10.95 $ 10.35 $ 10.16 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,847 3,611 2,568 878 43 - -------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.23 $ 14.30 $ 12.02 $ 11.87 $ 10.92 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,001 5,785 4,888 3,020 210 - ------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.38 $ 17.89 $ 14.47 $ 13.27 $ 11.09 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,184 7,223 4,026 1,161 30 - ------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.74 $ 6.61 $ 5.80 $ 5.55 -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,771 4,814 3,177 208 -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.04 $ 11.83 $ 11.43 $ 10.68 $ 10.49 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 982 894 571 194 5 - ------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.24 $ 11.80 $ 11.17 $ 10.80 $ 10.41 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,279 6,225 2,419 273 15 - ------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.44 $ 13.44 $ 12.20 $ 11.69 $ 10.72 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 17,200 6,674 4,879 2,900 86 - ------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.14 $ 11.02 $ 10.38 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,709 1,957 563 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.06 $ 10.84 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,823 1,788 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.00 $ 13.56 $ 11.98 $ 11.67 $ 10.76 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 11,756 9,866 7,495 4,181 204 - ------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.65 $ 9.91 $ 9.74 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,959 2,013 172 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.11 $ 11.98 $ 11.50 $ 11.25 $ 10.69 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,691 1,979 1,528 1,146 126 - ------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.77 $ 14.84 $ 13.53 $ 12.93 $ 11.33 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,337 8,706 5,920 3,260 291 - ------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.46 $ 10.42 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 19,931 3,992 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.71 $ 10.81 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,069 384 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.50 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 36,003 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.77 $ 11.57 $ 10.48 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,502 1,759 442 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 27.94 $ 26.00 $ 22.24 $ 21.68 -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,011 1,796 802 76 -- - -------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.11 $ 16.87 $ 14.38 $ 12.48 $ 11.17 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,092 11,624 7,243 3,564 178 - ------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.21 $ 14.18 $ 11.48 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,860 1,674 373 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.89 $ 10.74 $ 10.50 $ 10.44 $ 10.20 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 14,134 11,680 7,995 3,501 284 - ------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.06 $ 14.47 $ 12.22 $ 11.96 $ 10.97 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,094 1,769 1,018 473 42 - ------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.85 $ 13.56 $ 12.21 $ 11.58 $ 10.57 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,364 1,455 1,271 643 69 - ------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.66 $ 12.89 $ 12.16 $ 11.34 $ 10.24 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,960 1,215 705 369 29 - ------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.34 $ 11.17 $ 10.63 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,005 5,957 563 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.55 $ 9.99 $ 9.98 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,635 878 743 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.41 $ 12.19 $ 10.58 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,773 3,163 874 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.71 $ 11.68 $ 10.54 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,698 1,248 527 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.17 $ 12.30 $ 11.13 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,885 5,585 2,163 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.09 $ 13.45 $ 12.51 $ 11.49 $ 10.57 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 25,093 20,022 11,881 5,249 435 - ------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.00 $ 15.51 $ 14.02 $ 12.80 $ 11.04 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,668 6,490 4,526 2,213 149 - ------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.55 $ 10.24 $ 9.97 $ 9.87 $ 9.96 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 8,854 4,632 2,041 1,005 42 - ------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.69 $ 4.79 $ 4.51 $ 4.35 -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,503 1,430 883 38 -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.70 $ 10.70 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,811 2,470 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.52 $ 11.08 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,779 367 -- -- -- - -------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.11 $ 10.92 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 743 133 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.71 $ 11.09 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,662 182 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.73 $ 9.79 $ 9.91 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 14,527 8,303 3,300 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.55 $ 10.18 $ 9.96 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,217 1,594 402 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.21 $ 14.72 $ 12.72 $ 12.40 $ 10.71 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,773 4,061 2,210 1,215 79 - ------------------------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.46 $ 15.61 $ 16.53 $ 16.17 -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,120 907 526 22 -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.79 $ 10.75 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,518 2,001 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.07 $ 6.10 $ 5.43 $ 5.07 -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,079 2,346 952 71 -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.38 $ 11.86 $ 10.41 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,921 7,856 2,852 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 34.34 $ 24.59 $ 18.24 $ 13.97 $ 11.48 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 8,306 6,050 3,408 1,047 46 - ------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.97 $ 13.27 $ 12.35 -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,059 2,350 533 -- -- - ------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.27 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 11,901 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.17 $ 12.93 $ 12.51 $ 11.75 $ 10.66 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,191 976 442 210 15 - ------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.08 $ 10.61 $ 10.39 $ 10.38 $ 10.16 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,566 5,315 4,566 2,210 301 - ------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.61 $ 12.70 $ 12.28 $ 11.67 $ 10.59 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,083 3,143 1,765 716 86 - ------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.58 $ 12.40 $ 11.47 $ 11.32 $ 10.59 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,716 6,956 5,292 3,135 282 - ------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 20.15 $ 18.23 $ 14.79 $ 13.02 $ 11.23 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,136 5,220 2,536 1,127 65 - -------------------------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.82 $ 13.38 $ 11.98 $ 11.41 $ 10.58 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,624 1,487 1,016 456 20 - ------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.49 $ 11.42 $ 11.59 $ 10.97 $ 10.45 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,875 3,137 2,204 1,141 59 - ------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.69 $ 15.40 $ 13.12 $ 12.46 $ 11.07 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,335 5,165 3,109 1,455 59 - ------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.63 $ 13.30 $ 12.33 $ 11.57 $ 10.53 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,883 3,570 2,515 1,381 97 - ------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.60 $ 14.83 $ 13.15 $ 12.45 $ 10.99 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,025 3,627 2,566 1,506 103 - ------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.75 $ 8.58 $ 7.91 $ 7.49 -- - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,231 3,530 1,416 31 -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.12 $ 14.80 $ 12.96 $ 12.59 $ 10.93 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,224 7,719 5,307 2,979 191 - ------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.29 $ 12.29 $ 11.65 $ 10.64 $ 10.31 - ------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,743 2,164 1,431 675 35 - -------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-5 Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- Trustees who are considering the purchase of an Accumulator(R) Elite(SM) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this Prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) Elite(SM) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) Elite(SM) QP contract to fund a plan for the contract's features and benefits other than tax deferral, after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. We will not accept defined benefit plans. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or other contributions directly from the employer. For 401(k) plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge and/or market value adjustment may apply. AXA Equitable will not perform or provide any plan recordkeeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant/employee takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for participants after age 70-1/2, trustees should consider: o whether required minimum distributions under QP contracts would cause withdrawals in excess of 6% of the Guaranteed minimum income benefit Roll-Up benefit base; and o that provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed from the contract. Finally, because the method of purchasing the QP contract, including the large initial contribution and the features of the QP contract may appeal more to plan participants/employees who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants/employees who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisers whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. B-1 Appendix II: Purchase considerations for QP contracts Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00%("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a).
- ----------------------------------------------------------------------------------------------------- Hypothetical assumed rate to maturity("j" in the calculations below) February 15, 2012 ----------------------- 5.00% 9.00% - ----------------------------------------------------------------------------------------------------- As of February 15, 2012 before withdrawal - ----------------------------------------------------------------------------------------------------- (1) Market adjusted amount(b) $141,389 $121,737 - ----------------------------------------------------------------------------------------------------- (2) Fixed maturity amount(c) $131,104 $131,104 - ----------------------------------------------------------------------------------------------------- (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ----------------------------------------------------------------------------------------------------- On February 15, 2012 after $50,000 withdrawal - ----------------------------------------------------------------------------------------------------- (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ----------------------------------------------------------------------------------------------------- (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ----------------------------------------------------------------------------------------------------- (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ----------------------------------------------------------------------------------------------------- (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ----------------------------------------------------------------------------------------------------- (8) Maturity value(d) $111,099 $101,287 - -----------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes:
(a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ------------------ = -------------------- where j is either 5% or 9% (1+j)(D/365) (1+j)(1,461/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ------------------ = -------------------- (1+j)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) x (1+0.07)(1,461/365)
Appendix III: Market value adjustment example C-1 Appendix IV: Annual Ratchet to age 85 enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the Annual Ratchet to age 85 enhanced death benefit, if elected. The following illustrates the Annual Ratchet to age 85 enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options or the Special 10 year fixed maturity option), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the Annual Ratchet to age 85 enhanced death benefit for an annuitant age 45 would be calculated as follows:
- --------------------------------------------------------------- End of contract Annual Ratchet to age 85 year Account value benefit base - --------------------------------------------------------------- 1 $105,000 $ 105,000(1) - --------------------------------------------------------------- 2 $115,500 $ 115,500(1) - --------------------------------------------------------------- 3 $129,360 $ 129,360(1) - --------------------------------------------------------------- 4 $103,488 $ 129,360(2) - --------------------------------------------------------------- 5 $113,837 $ 129,360(2) - --------------------------------------------------------------- 6 $127,497 $ 129,360(2) - --------------------------------------------------------------- 7 $127,497 $ 129,360(2) - ---------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. ANNUAL RATCHET TO AGE 85 (1) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (2) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. D-1 Appendix IV: Annual Ratchet to age 85 enhanced death benefit example Appendix V: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Elite(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying portfolios (as described below), the corresponding net annual rates of return would be (2.88)% and 3.12% for the Accumulator(R) Elite(SM) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges, but they do not reflect the charges we deduct from your account value annually for the optional Guaranteed minimum death benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return would be lower; however, the values shown in the following tables reflect all contract charges. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios, as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this Prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. Appendix V: Hypothetical illustrations E-1 Variable deferred annuity Accumulator(R) Elite(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Annual Ratchet to age 85 Guaranteed minimum death benefit Guaranteed minimum income benefit
Annual Ratchet Lifetime Annual to age 85 Guaranteed Minimum Income Benefit Guaranteed ---------------------------------- Minimum Death Guaranteed Hypothetical Account Value Cash Value Benefit Total Death Benefit Income Income Contract ------------------- ------------------ ------------------- ------------------- ----------------- ---------------- Age Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% - ----- --------- --------- --------- -------- --------- --------- --------- --------- --------- -------- -------- -------- ------- 60 1 100,000 100,000 92,000 92,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A 61 2 95,695 101,661 88,695 94,661 100,000 101,661 100,000 101,661 N/A N/A N/A N/A 62 3 91,494 103,320 85,494 97,320 100,000 103,320 100,000 103,320 N/A N/A N/A N/A 63 4 87,391 104,975 82,391 99,975 100,000 104,975 100,000 104,975 N/A N/A N/A N/A 64 5 83,379 106,621 83,379 106,621 100,000 106,621 100,000 106,621 N/A N/A N/A N/A 65 6 79,453 108,258 79,453 108,258 100,000 108,258 100,000 108,258 N/A N/A N/A N/A 66 7 75,607 109,880 75,607 109,880 100,000 109,880 100,000 109,880 N/A N/A N/A N/A 67 8 71,835 111,486 71,835 111,486 100,000 111,486 100,000 111,486 N/A N/A N/A N/A 68 9 68,131 113,071 68,131 113,071 100,000 113,071 100,000 113,071 N/A N/A N/A N/A 69 10 64,490 114,631 64,490 114,631 100,000 114,631 100,000 114,631 N/A N/A N/A N/A 74 15 81,546 122,538 81,546 122,538 100,000 122,538 100,000 122,538 14,266 14,266 14,266 14,266 79 20 59,305 128,463 59,305 128,463 100,000 128,463 100,000 128,463 20,393 20,393 20,393 20,393 84 25 37,689 132,021 37,689 132,021 100,000 132,021 100,000 132,021 34,821 34,821 34,821 34,821 89 30 28,018 145,297 28,018 145,297 100,000 132,339 100,000 132,339 N/A N/A N/A N/A 94 35 22,301 163,487 22,301 163,487 100,000 132,339 100,000 132,339 N/A N/A N/A N/A 95 36 21,270 167,414 21,270 167,414 100,000 132,339 100,000 132,339 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. E-2 Appendix V: Hypothetical illustrations Appendix VI: Guaranteed principal benefit example - -------------------------------------------------------------------------------- For purposes of these examples, we assume that there is an initial contribution of $100,000, made to the contract on February 15, 2008. We also assume that no additional contributions, no transfers among options and no withdrawals from the contract are made. For GPB Option 1, the example also assumes that a 10 year fixed maturity option is chosen. The hypothetical gross rates of return with respect to amounts allocated to the variable investment options are 0%, 6% and 10%. The numbers below reflect the deduction of all applicable separate account and contract charges and also reflect the charge for GPB Option 2. Also, for any given performance of your variable investment options, GPB Option 1 produces higher account values than GPB Option 2 unless investment performance has been significantly positive. The examples should not be considered a representation of past or future expenses. Similarly, the annual rates of return assumed in the example are not an estimate or guarantee of future investment performance.
- ---------------------------------------------------------------------------------------------------- Assuming 100% Assuming in variable 100% in Under GPB Under GPB investment FMO Option 1 Option 2 options - ---------------------------------------------------------------------------------------------------- Amount allocated to FMO on February 15, 2008 based upon a 4.01% rate to maturity 100,000 67,470 40,000 -- - ---------------------------------------------------------------------------------------------------- Initial account value allocated to the variable investment options on February 15, 2008 0 32,530 60,000 100,000 - ---------------------------------------------------------------------------------------------------- Account value in the fixed maturity option on February 15, 2018 148,215 100,000 59,286 0 - ---------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018, assuming a 0% gross rate of return) 148,215 124,287 100,000* 74,660 - ---------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018, assuming a 6% gross rate of return) 148,215 144,230 134,087** 135,966 - ---------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018, assuming a 10% gross rate of return) 148,215 164,713 169,494** 198,932 - ----------------------------------------------------------------------------------------------------
* Since the annuity account value is less than the altenate benefit under GPB Option 2, the annuity account value is adjusted upward to the guaranteed amount or an increase of $284 in this example ** Since the annuity account value is greater than the alternate benefit under GPB Option 2, GPB Option 2 will not affect the annuity account value. Appendix VI: Guaranteed principal benefit example F-1 Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to obtain an Accumulator(R) Elite(SM) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) Elite(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 - -------------------------------------------------------------------------------- Please send me an Accumulator(R) Elite(SM) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip X1890/Elite '02/`04, '04(N4), '06/'06.5, and '07 Series Accumulator(R) Elite(SM) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 - -------------------------------------------------------------------------------- Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing, or taking any other action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) ELITE(SM)? Accumulator(R) Elite(SM) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option, fixed maturity options or the account for special dollar cost averaging ("investment options"). This contract may not currently be available in all states. Certain features and benefits described in this Prospectus may vary in your state; all features and benefits may not be available in all contracts, in all states or from all selling broker-dealers. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street o EQ/Ariel Appreciation II Small Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS MId Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option, the fixed maturity options and the account for special dollar cost averaging, which are discussed later in this Prospectus. If you elect the Guaranteed withdrawal benefit for life or a Principal guarantee benefit, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and certain permitted variable investment option(s). The permitted variable investment options are described later in this Prospectus. TYPES OF CONTRACTS. We offer the contracts for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). o Traditional and Roth Inherited IRA beneficiary continuation contract ("Inherited IRA") (direct transfer contributions only). o An annuity that is an investment vehicle for a qualified defined contribution plan ("QP") (Rollover and direct transfer contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $10,000 is required to purchase a contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01916/Elite '06/'06.5 Series (R-4/15) Contents of this Prospectus - -------------------------------------------------------------------------------- ACCUMULATOR(R) ELITE(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) Elite(SM) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 11 - -------------------------------------------------------------------------------- Example 15 Condensed financial information 18 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 19 - -------------------------------------------------------------------------------- How you can purchase and contribute to your contract 19 Owner and annuitant requirements 22 How you can make your contributions 22 What are your investment options under the contract? 22 Portfolios of the Trusts 24 Allocating your contributions 30 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 32 Annuity purchase factors 34 Guaranteed minimum income benefit option 34 Guaranteed minimum death benefit 36 Guaranteed withdrawal benefit for life ("GWBL") 38 Principal guarantee benefits 41 Inherited IRA beneficiary continuation contract 42 Your right to cancel within a certain number of days 43 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 44 - -------------------------------------------------------------------------------- Your account value and cash value 44 Your contract's value in the variable investment options 44 Your contract's value in the guaranteed interest option 44 Your contract's value in the fixed maturity options 44 Your contract's value in the account for special dollar cost averaging 44 Insufficient account value 44 - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 46 - -------------------------------------------------------------------------------- Transferring your account value 46 Disruptive transfer activity 46 Rebalancing your account value 47 - ---------------------- "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 48 - -------------------------------------------------------------------------------- Withdrawing your account value 48 How withdrawals are taken from your account value 50 How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits 50 How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit 51 Withdrawals treated as surrenders 51 Loans under Rollover TSA contracts 51 Surrendering your contract to receive its cash value 52 When to expect payments 52 Your annuity payout options 52 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 55 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 55 Charges that the Trusts deduct 58 Group or sponsored arrangements 58 Other distribution arrangements 59 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 60 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 60 Beneficiary continuation option 62 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 64 - -------------------------------------------------------------------------------- Overview 64 Buying a contract to fund a retirement arrangement 64 Transfers among investment options 64 Taxation of nonqualified annuities 64 Individual retirement arrangements (IRAs) 66 Tax-Sheltered Annuity contracts (TSAs) 75 Federal and state income tax withholding and information reporting 80 Special rules for contracts funding qualified plans 81 Impact of taxes to AXA Equitable 81 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 82 - -------------------------------------------------------------------------------- About our Separate Account No. 49 82 About the Trusts 82 About our fixed maturity options 82 About the general account 83 About other methods of payment 84 Dates and prices at which contract events occur 84 About your voting rights 85 About legal proceedings 85 Financial statements 85 Transfers of ownership, collateral assignments, loans and borrowing 86 About Custodial IRAs 86 Distribution of the contracts 86 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 88 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Enhanced death benefit example D-1 V -- Hypothetical illustrations E-1 VI -- Earnings enhancement benefit example F-1 VII -- State contract availability and/or variations of certain features and benefits G-1 VIII -- Contract variations H-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page in Term Prospectus 6% Roll-Up to age 85 32 account value 44 administrative charge 55 annual administrative charge 55 Annual Ratchet 40 Annual Ratchet to age 85 enhanced death benefit 32 annuitant 19 annuitization 52 annuity maturity date 54 annuity payout options 52 annuity purchase factors 34 automatic annual reset program 33 automatic customized reset program 33 automatic investment program 84 AXA Allocation portfolios cover beneficiary 60 Beneficiary continuation option ("BCO") 62 business day 84 cash value 44 charges for state premium and other applicable taxes 58 contract date 22 contract date anniversary 22 contract year 22 contributions to Roth IRAs 72 regular contributions 72 rollovers and direct transfers 73 conversion contributions 73 contributions to traditional IRAs 67 regular contributions 67 rollovers and transfers 68 disability, terminal illness or confinement to nursing home 56 disruptive transfer activity 46 distribution charge 55 Earnings enhancement benefit 37 Earnings enhancement benefit charge 58 EQAccess 7 ERISA 59 fixed-dollar option 31 fixed maturity options 29 free look 43 free withdrawal amount 56 general account 83 general dollar cost averaging 31 guaranteed interest option 29 Guaranteed minimum death benefit 36 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 32 Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset option 33 Guaranteed minimum income benefit 34 Guaranteed minimum income benefit charge 57 Guaranteed minimum income benefit "no lapse guarantee" 35 Guaranteed withdrawal benefit for life ("GWBL") 38 Guaranteed withdrawal benefit for life charge 38 GWBL benefit base 39 Inherited IRA cover investment options cover Investment simplifier 31 IRA cover IRS 64 lifetime required minimum distribution withdrawals 49 loan reserve account 51 loans under rollover TSA 51 market adjusted amount 29 market timing 46 market value adjustment 29 maturity dates 29 maturity value 29 Mortality and expense risks charge 55 NQ cover one-time reset option 33 partial withdrawals 48 permitted variable investment options 23 Portfolio cover Principal guarantee benefits 41 processing office 7 QP cover rate to maturity 29 Rebalancing 32 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 30 Separate Account No. 49 82 special dollar cost averaging 30 Spousal continuation 61 standard death benefit 32 substantially equal withdrawals 49 systematic withdrawals 49 TOPS 7 TSA cover traditional IRA cover Trusts 82 unit 44 variable investment options 23 wire transmittals and electronic applications 84 withdrawal charge 56 4 Index of key words and phrases To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract. Your financial professional can provide further explanation about your contract or supplemental materials.
- ------------------------------------------------------------------------------------------------------------------------------ Prospectus Contract or Supplemental Materials - ------------------------------------------------------------------------------------------------------------------------------ fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guaranteed minimum income benefit Guaranteed Income Benefit guaranteed interest option Guaranteed Interest Account Guaranteed withdrawal benefit for life Guaranteed withdrawal benefit GWBL benefit base Guaranteed withdrawal benefit for life benefit base Guaranteed annual withdrawal Guaranteed withdrawal benefit for life Annual withdrawal amount amount Excess withdrawal Guaranteed withdrawal benefit for life Excess withdrawal - ------------------------------------------------------------------------------------------------------------------------------
Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses as listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) Elite(SM) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) Elite(SM) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) Elite(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) Elite(SM) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility for GWBL deferral bonuses and eligibility to exercise the Guaranteed minimum income benefit and/or the Roll-Up benefit base reset option. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options (not available through EQAccess); o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or the Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of your transfers. If we do not employ Who is AXA Equitable? 7 reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts (employer or plan approval required) and contracts with the Guaranteed withdrawal benefit for life ("GWBL"); (7) tax withholding elections; (8) election of the beneficiary continuation option; (9) IRA contribution recharacterizations; (10) Section 1035 exchanges; (11) direct transfers and rollovers; (12) exercise of the Guaranteed minimum income benefit; (13) requests to reset your Roll-Up benefit base (for contracts that have both the Guaranteed minimum income benefit and the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit); (14) requests to opt out of or back into the annual ratchet of the Guaranteed withdrawal benefit for life ("GWBL") benefit base; (15) death claims; (16) change in ownership (NQ only, if available under your contract); (17) purchase by, or change of ownership to, a nonnatural owner; (18) requests for enrollment in either our Maximum payment plan or Customized payment plan under the Guaranteed withdrawal benefit for life ("GWBL"); and (19) requests to reset the guaranteed minimum value for contracts with a Principal guarantee benefit. WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; (3) general dollar cost averaging (including the fixed dollar and interest sweep options); and (4) special dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging (including the fixed dollar and interest sweep options); (3) special dollar cost averaging; (4) substantially equal withdrawals; (5) systematic withdrawals; and (6) the date annuity payments are to begin. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION AT LEAST 30 CALENDAR DAYS PRIOR TO YOUR CONTRACT DATE ANNIVERSARY: (1) automatic annual reset program; and (2) automatic customized reset program. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners both must sign. 8 Who is AXA Equitable? Accumulator(R) Elite(SM) at a glance -- key features Professional investment Accumulator(R) Elite(SM)'s variable investment options invest in different Portfolios managed by management professional investment advisers. - ----------------------------------------------------------------------------------------------------------------------------------- Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. ------------------------------------------------------------------------------------------------------ If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ----------------------------------------------------------------------------------------------------------------------------------- Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - ----------------------------------------------------------------------------------------------------------------------------------- Account for special dollar Available for dollar cost averaging all or a portion of any eligible contribution to your cost averaging contract. - ----------------------------------------------------------------------------------------------------------------------------------- Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among investment options inside the contract. ------------------------------------------------------------------------------------------------------ If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA) or to fund an employer retirement plan (QP or Qualified Plan), you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of agreements. Before purchasing one of these contracts, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities compared with any other investment that you may use in connection with your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ----------------------------------------------------------------------------------------------------------------------------------- Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during your life once income benefit you elect to annuitize the contract. - ----------------------------------------------------------------------------------------------------------------------------------- Guaranteed withdrawal The Guaranteed withdrawal benefit for life option ("GWBL") guarantees that you can take benefit for life withdrawals up to a maximum amount each contract year (your "Guaranteed annual withdrawal amount") beginning at age 45 or later. Withdrawals are taken from your account value and continue during your lifetime even if your account value falls to zero (unless it is caused by a withdrawal that exceeds your Guaranteed annual withdrawal amount). - ----------------------------------------------------------------------------------------------------------------------------------- Contribution amounts o Initial minimum: $10,000 o Additional minimum: $500 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $1,000 (Inherited IRA contracts) $50 (IRA contracts) Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million ($500,000 for owners or annuitants who are age 81 and older at contract issue unless you elect GWBL) under all Accumulator(R) series contracts with the same owner or annuitant. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. See "How you can purchase and contribute to your contract" in "Contract features and benefits" later in this Prospectus. - -----------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Elite(SM) at a glance -- key features 9 - ----------------------------------------------------------------------------------------------------------------------------------- Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender o Maximum payment plan (only under contracts with GWBL) o Customized payment plan (only under contracts with GWBL) You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ----------------------------------------------------------------------------------------------------------------------------------- Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - ----------------------------------------------------------------------------------------------------------------------------------- Additional features o Guaranteed minimum death benefit options o Principal guarantee benefits o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually, and annually) o Free transfers o Waiver of withdrawal charge for disability, terminal illness, confinement to a nursing home and certain other withdrawals o Earnings enhancement benefit, an optional death benefit available under certain contracts o Spousal continuation o Beneficiary continuation option o Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset - ----------------------------------------------------------------------------------------------------------------------------------- Fees and charges Please see "Fee table" later in this section for complete details. - ----------------------------------------------------------------------------------------------------------------------------------- Owner and annuitant issue NQ: 0-85 ages Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85 Inherited IRA: 0-70 QP: 20-75 - -----------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available in your state or at certain ages. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund within a certain number of days. Please see "Your right to cancel within a certain number of days" later in this Prospectus for additional information. Other contracts We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts, based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. Some selling broker-dealers may limit their clients from purchasing optional benefits based upon the client's age. 10 Accumulator(R) Elite(SM) at a glance -- key features Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay at the time that you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply. - ----------------------------------------------------------------------------------------------------------------------------------- Charges we deduct from your account value at the time you request certain transactions - ----------------------------------------------------------------------------------------------------------------------------------- Maximum withdrawal charge as a percentage of contributions with- drawn (deducted if you surrender your contract or make certain withdrawals or apply your cash value to certain payout options).(1) 8.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - ----------------------------------------------------------------------------------------------------------------------------------- The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underly- ing trust portfolio fees and expenses. - ----------------------------------------------------------------------------------------------------------------------------------- Charges we deduct from your account value on each contract date anniversary - ----------------------------------------------------------------------------------------------------------------------------------- Maximum annual administrative charge(2) If your account value on a contract date anniversary is less than $ 50,000(3) $ 30 If your account value on a contract date anniversary is $50,000 or more $ 0 - ----------------------------------------------------------------------------------------------------------------------------------- Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - ----------------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT ANNUAL EXPENSES: Mortality and expense risks 1.10%(4) Administrative 0.30% Distribution 0.25% ------- Total Separate account annual expenses 1.65% - ----------------------------------------------------------------------------------------------------------------------------------- Charges we deduct from your account value each year if you elect any of the following optional benefits - ----------------------------------------------------------------------------------------------------------------------------------- Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) Standard death benefit and GWBL Standard death benefit 0.00% Annual Ratchet to age 85 0.25% Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85* (for new business and certain in-force contracts) 0.60% (for certain other in-force contracts) 0.65% GWBL Enhanced death benefit 0.30% * Please see Appendix VIII later in this Prospectus for more information. - ----------------------------------------------------------------------------------------------------------------------------------- Principal guarantee benefits charge (calculated as a percentage of the account value. Deducted annually(2) on each contract date anni- versary for which the benefit is in effect.) 100% Principal guarantee benefit 0.50% 125% Principal guarantee benefit 0.75%
Fee table 11 - ----------------------------------------------------------------------------------------------------------------------------------- Guaranteed minimum income benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) 0.65% - ----------------------------------------------------------------------------------------------------------------------------------- Earnings enhancement benefit charge (calculated as a percent- age of the account value. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) 0.35% - ----------------------------------------------------------------------------------------------------------------------------------- Guaranteed withdrawal benefit for life benefit charge (calcu- 0.60% for the Single Life option lated as a percentage of the GWBL benefit base. Deducted annually(2) 0.75% for the Joint Life option on each contract date anniversary.) If your GWBL benefit base ratchets, we reserve the right to increase 0.75% for the Single Life option your charge up to: 0.90% for the Joint Life option Please see "Guaranteed withdrawal benefit for life" in "Contract features and benefits" for more information about this feature, including its benefit base and the Annual Ratchet provision, and "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses," both later in this Prospectus. - ----------------------------------------------------------------------------------------------------------------------------------- Net loan interest charge - Rollover TSA contracts only (calcu- lated and deducted daily as a percentage of the outstanding loan amount) 2.00%(5)
- -------------------------------------------------------------------------------- You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio. - ----------------------------------------------------------------------------------------------------------------------------------- Portfolio operating expenses expressed as an annual percentage of daily net assets - ----------------------------------------------------------------------------------------------------------------------------------- Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ---- ---- other expenses)(6) 0.63% 3.56%
This table shows the fees and expense s for 2007 as an annual percentage of each Portfolio's daily ave rage net assets. - ----------------------------------------------------------------------------------------------------------------------------------- Total Acquired Annual Net Fund Fees Expenses Fee Waiv- Annual and (Before ers and/or Expenses Manage- Expenses Expense Expense (After ment 12b-1 Other (Underlying Limita- Reimburse- Expense Portfolio Name Fees(7) Fees(8) Expenses(9) Portfolios)(10) tions) ments(11) Limitations) - ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - ----------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.10% 0.25% 0.17% 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.10% 0.25% 0.21% 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.10% 0.25% 0.17% 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity 0.60% 0.25% 0.19% -- 1.04% -- 1.04% Multimanager Core Bond 0.58% 0.25% 0.18% -- 1.01% (0.01)% 1.00% Multimanager Health Care 1.20% 0.25% 0.23% -- 1.68% 0.00% 1.68% Multimanager High Yield 0.57% 0.25% 0.19% -- 1.01% -- 1.01% Multimanager International Equity 1.00% 0.25% 0.23% -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth 0.90% 0.25% 0.22% -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value 0.87% 0.25% 0.20% -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value 1.09% 0.25% 0.20% -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth 1.05% 0.25% 0.27% -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value 1.03% 0.25% 0.18% -- 1.46% 0.00% 1.46% Multimanager Technology 1.20% 0.25% 0.22% 0.01% 1.68% 0.00% 1.68%
12 Fee table
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets. - ----------------------------------------------------------------------------------------------------------------------------------- Manage- ment 12b-1 Other Portfolio Name Fees(7) Fees(8) Expenses(9) - ----------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% - ----------------------------------------------------------------------------------------------------------------------------------- Total Acquired Annual Net Fund Fees Expenses Fee Waiv- Annual and (Before ers and/or Expenses Expenses Expense Expense (After (Underlying Limita- Reimburse- Expense Portfolio Name Portfolios)(10) tions) ments(11) Limitations) - ----------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(12) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate -- 1.36% (0.10)% 1.26%
Fee table 13 Notes: (1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal amount, if applicable The withdrawal charge percentage we use is determined by the contract year in which you make the withdrawal or surrender your contract. For each contribution, Contract we consider the contract year in Year which we receive that contribution 1 ...................... 8.00% to be "contract year 1") 2 ...................... 7.00% 3 ...................... 6.00% 4 ...................... 5.00% 5+ ..................... 0.00% (2) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. (3) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, if applicable, the charge is $30 for each contract year. (4 These charges compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. (5) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (6) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (7) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (11) and (12) for any expense limitation agreement information. (8) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. (9) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (11) and (12) for any expense limitation agreement information. (10) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A"--" indicates that the listed Portfolio does not invest in underlying portfolios. (11) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A"--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: -------------------------------------------------- Portfolio Name -------------------------------------------------- Multimanager Aggressive Equity 0.97% ----------------------------------------------- Multimanager Health Care 1.67% ----------------------------------------------- Multimanager Large Cap Core Equity 1.34% ----------------------------------------------- Multimanager Large Cap Growth 1.29% ----------------------------------------------- Multimanager Large Cap Value 1.26% ----------------------------------------------- Multimanager Mid Cap Growth 1.52% ----------------------------------------------- Multimanager Mid Cap Value 1.53% ----------------------------------------------- Multimanager Small Cap Growth 1.35% ----------------------------------------------- Multimanager Small Cap Value 1.45% ----------------------------------------------- Multimanager Technology 1.67% ----------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% ----------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% ----------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% ----------------------------------------------- EQ/AllianceBernstein Value 0.87% ----------------------------------------------- EQ/Ariel Appreciation II 1.09% ----------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% ----------------------------------------------- EQ/Davis New York Venture 1.25% ----------------------------------------------- EQ/Evergreen Omega 1.12% ----------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% ----------------------------------------------- EQ/GAMCO Small Company Value 1.10% ----------------------------------------------- EQ/International Core PLUS 1.05% ----------------------------------------------- EQ/Large Cap Core PLUS 0.83% ----------------------------------------------- EQ/Large Cap Growth PLUS 0.82% ----------------------------------------------- EQ/Legg Mason Value Equity 0.97% ----------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% ----------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% ----------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% ----------------------------------------------- EQ/Mid Cap Value PLUS 0.81% ----------------------------------------------- EQ/Montag & Caldwell Growth 1.13% ----------------------------------------------- 14 Fee table -------------------------------------------------- Portfolio Name -------------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% ----------------------------------------------- EQ/UBS Growth and Income 1.04% ----------------------------------------------- EQ/Van Kampen Comstock 0.99% ----------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% ----------------------------------------------- (12) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and adminis tration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the enhanced death benefit that provides for the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 and the Earnings enhancement benefit with either the Guaranteed minimum income benefit (with the annual reset feature) or the 125% Principal guarantee benefit) would pay in the situations illustrated. Each value in the expense example was calculated with the Guaranteed minimum income benefit except for the AXA Moderate Allocation portfolio. The AXA Moderate Allocation portfolio is calculated with either the Guaranteed minimum income benefit or the 125% Principal guarantee benefit depending on which benefit yielded the higher expenses. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.006% of contract value. The fixed maturity options, guaranteed interest option and the account for special dollar cost averaging are not covered by the fee table and example. However, the annual administrative charge, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options, guaranteed interest option and the account for special dollar cost averaging. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated, and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Fee table 15
- ----------------------------------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period - ----------------------------------------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ----------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,300.00 $ 2,124.00 $ 2,583.00 $ 5,394.00 AXA Conservative Allocation $ 1,280.00 $ 2,066.00 $ 2,490.00 $ 5,229.00 AXA Conservative-Plus Allocation $ 1,285.00 $ 2,081.00 $ 2,515.00 $ 5,273.00 AXA Moderate Allocation $ 1,299.00 $ 2,109.00 $ 2,537.00 $ 5,308.00 AXA Moderate-Plus Allocation $ 1,293.00 $ 2,106.00 $ 2,554.00 $ 5,342.00 Multimanager Aggressive Equity $ 1,258.00 $ 2,002.00 $ 2,387.00 $ 5,042.00 Multimanager Core Bond $ 1,254.00 $ 1,993.00 $ 2,372.00 $ 5,015.00 Multimanager Health Care $ 1,325.00 $ 2,197.00 $ 2,699.00 $ 5,598.00 Multimanager High Yield $ 1,254.00 $ 1,993.00 $ 2,372.00 $ 5,015.00 Multimanager International Equity $ 1,304.00 $ 2,136.00 $ 2,602.00 $ 5,429.00 Multimanager Large Cap Core Equity $ 1,290.00 $ 2,097.00 $ 2,539.00 $ 5,316.00 Multimanager Large Cap Growth $ 1,292.00 $ 2,103.00 $ 2,549.00 $ 5,334.00 Multimanager Large Cap Value $ 1,287.00 $ 2,087.00 $ 2,524.00 $ 5,290.00 Multimanager Mid Cap Growth $ 1,311.00 $ 2,157.00 $ 2,636.00 $ 5,488.00 Multimanager Mid Cap Value $ 1,310.00 $ 2,154.00 $ 2,631.00 $ 5,480.00 Multimanager Small Cap Growth $ 1,313.00 $ 2,163.00 $ 2,646.00 $ 5,505.00 Multimanager Small Cap Value $ 1,302.00 $ 2,130.00 $ 2,593.00 $ 5,411.00 Multimanager Technology $ 1,325.00 $ 2,197.00 $ 2,699.00 $ 5,598.00 - ----------------------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,238.00 $ 1,944.00 $ 2,293.00 $ 4,869.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,241.00 $ 1,953.00 $ 2,308.00 $ 4,897.00 EQ/AllianceBernstein International $ 1,268.00 $ 2,033.00 $ 2,436.00 $ 5,131.00 EQ/AllianceBernstein Large Cap Growth $ 1,283.00 $ 2,075.00 $ 2,505.00 $ 5,255.00 EQ/AllianceBernstein Quality Bond $ 1,242.00 $ 1,956.00 $ 2,313.00 $ 4,906.00 EQ/AllianceBernstein Small Cap Growth $ 1,266.00 $ 2,026.00 $ 2,426.00 $ 5,114.00 EQ/AllianceBernstein Value $ 1,249.00 $ 1,977.00 $ 2,347.00 $ 4,970.00 EQ/Ariel Appreciation II $ 1,281.00 $ 2,069.00 $ 2,495.00 $ 5,238.00 EQ/AXA Rosenberg Value Long/Short Equity $ 1,522.00 $ 2,753.00 $ 3,565.00 $ 7,025.00 EQ/BlackRock Basic Value Equity $ 1,246.00 $ 1,968.00 $ 2,332.00 $ 4,943.00 EQ/BlackRock International Value $ 1,280.00 $ 2,066.00 $ 2,490.00 $ 5,229.00 EQ/Boston Advisors Equity Income $ 1,268.00 $ 2,033.00 $ 2,436.00 $ 5,131.00 EQ/Calvert Socially Responsible $ 1,267.00 $ 2,029.00 $ 2,431.00 $ 5,123.00 EQ/Capital Guardian Growth $ 1,259.00 $ 2,005.00 $ 2,392.00 $ 5,051.00 EQ/Capital Guardian Research $ 1,254.00 $ 1,993.00 $ 2,372.00 $ 5,015.00 EQ/Caywood-Scholl High Yield Bond $ 1,254.00 $ 1,993.00 $ 2,372.00 $ 5,015.00 EQ/Davis New York Venture $ 1,283.00 $ 2,075.00 $ 2,505.00 $ 5,255.00 EQ/Equity 500 Index $ 1,215.00 $ 1,876.00 $ 2,182.00 $ 4,665.00 EQ/Evergreen International Bond $ 1,266.00 $ 2,026.00 $ 2,426.00 $ 5,114.00 EQ/Evergreen Omega $ 1,269.00 $ 2,036.00 $ 2,441.00 $ 5,140.00 EQ/FI Mid Cap $ 1,260.00 $ 2,008.00 $ 2,397.00 $ 5,060.00 - ----------------------------------------------------------------------------------------------------------------------------------- If you do not surrender If you annuitize at the end of the applicable time your contract at the period and select a non-life contingent period certain end of the annuity option with less than five years applicable time period - ----------------------------------------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years 1 year 3 years - ----------------------------------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ----------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 2,124.00 $ 2,583.00 $ 5,394.00 $ 500.00 $ 1,524.00 AXA Conservative Allocation N/A $ 2,066.00 $ 2,490.00 $ 5,229.00 $ 480.00 $ 1,466.00 AXA Conservative-Plus Allocation N/A $ 2,081.00 $ 2,515.00 $ 5,273.00 $ 485.00 $ 1,481.00 AXA Moderate Allocation N/A $ 2,109.00 $ 2,537.00 $ 5,308.00 $ 499.00 $ 1,509.00 AXA Moderate-Plus Allocation N/A $ 2,106.00 $ 2,554.00 $ 5,342.00 $ 493.00 $ 1,506.00 Multimanager Aggressive Equity N/A $ 2,002.00 $ 2,387.00 $ 5,042.00 $ 458.00 $ 1,402.00 Multimanager Core Bond N/A $ 1,993.00 $ 2,372.00 $ 5,015.00 $ 454.00 $ 1,393.00 Multimanager Health Care N/A $ 2,197.00 $ 2,699.00 $ 5,598.00 $ 525.00 $ 1,597.00 Multimanager High Yield N/A $ 1,993.00 $ 2,372.00 $ 5,015.00 $ 454.00 $ 1,393.00 Multimanager International Equity N/A $ 2,136.00 $ 2,602.00 $ 5,429.00 $ 504.00 $ 1,536.00 Multimanager Large Cap Core Equity N/A $ 2,097.00 $ 2,539.00 $ 5,316.00 $ 490.00 $ 1,497.00 Multimanager Large Cap Growth N/A $ 2,103.00 $ 2,549.00 $ 5,334.00 $ 492.00 $ 1,503.00 Multimanager Large Cap Value N/A $ 2,087.00 $ 2,524.00 $ 5,290.00 $ 487.00 $ 1,487.00 Multimanager Mid Cap Growth N/A $ 2,157.00 $ 2,636.00 $ 5,488.00 $ 511.00 $ 1,557.00 Multimanager Mid Cap Value N/A $ 2,154.00 $ 2,631.00 $ 5,480.00 $ 510.00 $ 1,554.00 Multimanager Small Cap Growth N/A $ 2,163.00 $ 2,646.00 $ 5,505.00 $ 513.00 $ 1,563.00 Multimanager Small Cap Value N/A $ 2,130.00 $ 2,593.00 $ 5,411.00 $ 502.00 $ 1,530.00 Multimanager Technology N/A $ 2,197.00 $ 2,699.00 $ 5,598.00 $ 525.00 $ 1,597.00 - ----------------------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 1,944.00 $ 2,293.00 $ 4,869.00 $ 438.00 $ 1,344.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,953.00 $ 2,308.00 $ 4,897.00 $ 441.00 $ 1,353.00 EQ/AllianceBernstein International N/A $ 2,033.00 $ 2,436.00 $ 5,131.00 $ 468.00 $ 1,433.00 EQ/AllianceBernstein Large Cap Growth N/A $ 2,075.00 $ 2,505.00 $ 5,255.00 $ 483.00 $ 1,475.00 EQ/AllianceBernstein Quality Bond N/A $ 1,956.00 $ 2,313.00 $ 4,906.00 $ 442.00 $ 1,356.00 EQ/AllianceBernstein Small Cap Growth N/A $ 2,026.00 $ 2,426.00 $ 5,114.00 $ 466.00 $ 1,426.00 EQ/AllianceBernstein Value N/A $ 1,977.00 $ 2,347.00 $ 4,970.00 $ 449.00 $ 1,377.00 EQ/Ariel Appreciation II N/A $ 2,069.00 $ 2,495.00 $ 5,238.00 $ 481.00 $ 1,469.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,753.00 $ 3,565.00 $ 7,025.00 $ 722.00 $ 2,153.00 EQ/BlackRock Basic Value Equity N/A $ 1,968.00 $ 2,332.00 $ 4,943.00 $ 446.00 $ 1,368.00 EQ/BlackRock International Value N/A $ 2,066.00 $ 2,490.00 $ 5,229.00 $ 480.00 $ 1,466.00 EQ/Boston Advisors Equity Income N/A $ 2,033.00 $ 2,436.00 $ 5,131.00 $ 468.00 $ 1,433.00 EQ/Calvert Socially Responsible N/A $ 2,029.00 $ 2,431.00 $ 5,123.00 $ 467.00 $ 1,429.00 EQ/Capital Guardian Growth N/A $ 2,005.00 $ 2,392.00 $ 5,051.00 $ 459.00 $ 1,405.00 EQ/Capital Guardian Research N/A $ 1,993.00 $ 2,372.00 $ 5,015.00 $ 454.00 $ 1,393.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,993.00 $ 2,372.00 $ 5,015.00 $ 454.00 $ 1,393.00 EQ/Davis New York Venture N/A $ 2,075.00 $ 2,505.00 $ 5,255.00 $ 483.00 $ 1,475.00 EQ/Equity 500 Index N/A $ 1,876.00 $ 2,182.00 $ 4,665.00 $ 415.00 $ 1,276.00 EQ/Evergreen International Bond N/A $ 2,026.00 $ 2,426.00 $ 5,114.00 $ 466.00 $ 1,426.00 EQ/Evergreen Omega N/A $ 2,036.00 $ 2,441.00 $ 5,140.00 $ 469.00 $ 1,436.00 EQ/FI Mid Cap N/A $ 2,008.00 $ 2,397.00 $ 5,060.00 $ 460.00 $ 1,408.00 - ----------------------------------------------------------------------------- If you do not surrender your contract at applicable time period - ----------------------------------------------------------------------------- 5 years 10 years - ----------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ----------------------------------------------------------------------------- AXA Aggressive Allocation $ 2,583.00 $ 5,394.00 AXA Conservative Allocation $ 2,490.00 $ 5,229.00 AXA Conservative-Plus Allocation $ 2,515.00 $ 5,273.00 AXA Moderate Allocation $ 2,537.00 $ 5,308.00 AXA Moderate-Plus Allocation $ 2,554.00 $ 5,342.00 Multimanager Aggressive Equity $ 2,387.00 $ 5,042.00 Multimanager Core Bond $ 2,372.00 $ 5,015.00 Multimanager Health Care $ 2,699.00 $ 5,598.00 Multimanager High Yield $ 2,372.00 $ 5,015.00 Multimanager International Equity $ 2,602.00 $ 5,429.00 Multimanager Large Cap Core Equity $ 2,539.00 $ 5,316.00 Multimanager Large Cap Growth $ 2,549.00 $ 5,334.00 Multimanager Large Cap Value $ 2,524.00 $ 5,290.00 Multimanager Mid Cap Growth $ 2,636.00 $ 5,488.00 Multimanager Mid Cap Value $ 2,631.00 $ 5,480.00 Multimanager Small Cap Growth $ 2,646.00 $ 5,505.00 Multimanager Small Cap Value $ 2,593.00 $ 5,411.00 Multimanager Technology $ 2,699.00 $ 5,598.00 - ----------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 2,293.00 $ 4,869.00 EQ/AllianceBernstein Intermediate Government Securities $ 2,308.00 $ 4,897.00 EQ/AllianceBernstein International $ 2,436.00 $ 5,131.00 EQ/AllianceBernstein Large Cap Growth $ 2,505.00 $ 5,255.00 EQ/AllianceBernstein Quality Bond $ 2,313.00 $ 4,906.00 EQ/AllianceBernstein Small Cap Growth $ 2,426.00 $ 5,114.00 EQ/AllianceBernstein Value $ 2,347.00 $ 4,970.00 EQ/Ariel Appreciation II $ 2,495.00 $ 5,238.00 EQ/AXA Rosenberg Value Long/Short Equity $ 3,565.00 $ 7,025.00 EQ/BlackRock Basic Value Equity $ 2,332.00 $ 4,943.00 EQ/BlackRock International Value $ 2,490.00 $ 5,229.00 EQ/Boston Advisors Equity Income $ 2,436.00 $ 5,131.00 EQ/Calvert Socially Responsible $ 2,431.00 $ 5,123.00 EQ/Capital Guardian Growth $ 2,392.00 $ 5,051.00 EQ/Capital Guardian Research $ 2,372.00 $ 5,015.00 EQ/Caywood-Scholl High Yield Bond $ 2,372.00 $ 5,015.00 EQ/Davis New York Venture $ 2,505.00 $ 5,255.00 EQ/Equity 500 Index $ 2,182.00 $ 4,665.00 EQ/Evergreen International Bond $ 2,426.00 $ 5,114.00 EQ/Evergreen Omega $ 2,441.00 $ 5,140.00 EQ/FI Mid Cap $ 2,397.00 $ 5,060.00 - -----------------------------------------------------------------------------
16 Fee table
- ------------------------------------------------------------------------------------------------------ If you surrender your contract at the end of the applicable time period - ------------------------------------------------------------------------------------------------------ 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------ EQ/Franklin Income $ 1,285.00 $ 2,081.00 $ 2,515.00 $ 5,273.00 EQ/Franklin Small Cap Value $ 1,288.00 $ 2,090.00 $ 2,529.00 $ 5,299.00 EQ/Franklin Templeton Founding Strategy $ 1,313.00 $ 2,163.00 $ 2,646.00 $ 5,505.00 EQ/GAMCO Mergers and Acquisitions $ 1,289.00 $ 2,093.00 $ 2,534.00 $ 5,308.00 EQ/GAMCO Small Company Value $ 1,267.00 $ 2,029.00 $ 2,431.00 $ 5,123.00 EQ/International Core PLUS $ 1,273.00 $ 2,048.00 $ 2,461.00 $ 5,176.00 EQ/International Growth $ 1,292.00 $ 2,103.00 $ 2,549.00 $ 5,334.00 EQ/JPMorgan Core Bond $ 1,233.00 $ 1,931.00 $ 2,273.00 $ 4,833.00 EQ/JPMorgan Value Opportunities $ 1,252.00 $ 1,987.00 $ 2,362.00 $ 4,997.00 EQ/Large Cap Core PLUS $ 1,256.00 $ 1,996.00 $ 2,377.00 $ 5,024.00 EQ/Large Cap Growth PLUS $ 1,254.00 $ 1,993.00 $ 2,372.00 $ 5,015.00 EQ/Legg Mason Value Equity $ 1,261.00 $ 2,011.00 $ 2,402.00 $ 5,069.00 EQ/Long Term Bond $ 1,230.00 $ 1,922.00 $ 2,258.00 $ 4,805.00 EQ/Lord Abbett Growth and Income $ 1,260.00 $ 2,008.00 $ 2,397.00 $ 5,060.00 EQ/Lord Abbett Large Cap Core $ 1,265.00 $ 2,023.00 $ 2,421.00 $ 5,105.00 EQ/Lord Abbett Mid Cap Value $ 1,264.00 $ 2,020.00 $ 2,417.00 $ 5,096.00 EQ/Marsico Focus $ 1,278.00 $ 2,060.00 $ 2,480.00 $ 5,211.00 EQ/Mid Cap Value PLUS $ 1,260.00 $ 2,008.00 $ 2,397.00 $ 5,060.00 EQ/Money Market $ 1,222.00 $ 1,898.00 $ 2,218.00 $ 4,731.00 EQ/Montag & Caldwell Growth $ 1,269.00 $ 2,036.00 $ 2,441.00 $ 5,140.00 EQ/Mutual Shares $ 1,291.00 $ 2,100.00 $ 2,544.00 $ 5,325.00 EQ/Oppenheimer Global $ 1,329.00 $ 2,209.00 $ 2,718.00 $ 5,632.00 EQ/Oppenheimer Main Street Opportunity $ 1,312.00 $ 2,160.00 $ 2,641.00 $ 5,497.00 EQ/Oppenheimer Main Street Small Cap $ 1,321.00 $ 2,184.00 $ 2,680.00 $ 5,565.00 EQ/PIMCO Real Return $ 1,247.00 $ 1,971.00 $ 2,337.00 $ 4,952.00 EQ/Short Duration Bond $ 1,236.00 $ 1,938.00 $ 2,283.00 $ 4,851.00 EQ/Small Company Index $ 1,216.00 $ 1,879.00 $ 2,187.00 $ 4,675.00 EQ/T. Rowe Price Growth Stock $ 1,272.00 $ 2,045.00 $ 2,456.00 $ 5,167.00 EQ/Templeton Growth $ 1,295.00 $ 2,112.00 $ 2,563.00 $ 5,360.00 EQ/UBS Growth and Income $ 1,270.00 $ 2,039.00 $ 2,446.00 $ 5,149.00 EQ/Van Kampen Comstock $ 1,259.00 $ 2,005.00 $ 2,392.00 $ 5,051.00 EQ/Van Kampen Emerging Markets Equity $ 1,321.00 $ 2,184.00 $ 2,680.00 $ 5,565.00 EQ/Van Kampen Mid Cap Growth $ 1,264.00 $ 2,020.00 $ 2,417.00 $ 5,096.00 EQ/Van Kampen Real Estate $ 1,291.00 $ 2,100.00 $ 2,544.00 $ 5,325.00 - ------------------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------------------------- If you do not surrender If you annuitize at the end of the applicable time your contract at the period and select a non-life contingent period certain end of the annuity option with less than five years applicable time period - ----------------------------------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years 1 year 3 years - ----------------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income N/A $ 2,081.00 $ 2,515.00 $ 5,273.00 $ 485.00 $ 1,481.00 EQ/Franklin Small Cap Value N/A $ 2,090.00 $ 2,529.00 $ 5,299.00 $ 488.00 $ 1,490.00 EQ/Franklin Templeton Founding Strategy N/A $ 2,163.00 $ 2,646.00 $ 5,505.00 $ 513.00 $ 1,563.00 EQ/GAMCO Mergers and Acquisitions N/A $ 2,093.00 $ 2,534.00 $ 5,308.00 $ 489.00 $ 1,493.00 EQ/GAMCO Small Company Value N/A $ 2,029.00 $ 2,431.00 $ 5,123.00 $ 467.00 $ 1,429.00 EQ/International Core PLUS N/A $ 2,048.00 $ 2,461.00 $ 5,176.00 $ 473.00 $ 1,448.00 EQ/International Growth N/A $ 2,103.00 $ 2,549.00 $ 5,334.00 $ 492.00 $ 1,503.00 EQ/JPMorgan Core Bond N/A $ 1,931.00 $ 2,273.00 $ 4,833.00 $ 433.00 $ 1,331.00 EQ/JPMorgan Value Opportunities N/A $ 1,987.00 $ 2,362.00 $ 4,997.00 $ 452.00 $ 1,387.00 EQ/Large Cap Core PLUS N/A $ 1,996.00 $ 2,377.00 $ 5,024.00 $ 456.00 $ 1,396.00 EQ/Large Cap Growth PLUS N/A $ 1,993.00 $ 2,372.00 $ 5,015.00 $ 454.00 $ 1,393.00 EQ/Legg Mason Value Equity N/A $ 2,011.00 $ 2,402.00 $ 5,069.00 $ 461.00 $ 1,411.00 EQ/Long Term Bond N/A $ 1,922.00 $ 2,258.00 $ 4,805.00 $ 430.00 $ 1,322.00 EQ/Lord Abbett Growth and Income N/A $ 2,008.00 $ 2,397.00 $ 5,060.00 $ 460.00 $ 1,408.00 EQ/Lord Abbett Large Cap Core N/A $ 2,023.00 $ 2,421.00 $ 5,105.00 $ 465.00 $ 1,423.00 EQ/Lord Abbett Mid Cap Value N/A $ 2,020.00 $ 2,417.00 $ 5,096.00 $ 464.00 $ 1,420.00 EQ/Marsico Focus N/A $ 2,060.00 $ 2,480.00 $ 5,211.00 $ 478.00 $ 1,460.00 EQ/Mid Cap Value PLUS N/A $ 2,008.00 $ 2,397.00 $ 5,060.00 $ 460.00 $ 1,408.00 EQ/Money Market N/A $ 1,898.00 $ 2,218.00 $ 4,731.00 $ 422.00 $ 1,298.00 EQ/Montag & Caldwell Growth N/A $ 2,036.00 $ 2,441.00 $ 5,140.00 $ 469.00 $ 1,436.00 EQ/Mutual Shares N/A $ 2,100.00 $ 2,544.00 $ 5,325.00 $ 491.00 $ 1,500.00 EQ/Oppenheimer Global N/A $ 2,209.00 $ 2,718.00 $ 5,632.00 $ 529.00 $ 1,609.00 EQ/Oppenheimer Main Street Opportunity N/A $ 2,160.00 $ 2,641.00 $ 5,497.00 $ 512.00 $ 1,560.00 EQ/Oppenheimer Main Street Small Cap N/A $ 2,184.00 $ 2,680.00 $ 5,565.00 $ 521.00 $ 1,584.00 EQ/PIMCO Real Return N/A $ 1,971.00 $ 2,337.00 $ 4,952.00 $ 447.00 $ 1,371.00 EQ/Short Duration Bond N/A $ 1,938.00 $ 2,283.00 $ 4,851.00 $ 436.00 $ 1,338.00 EQ/Small Company Index N/A $ 1,879.00 $ 2,187.00 $ 4,675.00 $ 416.00 $ 1,279.00 EQ/T. Rowe Price Growth Stock N/A $ 2,045.00 $ 2,456.00 $ 5,167.00 $ 472.00 $ 1,445.00 EQ/Templeton Growth N/A $ 2,112.00 $ 2,563.00 $ 5,360.00 $ 495.00 $ 1,512.00 EQ/UBS Growth and Income N/A $ 2,039.00 $ 2,446.00 $ 5,149.00 $ 470.00 $ 1,439.00 EQ/Van Kampen Comstock N/A $ 2,005.00 $ 2,392.00 $ 5,051.00 $ 459.00 $ 1,405.00 EQ/Van Kampen Emerging Markets Equity N/A $ 2,184.00 $ 2,680.00 $ 5,565.00 $ 521.00 $ 1,584.00 EQ/Van Kampen Mid Cap Growth N/A $ 2,020.00 $ 2,417.00 $ 5,096.00 $ 464.00 $ 1,420.00 EQ/Van Kampen Real Estate N/A $ 2,100.00 $ 2,544.00 $ 5,325.00 $ 491.00 $ 1,500.00 - ----------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------ If you do not surrender your contract at applicable time period - ------------------------------------------------------------------------ 5 years 10 years - ------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------ EQ/Franklin Income $ 2,515.00 $ 5,273.00 EQ/Franklin Small Cap Value $ 2,529.00 $ 5,299.00 EQ/Franklin Templeton Founding Strategy $ 2,646.00 $ 5,505.00 EQ/GAMCO Mergers and Acquisitions $ 2,534.00 $ 5,308.00 EQ/GAMCO Small Company Value $ 2,431.00 $ 5,123.00 EQ/International Core PLUS $ 2,461.00 $ 5,176.00 EQ/International Growth $ 2,549.00 $ 5,334.00 EQ/JPMorgan Core Bond $ 2,273.00 $ 4,833.00 EQ/JPMorgan Value Opportunities $ 2,362.00 $ 4,997.00 EQ/Large Cap Core PLUS $ 2,377.00 $ 5,024.00 EQ/Large Cap Growth PLUS $ 2,372.00 $ 5,015.00 EQ/Legg Mason Value Equity $ 2,402.00 $ 5,069.00 EQ/Long Term Bond $ 2,258.00 $ 4,805.00 EQ/Lord Abbett Growth and Income $ 2,397.00 $ 5,060.00 EQ/Lord Abbett Large Cap Core $ 2,421.00 $ 5,105.00 EQ/Lord Abbett Mid Cap Value $ 2,417.00 $ 5,096.00 EQ/Marsico Focus $ 2,480.00 $ 5,211.00 EQ/Mid Cap Value PLUS $ 2,397.00 $ 5,060.00 EQ/Money Market $ 2,218.00 $ 4,731.00 EQ/Montag & Caldwell Growth $ 2,441.00 $ 5,140.00 EQ/Mutual Shares $ 2,544.00 $ 5,325.00 EQ/Oppenheimer Global $ 2,718.00 $ 5,632.00 EQ/Oppenheimer Main Street Opportunity $ 2,641.00 $ 5,497.00 EQ/Oppenheimer Main Street Small Cap $ 2,680.00 $ 5,565.00 EQ/PIMCO Real Return $ 2,337.00 $ 4,952.00 EQ/Short Duration Bond $ 2,283.00 $ 4,851.00 EQ/Small Company Index $ 2,187.00 $ 4,675.00 EQ/T. Rowe Price Growth Stock $ 2,456.00 $ 5,167.00 EQ/Templeton Growth $ 2,563.00 $ 5,360.00 EQ/UBS Growth and Income $ 2,446.00 $ 5,149.00 EQ/Van Kampen Comstock $ 2,392.00 $ 5,051.00 EQ/Van Kampen Emerging Markets Equity $ 2,680.00 $ 5,565.00 EQ/Van Kampen Mid Cap Growth $ 2,417.00 $ 5,096.00 EQ/Van Kampen Real Estate $ 2,544.00 $ 5,325.00
For information on how your contract works under certain hypothetical circumstances, please see Appendix V at the end of this Prospectus. Fee table 17 CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. 18 Fee table 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT You may purchase a contract by making payments to us that we call "contributions." We require a minimum initial contribution of $10,000 for you to purchase a contract. You may make additional contributions of: (i) at least $500 each for NQ, QP and Rollover TSA contracts; (ii) $50 each for Rollover IRA and Roth conversion IRA contracts; and (iii) $1,000 for Inherited IRA contracts, subject to limitations noted below. The following table summarizes our rules regarding contributions to your contract. In some states, our rules may vary. Both the owner and the annuitant named in the contract must meet the issue age requirements shown in the table and contributions are based on the age of the older of the original owner and annuitant. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000 ($500,000 for owners or annuitants who are age 81 and older at contract issue unless you elect GWBL). We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We may accept less than the minimum initial contribution under a contract if an aggregate amount of contracts purchased at the same time by an individual (including spouse) meets the minimum. - -------------------------------------------------------------------------------- The "owner" is the person who is the named owner in the contract and, if an individual, is the measuring life for determining contract benefits. The "annuitant" is the person who is the measuring life for determining the contract's maturity date. The annuitant is not necessarily the contract owner. Where the owner of a contract is non-natural, the annuitant is the measuring life for determining contract benefits. - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions - -------------------------------------------------------------------------------- NQ 0 through 85 o $10,000 (initial) o $500 (additional) o $100 monthly and $300 quarterly under our automatic investment program (additional) - -------------------------------------------------------------------------------- Rollover IRA 20 through 85 o $10,000 (initial) o $50 (additional) - ------------------------------------------------------------------------------------------------ Limitations on Contract type Source of contributions contributions+ - ------------------------------------------------------------------------------------------------ NQ o After-tax money. o No additional contributions after attainment of age 87.* o Paid to us by check or transfer of contract value in a tax-deferred exchange under Section 1035 of the Internal Revenue Code. Rollover IRA o Eligible rollover distributions from o No rollover or direct transfer con- 403(b) plans, qualified plans, and tributions after attainment of governmental employer 457(b) age 87.* plans. o Contributions after age 70-1/2 must o Rollovers from another tradi- be net of required minimum tional individual retirement distributions. arrangement. o Although we accept regular IRA o Direct custodian-to-custodian contributions (limited to $5,000) transfers from another traditional under Rollover IRA contracts, we individual retirement intend that this contract be used arrangement. primarily for rollover and direct transfer contributions. o Regular IRA contributions. o Additional catch-up contributions o Additional catch-up of up to $1,000 per calendar year contributions. where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - ------------------------------------------------------------------------------------------------
Contract features and benefits 19
- ------------------------------------------------------------------------------------------------ Available for owner and annuitant Minimum Contract type issue ages contributions - ------------------------------------------------------------------------------------------------ Roth Conversion 20 through 85 o $10,000 (initial) IRA o $50 (additional) - ------------------------------------------------------------------------------------------------ Inherited IRA 0 through 70 o $10,000 (initial) Beneficiary Con- o $1,000 (additional) tinuation Contract (traditional IRA or Roth IRA) - ------------------------------------------------------------------------------------------------ Rollover TSA** 20 through 85 o $10,000 (initial) o $500 (additional) - ------------------------------------------------------------------------------------------------------------------ Limitations on Contract type Source of contributions contributions+ - ------------------------------------------------------------------------------------------------------------------ Roth Conversion o Rollovers from another Roth IRA. o No additional rollover or direct IRA transfer contributions after attainment of age 87.* o Rollovers from a "designated Roth contribution account" under o Conversion rollovers after a 401(k) plan or 403(b) plan. age 70-1/2 must be net of required minimum distributions for the o Conversion rollovers from a tradi- traditional IRA or other eligible tional IRA or other eligible retirement plan which is the retirement plan. source of the conversion rollover. o Direct transfers from another o You cannot roll over funds from a Roth IRA. traditional IRA or other eligible retirement plan if your adjusted o Regular Roth IRA contributions. gross income is $100,000 or more. o Additional "catch-up" contribu- o Although we accept regular Roth tions. IRA contributions (limited to $5,000 ) under the Roth IRA con- tracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contributions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calen- dar year for which the contribution is made. - ------------------------------------------------------------------------------------------------------------------ Inherited IRA o Direct custodian-to-custodian o Any additional contributions must Beneficiary Con- transfers of your interest as a be from the same type of IRA of tinuation Contract death beneficiary of the deceased the same deceased owner. (traditional IRA or owner's traditional individual Roth IRA) retirement arrangement or Roth o Non-spousal beneficiary direct IRA to an IRA of the same type. rollover contributions from quali- fied plans, 403(b) plans and governmental employer 457(b) plans may be made to a tradi- tional Inherited IRA contract under specified circumstances. - ------------------------------------------------------------------------------------------------------------------ Rollover TSA** o With documentation of employer o No additional rollover or direct or plan approval, and limited to transfer contributions after attain- pre-tax funds, direct plan-to-plan ment of age 87.* transfers from another 403(b) plan or contract exchanges from o Contributions after age 70-1/2 must another 403(b) contract under be net of any required minimum the same plan. distributions. o We do not accept employer- o With documentation of employer remitted contributions. or plan approval, and limited to pre-tax funds, eligible rollover o We do not accept after-tax contri- distributions from other 403(b) butions, including designated plans, qualified plans, govern- Roth contributions. mental employer 457(b) plans or traditional IRAs. - ------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------ Available for owner and annuitant Minimum Contract type issue ages contributions - ------------------------------------------------------------------------------------------------------------------ QP 20 through 75 o $10,000 (initial) o $500 (additional) - ------------------------------------------------------------------------------------------------------------------ Limitations on Contract type Source of contributions contributions+ - ------------------------------------------------------------------------------------------------------------------ QP o Only transfer contributions from other investments within an o A separate QP contract must be existing defined contribution established for each plan partici- qualified plan trust. pant. o We do not accept regular ongoing o The plan must be qualified under payroll contributions or contribu- Section 401(a) of the Internal tions directly from the employer. Revenue Code. o Only one additional transfer con- o For 401(k) plans, transferred tribution may be made during a contributions may not include contract year. any after-tax contributions, including designated Roth o No additional transfer contribu- contributions. tions after participant's attainment of age 76 or, if later, the first contract date anniversary. o Contributions after age 70-1/2 must be net of any required minimum distributions. o We do not accept contributions from defined benefit plans. Please refer to Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. - ------------------------------------------------------------------------------------------------------------------
+ Additional contributions may not be permitted under certain conditions in your state. Please see Appendix VII later in the Prospectus to see if additional contributions are permitted in your state. If you are participating in a Principal guarantee benefit, contributions will only be permitted for the first six months after the contract is issued and no further contributions will be permitted for the life of the contract. For the Guaranteed withdrawal benefit for life option, additional contributions are not permitted after the later of: (i) the end of the first contract year, and (ii) the date you make your first withdrawal. * Please see Appendix VII later in this Prospectus for information on state variations. ** May not be available from all Selling broker-dealers. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. Contract features and benefits 21 OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. For the Spousal continuation feature to apply, the spouses must either be joint owners, or, for Single life contracts, the surviving spouse must be the sole primary beneficiary. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. In general, we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your state. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. See "Inherited IRA beneficiary continuation contract" later in this section for Inherited IRA owner and annuitant requirements. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II at the end of this Prospectus for more information on QP contracts. Certain benefits under your contract, as described later in this Prospectus, are based on the age of the owner. If the owner of the contract is not a natural person, these benefits will be based on the age of the annuitant. If the contract is jointly owned and GWBL has not been elected, benefits are based on the age of the older joint owner. In this Prospectus, when we use the term "owner," we intend this to be a reference to the annuitant if the contract has a non-natural owner. If GWBL is elected, the terms "owner" and "successor owner" are intended to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. We do not permit joint annuitants unless you elect the Guaranteed withdrawal benefit for life on a Joint life basis and the contract is owned by a non-natural owner. Under QP contracts, all benefits are based on the age of the annuitant. PURCHASE CONSIDERATIONS FOR A CHARITABLE REMAINDER TRUST If you are purchasing this contract to fund a charitable remainder trust and elect either the Guaranteed minimum income benefit ("GMIB") or the Guaranteed withdrawal benefit for life ("GWBL"), or an enhanced death benefit, you should strongly consider "split-funding": that is, the trust holds investments in addition to this Accumulator(R) Elite(SM) contract. Charitable remainder trusts are required to take specific distributions. The charitable remainder trust annual withdrawal requirement may be equal to a percentage of the donated amount or a percentage of the current value of the donated amount. If your Accumulator(R) Elite(SM) contract is the only source for such distributions, the payments you need to take may significantly reduce the value of those guaranteed benefits. Such amount may be greater than the annual increase in the GMIB, GWBL and/or the enhanced death benefit base and/or greater than the Guaranteed annual withdrawal amount under GWBL. See the discussion of these benefits later in this section. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept initial and additional contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealer. Additional contributions may also be made under our automatic investment program. These methods of payment, are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- Your initial contribution must generally be accompanied by an application and any other form we need to process the payments. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain that information. If we are unable to obtain all of the information we require within five business days after we receive an incomplete application or form, we will inform the financial professional submitting the application on your behalf. We will then return the contribution to you unless you specifically direct us to keep your contribution until we receive the required information. The contribution will be applied as of the date we receive the missing information. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option, the fixed maturity options and the account for special dollar cost averaging. If you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit, your investment options will be limited to the guaranteed interest option, the 22 Contract features and benefits account for special dollar cost averaging and the following variable investment options: the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio ("permitted variable investment options"). If you elect the 125% Principal guarantee benefit, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the AXA Moderate Allocation Portfolio. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. Contract features and benefits 23 PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risk association with certain guaranteed features including those optional benefits that restrict allocations to the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - ----------------------------------------------------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. - ----------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. - ----------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a ALLOCATION greater emphasis on current income. - ----------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. - ----------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, ALLOCATION with a greater emphasis on capital appreciation. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. EQUITY - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital appreciation, consistent with a prudent level of risk. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current income and capital appreciation. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. EQUITY - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ----------------------------------------------------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS o AXA Equitable ALLOCATION - ----------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE-PLUS o AXA Equitable ALLOCATION - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND o BlackRock Financial Management, Inc. o Pacific Investment Management Company LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD o Pacific Investment Management Company LLC o Post Advisory Group, LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC
24 Contract features and benefits
- ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ----------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 25
- ----------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - ----------------------------------------------------------------------------------------- EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear LONG/SHORT EQUITY markets using strategies that are designed to limit expo- sure to general equity market risk. - ----------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, EQUITY income. - ----------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of VALUE income, accompanied by growth of capital. - ----------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to INCOME achieve an above-average and consistent total return. - ----------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. RESPONSIBLE - ----------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. - ----------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. RESEARCH - ----------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. YIELD BOND - ----------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. - ----------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ----------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. BOND - ----------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. - ----------------------------------------------------------------------------------------- EQ/FI MID CAP Seeks to achieve long-term growth of capital. - ----------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects for capital appreciation. - ----------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. - ----------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily seeks FOUNDING STRATEGY income. - ----------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. ACQUISITIONS - ----------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. VALUE - ----------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. - ----------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. - ----------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ----------------------------------------------------------------------------------------- EQ/AXA ROSENBERG VALUE o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY - ----------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE o BlackRock Investment Management, LLC EQUITY - ----------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL o BlackRock Investment Management VALUE International Limited - ----------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY o Boston Advisors, LLC INCOME - ----------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ----------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH o Capital Guardian Trust Company - ----------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company RESEARCH - ----------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH o Caywood-Scholl Capital Management YIELD BOND - ----------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE o Davis Selected Advisers, L.P. - ----------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX o AllianceBernstein L.P. - ----------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ----------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA o Evergreen Investment Management Company, LLC - ----------------------------------------------------------------------------------------- EQ/FI MID CAP o Fidelity Management & Research Company - ----------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME o Franklin Advisers, Inc. - ----------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE o Franklin Advisory Services, LLC - ----------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON o AXA Equitable FOUNDING STRATEGY - ----------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND o GAMCO Asset Management Inc. ACQUISITIONS - ----------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY o GAMCO Asset Management Inc. VALUE - ----------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ----------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH o MFS Investment Management - -----------------------------------------------------------------------------------------
26 Contract features and benefits
- ----------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - ----------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with mod- erate risk to capital and maintenance of liquidity. - ----------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. OPPORTUNITIES - ----------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- ondary objective to seek reasonable current income. For purposes of this Portfolio, the words "reasonable current income" mean moderate income. - ----------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. - ----------------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. - ----------------------------------------------------------------------------------------- EQ/LONG TERM BOND Seeks to maximize income and capital appreciation through investment in long-maturity debt obligations. - ----------------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of INCOME income without excessive fluctuation in market value. - ----------------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of CORE income with reasonable risk. - ----------------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. - ----------------------------------------------------------------------------------------- EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. - ----------------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. - ----------------------------------------------------------------------------------------- EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve its assets and maintain liquidity. - ----------------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. GROWTH EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- sionally be short-term, and secondarily, income. - ----------------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. - ----------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. OPPORTUNITY - ----------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. SMALL CAP - ----------------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with preservation of real capital and prudent investment man- agement. - ----------------------------------------------------------------------------------------- EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility of principal. - ----------------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ----------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ----------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND o JPMorgan Investment Management Inc. - ----------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE o JPMorgan Investment Management Inc. OPPORTUNITIES - ----------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS o AXA Equitable o Institutional Capital LLC o Mellon Capital Management Corporation - ----------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ----------------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY o Legg Mason Capital Management, Inc. - ----------------------------------------------------------------------------------------- EQ/LONG TERM BOND o BlackRock Financial Management, Inc. - ----------------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND o Lord, Abbett & Co. LLC INCOME - ----------------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP o Lord, Abbett & Co. LLC CORE - ----------------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE o Lord, Abbett & Co. LLC - ----------------------------------------------------------------------------------------- EQ/MARSICO FOCUS o Marsico Capital Management, LLC - ----------------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ----------------------------------------------------------------------------------------- EQ/MONEY MARKET o The Dreyfus Corporation - ----------------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL o Montag & Caldwell, Inc. GROWTH - ----------------------------------------------------------------------------------------- EQ/MUTUAL SHARES o Franklin Mutual Advisers, LLC - ----------------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL o OppenheimerFunds, Inc. - ----------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. OPPORTUNITY - ----------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. SMALL CAP - ----------------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN o Pacific Investment Management Company, LLC - ----------------------------------------------------------------------------------------- EQ/SHORT DURATION BOND o BlackRock Financial Management, Inc. - ----------------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX o AllianceBernstein L.P. - -----------------------------------------------------------------------------------------
Contract features and benefits 27
- ----------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - ----------------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and STOCK secondarily, income. - ----------------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. - ----------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation with income as a secondary consideration. - ----------------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. - ----------------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. MARKETS EQUITY - ----------------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. GROWTH - ----------------------------------------------------------------------------------------- EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- term capital appreciation. - ----------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ----------------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH o T. Rowe Price Associates, Inc. STOCK - ----------------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH o Templeton Global Advisors Limited - ----------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME o UBS Global Asset Management (Americas) Inc. - ----------------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK o Morgan Stanley Investment Management Inc. - ----------------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING o Morgan Stanley Investment Management Inc. MARKETS EQUITY - ----------------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP o Morgan Stanley Investment Management Inc. GROWTH - ----------------------------------------------------------------------------------------- EQ/VAN KAMPEN REAL ESTATE o Morgan Stanley Investment Management Inc. - -----------------------------------------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. 28 Contract features and benefits GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges, any withdrawal charges, and any optional benefit charges. See Appendix VII later in this Prospectus for state variations. Depending on the state where your contract is issued, your lifetime minimum rate ranges from 1.00% to 3.00%. The data page for your contract shows the lifetime minimum rate. Check with your financial professional as to which rate applies in your state. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75% or 3.00%, depending on your lifetime minimum rate. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfer from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional or see Appendix VII later in this Prospectus to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options range from one to ten years to maturity. - -------------------------------------------------------------------------------- On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for owner and annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you apply for an Accumulator(R) Elite(SM) contract, a 60-day rate lock-in will apply from the date the application is signed. Any contributions received and designated for a fixed maturity option during this period will receive the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever is greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from any of the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed below in "Allocating your contributions," would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value (there may be a withdrawal charge). If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008 the next available maturity date was February 15, 2015. If no fixed maturity options are available we will transfer your maturity value to the EQ/Money Market Option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market Contract features and benefits 29 value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options (adjusted to reflect a similar maturity date), and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING The account for special dollar cost averaging is part of our general account. We pay interest at guaranteed rates in this account. We will credit interest to the amounts that you have in the account for special dollar cost averaging every day. We set the interest rates periodically, according to procedures that we have. We reserve the right to change these procedures. We guarantee to pay our current interest rate that is in effect on the date that your contribution is allocated to this account. Your guaranteed interest rate for the time period you select will be shown in your contract for an initial contribution. The rate will never be less than the lifetime minimum rate for the guaranteed interest option. See "Allocating your contributions" below for rules and restrictions that apply to the special dollar cost averaging program. ALLOCATING YOUR CONTRIBUTIONS You may choose between self-directed and dollar cost averaging to allocate your contributions under your contract. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, the guaranteed interest option (subject to restrictions in certain states -- see Appendix VII later in this Prospectus for state variations) and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. No more than 25% of any contribution may be allocated to the guaranteed interest option. The total of your allocations into all available investment options must equal 100%. If an owner or annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options or the guaranteed interest option. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- SPECIAL DOLLAR COST AVERAGING PROGRAM. Under the special dollar cost averaging program, you may choose to allocate all or a portion of any eligible contribution to the account for special dollar cost averaging. Contributions into the account for special dollar cost averaging may not be transfers from other investment options. Your initial allocation to any special dollar cost averaging program time period must be at 30 Contract features and benefits least $2,000 and any subsequent contribution to that same time period must be at least $250. You may only have one time period in effect at any time and once you select a time period, you may not change it. In Pennsylvania, we refer to this program as "enhanced rate dollar cost averaging." You may have your account value transferred to any of the variable investment options available under your contract. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. We will transfer amounts from the account for special dollar cost averaging into the variable investment options over an available time period that you select. We offer time periods of 3, 6 or 12 months during which you will receive an enhanced interest rate. We may also offer other time periods. Your financial professional can provide information on the time periods and interest rates currently available in your state, or you may contact our processing office. If the special dollar cost averaging program is selected at the time of application to purchase the Accumulator(R) Elite(SM) contract, a 60 day rate lock will apply from the date of application. Any contribution(s) received during this 60 day period will be credited with the interest rate offered on the date of application for the remainder of the time period selected at application. Any contribution(s) received after the 60 day rate lock period has ended will be credited with the then current interest rate for the remainder of the time period selected at application. Contribution(s) made to a special dollar cost averaging program selected after the Accumulator(R) Elite(SM) contract has been issued will be credited with the then current interest rate on the date the contribution is received by AXA Equitable for the time period initially selected by you. Once the time period you selected has run, you may then select another time period for future contributions. At that time, you may also select a different allocation for transfers to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, your account value will be transferred from the account for special dollar cost averaging into the variable investment options on a monthly basis. We may offer this program in the future with transfers on a different basis. We will transfer all amounts out of the account for special dollar cost averaging by the end of the chosen time period. The transfer date will be the same day of the month as the contract date, but not later than the 28th day of the month. For a special dollar cost averaging program selected after application, the first transfer date and each subsequent transfer date for the time period selected will be one month from the date the first contribution is made into the special dollar cost averaging program, but not later than the 28th day of the month. If you choose to allocate only a portion of an eligible contribution to the account for special dollar cost averaging, the remaining balance of that contribution will be allocated to the variable investment options, guaranteed interest option or fixed maturity options according to your instructions. The only transfers that will be made from the account for special dollar cost averaging are your regularly scheduled transfers to the variable investment options. No amounts may be transferred from the account for special dollar cost averaging to the guaranteed interest option or the fixed maturity options. If you request to transfer or withdraw any other amounts from the account for special dollar averaging, we will transfer all of the value that you have remaining in the account for special dollar cost averaging to the investment options according to the allocation percentages for special dollar cost averaging we have on file for you. You may ask us to cancel your participation at any time. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. If you are participating in a Principal guarantee benefit, the general dollar cost averaging program is not available. If you elect the Guaranteed withdrawal benefit for life, general dollar cost averaging is not available. INVESTMENT SIMPLIFIER FIXED-DOLLAR OPTION. Under this option, you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. Unlike the account for special dollar cost averaging, this option does not offer enhanced rates. Also, this option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. Contract features and benefits 31 If, on any transfer date, your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. INTEREST SWEEP OPTION. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Under the Option I rebalancing program you may participate in any of the dollar cost averaging programs except general dollar cost averaging. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" immediately below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. Not all dollar cost averaging programs are available in all states (see Appendix VII later in this Prospectus for more information on state availability). GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit and the death benefits, as described in this section. The benefit base for the Guaranteed minimum income benefit and any enhanced death benefit will be calculated as described below in this section whether these options are elected individually or in combination. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 6% ROLL-UP TO AGE 85 (USED FOR THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to this benefit base is: o 6% with respect to the variable investment options (other than EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond) and the account for special dollar cost averaging; the effective annual rate may be 4% in some states. Please see Appendix VII later in this Prospectus to see what applies in your state; and o 3% with respect to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond, the fixed maturity options, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up on the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday. For contracts with non-natural owners, the benefit base stops rolling up on the contract date anniversary following the annuitant's 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: 32 Contract features and benefits o your initial contribution to the contract (plus any additional contributions), or o your highest account value of any contract date anniversary up to the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday plus any contributions made since the most recent Annual Ratchet, less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of the deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. For contracts with non-natural owners, the last contract date anniversary a ratchet could occur is based on the annuitant's age. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6% Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. For the Guaranteed minimum income benefit, the benefit base is reduced by any applicable withdrawal charge remaining when the option is exercised. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. In Washington a different roll-up rate applies to the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. See Appendix VII later in this Prospectus. GUARANTEED MINIMUM DEATH BENEFIT/GUARANTEED MINIMUM INCOME BENEFIT ROLL-UP BENEFIT BASE RESET. If both the Guaranteed minimum income benefit AND the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit (the "Greater of enhanced death benefit") are elected, you may reset the Roll-Up benefit base for these guaranteed benefits to equal the account value on any contract date anniversary until the contract date anniversary following age 75, if your contract has an annual reset. If your contract has a five year reset, you may reset the Roll-Up benefit base for these guaranteed benefits to equal the account value on any 5th or later contract date anniversary until the contract date anniversary following age 75. The reset amount would equal the account value as of the contract date anniversary on which you reset your Roll-Up benefit base. The 6% Roll-Up continues to age 85 on any reset benefit base. We will send you a notice in each year that the Roll-Up benefit base is eligible to be reset, and you will have 30 days from your contract date anniversary to reset your Roll-Up benefit base. If your contract is eligible for an annual reset and your request to reset your Roll-Up benefit base is received at our processing office more than 30 days after your contract date anniversary, your Roll-Up benefit base will reset on the next contract date anniversary on which you are eligible for a reset. If your contract is eligible for an annual reset, you may choose one of the three available reset methods: one-time reset option, automatic annual reset program or automatic customized reset program. - -------------------------------------------------------------------------------- ONE-TIME RESET OPTION - resets your Roll-Up benefit base on a single contract date anniversary. AUTOMATIC ANNUAL RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary you are eligible for a reset. AUTOMATIC CUSTOMIZED RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary, if eligible, for the period you designate. - -------------------------------------------------------------------------------- If you wish to cancel your elected reset program, your request must be received by our processing office at least 30 days prior to your contract date anniversary to terminate your reset program for such contract date anniversary. Cancellation requests received after this window will be applied the following year. A reset cannot be cancelled after it has occurred. For more information, see "How to reach us" earlier in this Prospectus. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset until the next contract date anniversary or for five years, depending upon the reset period available under your contract. Please see Appendix VIII later in this Prospectus for more information on the reset feature available under your contract. If after your death your spouse continues the contract and your contract has an annual reset, the benefit base will be eligible to be reset on each contract date anniversary, if applicable. However if your contract has a five year reset, the benefit base will be eligible to be reset either five years from the contract date or from the last reset date, if applicable. The last age at which the benefit base is eligible to be reset is the contract date anniversary following owner (or older joint owner, if applicable) age 75. For contracts with non-natural owners, reset eligibility is based on the annuitant's age. It is important to note that once you have reset your Roll-Up benefit base, a new waiting period to exercise the Guaranteed minimum income benefit will apply from the date of reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset; you may not exercise until the tenth contract date anniversary following the reset. See "Exercise rules" under "Guaranteed minimum income benefit option" below for more information. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the exercise waiting period. Also, even when there is no additional charge when you reset your Roll-Up benefit base, the total dollar amount charged on future contract date anniversaries may increase as a result of the reset since the charges may be applied to a higher benefit base than would have been otherwise applied. See "Charges and expenses" in the Prospectus. If you are a traditional IRA, TSA or QP contract owner, before you reset your Roll-Up benefit base, please consider the effect of the 10-year exercise waiting period on your requirement to take lifetime required minimum distributions with respect to this contract. If you must begin taking lifetime required minimum distributions during the 10-year waiting period, you may want to consider taking the annual lifetime required minimum distribution calculated for this contract from another traditional IRA, TSA or QP contract that you maintain. If you Contract features and benefits 33 withdraw the lifetime required minimum distribution from this contract, and the required minimum distribution is more than 6% of the reset benefit base, the withdrawal would cause a pro-rata reduction in the benefit base. Alternatively, resetting the benefit base to a larger amount would make it less likely that the required minimum distributions would exceed the 6% threshold. See "Lifetime required minimum distribution withdrawals" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money." Also, see "Required minimum distributions" under "Individual retirement arrangements (IRAs)" and "Tax-sheltered annuity contracts (TSAs)" in "Tax information" and Appendix II - "Purchase considerations for QP Contracts," later in this Prospectus. The Roll-Up benefit base for both the "Greater of" enhanced death benefit and the Guaranteed minimum income benefit are reset simultaneously when you request a Roll-Up benefit base reset. You cannot elect a Roll-Up benefit base reset for one benefit and not the other. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed in "Guaranteed minimum income benefit option" below and annuity payout options are discussed in "Accessing your money" later in this Prospectus. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the owner's (and any joint owner's) age and sex in certain instances. Your contract may specify different guaranteed annuity purchase factors for the Guaranteed minimum income benefit and the annuity payout options. We may provide more favorable current annuity purchase factors for the annuity payout options. GUARANTEED MINIMUM INCOME BENEFIT OPTION The Guaranteed minimum income benefit is available if the owner is age 20 through 75 at the time the contract is issued. If the contract is jointly owned, the Guaranteed minimum income benefit will be calculated on the basis of the older owner's age. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. If you are purchasing this contract as an inherited IRA, or if you elect a Principal guarantee benefit, or the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit is not available. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your Guaranteed minimum income benefit. See "Owner and annuitant requirements" earlier in this section. For IRA, QP and Rollover TSA contracts, owners over age 60 at contract issue should consider the impact of the minimum distributions required by tax law in relation to the withdrawal limitations under the Guaranteed minimum income benefit. See "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. If you elect the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the owner's age as follows: - ------------------------------------------- Level payments - ------------------------------------------- Period certain years ---------------------- Owner's age at exercise IRAs NQ - ------------------- ------------ --------- 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - ------------------------------------------- We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit should be regarded as a safety net only. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base, less any applicable withdrawal charge remaining, to guaranteed annuity purchase factors, or (ii) the income provided by applying your account value to our then current annuity purchase factors. For Rollover TSA only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity pur- 34 Contract features and benefits chase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. Before you elect the Guaranteed minimum income benefit, you should consider the fact that the it provides a form of insurance and is based on conservative actuarial factors. For certain contracts, the guaranteed annuity purchase factors we use to determine your payout annuity benefit under the Guaranteed minimum income benefit are more conservative than the guaranteed annuity purchase factors we use for our standard payout annuity options. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the Guaranteed minimum income benefit payout annuity will be smaller than each periodic payment under our standard payout annuity options. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. GUARANTEED MINIMUM INCOME BENEFIT "NO LAPSE GUARANTEE". In general, if your account value falls to zero (except, as discussed below, if your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days), the Guaranteed minimum income benefit will be exercised automatically, based on the owner's (or older joint owner's, if applicable) current age and benefit base, as follows: o You will be issued a supplementary contract based on a single life with a maximum 10 year period certain. Payments will be made annually starting one year from the date the account value fell to zero. o You will have 30 days from when we notify you to change the payout option and/or the payment frequency. Please note that we will not automatically exercise the Guaranteed minimum income benefit, as described above, if you have a TSA contract and withdrawal restrictions apply. The no lapse guarantee will terminate under the following circumstances: o If your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year); o If your aggregate withdrawals during any contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days); o Upon owner (or older joint owner, if applicable) reaching age 85. Please note that if you participate in our Automatic RMD service, an automatic withdrawal under that program will not cause the no lapse guarantee to terminate even if a withdrawal causes your total contract year withdrawals to exceed 6% of your Roll-Up benefit base. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male owner age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options or the loan reserve account under rollover TSA contracts. - ---------------------------------------------------------------- Guaranteed mini- Guaranteed mini- mum income benefit mum income benefit -- annual income -- annual income payable for life -- payable for life -- (for contracts with (for contracts with Contract date the five year Roll-Up the annual Roll-Up anniversary at benefit base reset benefit base reset exercise feature) feature) - ---------------------------------------------------------------- 10 $11,891 $10,065 15 $18,597 $15,266 - ---------------------------------------------------------------- EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us, along with all required information within 30 days following your contract date anniversary, in order to exercise this benefit. Upon exercise of the Guaranteed minimum income benefit, the owner will become the annuitant, and the contract will be annuitized on the basis of the owner's life. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payment contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death, or if later, the end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. Eligibility to exercise the Guaranteed minimum income benefit is based on the owner's (or older joint owner, if applicable) age, as follows: o If you were at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. Contract features and benefits 35 o If you were at least age 45 and no older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after age 60. o If you were at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your 85th birthday; (ii) if you were age 75 when the contract was issued, or the Roll-Up benefit base was reset, the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your attainment of age 85; (iii) for Accumulator(R) Elite(SM) QP contracts, the Plan participant can exercise the Guaranteed minimum income benefit only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) Elite(SM) QP contract into an Accumulator(R) Elite(SM) Rollover IRA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for the Plan participant to be eligible to exercise. However, if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, a rollover into an IRA will not be effected and payments will be made directly to the trustee; (iv) for Accumulator(R) Elite(SM) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Elite(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (v) if you reset the Roll-Up benefit base (as described earlier in this section), your new exercise date will be the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the waiting period; (vi) a spouse beneficiary or younger spouse joint owner under Spousal continuation may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original owner could have exercised the benefit. In addition, the spouse beneficiary or younger spouse joint owner must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The spouse beneficiary or younger spouse joint owner's age on the date of the owner's death replaces the owner's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules; (vii) if the contract is jointly owned, you can elect to have the Guaranteed minimum income benefit paid either: (a) as a joint life benefit or (b) as a single life benefit paid on the basis of the older owner's age; and (viii) if the contract is owned by a trust or other non-natural person, eligibility to elect or exercise the Guaranteed minimum income benefit is based on the annuitant's age, rather than the owner's. See "Effect of the owner's death" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. Your contract provides a standard death benefit. If you do not elect one of the enhanced death benefits described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions, adjusted for any withdrawals (and any associated withdrawal charges). The standard death benefit is the only death benefit available for owners (or older joint owners, if applicable) ages 76 through 85 at issue. Once your contract is issued, you may not change or voluntarily terminate your death benefit. If you elect one of the enhanced death benefits, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, information and forms necessary to effect payment, or your elected enhanced death benefit on the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals (and associated withdrawal charges), whichever provides the higher amount. See "Payment of death benefit" later in this Prospectus for more information. Any of the enhanced death benefits or the standard death benefit can be elected by themselves or with the Guaranteed minimum income benefit. If you elect one of the enhanced death benefit options described below and change ownership of the contract, generally the benefit will 36 Contract features and benefits automatically terminate, except under certain circumstances. If this occurs, any enhanced death benefit elected will be replaced with the standard death benefit. For contracts with non-natural owners, the death benefit will be payable upon the death of the annuitant. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR OWNER (OR OLDER JOINT OWNER, IF APPLICABLE) AGES 0 THROUGH 75 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; 0 THROUGH 70 AT ISSUE OF INHERITED IRA CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS. FOR CONTRACTS WITH NON-NATURAL OWNERS, THE AVAILABLE DEATH BENEFITS ARE BASED ON THE ANNUITANT'S AGE. Subject to state availability (see Appendix VII later in this Prospectus for state availability of these benefits), you may elect one of the following enhanced death benefits: o Annual Ratchet to age 85. o The Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85. Each enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Once you have made your enhanced death benefit election, you may not change it. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your enhanced death benefit. See "Owner and annuitant requirements" earlier in this section. See Appendix IV later in this Prospectus for an example of how we calculate an enhanced death benefit. Earnings enhancement benefit Subject to state and contract availability (see Appendix VII later in this Prospectus for state availability of these benefits), if you are purchasing a contract, under which the Earnings enhancement benefit is available, you may elect the Earnings enhancement benefit at the time you purchase your contract. The Earnings enhancement benefit provides an additional death benefit as described below. See the appropriate part of "Tax information" later in this Prospectus for the potential tax consequences of electing to purchase the Earnings enhancement benefit in an NQ, IRA or Rollover TSA contract. Once you purchase the Earnings enhancement benefit, you may not voluntarily terminate this feature. If you elect the Guaranteed withdrawal benefit for life, the Earnings enhancement benefit is not available. If you elect the Earnings enhancement benefit described below and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the owner (or older joint owner, if applicable) is 70 or younger when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is 70 or younger when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 40% of: the greater of: o the account value or o any applicable death benefit Decreased by: o total net contributions. For purposes of calculating your Earnings enhancement benefit, the following applies: (i) "Net contributions" are the total contributions made (or if applicable, the total amount that would otherwise have been paid as a death benefit had the spouse beneficiary or younger spouse joint owner not continued the contract plus any subsequent contributions) adjusted for each withdrawal that exceeds your Earnings enhancement benefit earnings. "Net contributions" are reduced by the amount of that excess. Earnings enhancement benefit earnings are equal to (a) minus (b) where (a) is the greater of the account value and the death benefit immediately prior to the withdrawal, and (b) is the net contributions as adjusted by any prior withdrawals; and (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable Guaranteed minimum death benefit as of the date of death. If the owner (or older joint owner, if applicable) is age 71 through 75 when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is between the ages of 71 and 75 when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 25% of: the greater of: o the account value or o any applicable death benefit Decreased by: o total net contributions. The value of the Earnings enhancement benefit is frozen on the first contract date anniversary after the owner (or older joint owner, if applicable) turns age 80, except that the benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce the benefit by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If the benefit is $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and the benefit after the withdrawal would be $24,000 ($40,000 - $16,000). Contract features and benefits 37 For contracts with non-natural owners, your eligibility to elect the Earnings enhancement benefit will be calculated based on the annuitant's age. For an example of how the Earnings enhancement benefit death benefit is calculated, please see Appendix VI. For contracts continued under Spousal continuation, upon the death of the spouse (or older spouse, in the case of jointly owned contracts), the account value will be increased by the value of the Earnings enhancement benefit as of the date we receive due proof of death. The benefit will then be based on the age of the surviving spouse as of the date of the deceased spouse's death for the remainder of the contract. If the surviving spouse is age 76 or older, the benefit will terminate and the charge will no longer be in effect. The spouse may also take the death benefit (increased by the Earnings enhancement benefit) in a lump sum. See "Spousal continuation" in "Payment of death benefit" later in this Prospectus for more information. The Earnings enhancement benefit must be elected when the contract is first issued: neither the owner nor the successor owner can add it subsequently. Ask your financial professional or see Appendix VII later in this Prospectus to see if this feature is available in your state. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL") For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL") guarantees that you can take withdrawals up to a maximum amount per year (your "Guaranteed annual withdrawal amount"). GWBL is only available at issue. This benefit is not available at issue ages younger than 45. GWBL is not available if you have elected the Guaranteed minimum income benefit, the Earnings enhancement benefit or one of our Principal guarantee benefits, described later in this Prospectus. You may elect one of our automated payment plans or you may take partial withdrawals. All withdrawals reduce your account value and Guaranteed minimum death benefit. See "Accessing your money" later in this Prospectus. Your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. You may buy this benefit on a single life ("Single life") or a joint life ("Joint life") basis. Under a Joint life contract, lifetime withdrawals are guaranteed for the life of both the owner and successor owner (or annuitant and joint annuitant, as applicable). For Joint life contracts, a successor owner may be named at contract issue only. The successor owner must be the owner's spouse. If you and the successor owner are no longer married, you may either: (i) drop the original successor owner or (ii) replace the original successor owner with your new spouse. This can only be done before the first withdrawal is made from the contract. After the first withdrawal, the successor owner can be dropped but cannot be replaced. If the successor owner is dropped after withdrawals begin, the charge will continue based on a Joint Life basis. For NQ contracts, you have the option to designate the successor owner as a joint owner. For Joint life contracts owned by a non-natural owner, a joint annuitant may be named at contract issue only. The annuitant and joint annuitant must be spouses. If the annuitant and joint annuitant are no longer married, you may either: (i) drop the joint annuitant or (ii) replace the original joint annuitant with the annuitant's new spouse. This can only be done before the first withdrawal. After the first withdrawal, the joint annuitant may be dropped but cannot be replaced. If the joint annuitant is dropped after withdrawals begin, the charge continues based on a Joint life basis. Joint annuitants are not permitted under any other contracts. Joint life QP and TSA contracts are not permitted. This benefit is not available under an Inherited IRA contract. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your guaranteed withdrawal benefit for life. See "Owner and annuitant requirements" earlier in this section. The cost of the GWBL benefit will be deducted from your account value on each contract date anniversary. Please see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus for a description of the charge. You should not purchase this benefit if: o You plan to take withdrawals in excess of your Guaranteed annual withdrawal amount because those withdrawals may significantly reduce or eliminate the value of the benefit (see "Effect of Excess withdrawals" below in this section); o You are not interested in taking withdrawals prior to the contract's maturity date; o You are using the contract to fund a Rollover TSA or QP contract where withdrawal restrictions will apply; or o You plan to use it for withdrawals prior to age 59-1/2, as the taxable amount of the withdrawal will be includible in income and subject to an additional 10% federal income tax penalty, as discussed later in this Prospectus. The Federal Defense of Marriage Act precludes same-sex married couples, domestic partners, and civil union partners from being considered married under federal law. Such individuals, therefore, are not entitled to the favorable tax treatment accorded spouses under federal tax law. As a result, mandatory distributions from the contract must be made after the death of the first individual. Accordingly, the GWBL will have little or no value to the surviving same-gender spouse or partner. You should consult with your tax adviser for more information on this subject. For traditional IRAs, TSA and QP contracts, you may take your lifetime required minimum distributions ("RMDs") without losing the value of the GWBL benefit, provided you comply with the conditions described under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, this benefit may have limited usefulness for you and you should consider whether it is appropriate. Please consult your tax adviser. 38 Contract features and benefits GWBL BENEFIT BASE At issue, your GWBL benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL benefit base increases by any subsequent contributions. o Your GWBL benefit base may be increased on each contract date anniversary, as described below under "Annual ratchet" and "5% deferral bonus." o Your GWBL benefit base is not reduced by withdrawals except those withdrawals that cause total withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess withdrawals" below in this section. GUARANTEED ANNUAL WITHDRAWAL AMOUNT Your initial Guaranteed annual withdrawal amount is equal to a percentage of the GWBL benefit base. The initial applicable percentage ("Applicable percentage") is based on the owner's age at the time of the first withdrawal. For Joint life contracts, the initial Applicable percentage is based on the age of the owner or successor owner, whoever is younger at the time of the first withdrawal. For contracts held by non-natural owners, the initial Applicable percentage is based on the annuitant's age or on the younger annuitant's age, if applicable, at the time of the first withdrawal. If your GWBL benefit base ratchets, as described below in this section under "Annual ratchet," on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. The Applicable percentages are as follows: - ------------------------------------- Age Applicable percentage - ------------------------------------- 45-64 4.0% 65-74 5.0% 75-84 6.0% 85 and older 7.0% - ------------------------------------- We will recalculate the Guaranteed annual withdrawal amount on each contract date anniversary and as of the date of any subsequent contribution or Excess withdrawal, as described below under "Effect of Excess withdrawals" and "Subsequent contributions." The withdrawal amount is guaranteed never to decrease as long as there are no Excess withdrawals. Your Guaranteed annual withdrawals are not cumulative. If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. The withdrawal charge, if applicable, is waived for withdrawals up to the Guaranteed annual withdrawal amount, but all withdrawals are counted toward your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. EFFECT OF EXCESS WITHDRAWALS An Excess withdrawal is caused when you withdraw more than your Guaranteed annual withdrawal amount in any contract year. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, the entire amount of that withdrawal and each subsequent withdrawal in that contract year are considered Excess withdrawals. An Excess withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount. If you make an Excess withdrawal, we will recalculate your GWBL benefit base and the Guaranteed annual withdrawal amount, as follows: o The GWBL benefit base is reset as of the date of the Excess with drawal to equal the lesser of: (i) the GWBL benefit base immediately prior to the Excess withdrawal and (ii) the account value immediately following the Excess withdrawal. o The Guaranteed annual withdrawal amount is recalculated to equal the Applicable percentage multiplied by the reset GWBL benefit base. You should not purchase this contract if you plan to take withdrawals in excess of your Guaranteed annual withdrawal amount as such withdrawals may significantly reduce or eliminate the value of the GWBL benefit. If your account value is less than your GWBL benefit base (due, for example, to negative market performance), an Excess withdrawal, even one that is only slightly more than your Guaranteed annual withdrawal amount, can significantly reduce your GWBL benefit base and the Guaranteed annual withdrawal amount. For example, assume your GWBL benefit base is $100,000 and your account value is $80,000 when you decide to begin taking withdrawals at age 65. Your Guaranteed annual withdrawal amount is equal to $5,000 (5.0% of $100,000). You take an initial withdrawal of $8,000. Since your GWBL benefit base is immediately reset to equal the lesser of your GWBL benefit base prior to the Excess withdrawal ($100,000) and your account value immediately following the Excess withdrawal ($80,000 minus $8,000), your GWBL benefit base is now $72,000. In addition, your Guaranteed annual withdrawal amount is reduced to $3,600 (5.0% of $72,000), instead of the original $5,000. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds the greater of (i) the Guaranteed annual withdrawal amount or (ii) the 10% free withdrawal amount. A withdrawal charge would not be applied in the example above since the $8,000 withdrawal (equal to 10% of the contract's account value as of the beginning of the contract year) falls within the 10% free withdrawal amount. Under the example above, additional withdrawals during the same contract year could result in a further reduction of the GWBL benefit base and the Guaranteed annual withdrawal amount, as well as an application of withdrawal charges, if applicable. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. You should note that an Excess withdrawal that reduces your account value to zero terminates the contract, including all benefits, without value. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA, QP or TSA and participate in our Automatic RMD service, an automatic with- Contract features and benefits 39 drawal under that program will not cause an Excess withdrawal, even if it exceeds your Guaranteed annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. Loans are not available under Rollover TSA contracts if GWBL is elected. ANNUAL RATCHET Your GWBL benefit base is recalculated on each contract date anniversary to equal the greater of: (i) the account value and (ii) the most recent GWBL benefit base. If your account value is greater, we will ratchet up your GWBL benefit base to equal your account value. If your GWBL benefit base ratchets on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. Your Guaranteed annual withdrawal amount will also be increased, if applicable, to equal your Applicable percentage times your new GWBL benefit base. If your GWBL benefit base ratchets, we may increase the charge for the benefit. Once we increase the charge, it is increased for the life of the contract. We will permit you to opt out of the ratchet if the charge increases. If you choose to opt out, your charge will stay the same but your GWBL benefit base will no longer ratchet. Upon request, we will permit you to accept a GWBL benefit base ratchet with the charge increase on a subsequent contract date anniversary. For a description of the charge increase, see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus. 5% DEFERRAL BONUS At no additional charge, during the first ten contract years, in each year you have not taken a withdrawal, we will increase your GWBL benefit base by an amount equal to 5% of your total contributions. If the Annual Ratchet (as discussed immediately above) occurs on any contract date anniversary, for the next and subsequent contract years, the bonus will be 5% of the most recent ratcheted GWBL benefit base plus any subsequent contributions. If the GWBL benefit base is reduced due to an Excess withdrawal, the 5% deferral bonus will be calculated using the reset GWBL benefit base plus any applicable contributions. The deferral bonus generally excludes contributions made in the prior 12 months. In the first contract year, the deferral bonus is determined using all contributions received in the first 90 days of the contract year. On any contract date anniversary on which you are eligible for a bonus, we will calculate the applicable bonus amount. If, when added to the current GWBL benefit base, the amount is greater than your account value, that amount will become your new GWBL benefit base. If that amount is less than or equal to your account value, your GWBL benefit base will be ratcheted to equal your account value, and the 5% deferral bonus will not apply. If you opt out of the Annual Ratchet (as discussed immediately above), the 5% deferral bonus will still apply. SUBSEQUENT CONTRIBUTIONS Subsequent contributions are not permitted after the later of: (i) the end of the first contract year and (ii) the date the first withdrawal is taken. Anytime you make an additional contribution, your GWBL benefit base will be increased by the amount of the contribution. Your Guaranteed annual withdrawal amount will be equal to the Applicable percentage of the increased GWBL benefit base. GWBL GUARANTEED MINIMUM DEATH BENEFIT There are two guaranteed minimum death benefits available if you elect the GWBL option: (i) the GWBL Standard death benefit, which is available at no additional charge for owner issue ages 45-85, and (ii) the GWBL Enhanced death benefit, which is available for an additional charge for owner issue ages 45-75. Please see Appendix VII later in this Prospectus to see if these guaranteed death benefits are available in your state. The GWBL Standard death benefit is equal to the GWBL Standard death benefit base. The GWBL Standard death benefit base is equal to your initial contribution and any additional contributions less a deduction that reflects any withdrawals you make (see "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus). The GWBL Enhanced death benefit is equal to the GWBL Enhanced death benefit base. Your initial GWBL Enhanced death benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL Enhanced death benefit base increases by any subsequent contribution; o Your GWBL Enhanced death benefit base increases to equal your account value if your GWBL benefit base is ratcheted, as described above in this section; o Your GWBL Enhanced death benefit base increases by any 5% deferral bonus, as described above in this section; o Your GWBL Enhanced death benefit base decreases by an amount which reflects any withdrawals you make. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. The death benefit is equal to your account value (adjusted for any pro rata optional benefit charges) as of the date we receive satisfactory proof of death, any required instructions for method of payment, information and forms necessary to effect payment or the applicable GWBL Guaranteed minimum death benefit on the date of the owner's death (adjusted for any subsequent withdrawals and associated withdrawal charges), whichever provides a higher amount. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO If your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no further payments or benefits. If an Excess withdrawal results in a withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. 40 Contract features and benefits However, if your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, please note the following: o Your Accumulator(R) Elite(SM) contract terminates and you will receive a supplementary life annuity contract setting forth your continuing benefits. The owner of the Accumulator(R) Elite(SM) contract will be the owner and annuitant. The successor owner, if applicable, will be the joint annuitant. If the owner is non-natural, the annuitant and joint annuitant, if applicable, will be the same as under the your Accumulator(R) Elite(SM) contract. o No subsequent contributions will be permitted. o If you were taking withdrawals through the "Maximum payment plan," we will continue the scheduled withdrawal payments on the same basis. o If you were taking withdrawals through the "Customized payment plan" or in unscheduled partial withdrawals, we will pay the balance of the Guaranteed annual withdrawal amount for that contract year in a lump sum. Payment of the Guaranteed annual withdrawal amount will begin on the next contract date anniversary. o Payments will continue at the same frequency for Single or Joint life contracts, as applicable, or annually if automatic payments were not being made. o Any guaranteed minimum death benefit remaining under the original contract will be carried over to the supplementary life annuity contract. The death benefit will no longer grow and will be reduced on a dollar for dollar basis as payments are made. If there is any remaining death benefit upon the death of the owner and successor owner, if applicable, we will pay it to the beneficiary. o The charge for the Guaranteed withdrawal benefit for life and the GWBL Enhanced death benefit will no longer apply. o If at the time of your death the Guaranteed annual withdrawal amount was being paid to you as a supplementary life annuity contract, your beneficiary may not elect the Beneficiary continuation option. OTHER IMPORTANT CONSIDERATIONS o This benefit is not appropriate if you do not intend to take withdrawals prior to annuitization. o Amounts withdrawn in excess of your Guaranteed annual withdrawal amount may be subject to a withdrawal charge, if applicable, as described in "Charges and expenses" later in the Prospectus. In addition, all withdrawals count toward your free withdrawal amount for that contract year. Excess withdrawals can significantly reduce or completely eliminate the value of the GWBL and GWBL Enhanced death benefit. See "Effect of Excess withdrawals" above in this section and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o Withdrawals are not considered as annuity payments for tax purposes, and may be subject to an additional 10% Federal income tax penalty if they are taken before age 59-1/2. See "Tax information" later in this Prospectus. o All withdrawals reduce your account value and Guaranteed minimum death benefit. See "How withdrawals are taken from your account value" and "How withdrawals affect your Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. o The GWBL benefit terminates if the contract is continued under the beneficiary continuation option or under the Spousal continuation feature if the spouse is not the successor owner. o If you surrender your contract to receive its cash value and your cash value is greater than your Guaranteed annual withdrawal amount, all benefits under the contract will terminate, including the GWBL benefit. o If you transfer ownership of this contract, you terminate the GWBL benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information" later in this Prospectus for more information. o Withdrawals are available under other annuity contracts we offer and this contract without purchasing a withdrawal benefit. o For IRA, QP and TSA contracts, if you have to take a required minimum distribution ("RMD") and it is your first withdrawal under the contract, the RMD will be considered your "first withdrawal" for the purposes of establishing your BWB Applicable percentage. o If you elect GWBL on a Joint life basis and subsequently get divorced, your divorce will not automatically terminate the contract. For both Joint life and Single life contracts, it is possible that the terms of your divorce decree could significantly reduce or completely eliminate the value of this benefit. PRINCIPAL GUARANTEE BENEFITS We offer two 10-year Principal guarantee benefits at an additional charge: the 100% Principal guarantee benefit and the 125% Principal guarantee benefit. You may only elect one Principal guarantee benefit ("PGB"). 100% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 100% Principal guarantee benefit is equal to your initial contribution and additional permitted contributions, adjusted for withdrawals. Under the 100% Principal guarantee benefit, your investment options are limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. 125% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 125% Principal guarantee benefit is equal to 125% of your initial contribution and additional permitted contributions, adjusted for withdrawals. Under the 125% Principal guarantee benefit, your investment options are limited to the guaranteed interest option, the account for special dollar cost averaging and the AXA Moderate Allocation portfolio. Under both Principal guarantee benefits, if, on the 10th contract date anniversary (or later if you've exercised a reset as explained below) Contract features and benefits 41 ("benefit maturity date"), your account value is less than the guaranteed amount, we will increase your account value to equal the applicable guaranteed amount. Any such additional amounts added to your account value will be allocated pursuant to the allocation instructions for additional contributions we have on file. After the benefit maturity date, the guarantee will terminate. You have the option to reset (within 30 days following each applicable contract date anniversary) the guaranteed amount to the account value or 125% of the account value, as applicable, as of your fifth and later contract date anniversaries. If you exercise this option, you are eligible for another reset on each fifth and later contract date anniversary after the last reset up to the contract date anniversary following an owner's 85th birthday. If you elect to reset the guaranteed amount, your benefit maturity date will be extended to be the 10th contract date anniversary after the anniversary on which you reset the guaranteed amount. This extension applies each time you reset the guaranteed amount. Neither PGB is available under Inherited IRA contracts. If you elect either PGB, you may not elect the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, the systematic withdrawals option or the substantially equal withdrawals option. If you purchase a PGB, you may not make additional contributions to your contract after six months from the contract issue date. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your Principal guarantee benefit for life. See "Owner and annuitant requirements" earlier in this section. If you are planning to take required minimum distributions from this contract, this benefit may not be appropriate. See "Tax information" later in this Prospectus. If you elect a PGB and change ownership of the contract, your PGB will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Once you purchase a PGB, you may not voluntarily terminate this benefit. Your PGB will terminate if the contract terminates before the benefit maturity date, as defined below. If you die before the benefit maturity date and the contract continues, we will continue the PGB only if the contract can continue through the benefit maturity date. If the contract cannot so continue, we will terminate your PGB and the charge. See "Non-spousal joint owner contract continuation" in "Payment of death benefit" later in this Prospectus. The PGB will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a charge for the Principal guarantee benefits (see "Charges and expenses" later in this Prospectus). You should note that the purchase of a PGB is not appropriate if you want to make additional contributions to your contract beyond the first six months after your contract is issued. The purchase of a PGB is also not appropriate if you plan on terminating your contract before the benefit maturity date. The purchase of a PGB may not be appropriate if you plan on taking withdrawals from your contract before the benefit maturity date. Withdrawals from your contract before the benefit maturity date reduce the guaranteed amount under a PGB on a pro rata basis. You should also note that if you intend to allocate a large percentage of your contributions to the guaranteed interest option, the purchase of a PGB may not be appropriate because of the guarantees already provided by this option at no additional charge. Please note that loans (applicable to TSA contracts only) are not permitted under either PGB. INHERITED IRA BENEFICIARY CONTINUATION CONTRACT This contract is available to an individual beneficiary of a traditional IRA or a Roth IRA where the deceased owner held the individual retirement account or annuity (or Roth individual retirement account or annuity) with an insurance company or financial institution other than AXA Equitable. The purpose of the inherited IRA beneficiary continuation contract is to permit the beneficiary to change the funding vehicle that the deceased owner selected ("original IRA") while taking the required minimum distribution payments that must be made to the beneficiary after the deceased owner's death. See the discussion of required minimum distributions under "Tax information." This contract is intended only for beneficiaries who want to take payments at least annually over their life expectancy. These payments generally must begin (or must have begun) no later than December 31 of the calendar year following the year the deceased owner died. This contract is not suitable for beneficiaries electing the "5-year rule." See "Beneficiary continuation option for IRA and Roth IRA contracts" under "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. You should discuss with your tax adviser your own personal situation. This contract may not be available in all states. Please speak with your financial professional for further information. The inherited IRA beneficiary continuation contract can only be purchased by a direct transfer of the beneficiary's interest under the deceased owner's original IRA. The owner of the inherited IRA beneficiary continuation contract is the individual who is the beneficiary of the original IRA. (Certain trusts with only individual beneficiaries will be treated as individuals for this purpose). The contract must also contain the name of the deceased owner. In this discussion, "you" refers to the owner of the inherited IRA beneficiary continuation contract. The inherited IRA beneficiary continuation contract can be purchased whether or not the deceased owner had begun taking required minimum distribution payments during his or her life from the original IRA or whether you had already begun taking required minimum distribution payments of your interest as a beneficiary from the deceased owner's original IRA. You should discuss with your own tax adviser when payments must begin or must be made. Under the inherited IRA beneficiary continuation contract: o You must receive payments at least annually (but can elect to receive payments monthly or quarterly). Payments are generally made over your life expectancy determined in the calendar year after the deceased owner's death and determined on a term certain basis. 42 Contract features and benefits o You must receive payments from this contract even if you are receiving payments from another IRA of the deceased owner in an amount that would otherwise satisfy the amount required to be distributed from this contract. o The beneficiary of the original IRA will be the annuitant under the inherited IRA beneficiary continuation contract. In the case where the beneficiary is a "see-through trust," the oldest beneficiary of the trust will be the annuitant. o An inherited IRA beneficiary continuation contract is not available for owners over age 70. o The initial contribution must be a direct transfer from the deceased owner's original IRA and is subject to minimum contribution amounts. See "How you can purchase and contribute to your contract" earlier in this section. o Subsequent contributions of at least $1,000 are permitted but must be direct transfers of your interest as a beneficiary from another IRA with a financial institution other than AXA Equitable, where the deceased owner is the same as under the original IRA contract. o You may make transfers among the investment options. o You may choose at any time to withdraw all or a portion of the account value. Any partial withdrawal must be at least $300. Withdrawal charges will apply as described in "Charges and expenses" later in this Prospectus. o The Guaranteed minimum income benefit, Spousal continuation, special dollar cost averaging program (if applicable), automatic investment program, Principal guarantee benefits, the Guaranteed withdrawal benefit for life and systematic withdrawals are not available under the Inherited IRA beneficiary continuation contract. o If you die, we will pay to a beneficiary that you choose the greater of the account value or the applicable death benefit. o Upon your death, your beneficiary has the option to continue taking required minimum distributions based on your remaining life expectancy or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If your beneficiary elects to continue to take distributions, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value as of the date we receive satisfactory proof of death and any required instructions, information and forms. Thereafter, withdrawal charges (if applicable under your contract) will no longer apply. If you had elected any enhanced death benefits, they will no longer be in effect and charges for such benefits will stop. The Guaranteed minimum death benefit will also no longer be in effect. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law requires, this "free look" period may be longer. Other state variations may apply. Please contact your financial professional and/or see Appendix VII to find out what applies in your state. Generally, your refund will equal your account value (less loan reserve account under Rollover TSA contracts) under the contract on the day we receive notification of your decision to cancel the contract and will reflect (i) any investment gain or loss in the variable investment options (less the daily charges we deduct), (ii) any guaranteed interest in the guaranteed interest option, (iii) any positive or negative market value adjustments in the fixed maturity options through the date we receive your contract, and (iv) any interest in the account for special dollar cost averaging through the date we receive your contract. Some states require that we refund the full amount of your contribution (not reflecting (i), (ii), (iii), or (iv) above). For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. If you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office, or your financial professional, can provide you with the cancellation instructions. In addition to the cancellation right described above, you have the right to surrender your contract rather than cancel it. Please see "Surrendering your contract to receive its cash value," later in this Prospectus. Surrendering your contract may yield results different than canceling your contract, including a greater potential for taxable income. In some cases, your cash value upon surrender may be greater than your contributions to the contract. Please see "Tax information," later in this Prospectus. Contract features and benefits 43 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; (iv) the account for special dollar cost averaging and (v) the loan reserve account (applicable to Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less: (i) the total amount or a pro rata portion of the annual administrative charge as well as optional benefit charges; (ii) any applicable withdrawal charges and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, when we deduct the enhanced death benefit, Guaranteed minimum income benefit, Principal guarantee benefits, Guaranteed withdrawal benefit for life and/or Earnings enhancement benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest option at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING Your value in the account for special dollar cost averaging at any time will equal your contribution allocated to that option, plus interest, less the sum of all amounts that have been transferred to the variable investment options you have selected. ---------------------------------- If you apply for this contract by electronic means, please see Appendix VII for additional information. INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all your rights under your contract and any applicable guaranteed benefits, except as discussed below. See Appendix VII later in this Prospectus for any state variations with regard to terminating your contract. GUARANTEED MINIMUM INCOME BENEFIT NO LAPSE GUARANTEE. In certain circumstances, even if your account value falls to zero, your Guaranteed minimum income benefit will still have value. Please see "Contract features and benefits" earlier in this Prospectus for information on this feature. 44 Determining your contract's value PRINCIPAL GUARANTEE BENEFITS. If you take no withdrawals, and your account value is insufficient to pay charges, we will not terminate your contract if you are participating in a PGB. Your contract will remain in force and we will pay your guaranteed amount at the benefit maturity date. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. If you elect the Guaranteed withdrawal benefit for life and your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary life annuity contract, even if your GWBL benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, the benefit will still have value. See "Contract features and benefits" earlier in this Prospectus. Determining your contract's value 45 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer any amount to the account for special dollar cost averaging. o You may not transfer to a fixed maturity option that has a rate to maturity of 3%. o If an owner or annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the annuity account value being allocated to the guaranteed interest option, based on the annuity account value as of the previous business day. In addition, we reserve the right to restrict transfers among variable investment options including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option and interest sweep option dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or, (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the investment options in the prior contract year; or (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. 46 Transferring your money among investment options We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We currently offer two rebalancing programs that you can use to automatically reallocate your account value among your investment options. Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers from the guaranteed interest option to the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into or out of the guaranteed interest option to initiate the rebalancing program will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. You may not elect Option II if you are participating in any dollar cost averaging program. You may not elect Option I if you are participating in general dollar cost averaging. If you elect a benefit that limits your variable investment options, those limitations will also apply to the rebalancing programs. Transferring your money among investment options 47 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. - -------------------------------------------------------------------------------- Method of withdrawal ----------------------------------------------------------------- Automatic Pre-age payment 59-1/2 Lifetime plans substan- required (GWBL System- tially minimum Contract only) Partial atic equal distribution - -------------------------------------------------------------------------------- NQ Yes Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Conver- sion IRA Yes Yes Yes Yes No - -------------------------------------------------------------------------------- Inherited IRA No Yes No No * - -------------------------------------------------------------------------------- QP** Yes Yes No No Yes - -------------------------------------------------------------------------------- Rollover TSA*** Yes Yes Yes No Yes - -------------------------------------------------------------------------------- * This contract pays out post-death required minimum distributions. See "Inherited IRA beneficiary continuation contract" in "Contract features and benefits" earlier in this Prospectus. ** All payments are made to the trust as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. *** Employer or plan approval required for all transactions. Your ability to take withdrawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. AUTOMATIC PAYMENT PLANS (For contracts with GWBL only) You may take automatic withdrawals under either the Maximum payment plan or the Customized payment plan, as described below. Under either plan, you may take withdrawals on a monthly, quarterly or annual basis. You may change the payment frequency of your withdrawals at any time, and the change will become effective on the next contract date anniversary. You may elect either the Maximum payment plan or the Customized payment plan at any time. You must wait at least 28 days from contract issue before automatic payments begin. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will increase following any Annual Ratchet or 5% deferral bonus. If you elect the Maximum payment plan and start monthly or quarterly payments after the beginning of a contract year, the payments you take that year will be less than your Guaranteed annual withdrawal amount. If you take a partial withdrawal while the Maximum payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will not be increased following any Annual Ratchet or 5% deferral bonus. You must elect to change the scheduled payment amount. It is important to note that if you elect the Customized payment plan and start monthly or quarterly withdrawals after the beginning of a contract year, you could select scheduled payment amounts that would cause an Excess withdrawal. If your selected scheduled payment would cause an Excess withdrawal, we will notify you. As discussed earlier in the Prospectus, Excess withdrawals may significantly reduce the value of the Guaranteed withdrawal benefit for life benefit. See "Effect of Excess withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you take a partial withdrawal while the Customized payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Partial withdrawals will be subject to a withdrawal charge if they exceed the 10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. 48 Accessing your money Any request for a partial withdrawal will terminate your participation in either the Maximum payment plan or Customized payment plan, if applicable. SYSTEMATIC WITHDRAWALS (All contracts except Inherited IRA and QP) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required). You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of your account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 10% free withdrawal amount. Systematic withdrawals are not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. SUBSTANTIALLY EQUAL WITHDRAWALS (Rollover IRA and Roth Conversion IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals that we calculate for you are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). The substantially equal withdrawal program is not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity Accessing your money 49 contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- We do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our automatic RMD service except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 10% free withdrawal amount. Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH GWBL. Generally, if you elect our Automatic RMD service, any lifetime required minimum distribution payment we make to you under our Automatic RMD service will not be treated as an Excess withdrawal. If you elect either the Maximum payment plan or the Customized payment plan AND our Automatic RMD service, we will make an extra payment, if necessary, on December 1st that will equal your lifetime required minimum distribution less all payments made through November 30 and any scheduled December payment. The combined automatic plan payments and lifetime required minimum distribution payment will not be treated as Excess withdrawals, if applicable. However, if you take any partial withdrawals in addition to your lifetime required minimum distribution and automatic payment plan payments, your applicable automatic payment plan will be terminated. The partial withdrawals may cause an Excess withdrawal and may be subject to a withdrawal charge. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. Further, your GWBL benefit base and Guaranteed annual withdrawal amount may be reduced. See "Effect of Excess Withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you elect our Automatic RMD service and elect to take your Guaranteed annual withdrawal amount in partial withdrawals without electing one of our available payment plans, we will make a payment, if necessary, on December 1st that will equal your required minimum distribution less all withdrawals made through November 30th. If prior to December 1st you make a partial withdrawal that exceeds your Guaranteed annual withdrawal amount, but not your RMD amount, that partial withdrawal will be treated as an Excess withdrawal, as well as any subsequent partial withdrawals made during the same contract year. However, if by December 1st your withdrawals have not exceeded your RMD amount, the RMD payment we make to you will not be treated as an Excess withdrawal. FOR CONTRACTS WITH THE GUARANTEED MINIMUM INCOME BENEFIT. The no lapse guarantee will not be terminated if a required minimum distribution payment using our automatic RMD service causes your cumulative withdrawals in the contract year to exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received within the first 90 days). Owners of tax-qualified contracts (IRA, TSA and QP) generally should not reset the Roll-Up benefit base if lifetime required minimum distributions must begin before the end of the new exercise waiting period. See "Guaranteed minimum death benefit/Guaranteed minimum income benefit Roll-Up benefit base reset." in "Contract features and benefits" earlier in this Prospectus. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options and the guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options in the order of the earliest maturity date(s) first. If the FMO amounts are insufficient, we will deduct all or a portion of the withdrawal from the account for special dollar cost averaging. A market value adjustment will apply to withdrawals from the fixed maturity options. HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND PRINCIPAL GUARANTEE BENEFITS In general, withdrawals (including RMDs) will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and your new benefit after the withdrawal would be $24,000 ($40,000-$16,000). For purposes of calculating the adjustment to your guaranteed benefits, the amount of the withdrawal will include the amount of any applicable withdrawal charge. Using the example above, the $12,000 withdrawal would include the withdrawal amount paid to you and the amount of any applicable withdrawal charge deducted from your account value. For more information on the calculation of the charge, see "Withdrawal charge" later in the Prospectus. With respect to the Guaranteed minimum income benefit and the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' 6% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6% or less of the 6% Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. For this purpose, in the first contract year, all contributions 50 Accessing your money received in the first 90 days after contract issue will be considered to have been received on the first day of the contract year. In subsequent contract years, additional contributions made during the contract year do not affect the amount of withdrawals that can be taken on a dollar-for dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6% of the benefit base on the most recent anniversary, that entire withdrawal (including RMDs) and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6% Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for each Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. HOW WITHDRAWALS AFFECT YOUR GWBL AND GWBL GUARANTEED MINIMUM DEATH BENEFIT Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes cumulative withdrawals in a contract year to exceed the Guaranteed annual withdrawal amount. Withdrawals that exceed the Guaranteed annual withdrawal amount, however, can significantly reduce your GWBL benefit base and Guaranteed annual withdrawal amount. For more information, see "Effect of Excess withdrawals" and "Other important considerations" under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus. Your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a dollar-for-dollar basis up to the Guaranteed annual withdrawal amount. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, however, your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a pro rata basis. If the reduced GWBL Enhanced death benefit base is greater than your account value (after the Excess withdrawal), we will further reduce your GWBL Enhanced death benefit base to equal your account value. For purposes of calculating your GWBL and GWBL Guaranteed minimum death benefit amount, the amount of the Excess withdrawal will include the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information on calculation of the charge, see "Withdrawal charge" later in the Prospectus. WITHDRAWALS TREATED AS SURRENDERS If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. In addition, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. The rules in the preceding sentence do not apply if the Guaranteed minimum income benefit no lapse guarantee is in effect on your contract. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is an Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to an Excess withdrawal. In other words, if you take an Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Guaranteed withdrawal benefit for life" in "Contract features and benefits," earlier in this Prospectus, for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans from a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." If you elect the GWBL option or a PGB, loans are not permitted. You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see Appendix VII later in this Prospectus for any state restrictions you may be subject to if you take a loan from a Rollover TSA contract. Also, see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan, including any accrued but unpaid loan interest, will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the "loan reserve account." Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional Accessing your money 51 amount of the loan will be subtracted from the fixed maturity options, in the order of the earliest maturity date(s) first. A market value adjustment may apply. If such fixed maturity amounts are insufficient, we will deduct all or a portion of the loan from the account for special dollar cost averaging. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while an owner is living (or for contracts, with non-natural owners while the annuitant is living) and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of the date we receive the required information, including the Guaranteed withdrawal benefit for life (if applicable), if your cash value is greater than your Guaranteed annual withdrawal amount remaining that year. If your cash value is not greater than your Guaranteed annual withdrawal amount remaining that year, then you will receive a supplementary life annuity contract. For more information, please see "Effect of your account value falling to zero" in "Contract features and benefits" earlier in this Prospectus. Also, if the Guaranteed minimum income benefit no lapse guarantee is in effect, the benefit will terminate without value if your cash value plus any other withdrawals taken in the contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year). For more information, please see "Insufficient account value" in "Determining your contract value" and "Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal charges) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option, fixed maturity options and the account for special dollar cost averaging (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery or wire transfer service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Elite(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) Elite(SM) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Elite(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Elite(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. Please see Appendix VII later in this Prospectus for variations that may apply to your state. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the owner's and annuitant's ages at contract issue. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect the Guaranteed withdrawal benefit for life and choose to annuitize your contract, the Guaranteed withdrawal benefit for life will 52 Accessing your money terminate without value even if your GWBL benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under GWBL. See "Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus for further information. - ---------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - ---------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - ---------------------------------------------------------------- Income Manager(R) payout options Life annuity with period (available for owners and annu- certain itants age 83 or less at contract Period certain annuity issue) - ---------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager(R) payout option without life contingencies unless withdrawal charges are no longer in effect under your contract. For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply your account value of your Accumulator(R) Elite(SM) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) Elite(SM), and we will deduct any applicable withdrawal charge. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income option, different payout options may apply, as well as various other differences. See "Guaran- Accessing your money 53 teed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any withdrawal charges. If amounts in a fixed maturity option are used to purchase any annuity payout option prior to the maturity date, a market value adjustment will apply. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. The withdrawal charge applicable under our contract is imposed if you select a non-life contingent period certain payout annuity. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For the Income Manager(R) life contingent payout options no withdrawal charge is imposed under your contract. If the withdrawal charge that otherwise would have been applied to your account value under your contract is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager(R) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin but it may not be earlier than thirteen months from the Accumulator(R) Elite(SM) contract date. Except with respect to the Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments, or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is based on the age of the original annuitant at contract issue and cannot be changed even if you name a new annuitant. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elect the Guaranteed withdrawal benefit for life and your contract is annuitized at maturity, we will offer an annuity payout option that guarantees you will receive payments for life that are at least equal to what you would have received under the Guaranteed withdrawal benefit for life. You will not be able to take withdrawals in addition to the payments under this annuity payout option. You will still be able to surrender the contract at any time for the remaining account value. As described in "Contract features and benefits" under "Guaranteed withdrawal benefit for life," these payments will have the potential to increase with favorable investment performance. Any remaining Guaranteed minimum death benefit value will be transferred to the annuity payout contract as your "minimum death benefit." If the enhanced death benefit had been elected, its value as of the date the annuity payout contract is issued will become your minimum death benefit, and it will continue to ratchet annually if your account value is greater than your minimum death benefit base. The minimum death benefit will be reduced dollar-for-dollar by each payment. If you die while there is any minimum death benefit remaining, it will be paid to your beneficiary. Please see Appendix VII later in this Prospectus for variations that may apply in your state. 54 Accessing your money 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o On each contract date anniversary, a charge for each optional benefit you elect: a death benefit (other than the Standard and GWBL Standard death benefit); the Guaranteed minimum income benefit; the Guaranteed withdrawal benefit for life; and the Earnings enhancement benefit. o On any contract date anniversary on which you are participating in a PGB -- a charge for a PGB. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 1.10% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the Guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. Administrative charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.30% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if available) in order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered Charges and expenses 55 or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceeds the 10% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or to apply your cash value to a non-life contingent annuity payout option. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options--The amount applied to purchase an annuity payout option" in "Accessing your money" earlier in the Prospectus. The withdrawal charge equals a percentage of the contributions withdrawn in any of the first four years after we receive a contribution. We determine the withdrawal charge separately for each contribution according to the following table: - ---------------------------------------------------------------- Contract year - ---------------------------------------------------------------- 1 2 3 4 5 - ---------------------------------------------------------------- Percentage of contribution 8% 7% 6% 5% 0% - ---------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1" and the withdrawal charge is reduced or expires on each applicable contract date anniversary. Amounts withdrawn up to the free withdrawal amount are not considered withdrawals of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and withdrawal charge from your account value. The amount deducted to pay withdrawal charges is also subject to that same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each investment option. The withdrawal charge helps cover sales expenses. For purposes of calculating reductions in your guaranteed benefits and associated benefit bases, the withdrawal amount includes both the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information, see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier in the Prospectus. The withdrawal charge does not apply in the circumstances described below. 10% free withdrawal amount. Each contract year you can withdraw up to 10% of your account value without paying a withdrawal charge. The 10% free withdrawal amount is determined using your account value at the beginning of each contract year. In the first contract year, the 10% free withdrawal amount is determined using all contributions received in the first 90 days of the contract year. Additional contributions during the contract year do not increase the 10% free withdrawal amount. The 10% free withdrawal amount does not apply if you surrender your contract except where required by law. For NQ contracts issued to a charitable remainder trust, the free withdrawal amount will equal the greater of: (1) the current account value less contributions that have not been withdrawn (earnings in the contract), and (2) the 10% free withdrawal amount defined above. Certain withdrawals. If you elected the Guaranteed minimum income benefit and/or the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6% of the beginning of contract year 6% Roll-Up to age 85 benefit base, even if such withdrawals exceed the free withdrawal amount. Also, a withdrawal charge does not apply to a withdrawal that exceeds 6% of the beginning of contract year 6% Roll-Up to age 85 benefit base as long as it does not exceed the free withdrawal amount. If your withdrawal exceeds the amount described above, this waiver is not applicable to that withdrawal, nor to any subsequent withdrawal for the life of the contract. If you elect the Guaranteed withdrawal benefit for life, we will waive any withdrawal charge for any withdrawals during the contract year up to the Guaranteed annual withdrawal amount, even if such withdrawals exceed the free withdrawal amount. However, each withdrawal reduces the free withdrawal amount for that contract year by the amount of the withdrawal. Also, a withdrawal charge does not apply to a withdrawal that exceeds the Guaranteed annual withdrawal amount as long as it does not exceed the free withdrawal amount. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds both the free withdrawal amount and the Guaranteed annual withdrawal amount. Disability, terminal illness or confinement to nursing home. The withdrawal charge also does not apply if: (i) An owner (or older joint owner, if applicable) has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or (ii) We receive proof satisfactory to us (including certification by a licensed physician) that an owner's (or older joint owner's, if applicable) life expectancy is six months or less; or (iii) An owner (or older joint owner, if applicable) has been confined to a nursing home for more than 90 days (or such other period, as required in your state) as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: 56 Charges and expenses -- its main function is to provide skilled, intermediate, or custodial nursing care; -- it provides continuous room and board to three or more persons; -- it is supervised by a registered nurse or licensed practical nurse; -- it keeps daily medical records of each patient; -- it controls and records all medications dispensed; and -- its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions as described in (i), (ii) or (iii) above existed at the time a contribution was remitted or if the condition began within 12 months of the period following remittance. Some states may not permit us to waive the withdrawal charge in the above circumstances, or may limit the circumstances for which the withdrawal charge may be waived. Your financial professional can provide more information or you may contact our processing office. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to either 0.65% or 0.60% of the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 benefit base, depending upon when and where you purchased your contract. Please see Appendix VIII later in this Prospectus for more information on the Guaranteed minimum death benefit charge applicable to your contract. GWBL ENHANCED DEATH BENEFIT. This death benefit is only available if you elect the GWBL option. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary. The charge is equal to 0.30% of the GWBL Enhanced death benefit base. We will deduct this charge from your value in the variable investment options (or, if applicable, the permitted variable investment options) and the guaranteed interest option on a pro rata basis (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if applicable) in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If such fixed maturity option amounts are still insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. STANDARD DEATH BENEFIT AND GWBL STANDARD DEATH BENEFIT. There is no additional charge for these standard death benefits. PRINCIPAL GUARANTEE BENEFITS CHARGE If you purchase a PGB, we deduct a charge annually from your account value on each contract date anniversary on which you are participating in a PGB. The charge is equal to 0.50% of the account value for the 100% Principal guarantee benefit and 0.75% of the account value for the 125% Principal guarantee benefit. We will continue to deduct this charge until your benefit maturity date. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If such amounts are insufficient, we will deduct all or a portion from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. GUARANTEED MINIMUM INCOME BENEFIT CHARGE If you elect the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary after the owner (or older joint owner, if applicable) reaches age 85, whichever occurs first. The charge is equal to 0.65% of the applicable benefit base in effect on the contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If such fixed maturity option amounts are still insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaran- Charges and expenses 57 teed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. EARNINGS ENHANCEMENT BENEFIT CHARGE If you elect the Earnings enhancement benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.35% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE BENEFIT CHARGE If you elect the Guaranteed withdrawal benefit for life ("GWBL"), we deduct a charge annually as a percentage of your GWBL benefit base on each contract date anniversary. If you elect the Single Life option, the charge is equal to 0.60%. If you elect the Joint Life option, the charge is equal to 0.75%. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option on a pro rata basis. (See Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state.) If those amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. GWBL BENEFIT BASE ANNUAL RATCHET CHARGE. If your GWBL benefit base ratchets, we reserve the right to raise the charge at the time of an Annual Ratchet. The maximum charge for the Single Life option is 0.75%. The maximum charge for the Joint Life option is 0.90%. The increased charge, if any, will apply as of the contract date anniversary on which your GWBL benefit base ratchets and on all contract date anniversaries thereafter. We will permit you to opt out of the ratchet if the charge increases. For Joint life contracts, if the successor owner or joint annuitant is dropped before you take your first withdrawal, we will adjust the charge at that time to reflect a Single life. If the successor owner or joint annuitant is dropped after withdrawals begin, the charge will continue based on a Joint life basis. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to the 12b-1 fee. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. 58 Charges and expenses We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. Charges and expenses 59 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. In either case, the death benefit is increased by any amount applicable under the Earnings enhancement benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) and any amount applicable under the Earnings enhancement benefit, as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. In general, if the annuitant dies, the owner (or older joint owner, if applicable) will become the annuitant, and the death benefit is not payable. EFFECT OF THE OWNER'S DEATH In general, if the owner dies while the contract is in force, the contract terminates and the applicable death benefit is paid. If the contract is jointly owned, the death benefit is payable upon the death of the older owner. If the contract has a non-natural owner, the death benefit is payable upon the death of the annuitant. For Joint life contracts with GWBL, the death benefit is paid to the beneficiary at the death of the second to die of the owner and successor owner, or the annuitant and joint annuitant, as applicable. There are various circumstances, however, in which the contract can be continued by a successor owner or under a Beneficiary continuation option ("BCO"). For contracts with spouses who are joint owners, the surviving spouse will automatically be able to continue the contract under the "Spousal continuation" feature or under our Beneficiary continuation option, as discussed below. For contracts with non-spousal joint owners, the joint owner will be able to continue the contract as a successor owner subject to the limitations discussed below under "Non-spousal joint owner contract continuation." If you are the sole owner and your spouse is the sole primary beneficiary, your surviving spouse can continue the contract as a successor owner as discussed below, under "Spousal continuation" or under our Beneficiary continuation option, as discussed below. If the beneficiary is not the surviving spouse or if the surviving joint owner is not the surviving spouse, federal income tax rules generally require payments of amounts under the contract to be made within five years of an owner's death (the "5-year rule"). In certain cases, an individual beneficiary or non-spousal surviving joint owner may opt to receive payments over his/her life (or over a period not in excess of his/her life expectancy) if payments commence within one year of the owner's death. Any such election must be made in accordance with our rules at the time of death. If the beneficiary of a contract with one owner or a younger non-spousal joint owner continues the contract under the 5-year rule, in general, all guaranteed benefits and their charges will end. If a PGB election is in effect upon your death with a benefit maturity date of less than five years from the date of death, it will remain in effect. For more information on non-spousal joint owner contract continuation, see the section immediately below. NON-SPOUSAL JOINT OWNER CONTRACT CONTINUATION Upon the death of either owner, the surviving joint owner becomes the sole owner. Any death benefit (if the older owner dies first) or cash value (if the younger owner dies first) must be fully paid to the surviving joint 60 Payment of death benefit owner within five years. The surviving owner may instead elect to receive a life annuity, provided payments begin within one year of the deceased owner's death. If the life annuity is elected, the contract and all benefits terminate. If the older owner dies first, we will increase the account value to equal the Guaranteed minimum death benefit, if higher, and by the value of the Earnings enhancement benefit. The surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the Guaranteed minimum death benefit and charge and the Guaranteed minimum income benefit and charge will then be discontinued. Withdrawal charges will no longer apply, and no additional contributions will be permitted. If the younger owner dies first, the surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the death benefit is not payable, and the Guaranteed minimum death benefit and the Earnings enhancement benefit, if applicable, will continue without change. If the Guaranteed minimum income benefit cannot be exercised within the period required by federal tax laws, the benefit and charge will terminate as of the date we receive proof of death. Withdrawal charges will continue to apply and no additional contributions will be permitted. Upon the death of either owner, if the surviving owner elects the 5-year rule and a PGB was in effect upon the owner's death with a maturity date of more than five years from the date of death, we will terminate the benefit and the charge. SPOUSAL CONTINUATION If you are the contract owner and your spouse is the sole primary beneficiary or you jointly own the contract with your spouse, your spouse may elect to continue the contract as successor owner upon your death. Spousal beneficiaries (who are not also joint owners) must be 85 or younger as of the date of the deceased spouse's death in order to continue the contract under Spousal continuation. The determination of spousal status is made under appliable state law. However, in the event of a conflict between federal and state law, we follow federal rules. The younger spouse joint owner (for NQ contracts only) or the spouse beneficiary (under a Single owner contract), may elect to receive the death benefit or continue the contract, as follows: o As of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary, we will increase the account value to equal the elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit, and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. o In general, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. o The applicable Guaranteed minimum death benefit option may continue as follows: o If the surviving spouse is age 75 or younger on the date of your death, and you were age 84 or younger at death, the Guaranteed minimum death benefit you elected continues and will continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. o If the surviving spouse is age 75 or younger on the date of your death, and you were age 85 or older at death, we will reinstate the Guaranteed minimum death benefit you elected. The benefit base (which had previously been frozen at age 85) will now continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. o If the surviving spouse is age 76 or over on the date of your death, the Guaranteed minimum death benefit and charge will be discontinued. o If the Guaranteed minimum death benefit continues, the Guaranteed minimum death benefit/Guaranteed minimum income benefit roll up benefit base reset, if applicable, will be based on the surviving spouse's age at the time of your death. The next available reset will be based on the contract issue date or last reset, as applicable. o For single owner contracts with the GWBL Enhanced death benefit, we will discontinue the benefit and charge. However, we will freeze the GWBL Enhanced death benefit base as of the date of your death (less subsequent withdrawals), and pay it upon your spouse's death. o The Earnings enhancement benefit will be based on the surviving spouse's age at the date of the deceased spouse's death for the remainder of the life of the contract. If the benefit had been previously frozen because the older spouse had attained age 80, it will be reinstated if the surviving spouse is age 75 or younger. The benefit is then frozen on the contract date anniversary after the surviving spouse reaches age 80. If the surviving spouse is age 76 or older, the benefit and charge will be discontinued. o If elected, PGB continues and is based on the same benefit maturity date and guaranteed amount that was guaranteed. o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the surviving spouse's age at the date of the deceased spouse's death. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If you elect the Guaranteed withdrawal benefit for life on a Joint life basis, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. Withdrawal charges will continue to apply to all contributions made prior to the deceased spouse's death. No additional contributions Payment of death benefit 61 will be permitted. If you elect the Guaranteed withdrawal benefit for life on a Single life basis, the benefit and charge will terminate. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For jointly owned NQ contracts, if the younger spouse dies first no death benefit is paid, and the contract continues as follows: o The Guaranteed minimum death benefit and the Earnings enhancement benefit and the Guaranteed minimum income benefit continue to be based on the older spouse's age for the life of the contract. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. o If a PGB had been elected, the benefit continues and is based on the same benefit maturity date and guaranteed amount. o If you elect the Guaranteed withdrawal benefit for life, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. o The withdrawal charge schedule remains in effect. If you divorce, Spousal continuation does not apply. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state availability. Please speak with your financial professional or see Appendix VII later in this Prospectus for further information. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. For Joint life contracts with GWBL, BCO is only available after the death of the second owner. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit, adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o The beneficiary replaces the deceased owner as annuitant. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a portion of the account value and no withdrawal charges, if any, will apply. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum 62 Payment of death benefit distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. For purposes of this discussion, "beneficiary" refers to the successor owner. This feature must be elected within 9 months following the date of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts: o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB or the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If the deceased is the owner or the older joint owner: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the Beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit adjusted for any subsequent withdrawals. o No withdrawal charges will apply to any withdrawals by the beneficiary. If the owner deceased is the younger non-spousal joint owner: o The annuity account value will not be reset to the death benefit amount. o The contract's withdrawal charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments; the contract's free withdrawal amount will continue to apply to withdrawals but does not apply to surrenders. o We do not impose a withdrawal charge on scheduled payments except if, when added to any withdrawals previously taken in the same contract year, including for this purpose a contract surrender, the total amount of withdrawals and scheduled payments exceed the free withdrawal amount. See the "Withdrawal charges" in "Charges and expenses" earlier in this Prospectus. Payment of death benefit 63 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Elite(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth Conversion IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Elite(SM)'s Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, dollar cost averaging, choice of death benefits, selection of variable investment options, guaranteed interest option, fixed maturity options and its choices of payout options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. See also Appendix III at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. 64 Tax information TAXATION OF LIFETIME WITHDRAWALS IF YOU ELECT GUARANTEED WITHDRAWAL BENEFIT FOR LIFE We treat Guaranteed annual withdrawals and other withdrawals as non-annuity payments for income tax purposes. These withdrawals are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. It reduces the investment in the contract. ANNUITY PAYMENTS Guaranteed annual withdrawals that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus, as well as GMIB and other annuitization payments that are based on life or life expectancy, are considered annuity payments for tax purposes. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your unrecovered investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. EARNINGS ENHANCEMENT BENEFIT In order to enhance the amount of the death benefit to be paid at the owner's death, you may purchase an Earnings enhancement benefit rider for your NQ contract. Although we regard this benefit as an investment protection feature which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Earnings enhancement benefit rider is not part of the contract. In such a case, the charges for the Earnings enhancement benefit rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable, and for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, AXA Equitable would take all reasonable steps to attempt to avoid this result, which could include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES You may purchase your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that is the source of the funds you are using to purchase the NQ contract is another nonqualified deferred annuity contract (or life insurance or endowment contract). o The owner and the annuitant are the same under the source contract and the Accumulator(R) Elite(SM) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must be the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carries over to the Accumulator(R) Elite(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between carriers, and provision of cost basis information may be required to process this type of an exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. Beneficiary continuation option We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for a prior similar version of the NQ contract. See the discussion "Beneficiary continuation option for NQ Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: Tax information 65 o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2;" o scheduled payments, any additional withdrawals under "Withdrawal Option 2," or contract surrenders under "Withdrawal Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the Withdrawal Option selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling does not specifically address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or any withdrawal that might be taken). The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Account 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Account 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Account 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Account 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets for the benefit of the IRA owner. The assets funding the account typically include mutual funds and/or individual stocks and/or securities in a custodial account and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may purchase the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We also offer the Inherited IRA for payment of post-death required minimum distributions from traditional IRAs and Roth IRAs. We currently do not offer traditional IRA contracts for use as employer-funded SEP-IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS requires you to have before you purchase an IRA. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the 66 Tax information individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). AXA Equitable has applied for opinion letters from the IRS to approve the respective forms of the Accumulator(R) Elite(SM) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. It is not clear if and when any such approval may be received. We have in the past received IRS opinion letters approving the respective forms of similar traditional IRA and Roth IRA endorsements for use as a traditional and Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) Elite(SM) traditional and Roth IRA contracts. AXA Equitable has also submitted the respective forms of the Accumulator(R) Elite(SM) Inherited IRA beneficiary continuation contract to the IRS for approval as to form for use as a traditional IRA or Roth IRA, respectively. We do not know if and when any such approval may be granted. Your right to cancel within a certain number of days You can cancel any version of the Accumulator(R) Elite(SM) IRA contract (traditional IRA or ROTH IRA) by following the directions in "Your right to cancel with in a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or ROTH IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. Traditional individual retirement annuities (traditional IRAs) Contributions to traditional IRAs. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o regular contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers") Regular contributions to traditional IRAs Limits on contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch up contributions" of up to $1,000 to your traditional IRA. Special rules for spouses. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. Deductibility of contributions. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored-tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions." That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Tax information 67 Cost of living indexing adjustments apply to the income limits on deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted -------------------- x regular = deductible divided by $10,000 contribution contribution for the year limit Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000, ($53,000 after cost of living adjustments for 2008 ). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution, and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. Nondeductible regular contributions. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. When you can make regular contributions. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. Rollover and transfer contributions to traditional IRAs Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans ; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. Rollovers from "eligible retirement plans" other than traditional IRAs Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death ben- 68 Tax information eficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Rollovers from traditional IRAs to traditional IRAs You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. Excess contributions Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contri bution amount for the applicable taxable year); or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: Tax information 69 (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. Recharacterizations Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. Withdrawals, payments and transfers of funds out of traditional IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Taxation of payments. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. Required minimum distributions BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing, Please consult your tax adviser concerning applicability of these complex rules to your situation. Lifetime required minimum distributions. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. When you have to take the first lifetime required minimum distribution. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1-April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year--the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. 70 Tax information How you can calculate required minimum distributions. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. Do you have to pick the same method to calculate your required minimum distributions for all of your traditional IRAs and other retirement plans? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. Will we pay you the annual amount every year from your traditional IRA based on the method you choose? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. What if you take more than you need to for any year? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. What if you take less than you need to for any year? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. What are the required minimum distribution payments after you die? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. Individual beneficiary. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. Spousal beneficiary. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. Non-individual beneficiary. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an Tax information 71 individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. Spousal continuation If the contract is continued under Spousal continuation, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. Payments to a beneficiary after your death IRA death benefits are taxed the same as IRA distributions. Borrowing and loans are prohibited transactions You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. Early distribution penalty tax A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special fed eral income tax definition); or o used to pay medical insurance premiums for unemployed indi viduals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special fed eral income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies using an IRS-approved distribution method. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. To meet the substantially equal periodic payment exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" above. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under this option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. Roth individual retirement annuities (Roth IRAs) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Elite(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. Contributions to Roth IRAs Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eli gible retirement plan ("conversion rollover" contributions); or o tax-free rollover contributions from other Roth individual retire ment arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. Regular contributions to Roth IRAs Limits on regular contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular 72 Tax information contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the years is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion under "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. When you can make contributions. Same as traditional IRAs. Deductibility of contributions. Roth IRA contributions are not tax deductible. Rollovers and direct transfers What is the difference between rollover and direct transfer transactions? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make rollovers between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two- year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Conversion rollover contributions to Roth IRAs In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for Tax information 73 example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting -- a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. How to recharacterize. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. Distributions from Roth IRAs Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: 74 Tax information o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contribu tions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. Required minimum distributions during life Lifetime required minimum distributions do not apply. Required minimum distributions at death Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the Required Beginning Date. Payments to a beneficiary after your death Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. Borrowing and loans are prohibited transactions Same as traditional IRA. Excess contributions Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. Early distribution penalty tax Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are Tax information 75 the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) ELITE(SM) TSA CONTRACT Because the Accumulator(R) Elite(SM) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Elite(SM) TSA contract are extremely limited as described below. Accumulator(R) Elite(SM) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Elite(SM) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Elite(SM) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Elite(SM) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Elite(SM) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. 76 Tax information ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) Elite(SM) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Elite(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; Tax information 77 o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Elite(SM) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" in this Prospectus, as well as GMIB and other annuitization payments that are based on the annuitant's life or life expectancy, are considered annuity payments for tax purposes. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: 78 Tax information (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Elite(SM) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Elite(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Elite(SM) Rollover TSA contract on the form used to establish the TSA contract you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his Tax information 79 or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribu tion from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll'free number. Federal income tax withholding on periodic annuity payments Federal tax rules require payers to withhold differently on "periodic" and "non'periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. Federal income tax withholding on non-periodic annuity payments (withdrawals) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified 80 Tax information contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non'periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. Mandatory withholding from TSA and qualified plan distributions Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. Tax information 81 8. More information - -------------------------------------------------------------------------------- ABOUT OUR SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of the Separate Account's operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. The Separate Account is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Account invests solely in class IB/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from the Separate Account or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in the prospectuses for each Trust, which generally accompany this Prospectus, or in the respective SAIs which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below: - -------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 - -------------------------------------------------------- 82 More information - -------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------- 2013 3.00%* $ 86.25 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - -------------------------------------------------------- * Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw any of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMOs maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. Any withdrawal charges that are deducted from a fixed maturity option will result in a market value adjustment calculated in the same way. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) above would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined by using a widely published index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and the fixed maturity options and the account for special dollar cost averaging, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contract in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is More information 83 not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. However, the market value adjustment interests under the contracts are registered under the Securities Act of 1933. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept initial and subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information provided through certain broker-dealers with which we have established electronic facilities. In any such cases, you must sign our Acknowledgement of Receipt form. Where we require a signed application, the above procedures do not apply and no financial transactions will be permitted until we receive the signed application and have issued the contract. Where we issue a contract based on information provided through electronic facilities, we require an Acknowledgement of Receipt form, and financial transactions are only permitted if you request them in writing, sign the request and have it signature guaranteed, until we receive the signed Acknowledgement of Receipt form. After your contract has been issued, additional contributions may be transmitted by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. After your contract has been issued, additional contributions may be transmitted by wire. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, QP, Inherited IRA Beneficiary Continuation (traditional IRA or Roth IRA) or Rollover TSA contracts. Please see Appendix VII later in this Prospectus to see if the automatic investment program is available in your state. The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. For contracts with GWBL, AIP will be automatically terminated after the later of: (i) the end of the first contract year, or (ii) the date the first withdrawal is taken. For contracts with PGB, AIP will be automatically terminated at the end of the first six months. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. 84 More information o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Initial contributions allocated to the account for special dollar cost averaging receive the interest rate in effect on that business day. At certain times, we may offer the opportunity to lock in the interest rate for an initial contribution to be received under Section 1035 exchanges and trustee to trustee transfers. Your financial professional can provide information, or you can call our processing office. o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; or o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in the prospectuses for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustee or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or distribution of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The More information 85 SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive written notification of any change at our processing office. You cannot assign your NQ contract as collateral or security for a loan. Loans are also not available under your NQ contract. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. For NQ contracts only, subject to regulatory approval, if you elected the Guaranteed minimum death benefit, a PGB, the Earnings enhancement benefit and/or the Guaranteed withdrawal benefit for life ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. However, the Benefit will not terminate if the ownership of the contract is transferred from a non-natural owner to an individual but the contract will continue to be based on the annuitant's life. Please speak with your financial professional for further information. See Appendix VII later in this Prospectus for any state variations with regard to terminating any benefits under your contract. You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available (except for Rollover TSA contracts, subject to plan or employer approval) and you cannot assign Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts as security for a loan or other obligation. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract to another similar arrangement under federal income tax rules. In the case of such a transfer, which involves a surrender of your contract, we will impose a withdrawal charge, if one applies. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 1.20% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 6.50% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset- 86 More information based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker-dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) Elite(SM) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or, such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable product. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. More information 87 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This Prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa-equitable.com. 88 Incorporation of certain documents by reference Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.65%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION - --------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------- 2007 2006 2005 2004 2003 - --------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - --------------------------------------------------------------------------------------------------- Unit value $ 15.09 $ 14.45 $ 12.46 $ 11.72 $ 10.66 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 64,596 32,813 12,508 4,674 195 - --------------------------------------------------------------------------------------------------- AXA Conservative Allocation - --------------------------------------------------------------------------------------------------- Unit value $ 11.79 $ 11.33 $ 10.83 $ 10.75 $ 10.31 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,068 5,935 3,738 1,736 116 - --------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - --------------------------------------------------------------------------------------------------- Unit value $ 12.43 $ 11.98 $ 11.20 $ 11.03 $ 10.41 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 23,580 16,150 9,271 3,928 215 - --------------------------------------------------------------------------------------------------- AXA Moderate Allocation - --------------------------------------------------------------------------------------------------- Unit value $ 13.13 $ 12.57 $ 11.58 $ 11.24 $ 10.51 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 117,390 83,885 52,197 21,440 970 - --------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - --------------------------------------------------------------------------------------------------- Unit value $ 14.48 $ 13.84 $ 12.29 $ 11.72 $ 10.67 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 240,939 152,231 69,680 21,528 560 - --------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - --------------------------------------------------------------------------------------------------- Unit value $ 13.93 $ 13.69 $ 12.58 $ 12.26 $ 10.92 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,057 7,207 5,402 2,957 158 - --------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - --------------------------------------------------------------------------------------------------- Unit value $ 10.74 $ 10.22 $ 10.07 $ 10.12 $ 10.09 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,177 1,691 1,398 905 69 - --------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - --------------------------------------------------------------------------------------------------- Unit value $ 19.68 $ 17.91 $ 14.74 $ 13.00 $ 11.19 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,529 7,675 3,716 1,270 66 - --------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - --------------------------------------------------------------------------------------------------- Unit value $ 13.66 $ 12.19 $ 12.46 $ 11.02 $ 10.34 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,311 2,506 1,386 595 44 - --------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - --------------------------------------------------------------------------------------------------- Unit value $ 10.96 $ 10.66 $ 10.44 $ 10.40 $ 10.20 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,138 3,340 2,303 1,119 95 - --------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - --------------------------------------------------------------------------------------------------- Unit value $ 16.27 $ 14.18 $ 13.22 $ 12.06 $ 10.75 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,846 2,926 1,783 913 81 - --------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - --------------------------------------------------------------------------------------------------- Unit value $ 14.17 $ 15.10 $ 12.65 $ 12.20 $ 10.93 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 19,894 14,100 9,522 5,080 310 - --------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - --------------------------------------------------------------------------------------------------- Unit value $ 11.00 $ 11.32 $ 10.35 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,556 907 118 -- -- - --------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - --------------------------------------------------------------------------------------------------- Unit value $ 11.10 $ 10.92 $ 10.95 $ 10.35 $ 10.16 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,847 3,611 2,568 878 43 - ---------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION (CONTINUED) - ------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - --------------------------------------------------------------------------------------------------- Unit value $ 14.23 $ 14.30 $ 12.02 $ 11.87 $ 10.92 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,001 5,785 4,888 3,020 210 - ------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - --------------------------------------------------------------------------------------------------- Unit value $ 19.38 $ 17.89 $ 14.47 $ 13.27 $ 11.09 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,184 7,223 4,026 1,161 30 - ------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - --------------------------------------------------------------------------------------------------- Unit value $ 6.74 $ 6.61 $ 5.80 $ 5.55 -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,771 4,814 3,177 208 -- - ------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - --------------------------------------------------------------------------------------------------- Unit value $ 13.04 $ 11.83 $ 11.43 $ 10.68 $ 10.49 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 982 894 571 194 5 - ------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - --------------------------------------------------------------------------------------------------- Unit value $ 12.24 $ 11.80 $ 11.17 $ 10.80 $ 10.41 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,279 6,225 2,419 273 15 - ------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - --------------------------------------------------------------------------------------------------- Unit value $ 13.44 $ 13.44 $ 12.20 $ 11.69 $ 10.72 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 17,200 6,674 4,879 2,900 86 - ------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - --------------------------------------------------------------------------------------------------- Unit value $ 11.14 $ 11.02 $ 10.38 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,709 1,957 563 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - --------------------------------------------------------------------------------------------------- Unit value $ 11.06 $ 10.84 -- -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,823 1,788 -- -- -- - ------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - --------------------------------------------------------------------------------------------------- Unit value $ 14.00 $ 13.56 $ 11.98 $ 11.67 $ 10.76 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 11,756 9,866 7,495 4,181 204 - ------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - --------------------------------------------------------------------------------------------------- Unit value $ 10.65 $ 9.91 $ 9.74 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,959 2,013 172 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - --------------------------------------------------------------------------------------------------- Unit value $ 13.11 $ 11.98 $ 11.50 $ 11.25 $ 10.69 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,691 1,979 1,528 1,146 126 - ------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - --------------------------------------------------------------------------------------------------- Unit value $ 15.77 $ 14.84 $ 13.53 $ 12.93 $ 11.33 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,337 8,706 5,920 3,260 291 - ------------------------------------------------------------------------------------------------------- EQ/Franklin Income - --------------------------------------------------------------------------------------------------- Unit value $ 10.46 $ 10.42 -- -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 19,931 3,992 -- -- -- - ------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - --------------------------------------------------------------------------------------------------- Unit value $ 9.71 $ 10.81 -- -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,069 384 -- -- -- - ------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - --------------------------------------------------------------------------------------------------- Unit value $ 9.50 -- -- -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 36,003 -- -- -- -- - ------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - --------------------------------------------------------------------------------------------------- Unit value $ 11.77 $ 11.57 $ 10.48 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,502 1,759 442 -- -- - ------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - --------------------------------------------------------------------------------------------------- Unit value $ 27.94 $ 26.00 $ 22.24 $ 21.68 -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,011 1,796 802 76 -- - -------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION (CONTINUED) - ------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - --------------------------------------------------------------------------------------------------- Unit value $ 19.11 $ 16.87 $ 14.38 $ 12.48 $ 11.17 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,092 11,624 7,243 3,564 178 - ------------------------------------------------------------------------------------------------------- EQ/International Growth - --------------------------------------------------------------------------------------------------- Unit value $ 16.21 $ 14.18 $ 11.48 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,860 1,674 373 -- -- - ------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - --------------------------------------------------------------------------------------------------- Unit value $ 10.89 $ 10.74 $ 10.50 $ 10.44 $ 10.20 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 14,134 11,680 7,995 3,501 284 - ------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - --------------------------------------------------------------------------------------------------- Unit value $ 14.06 $ 14.47 $ 12.22 $ 11.96 $ 10.97 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,094 1,769 1,018 473 42 - ------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - --------------------------------------------------------------------------------------------------- Unit value $ 13.85 $ 13.56 $ 12.21 $ 11.58 $ 10.57 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,364 1,455 1,271 643 69 - ------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - --------------------------------------------------------------------------------------------------- Unit value $ 14.66 $ 12.89 $ 12.16 $ 11.34 $ 10.24 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,960 1,215 705 369 29 - ------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - --------------------------------------------------------------------------------------------------- Unit value $ 10.34 $ 11.17 $ 10.63 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,005 5,957 563 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - --------------------------------------------------------------------------------------------------- Unit value $ 10.55 $ 9.99 $ 9.98 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,635 878 743 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - --------------------------------------------------------------------------------------------------- Unit value $ 12.41 $ 12.19 $ 10.58 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,773 3,163 874 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - --------------------------------------------------------------------------------------------------- Unit value $ 12.71 $ 11.68 $ 10.54 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,698 1,248 527 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - --------------------------------------------------------------------------------------------------- Unit value $ 12.17 $ 12.30 $ 11.13 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,885 5,585 2,163 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - --------------------------------------------------------------------------------------------------- Unit value $ 15.09 $ 13.45 $ 12.51 $ 11.49 $ 10.57 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 25,093 20,022 11,881 5,249 435 - ------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - --------------------------------------------------------------------------------------------------- Unit value $ 15.00 $ 15.51 $ 14.02 $ 12.80 $ 11.04 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,668 6,490 4,526 2,213 149 - ------------------------------------------------------------------------------------------------------- EQ/Money Market - --------------------------------------------------------------------------------------------------- Unit value $ 10.55 $ 10.24 $ 9.97 $ 9.87 $ 9.96 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 8,854 4,632 2,041 1,005 42 - ------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - --------------------------------------------------------------------------------------------------- Unit value $ 5.69 $ 4.79 $ 4.51 $ 4.35 -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,503 1,430 883 38 -- - ------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - --------------------------------------------------------------------------------------------------- Unit value $ 10.70 $ 10.70 -- -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,811 2,470 -- -- -- - ------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - --------------------------------------------------------------------------------------------------- Unit value $ 11.52 $ 11.08 -- -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,779 367 -- -- -- - -------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION (CONTINUED) - ------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - --------------------------------------------------------------------------------------------------- Unit value $ 11.11 $ 10.92 -- -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 743 133 -- -- -- - ------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - --------------------------------------------------------------------------------------------------- Unit value $ 10.71 $ 11.09 -- -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,662 182 -- -- -- - ------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - --------------------------------------------------------------------------------------------------- Unit value $ 10.73 $ 9.79 $ 9.91 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 14,527 8,303 3,300 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - --------------------------------------------------------------------------------------------------- Unit value $ 10.55 $ 10.18 $ 9.96 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,217 1,594 402 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Small Company Index - --------------------------------------------------------------------------------------------------- Unit value $ 14.21 $ 14.72 $ 12.72 $ 12.40 $ 10.71 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,773 4,061 2,210 1,215 79 - ------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - --------------------------------------------------------------------------------------------------- Unit value $ 16.46 $ 15.61 $ 16.53 $ 16.17 -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,120 907 526 22 -- - ------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - --------------------------------------------------------------------------------------------------- Unit value $ 10.79 $ 10.75 -- -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,518 2,001 -- -- -- - ------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - --------------------------------------------------------------------------------------------------- Unit value $ 6.07 $ 6.10 $ 5.43 $ 5.07 -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,079 2,346 952 71 -- - ------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - --------------------------------------------------------------------------------------------------- Unit value $ 11.38 $ 11.86 $ 10.41 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,921 7,856 2,852 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - --------------------------------------------------------------------------------------------------- Unit value $ 34.34 $ 24.59 $ 18.24 $ 13.97 $ 11.48 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 8,306 6,050 3,408 1,047 46 - ------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - --------------------------------------------------------------------------------------------------- Unit value $ 15.97 $ 13.27 $ 12.35 -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,059 2,350 533 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - --------------------------------------------------------------------------------------------------- Unit value $ 8.27 -- -- -- -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 11,901 -- -- -- -- - ------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - --------------------------------------------------------------------------------------------------- Unit value $ 14.17 $ 12.93 $ 12.51 $ 11.75 $ 10.66 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,191 976 442 210 15 - ------------------------------------------------------------------------------------------------------- Multimanager Core Bond - --------------------------------------------------------------------------------------------------- Unit value $ 11.08 $ 10.61 $ 10.39 $ 10.38 $ 10.16 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,566 5,315 4,566 2,210 301 - ------------------------------------------------------------------------------------------------------- Multimanager Health Care - --------------------------------------------------------------------------------------------------- Unit value $ 13.61 $ 12.70 $ 12.28 $ 11.67 $ 10.59 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,083 3,143 1,765 716 86 - ------------------------------------------------------------------------------------------------------- Multimanager High Yield - --------------------------------------------------------------------------------------------------- Unit value $ 12.58 $ 12.40 $ 11.47 $ 11.32 $ 10.59 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,716 6,956 5,292 3,135 282 - ------------------------------------------------------------------------------------------------------- Multimanager International Equity - --------------------------------------------------------------------------------------------------- Unit value $ 20.15 $ 18.23 $ 14.79 $ 13.02 $ 11.23 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,136 5,220 2,536 1,127 65 - -------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION (CONTINUED) - ------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - --------------------------------------------------------------------------------------------------- Unit value $ 13.82 $ 13.38 $ 11.98 $ 11.41 $ 10.58 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,624 1,487 1,016 456 20 - ------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - --------------------------------------------------------------------------------------------------- Unit value $ 12.49 $ 11.42 $ 11.59 $ 10.97 $ 10.45 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,875 3,137 2,204 1,141 59 - ------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - --------------------------------------------------------------------------------------------------- Unit value $ 15.69 $ 15.40 $ 13.12 $ 12.46 $ 11.07 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,335 5,165 3,109 1,455 59 - ------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - --------------------------------------------------------------------------------------------------- Unit value $ 14.63 $ 13.30 $ 12.33 $ 11.57 $ 10.53 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,883 3,570 2,515 1,381 97 - ------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - --------------------------------------------------------------------------------------------------- Unit value $ 14.60 $ 14.83 $ 13.15 $ 12.45 $ 10.99 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,025 3,627 2,566 1,506 103 - ------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - --------------------------------------------------------------------------------------------------- Unit value $ 8.75 $ 8.58 $ 7.91 $ 7.49 -- - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,231 3,530 1,416 31 -- - ------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - --------------------------------------------------------------------------------------------------- Unit value $ 13.12 $ 14.80 $ 12.96 $ 12.59 $ 10.93 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,224 7,719 5,307 2,979 191 - ------------------------------------------------------------------------------------------------------- Multimanager Technology - --------------------------------------------------------------------------------------------------- Unit value $ 14.29 $ 12.29 $ 11.65 $ 10.64 $ 10.31 - --------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,743 2,164 1,431 675 35 - -------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-5 Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- Trustees who are considering the purchase of an Accumulator(R) Elite(SM) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this Prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) Elite(SM) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) Elite(SM) QP contract to fund a plan for the contract's features and benefits other than tax deferral after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. We will not accept defined benefit plans. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or other contributions from the employer. For 401(k) plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge and/or market value adjustment may apply. AXA Equitable will not perform or provide any plan recordkeeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for participants after age 70-1/2, trustees should consider that: o whether required minimum distributions under QP contracts would cause withdrawals in excess of 6% of the Guaranteed minimum income benefit Roll-Up benefit base; o that provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed; and o that if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, payments will be made to the trustee. Finally, because the method of purchasing the QP contract, including the large initial contribution and the features of the QP contract may appeal more to plan participants who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisors whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. B-1 Appendix II: Purchase considerations for QP contracts Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00% ("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a).
- ------------------------------------------------------------------------------------------------------- Hypothetical assumed rate to maturity ("j" in the calculations below) February 15, 2012 ------------------------- 5.00% 9.00% - ------------------------------------------------------------------------------------------------------- As of February 15, 2012 before withdrawal - ------------------------------------------------------------------------------------------------------- (1) Market adjusted amount(b) $141,389 $121,737 - ------------------------------------------------------------------------------------------------------- (2) Fixed maturity amount(c) $131,104 $131,104 - ------------------------------------------------------------------------------------------------------- (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ------------------------------------------------------------------------------------------------------- On February 15, 2012 after $50,000 withdrawal - ------------------------------------------------------------------------------------------------------- (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ------------------------------------------------------------------------------------------------------- (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ------------------------------------------------------------------------------------------------------- (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ------------------------------------------------------------------------------------------------------- (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ------------------------------------------------------------------------------------------------------- (8) Maturity value(d) $111,099 $101,287 - -------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 where j is ________________ = ________________ either 5% (1+j)(D/365) (1+j)(1,461/365) or 9% (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) x (1+0.07)(1,461/365) Appendix III: Market value adjustment example C-1 Appendix IV: Enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the enhanced death benefit, if elected. The following illustrates the enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option or the fixed maturity options) , no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the enhanced death benefit for an owner age 45 would be calculated as follows:
- ------------------------------------------------------------------------------------------------------------- End of contract 6% Roll-Up to age 85 Annual Ratchet to age 85 GWBL Enhanced year Account value benefit base benefit base death benefit base - ------------------------------------------------------------------------------------------------------------- 1 $105,000 $ 106,000(4) $ 105,000(1) $ 105,000(5) - ------------------------------------------------------------------------------------------------------------- 2 $115,500 $ 112,360(3) $ 115,500(1) $ 115,500(5) - ------------------------------------------------------------------------------------------------------------- 3 $129,360 $ 119,102(3) $ 129,360(1) $ 129,360(5) - ------------------------------------------------------------------------------------------------------------- 4 $103,488 $ 126,248(3) $ 129,360(2) $ 135,828(6) - ------------------------------------------------------------------------------------------------------------- 5 $113,837 $ 133,823(4) $ 129,360(2) $ 142,296(6) - ------------------------------------------------------------------------------------------------------------- 6 $127,497 $ 141,852(4) $ 129,360(2) $ 148,764(6) - ------------------------------------------------------------------------------------------------------------- 7 $127,497 $ 150,363(4) $ 129,360(2) $ 155,232(6) - -------------------------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. ANNUAL RATCHET TO AGE 85 (1) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (2) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown would be the greater of the amounts shown under the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. (3) At the end of contract years 2 through 4, the enhanced death benefit will be based on the Annual Ratchet to age 85. (4) At the end of contract years 1 and 5 through 7, the enhanced death benefit will be based on the 6% Roll-Up to age 85. GWBL ENHANCED DEATH BENEFIT This example assumes no withdrawals. The GWBL Enhanced death benefit is a guaranteed minimum death benefit that is only available if you elect the Guaranteed withdrawal benefit for life. If you plan to take withdrawals during any of the first seven contract years, this illustration is of limited usefulness to you. (5) At the end of contract years 1 through 3, the GWBL enhanced death benefit is equal to the current account value. (6) At the end of contract years 4 through 7, the GWBL enhanced death benefit is greater than the current account value. D-1 Appendix IV: Enhanced death benefit example Appendix V: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85" enhanced death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Elite(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying portfolios (as described below), the corresponding net annual rates of return would be (2.88)% and 3.12% for the Accumulator(R) Elite(SM) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges, but they do not reflect the charges we deduct from your account value annually for the enhanced death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return would be lower; however, the values shown in the following tables reflect the following contract charges: the "Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85" enhanced death benefit charge, Earnings enhancement benefit charge, the Guaranteed minimum income benefit charge, and any applicable administrative charge and withdrawal charge. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios, as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this Prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. Appendix V: Hypothetical illustrations E-1 Variable deferred annuity Accumulator(R) Elite(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Greater of 6% Roll-Up or Annual Ratchet to age 85 Guaranteed minimum death benefit Earnings enhancement benefit Guaranteed minimum income benefit
Greater of 6% Roll-Up to age 85 Lifetime Annual or Annual Ratchet Guaranteed Minimum to age 85 Total Death Benefit Income Benefit Guaranteed with the Earnings ---------------------------------- Minimum Death Guaranteed Hypothetical Account Value Cash Value Benefit enhancement benefit Income Income Contract ------------------- ------------------ ------------------- ------------------- ----------------- ---------------- Age Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% - ----- --------- --------- --------- -------- --------- --------- --------- --------- --------- -------- -------- -------- ------- 60 1 100,000 100,000 92,000 92,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A 61 2 95,402 101,381 88,402 94,381 106,000 106,000 108,400 108,400 N/A N/A N/A N/A 62 3 90,870 102,718 84,870 96,718 112,360 112,360 117,304 117,304 N/A N/A N/A N/A 63 4 86,395 104,003 81,395 99,003 119,102 119,102 126,742 126,742 N/A N/A N/A N/A 64 5 81,972 105,232 81,972 105,232 126,248 126,248 136,747 136,747 N/A N/A N/A N/A 65 6 77,593 106,395 77,593 106,395 133,823 133,823 147,352 147,352 N/A N/A N/A N/A 66 7 73,251 107,487 73,251 107,487 141,852 141,852 158,593 158,593 N/A N/A N/A N/A 67 8 68,937 108,498 68,937 108,498 150,363 150,363 170,508 170,508 N/A N/A N/A N/A 68 9 64,646 109,419 64,646 109,419 159,385 159,385 183,139 183,139 N/A N/A N/A N/A 69 10 60,368 110,242 60,368 110,242 168,948 168,948 196,527 196,527 N/A N/A N/A N/A 74 15 38,843 112,489 38,843 112,489 226,090 226,090 276,527 276,527 13,520 13,520 13,520 13,520 79 20 16,309 110,387 16,309 110,387 302,560 302,560 383,584 383,584 20,272 20,272 20,272 20,272 84 25 0 101,722 0 101,722 0 404,893 0 493,179 0 32,391 0 32,391 89 30 0 98,701 0 98,701 0 429,187 0 517,472 N/A N/A N/A N/A 94 35 0 98,350 0 98,350 0 429,187 0 517,472 N/A N/A N/A N/A 95 36 0 98,273 0 98,273 0 429,187 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. E-2 Appendix V: Hypothetical illustrations Appendix VI: Earnings enhancement benefit example - -------------------------------------------------------------------------------- The following illustrates the calculation of a death benefit that includes the Earnings enhancement benefit for an owner age 45. The example assumes a contribution of $100,000 and no additional contributions. Where noted, a single withdrawal in the amount shown is also assumed. The calculation is as follows: No Withdrawal $3000 withdrawal $6000 withdrawal -------------------------------------------------------------------------------------------------------------------- A Initial contribution 100,000 100,000 100,000 -------------------------------------------------------------------------------------------------------------------- B Death benefit: prior to withdrawal.* 104,000 104,000 104,000 -------------------------------------------------------------------------------------------------------------------- Earnings enhancement benefit earnings: death benefit less net contributions (prior to the withdrawal in C D). 4,000 4,000 4,000 B minus A. -------------------------------------------------------------------------------------------------------------------- D Withdrawal 0 3,000 6,000 -------------------------------------------------------------------------------------------------------------------- Excess of the withdrawal over the Earnings E enhancement benefit earnings 0 0 2,000 greater of D minus C or zero -------------------------------------------------------------------------------------------------------------------- Net contributions (adjusted for the withdrawal in D) F A minus E 100,000 100,000 98,000 -------------------------------------------------------------------------------------------------------------------- Death benefit (adjusted for the withdrawal in D) G B minus D 104,000 101,000 98,000 -------------------------------------------------------------------------------------------------------------------- Death benefit less net contributions H G minus F 4,000 1,000 0 -------------------------------------------------------------------------------------------------------------------- I Earnings enhancement benefit factor 40% 40% 40% -------------------------------------------------------------------------------------------------------------------- Earnings enhancement benefit J H times I 1,600 400 0 -------------------------------------------------------------------------------------------------------------------- Death benefit: Including Earnings enhancement benefit K G plus J 105,600 101,400 98,000 --------------------------------------------------------------------------------------------------------------------
* The death benefit is the greater of the account value or any applicable death benefit. Appendix VI: Earnings enhancement benefit example F-1 Appendix VII: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- The following information is a summary of the states where the Accumulator(R) Elite(SM) contract or certain features and/or benefits are either not available as of the date of this Prospectus or vary from the contract's features and benefits as previously described in this Prospectus. STATES WHERE CERTAIN ACCUMULATOR(R) ELITE(SM) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA See "Contract features and benefits"--"Your right If you reside in the state of California and you are age 60 to cancel within a certain number of days" and older at the time the contract is issued, you may return your variable annuity contract within 30 days from the date that you receive it and receive a refund as described below. If you allocate your entire initial contribution to the EQ/Money Market option (and/or guaranteed interest option, if available), the amount of your refund will be equal to your contribution less interest, unless you make a trans- fer, in which case the amount of your refund will be equal to your account value on the date we receive your request to cancel at our processing office. This amount could be less than your initial contribution. If the Principal guarantee ben- efit or Guaranteed withdrawal benefit for life is elected, the investment allocation during the 30 day free look period is limited to the guaranteed interest option. If you allocate any portion of your initial contribution to the variable invest- ment options (other than the EQ/Money Market option) and/or fixed maturity options, your refund will be equal to your account value on the date we receive your request to cancel at our processing office. - ------------------------------------------------------------------------------------------------------------------------------------ OREGON See "We require that the following types of The following is added: communications be on specific forms we provide (20) requests for required minimum distributions, other for that purpose:" in "Who is AXA Equitable?" than pursuant to our automatic RMD service. QP contracts Not Available Fixed maturity options Not Available Automatic investment program Not Available Special dollar cost averaging program o Available only during the first contract year. o Subsequent contributions cannot be used to elect new programs after the first contract year. You may make subsequent contributions to the initial programs while they are still running. See "How you can purchase and contribute to your Additional contributions are limited to the first year after contract" in "Contract features and benefits" the contract issue date only. See "Guaranteed minimum death benefit/Guaranteed The Roll-Up benefit base is eligible for reset beginning on minimum income benefit roll-up benefit base reset" the fifth contract date anniversary and on each fifth or later in "Contract features and benefits" contract date anniversary after a reset. - ------------------------------------------------------------------------------------------------------------------------------------
G-1 Appendix VII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ OREGON See "Lifetime required minimum distribution The following replaces the third paragraph: (CONTINUED) withdrawals" under "Withdrawing your account We generally will not impose a withdrawal charge on mini- value" in "Accessing your money" mum distribution withdrawals even if you are not enrolled in our automatic RMD service except if, when added to a lump sum withdrawal previously taken in the same contract year, the minimum distribution withdrawals exceed the 10% free withdrawal amount. In order to avoid a withdrawal charge in connection with minimum distribution withdraw- als outside of our automatic RMD service, you must notify us using our request form. Such minimum distribution with- drawals must be based solely on your contract's account value. See "Selecting an annuity payout option" under An annuity commencement date earlier than four years from "Your annuity payout options" in "Accessing the Accumulator(R) Elite(SM) contract issue date may not be your money" elected. See "Greater of 6% Roll-Up to age 85 or Annual The charge is equal to 0.60% of the Greater of 6% Roll-Up Ratchet to age 85" under "Guaranteed minimum to age 85 or Annual Ratchet to age 85 benefit base. death benefit charge" in "Charges and expenses" See "Disability, terminal illness, or Item (i) under this section is deleted in its entirety confinement to nursing home" under "Withdrawal charge" in "Charges and expenses" - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA Contributions Your contract refer to contributions as premiums. Special dollar cost averaging program In Pennsylvania, we refer to this program as "enhanced rate dollar cost averaging." See "Disability, terminal illness, or Item (iii) under this section is deleted in its entirety confinement to nursing home" under "Withdrawal charge" in "Charges and expenses" Required disclosure for Pennsylvania customers Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO IRA, Roth IRA, Inherited IRA, QP and Rollover Not Available TSA contracts Beneficiary continuation option (IRA) Not Available Tax Information -- Special rules for NQ Income from NQ contracts we issue is U.S. source. A Puerto contracts Rico resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico source income of Puerto Rico resi- dents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable portion of amounts distributed from a con- tract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S. tax paid. Depending on your per- sonal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-2
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS See "Charges that AXA Equitable deducts" under We will deduct the annual administrative charge, on a pro "Annual administrative charge" in "Charges and rata basis, only from your value in the variable investment expenses" options. We will not deduct this charge from your value in the guaranteed interest option. - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON Guaranteed interest option Not available Investment simplifier -- Fixed-dollar option and Not available Interest sweep option Fixed maturity options Not available Income Manager(R) payout option Not available Earnings enhancement benefit Not available Special dollar cost averaging program o Available only at issue. o Subsequent contributions cannot be used to elect new programs. You may make subsequent contributions to the initial programs while they are still running. "Greater of 6% Roll-Up to age 85 or Annual All references to this feature are deleted in their entirety. Ratchet to age 85 enhanced death benefit" You have the choice of the following guaranteed minimum death benefits: the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85; the Annual Ratchet to age 85; the Standard death benefit; the GWBL Enhanced death benefit; or the GWBL Standard death benefit. See "Guaranteed minimum death benefit charge" in The charge for the Greater of 4% Roll-Up to age 85 or "Fee table" and in "Charges and expenses" Annual Ratchet to age 85 is 0.60% See "Guaranteed minimum death benefit and o If you elect the 6% Guaranteed minimum income benefit Guaranteed minimum income benefit base" in with the Greater of 4% Roll-Up to age 85 or Annual "Contract features and benefits" Ratchet to age 85 enhanced death benefit, the variable investment options (other than those variable investment options that roll up to 3%) and the account for special dollar cost averaging program will roll up at an annual rate of 6% for the Guaranteed minimum income benefit base and 4% for the 4% Roll-Up to age 85 benefit base. o If you elect the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, with- out the Guaranteed minimum income benefit, the variable investment options (other than those variable investment options that roll up to 3%) and the account for special dollar cost averaging program will roll up at an annual rate of 4% for the 4% Roll-Up to age 85 ben- efit base. See "Guaranteed minimum death benefit/Guaranteed Your "Greater of 4% Roll-Up to age 85 or Annual Ratchet minimum income benefit roll-up benefit base to age 85 enhanced death benefit" benefit base will reset reset" in "Contract features and benefits" only if your account value is greater than your Guaranteed minimum income benefit roll-up benefit base. See "Guaranteed minimum death benefit" in You have a choice of the standard death benefit, the Annual "Contract features and benefits" Ratchet to age 85 enhanced death benefit, or the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. - ------------------------------------------------------------------------------------------------------------------------------------
G-3 Appendix VII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON See "Annual administrative charge" in "Charges The second paragraph of this section is replaced with the (CONTINUED) and expenses" following: The annual administrative charge will be deducted from the value in the variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of that charge for the year. See "How withdrawals affect your Guaranteed The first sentence of the third paragraph is replaced with minimum income benefit, Guaranteed minimum the following: death benefit and Principal guarantee benefits" in "Accessing your money" With respect to the Guaranteed minimum income benefit and the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' Roll-Up to age 85 benefit base on a dollar-for- dollar basis, as long as the sum of the withdrawals in a contract year is 6% or less of each benefit's Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. With respect to the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, if elected without the Guaranteed minimum income benefit, withdrawals (including any applicable with- drawal charges) will reduce the 4% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6% or less of the 4% Roll-Up to age 85 benefit base on the contract issue date or the most recent contract date anniversary, if later. See "10% free withdrawal amount" under The 10% free withdrawal amount applies to full surrenders. "Withdrawal charge" in "Charges and expenses" See "Certain withdrawals" under "Withdrawal If you elect the Greater of 4% Roll-Up to age 85 or Annual charge" in "Charges and expenses" Ratchet to age 85 enhanced death benefit without a Guar- anteed minimum income benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6% of the beginning of contract year 4% Roll-Up to age 85 benefit base, even if such withdrawals exceed the free with- drawal amount. See "Withdrawal charge" in "Charges and The owner (or older joint owner, if applicable) has qualified expenses" under "Disability, terminal illness, to receive Social Security disability benefits as certified by or confinement to nursing home" the Social Security Administration or a statement from an independent U.S. licensed physician stating that the owner (or older joint owner, if applicable) meets the definition of total disability for at least 6 continuous months prior to the notice of claim. Such disability must be re-certified every 12 months. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-4 Appendix VIII: Contract variations ` - -------------------------------------------------------------------------------- You should note that your contract's options, features and charges may vary from what is described in this Prospectus depending on the approximate date on which you purchased your contract. You may not change your contract or its features after issue. This Appendix reflects contract variations that differ from what is described in this Prospectus but may have been in effect at the time your contract was issued. If you purchased your contract during the "Approximate Time Period" below, the noted variation may apply to you. In addition, options and/or features may vary among states in light of applicable regulations or state approvals. Any such state variations are generally not included here but instead included in Appendix VII earlier in this section. For more information about state variations applicable to you, as well as particular features, charges and options available under your contract based upon when you purchased it, please contact your financial professional and/or refer to your contract.
- ------------------------------------------------------------------------------------------------------------------------------------ Approximate Time Period Feature/Benefit Variation - ------------------------------------------------------------------------------------------------------------------------------------ July 10, 2006 - January 15, 2007 Greater of 6% Roll-Up to age 85 or Annual The fee for this benefit is 0.60%. Ratchet to age 85 enhanced death benefit Guaranteed minimum death benefit/ The Roll-Up benefit base is eligible for reset Guaranteed minimum income benefit roll-up beginning on the fifth contract date anniversary benefit base reset and on each fifth or later contract date anniversary after a reset. - ------------------------------------------------------------------------------------------------------------------------------------ January 16, 2007 - present Greater of 6% Roll-Up to age 85 or Annual The fee for this benefit is 0.65%.* Ratchet to age 85 enhanced death benefit Guaranteed minimum death benefit/ The Roll-Up benefit base is eligible for reset Guaranteed minimum income benefit roll-up annually.* benefit base reset * This charge and feature are not available to contracts issued in Oregon. - ------------------------------------------------------------------------------------------------------------------------------------
H-1 Appendix VIII: Contract variations Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to obtain an Accumulator(R) Elite(SM) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) Elite(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 ................................................................................. Please send me an Accumulator(R) Elite(SM) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip x1890/Elite '02/'04, '04(NY), '06/'06.5 and '07 Series Accumulator(R) Elite(SM) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing, or taking any other action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) ELITE(SM) Accumulator(R) Elite(SM) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option, fixed maturity options or the account for special dollar cost averaging ("investment options"). This contract may not currently be available in all states. Certain features and benefits described in this Prospectus may vary in your state; all features and benefits may not be available in all contracts, in all states or from all selling broker-dealers. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation*) o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street o EQ/Ariel Appreciation II Small Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o Q/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option, the fixed maturity options and the account for special dollar cost averaging, which are discussed later in this Prospectus. If you elect a Principal guarantee benefit, the Guaranteed withdrawal benefit for life or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging, and certain permitted variable investment option(s). The permitted variable investment options are described later in this Prospectus. TYPES OF CONTRACTS. We offer the contracts for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA or Roth IRA. We offer one version of the traditional IRA: "Rollover IRA." We also offer one version of the Roth IRA: "Roth Conversion IRA." o Traditional and Roth Inherited IRA beneficiary continuation contract ("Inherited IRA" (direct transfer and specified direct rollover contributions only). o An annuity that is an investment vehicle for qualified defined contribution plan and certain qualified defined benefit plans ("QP") (Rollover and direct transfer contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $10,000 is required to purchase a contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 29, 2007 is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01909 Elite 07 Series (R-4/15) Contents of this Prospectus - -------------------------------------------------------------------------------- ACCUMULATOR(R) ELITE(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) Elite(SM) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 11 - -------------------------------------------------------------------------------- Example 15 Condensed financial information 18 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 19 - -------------------------------------------------------------------------------- How you can purchase and contribute to your contract 19 Owner and annuitant requirements 22 How you can make your contributions 22 What are your investment options under the contract? 23 Portfolios of the Trusts 24 Allocating your contributions 30 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 32 Annuity purchase factors 34 Guaranteed minimum income benefit 34 Guaranteed minimum death benefit 37 Guaranteed withdrawal benefit for life ("GWBL") 38 Principal guarantee benefits 42 Inherited IRA beneficiary continuation contract 43 Your right to cancel within a certain number of days 44 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 45 - -------------------------------------------------------------------------------- Your account value and cash value 45 Your contract's value in the variable investment options 45 Your contract's value in the guaranteed interest option 45 Your contract's value in the fixed maturity options 45 Your contract's value in the account for special dollar cost averaging 45 Insufficient account value 45 - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 47 - -------------------------------------------------------------------------------- Transferring your account value 47 Disruptive transfer activity 47 Rebalancing your account value 48 - ---------------------- "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. 2. Contents of this Prospectus - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 50 - -------------------------------------------------------------------------------- Withdrawing your account value 50 How withdrawals are taken from your account value 52 How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits 52 How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit 53 Withdrawals treated as surrenders 53 Loans under Rollover TSA contracts 53 Surrendering your contract to receive its cash value 54 When to expect payments 54 Your annuity payout options 54 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 57 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 57 Charges that the Trusts deduct 61 Group or sponsored arrangements 61 Other distribution arrangements 61 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 62 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 62 Beneficiary continuation option 64 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 67 - -------------------------------------------------------------------------------- Overview 67 Buying a contract to fund a retirement arrangement 67 Transfers among investment options 67 Taxation of nonqualified annuities 67 Individual retirement arrangements (IRAs) 69 Tax-Sheltered Annuity contracts (TSAs) 79 Federal and state income tax withholding and information reporting 83 Special rules for contracts funding qualified plans 84 Impact of taxes to AXA Equitable 84 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 85 - -------------------------------------------------------------------------------- About our Separate Account No. 49 85 About the Trusts 85 About our fixed maturity options 85 About the general account 86 About other methods of payment 87 Dates and prices at which contract events occur 87 About your voting rights 88 About legal proceedings 88 Financial statements 89 Transfers of ownership, collateral assignments, loans and borrowing 89 About Custodial IRAs 89 Distribution of the contracts 89 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 92 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Enhanced death benefit example D-1 V -- Hypothetical illustrations E-1 VI -- Earnings enhancement benefit example F-1 VII -- State contract availability and/or variations of certain features and benefits G-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page in Term Prospectus 3% Roll-Up to age 85 33 6% Roll-Up to age 85 33 6-1/2% Roll-Up to age 85 33 account value 45 administrative charge 15 annual administrative charge 57 Annual Ratchet 40 Annual Ratchet to age 85 enhanced death benefit 32 annuitant 19 annuitization 54 annuity maturity date 56 annuity payout options 54 annuity purchase factors 34 automatic annual reset program 33 automatic customized reset program 33 automatic investment program 87 AXA Allocation portfolios cover beneficiary 62 Beneficiary continuation option ("BCO") 64 business day 87 cash value 45 charges for state premium and other applicable taxes 60 contract date 22 contract date anniversary 22 contract year 22 contributions to Roth IRAs 75 regular contributions 76 rollovers and direct transfers 76 conversion contributions 76 contributions to traditional IRAs 70 regular contributions 70 rollovers and transfers 71 disability, terminal illness or confinement to nursing home 58 disruptive transfer activity 47 distribution charge 57 Earnings enhancement benefit 38 Earnings enhancement benefit charge 60 EQAccess 7 ERISA 61 fixed-dollar option 31 fixed maturity options 29 free look 44 free withdrawal amount 58 general account 86 general dollar cost averaging 31 guaranteed interest option 29 Guaranteed minimum death benefit 37 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 32 Guaranteed minimum income benefit and the Roll-Up benefit base reset option 32 Guaranteed minimum income benefit 34 Guaranteed minimum income benefit charge 60 Guaranteed minimum income benefit "no lapse guarantee" 35 Guaranteed withdrawal benefit for life ("GWBL") 38 Guaranteed withdrawal benefit for life charge 38 GWBL benefit base 39 Inherited IRA cover investment options cover Investment simplifier 31 IRA cover IRS 67 lifetime required minimum distribution withdrawals 51 loan reserve account 54 loans under rollover TSA 53 market adjusted amount 29 market timing 47 market value adjustment 29 maturity dates 29 maturity value 29 Mortality and expense risks charge 57 NQ cover one-time reset option 33 partial withdrawals 39 participant 22 permitted variable investment options 23 Portfolio cover Principal guarantee benefits 42 processing office 7 QP cover rate to maturity 29 Rebalancing 32 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 30 Separate Account No. 49 85 Special dollar cost averaging 30 Spousal continuation 63 standard death benefit 32 substantially equal withdrawals 51 systematic withdrawals 51 TOPS 7 TSA cover traditional IRA cover Trusts 85 unit 45 variable investment options 23 wire transmittals and electronic applications 87 withdrawal charge 58 4 Index of key words and phrases To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract. Your financial professional can provide further explanation about your contract or supplemental materials.
- ---------------------------------------------------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - ---------------------------------------------------------------------------------------------------------------------------- fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guaranteed minimum income benefit Guaranteed Income Benefit guaranteed interest option Guaranteed Interest Account Guaranteed withdrawal benefit for life Guaranteed withdrawal benefit GWBL benefit base Guaranteed withdrawal benefit for life benefit base Guaranteed annual withdrawal Guaranteed withdrawal benefit for life Annual withdrawal amount amount Excess withdrawal Guaranteed withdrawal benefit for life Excess withdrawal - --------------------------------------------------------------------------------
Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) Elite(SM) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) Elite(SM) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - ------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) Elite(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) Elite(SM) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility for GWBL deferral bonuses and eligibility to exercise the Guaranteed minimum income benefit and/or the Roll-Up benefit base reset option. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options (not available through EQAccess); o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or the Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of your transfers. If we do not employ Who is AXA Equitable? 7 reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts (employer or plan approval required) and contracts with the Guaranteed withdrawal benefit for life ("GWBL"); (7) tax withholding elections; (8) election of the beneficiary continuation option; (9) IRA contribution recharacterizations; (10) Section 1035 exchanges; (11) direct transfer and rollovers; (12) exercise of the Guaranteed minimum income benefit; (13) requests to reset your Roll-Up benefit base by electing one of the following: one-time reset option, automatic annual reset program or automatic customized reset program; (14) requests to opt out of or back into the annual ratchet of the Guaranteed withdrawal benefit for life ("GWBL") benefit base; (15) death claims; (16) change in ownership (NQ only, if available under your contract); (17) requests for enrollment in either our Maximum payment plan or Customized payment plan under the Guaranteed withdrawal benefit for life ("GWBL"); (18) purchase by, or change of ownership to, a non natural owner; (19) requests to reset the guaranteed minimum value for contracts with a Principal guarantee benefit; and (20) requests to collaterally assign your NQ contract. WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; (3) general dollar cost averaging (including the fixed dollar and interest sweep options); and (4) special dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging (including the fixed dollar and interest sweep options); (3) special dollar cost averaging; (4) substantially equal withdrawals; (5) systematic withdrawals; and (6) the date annuity payments are to begin. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION AT LEAST 30 CALENDAR DAYS PRIOR TO YOUR CONTRACT DATE ANNIVERSARY: (1) automatic annual reset program; and (2) automatic customized reset program. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners both must sign. 8 Who is AXA Equitable? Accumulator(R) Elite(SM) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------ Professional investment Accumulator(R) Elite(SM)'s variable investment options invest in different management Portfolios managed by professional investment advisers. - ------------------------------------------------------------------------------------------------------------------------------ Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. ------------------------------------------------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ------------------------------------------------------------------------------------------------------------------------------ Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - ------------------------------------------------------------------------------------------------------------------------------ Account for special dollar Available for dollar cost averaging all or a portion of any eligible contribution cost averaging to your contract. - ------------------------------------------------------------------------------------------------------------------------------ Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. -------------------------------------------------------------------------------------------------- o No tax on transfers among investment options inside the contract. -------------------------------------------------------------------------------------------------- If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA) or to fund an employer retirement plan (QP or Qualified Plan), you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before purchasing one of these contracts, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities compared with any other investment that you may use in connection with your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during your life once income benefit you elect to annuitize the contract. - ------------------------------------------------------------------------------------------------------------------------------ Guaranteed withdrawal The Guaranteed withdrawal benefit for life option ("GWBL") guarantees that you can take benefit for life withdrawals up to a maximum amount each contract year (your "Guaranteed annual withdrawal amount") beginning at age 45 or later. Withdrawals are taken from your account value and continue during your lifetime even if your account value falls to zero (unless it is caused by a withdrawal that exceeds your Guaranteed annual withdrawal amount). - ------------------------------------------------------------------------------------------------------------------------------ Contribution amounts o Initial minimum: $10,000 o Additional minimum: $500 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ, Rollover IRA and Roth conversion IRA contracts) $1,000 (Inherited IRA contracts) $50 (IRA contracts) -------------------------------------------------------------------------------------------------- Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million ($500,000 for owners or annuitants who are age 81 and older at contract issue) under all Accumulator(R) series contracts with the same owner or annuitant. We reserve the right to limit aggregate contributions made after the first contract year to 150% of the first-year contributions. We currently impose that limitation except in certain circumstances, which are identified in "How you can purchase and contribute to your contract" in "Contract features and benefits" later in this prospectus. - ------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Elite(SM) at a glance -- key features 9
- ------------------------------------------------------------------------------------------------------------------------------ Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender o Maximum payment plan (only under contracts with GWBL) o Customized payment plan (only under contracts with GWBL) You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ------------------------------------------------------------------------------------------------------------------------------ Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(SM) payout options (described in a separate prospectus for that option) - ------------------------------------------------------------------------------------------------------------------------------ Additional features o Guaranteed minimum death benefit options o Principal guarantee benefits o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually, and annually) o Free transfers o Waiver of withdrawal charge for disability, terminal illness, confinement to a nursing home and certain other withdrawals o Earnings enhancement benefit, an optional death benefit available under certain contracts o Spousal continuation o Beneficiary continuation option o Roll-Up benefit base reset - ------------------------------------------------------------------------------------------------------------------------------ Fees and charges Please see "Fee table" later in this section for complete details. - ------------------------------------------------------------------------------------------------------------------------------ Owner and annuitant issue NQ: 0-85 ages Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85 Inherited IRA: 0-70 QP (Defined Contribution and Defined Benefit): 20-75 - ------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available in your state or at certain ages. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund within a certain number of days. Please see "Your right to cancel within a certain number of days" later in this Prospectus for additional information. Other contracts We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts, based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. 10 Accumulator(R) Elite(SM) at a glance -- key features Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay at the time that you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply.
- ---------------------------------------------------------------------------------------------- Charges we deduct from your account value at the time you request certain transactions - ---------------------------------------------------------------------------------------------- Maximum withdrawal charge as a percentage of contributions with- drawn(1) (deducted if you surrender your contract or make certain withdrawals or apply your cash value to certain payout options). 8.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $350 - ----------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses.
- --------------------------------------------------------------------------------------------------------------------- Charges we deduct from your account value on each contract date anniversary - --------------------------------------------------------------------------------------------------------------------- Maximum annual administrative charge(2) If your account value on a contract date anniversary is less than $50,000(3) $30 If your account value on a contract date anniversary is $50,000 or more $0 - --------------------------------------------------------------------------------------------------------------------- Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - --------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT ANNUAL EXPENSES: Mortality and expense risks 1.10%(4) Administrative 0.30% Distribution 0.25% ----- Total Separate account annual expenses 1.65% - --------------------------------------------------------------------------------------------------------------------- Charges we deduct from your account value each year if you elect any of the following optional benefits - --------------------------------------------------------------------------------------------------------------------- Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) Standard death benefit and GWBL Standard death benefit 0.00% Annual Ratchet to age 85 0.25% Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 0.80%(5) If you elect to reset this benefit base, if applicable, we reserve the right to increase your charge up to: 0.95% Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 0.65%(5) If you elect to reset this benefit base, if applicable, we reserve the right to increase your charge up to: 0.80% Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 0.65% GWBL Enhanced death benefit 0.30% - --------------------------------------------------------------------------------------------------------------------- Principal guarantee benefits charge (calculated as a percentage of the account value. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) - ---------------------------------------------------------------------------------------------------------------------
Fee table 11 - --------------------------------------------------------------------------------------------------------------------- 100% Principal guarantee benefit 0.50% 125% Principal guarantee benefit 0.75% - --------------------------------------------------------------------------------------------------------------------- Guaranteed minimum income benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) If you elect the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base 0.80%(5) If you elect to reset this benefit base, we reserve the right to increase your charge up to: 1.10% If you elect the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base 0.65%(5) If you elect to reset this Roll-Up benefit base, we reserve the right to increase your charge up to: 0.95% - --------------------------------------------------------------------------------------------------------------------- Earnings enhancement benefit charge (calculated as a percentage of the account value. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) 0.35% - --------------------------------------------------------------------------------------------------------------------- Guaranteed withdrawal benefit for life benefit charge (calcu- 0.60% for the Single Life option lated as a percentage of the GWBL benefit base. Deducted annually(2) 0.75% for the Joint Life option on each contract date anniversary.) If your GWBL benefit base ratchets, we reserve the right to increase your charge up to: 0.75% for the Single Life option 0.90% for the Joint Life option - --------------------------------------------------------------------------------------------------------------------- Please see "Guaranteed withdrawal benefit for life" in "Contract features and benefits" for more information about this feature, including its benefit base and the Annual Ratchet provision, and "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses," both later in this Prospectus. - --------------------------------------------------------------------------------------------------------------------- Net loan interest charge - Rollover TSA contracts only (calculated and deducted daily as a percentage of the outstanding loan amount) 2.00%(6) - ---------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio. - -------------------------------------------------------------------------------- Portfolio operating expenses expressed as an annual percentage of daily net assets - -------------------------------------------------------------------------------- Total Annual Portfolio Operating Expenses for 2007 (expenses Lowest Highest that are deducted from Portfolio assets including management ------ ------- fees, 12b-1 fees, service fees, and/or 0.63% 3.56% This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- -------------------------------------------------------------------------------- Manage- Other Portfolio Name ment Fees(8) 12b-1 Fees(9) Expenses(10) - -------------------------------------------------------------------------------- AXA Premier VIP Trust: - -------------------------------------------------------------------------------- AXA Aggressive Allocation 0.10% 0.25% 0.17% AXA Conservative Allocation 0.10% 0.25% 0.21% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% AXA Moderate Allocation 0.10% 0.25% 0.17%
- -------------------------------------------------------------------------------------------------- Acquired Net Fund Total Annual Fee Waivers Annual Fees and Expenses and/or Expenses Expenses (Before Expense (After (Underlying Expense Reimburse- Expense Portfolio Name Portfolios)(11) Limitations) ments(12) Limitations) - -------------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - -------------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.82% 1.34% (0.17)% 1.17% - --------------------------------------------------------------------------------------------------
12 Fee table
- --------------------------------------------------------------------------------------------- Manage- Other Portfolio Name ment Fees(8) 12b-1 Fees(9) Expenses(10) - --------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - --------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - --------------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% - ---------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------- Acquired Net Fund Total Annual Fee Waivers Annual Fees and Expenses and/or Expenses Expenses (Before Expense (After (Underlying Expense Reimburse- Expense Portfolio Name Portfolios)(11) Limitations) ments(12) Limitations) - ----------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - ----------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - ----------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ----------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(13) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% - -----------------------------------------------------------------------------------------------------------------
Fee table 13
- ---------------------------------------------------------------------------------------- Manage- Other Portfolio Name ment Fees(8) 12b-1 Fees(9) Expenses(10) - ---------------------------------------------------------------------------------------- EQ Advisors Trust: - ---------------------------------------------------------------------------------------- EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% - ----------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------- Acquired Net Fund Total Annual Fee Waivers Annual Fees and Expenses and/or Expenses Expenses (Before Expense (After (Underlying Expense Reimburse- Expense Portfolio Name Portfolios)(11) Limitations) ments(12) Limitations) - -------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - -------------------------------------------------------------------------------------------------------- EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate -- 1.36% (0.10)% 1.26% - --------------------------------------------------------------------------------------------------------
Notes: (1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal amount, if applicable. The withdrawal charge percentage we use is determined Contract by the contract year in which you make the withdrawal Year or surrender your contract. For each contribution, 1...........8.00% we consider the contract year in which we receive that 2...........7.00% contribution to be "contract year 1" 3...........6.00% 4...........5.00% 5+..........0.00% (2) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. (3) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, if applicable, the charge is $30 for each contract year. (4) These charges compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. (5) We reserve the right to increase this charge if you elect to reset your Roll-Up benefit base on any contract date anniversary. See both "Guaranteed minimum death benefit charge" and "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. (6) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (7) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (8) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (12) and (13) for any expense limitation agreement information. (9) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. (10) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (12) and (13) for any expense limitation agreement information. (11) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (12) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A"--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the Prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: ---------------------------------------------- Portfolio Name ---------------------------------------------- Multimanager Aggressive Equity 0.97% ---------------------------------------------- Multimanager Health Care 1.67% ---------------------------------------------- Multimanager Large Cap Core Equity 1.34% ---------------------------------------------- Multimanager Large Cap Growth 1.29% ---------------------------------------------- Multimanager Large Cap Value 1.26% ---------------------------------------------- Multimanager Mid Cap Growth 1.52% ---------------------------------------------- 14 Fee table --------------------------------------------- Portfolio Name --------------------------------------------- Multimanager Mid Cap Value 1.53% --------------------------------------------- Multimanager Small Cap Growth 1.35% --------------------------------------------- Multimanager Small Cap Value 1.45% --------------------------------------------- Multimanager Technology 1.67% --------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% --------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% --------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% --------------------------------------------- EQ/AllianceBernstein Value 0.87% --------------------------------------------- EQ/Ariel Appreciation II 1.09% --------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% --------------------------------------------- EQ/Davis New York Venture 1.25% --------------------------------------------- EQ/Evergreen Omega 1.12% --------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% --------------------------------------------- EQ/GAMCO Small Company Value 1.10% --------------------------------------------- EQ/International Core PLUS 1.05% --------------------------------------------- EQ/Large Cap Core PLUS 0.83% --------------------------------------------- EQ/Large Cap Growth PLUS 0.82% --------------------------------------------- EQ/Legg Mason Value Equity 0.97% --------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% --------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% --------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% --------------------------------------------- EQ/Mid Cap Value PLUS 0.81% --------------------------------------------- EQ/Montag & Caldwell Growth 1.13% --------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% --------------------------------------------- EQ/UBS Growth and Income 1.04% --------------------------------------------- EQ/Van Kampen Comstock 0.99% --------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% --------------------------------------------- (13) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and adminis tration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the enhanced death benefit that provides for the Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 and the Earnings enhancement benefit with the Guaranteed minimum income benefit) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.006% of contract value. The fixed maturity options, guaranteed interest option and the account for special dollar cost averaging are not covered by the fee table and example. However, the annual administrative charge, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options, guaranteed interest option and the account for special dollar cost averaging. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated, and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Fee table 15
- ---------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ---------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,332.00 $ 2,227.00 $ 2,763.00 $ 5,808.00 AXA Conservative Allocation $ 1,312.00 $ 2,169.00 $ 2,671.00 $ 5,646.00 AXA Conservative-Plus Allocation $ 1,318.00 $ 2,184.00 $ 2,696.00 $ 5,689.00 AXA Moderate Allocation $ 1,322.00 $ 2,196.00 $ 2,715.00 $ 5,723.00 AXA Moderate-Plus Allocation $ 1,326.00 $ 2,209.00 $ 2,734.00 $ 5,757.00 Multimanager Aggressive Equity $ 1,290.00 $ 2,105.00 $ 2,569.00 $ 5,463.00 Multimanager Core Bond $ 1,287.00 $ 2,096.00 $ 2,554.00 $ 5,437.00 Multimanager Health Care $ 1,357.00 $ 2,299.00 $ 2,878.00 $ 6,008.00 Multimanager High Yield $ 1,287.00 $ 2,096.00 $ 2,554.00 $ 5,437.00 Multimanager International Equity $ 1,336.00 $ 2,239.00 $ 2,783.00 $ 5,841.00 Multimanager Large Cap Core Equity $ 1,323.00 $ 2,199.00 $ 2,720.00 $ 5,732.00 Multimanager Large Cap Growth $ 1,325.00 $ 2,205.00 $ 2,729.00 $ 5,749.00 Multimanager Large Cap Value $ 1,320.00 $ 2,190.00 $ 2,705.00 $ 5,706.00 Multimanager Mid Cap Growth $ 1,344.00 $ 2,260.00 $ 2,816.00 $ 5,900.00 Multimanager Mid Cap Value $ 1,343.00 $ 2,257.00 $ 2,811.00 $ 5,892.00 Multimanager Small Cap Growth $ 1,346.00 $ 2,266.00 $ 2,826.00 $ 5,917.00 Multimanager Small Cap Value $ 1,334.00 $ 2,233.00 $ 2,773.00 $ 5,825.00 Multimanager Technology $ 1,357.00 $ 2,299.00 $ 2,878.00 $ 6,008.00 - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,270.00 $ 2,047.00 $ 2,475.00 $ 5,294.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,273.00 $ 2,056.00 $ 2,490.00 $ 5,321.00 EQ/AllianceBernstein International $ 1,301.00 $ 2,136.00 $ 2,618.00 $ 5,551.00 EQ/AllianceBernstein Large Cap Growth $ 1,315.00 $ 2,178.00 $ 2,686.00 $ 5,672.00 EQ/AllianceBernstein Quality Bond $ 1,274.00 $ 2,059.00 $ 2,495.00 $ 5,330.00 EQ/AllianceBernstein Small Cap Growth $ 1,299.00 $ 2,130.00 $ 2,608.00 $ 5,533.00 EQ/AllianceBernstein Value $ 1,282.00 $ 2,081.00 $ 2,529.00 $ 5,392.00 EQ/Ariel Appreciation II $ 1,313.00 $ 2,172.00 $ 2,676.00 $ 5,655.00 EQ/AXA Rosenberg Value Long/Short Equity $ 1,555.00 $ 2,853.00 $ 3,738.00 $ 7,402.00 EQ/BlackRock Basic Value Equity $ 1,279.00 $ 2,072.00 $ 2,515.00 $ 5,366.00 EQ/BlackRock International Value $ 1,312.00 $ 2,169.00 $ 2,671.00 $ 5,646.00 EQ/Boston Advisors Equity Income $ 1,301.00 $ 2,136.00 $ 2,618.00 $ 5,551.00 EQ/Calvert Socially Responsible $ 1,300.00 $ 2,133.00 $ 2,613.00 $ 5,542.00 EQ/Capital Guardian Growth $ 1,291.00 $ 2,108.00 $ 2,574.00 $ 5,472.00 EQ/Capital Guardian Research $ 1,287.00 $ 2,096.00 $ 2,554.00 $ 5,437.00 EQ/Caywood-Scholl High Yield Bond $ 1,287.00 $ 2,096.00 $ 2,554.00 $ 5,437.00 EQ/Davis New York Venture $ 1,315.00 $ 2,178.00 $ 2,686.00 $ 5,672.00 EQ/Equity 500 Index $ 1,247.00 $ 1,980.00 $ 2,366.00 $ 5,094.00 EQ/Evergreen International Bond $ 1,299.00 $ 2,130.00 $ 2,608.00 $ 5,533.00 EQ/Evergreen Omega $ 1,302.00 $ 2,139.00 $ 2,623.00 $ 5,559.00 - ---------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- If you annuitize at the end of the If you do not surrender applicable time period and select a non-life contin- your contract at the gent period certain annuity option with less than end of the five years applicable time period - --------------------------------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years 1 year 3 years - --------------------------------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - --------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 2,227.00 $ 2,763.00 $ 5,808.00 $ 532.00 $ 1,627.00 AXA Conservative Allocation N/A $ 2,169.00 $ 2,671.00 $ 5,646.00 $ 512.00 $ 1,569.00 AXA Conservative-Plus Allocation N/A $ 2,184.00 $ 2,696.00 $ 5,689.00 $ 518.00 $ 1,584.00 AXA Moderate Allocation N/A $ 2,196.00 $ 2,715.00 $ 5,723.00 $ 522.00 $ 1,596.00 AXA Moderate-Plus Allocation N/A $ 2,209.00 $ 2,734.00 $ 5,757.00 $ 526.00 $ 1,609.00 Multimanager Aggressive Equity N/A $ 2,105.00 $ 2,569.00 $ 5,463.00 $ 490.00 $ 1,505.00 Multimanager Core Bond N/A $ 2,096.00 $ 2,554.00 $ 5,437.00 $ 487.00 $ 1,496.00 Multimanager Health Care N/A $ 2,299.00 $ 2,878.00 $ 6,008.00 $ 557.00 $ 1,699.00 Multimanager High Yield N/A $ 2,096.00 $ 2,554.00 $ 5,437.00 $ 487.00 $ 1,496.00 Multimanager International Equity N/A $ 2,239.00 $ 2,783.00 $ 5,841.00 $ 536.00 $ 1,639.00 Multimanager Large Cap Core Equity N/A $ 2,199.00 $ 2,720.00 $ 5,732.00 $ 523.00 $ 1,599.00 Multimanager Large Cap Growth N/A $ 2,205.00 $ 2,729.00 $ 5,749.00 $ 525.00 $ 1,605.00 Multimanager Large Cap Value N/A $ 2,190.00 $ 2,705.00 $ 5,706.00 $ 520.00 $ 1,590.00 Multimanager Mid Cap Growth N/A $ 2,260.00 $ 2,816.00 $ 5,900.00 $ 544.00 $ 1,660.00 Multimanager Mid Cap Value N/A $ 2,257.00 $ 2,811.00 $ 5,892.00 $ 543.00 $ 1,657.00 Multimanager Small Cap Growth N/A $ 2,266.00 $ 2,826.00 $ 5,917.00 $ 546.00 $ 1,666.00 Multimanager Small Cap Value N/A $ 2,233.00 $ 2,773.00 $ 5,825.00 $ 534.00 $ 1,633.00 Multimanager Technology N/A $ 2,299.00 $ 2,878.00 $ 6,008.00 $ 557.00 $ 1,699.00 - --------------------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 2,047.00 $ 2,475.00 $ 5,294.00 $ 470.00 $ 1,447.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 2,056.00 $ 2,490.00 $ 5,321.00 $ 473.00 $ 1,456.00 EQ/AllianceBernstein International N/A $ 2,136.00 $ 2,618.00 $ 5,551.00 $ 501.00 $ 1,536.00 EQ/AllianceBernstein Large Cap Growth N/A $ 2,178.00 $ 2,686.00 $ 5,672.00 $ 515.00 $ 1,578.00 EQ/AllianceBernstein Quality Bond N/A $ 2,059.00 $ 2,495.00 $ 5,330.00 $ 474.00 $ 1,459.00 EQ/AllianceBernstein Small Cap Growth N/A $ 2,130.00 $ 2,608.00 $ 5,533.00 $ 499.00 $ 1,530.00 EQ/AllianceBernstein Value N/A $ 2,081.00 $ 2,529.00 $ 5,392.00 $ 482.00 $ 1,481.00 EQ/Ariel Appreciation II N/A $ 2,172.00 $ 2,676.00 $ 5,655.00 $ 513.00 $ 1,572.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,853.00 $ 3,738.00 $ 7,402.00 $ 755.00 $ 2,253.00 EQ/BlackRock Basic Value Equity N/A $ 2,072.00 $ 2,515.00 $ 5,366.00 $ 479.00 $ 1,472.00 EQ/BlackRock International Value N/A $ 2,169.00 $ 2,671.00 $ 5,646.00 $ 512.00 $ 1,569.00 EQ/Boston Advisors Equity Income N/A $ 2,136.00 $ 2,618.00 $ 5,551.00 $ 501.00 $ 1,536.00 EQ/Calvert Socially Responsible N/A $ 2,133.00 $ 2,613.00 $ 5,542.00 $ 500.00 $ 1,533.00 EQ/Capital Guardian Growth N/A $ 2,108.00 $ 2,574.00 $ 5,472.00 $ 491.00 $ 1,508.00 EQ/Capital Guardian Research N/A $ 2,096.00 $ 2,554.00 $ 5,437.00 $ 487.00 $ 1,496.00 EQ/Caywood-Scholl High Yield Bond N/A $ 2,096.00 $ 2,554.00 $ 5,437.00 $ 487.00 $ 1,496.00 EQ/Davis New York Venture N/A $ 2,178.00 $ 2,686.00 $ 5,672.00 $ 515.00 $ 1,578.00 EQ/Equity 500 Index N/A $ 1,980.00 $ 2,366.00 $ 5,094.00 $ 447.00 $ 1,380.00 EQ/Evergreen International Bond N/A $ 2,130.00 $ 2,608.00 $ 5,533.00 $ 499.00 $ 1,530.00 EQ/Evergreen Omega N/A $ 2,139.00 $ 2,623.00 $ 5,559.00 $ 502.00 $ 1,539.00 - --------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period - ---------------------------------------------------------------------------- Portfolio Name 5 years 10 years - ---------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ---------------------------------------------------------------------------- AXA Aggressive Allocation $ 2,763.00 $ 5,808.00 AXA Conservative Allocation $ 2,671.00 $ 5,646.00 AXA Conservative-Plus Allocation $ 2,696.00 $ 5,689.00 AXA Moderate Allocation $ 2,715.00 $ 5,723.00 AXA Moderate-Plus Allocation $ 2,734.00 $ 5,757.00 Multimanager Aggressive Equity $ 2,569.00 $ 5,463.00 Multimanager Core Bond $ 2,554.00 $ 5,437.00 Multimanager Health Care $ 2,878.00 $ 6,008.00 Multimanager High Yield $ 2,554.00 $ 5,437.00 Multimanager International Equity $ 2,783.00 $ 5,841.00 Multimanager Large Cap Core Equity $ 2,720.00 $ 5,732.00 Multimanager Large Cap Growth $ 2,729.00 $ 5,749.00 Multimanager Large Cap Value $ 2,705.00 $ 5,706.00 Multimanager Mid Cap Growth $ 2,816.00 $ 5,900.00 Multimanager Mid Cap Value $ 2,811.00 $ 5,892.00 Multimanager Small Cap Growth $ 2,826.00 $ 5,917.00 Multimanager Small Cap Value $ 2,773.00 $ 5,825.00 Multimanager Technology $ 2,878.00 $ 6,008.00 - ---------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 2,475.00 $ 5,294.00 EQ/AllianceBernstein Intermediate Government Securities $ 2,490.00 $ 5,321.00 EQ/AllianceBernstein International $ 2,618.00 $ 5,551.00 EQ/AllianceBernstein Large Cap Growth $ 2,686.00 $ 5,672.00 EQ/AllianceBernstein Quality Bond $ 2,495.00 $ 5,330.00 EQ/AllianceBernstein Small Cap Growth $ 2,608.00 $ 5,533.00 EQ/AllianceBernstein Value $ 2,529.00 $ 5,392.00 EQ/Ariel Appreciation II $ 2,676.00 $ 5,655.00 EQ/AXA Rosenberg Value Long/Short Equity $ 3,738.00 $ 7,402.00 EQ/BlackRock Basic Value Equity $ 2,515.00 $ 5,366.00 EQ/BlackRock International Value $ 2,671.00 $ 5,646.00 EQ/Boston Advisors Equity Income $ 2,618.00 $ 5,551.00 EQ/Calvert Socially Responsible $ 2,613.00 $ 5,542.00 EQ/Capital Guardian Growth $ 2,574.00 $ 5,472.00 EQ/Capital Guardian Research $ 2,554.00 $ 5,437.00 EQ/Caywood-Scholl High Yield Bond $ 2,554.00 $ 5,437.00 EQ/Davis New York Venture $ 2,686.00 $ 5,672.00 EQ/Equity 500 Index $ 2,366.00 $ 5,094.00 EQ/Evergreen International Bond $ 2,608.00 $ 5,533.00 EQ/Evergreen Omega $ 2,623.00 $ 5,559.00 - ----------------------------------------------------------------------------
16 Fee table
- ------------------------------------------------------------------------------------------------------ If you surrender your contract at the end of the applicable time period - ------------------------------------------------------------------------------------------------------ Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap $ 1,292.00 $ 2,111.00 $ 2,579.00 $ 5,481.00 EQ/Franklin Income $ 1,318.00 $ 2,184.00 $ 2,696.00 $ 5,689.00 EQ/Franklin Small Cap Value $ 1,321.00 $ 2,193.00 $ 2,710.00 $ 5,715.00 EQ/Franklin Templeton Founding Strategy $ 1,346.00 $ 2,266.00 $ 2,826.00 $ 5,917.00 EQ/GAMCO Mergers and Acquisitions $ 1,322.00 $ 2,196.00 $ 2,715.00 $ 5,723.00 EQ/GAMCO Small Company Value $ 1,300.00 $ 2,133.00 $ 2,613.00 $ 5,542.00 EQ/International Core PLUS $ 1,306.00 $ 2,151.00 $ 2,642.00 $ 5,594.00 EQ/International Growth $ 1,325.00 $ 2,205.00 $ 2,729.00 $ 5,749.00 EQ/JPMorgan Core Bond $ 1,266.00 $ 2,035.00 $ 2,455.00 $ 5,258.00 EQ/JPMorgan Value Opportunities $ 1,285.00 $ 2,090.00 $ 2,544.00 $ 5,419.00 EQ/Large Cap Core PLUS $ 1,288.00 $ 2,099.00 $ 2,559.00 $ 5,445.00 EQ/Large Cap Growth PLUS $ 1,287.00 $ 2,096.00 $ 2,554.00 $ 5,437.00 EQ/Legg Mason Value Equity $ 1,293.00 $ 2,114.00 $ 2,583.00 $ 5,489.00 EQ/Long Term Bond $ 1,263.00 $ 2,026.00 $ 2,440.00 $ 5,231.00 EQ/Lord Abbett Growth and Income $ 1,292.00 $ 2,111.00 $ 2,579.00 $ 5,481.00 EQ/Lord Abbett Large Cap Core $ 1,298.00 $ 2,127.00 $ 2,603.00 $ 5,525.00 EQ/Lord Abbett Mid Cap Value $ 1,297.00 $ 2,123.00 $ 2,598.00 $ 5,516.00 EQ/Marsico Focus $ 1,310.00 $ 2,163.00 $ 2,662.00 $ 5,629.00 EQ/Mid Cap Value PLUS $ 1,292.00 $ 2,111.00 $ 2,579.00 $ 5,481.00 EQ/Money Market $ 1,255.00 $ 2,001.00 $ 2,401.00 $ 5,158.00 EQ/Montag & Caldwell Growth $ 1,302.00 $ 2,139.00 $ 2,623.00 $ 5,559.00 EQ/Mutual Shares $ 1,324.00 $ 2,202.00 $ 2,725.00 $ 5,740.00 EQ/Oppenheimer Global $ 1,362.00 $ 2,311.00 $ 2,897.00 $ 6,040.00 EQ/Oppenheimer Main Street Opportunity $ 1,345.00 $ 2,263.00 $ 2,821.00 $ 5,908.00 EQ/Oppenheimer Main Street Small Cap $ 1,353.00 $ 2,287.00 $ 2,859.00 $ 5,975.00 EQ/PIMCO Real Return $ 1,280.00 $ 2,075.00 $ 2,520.00 $ 5,375.00 EQ/Short Duration Bond $ 1,268.00 $ 2,041.00 $ 2,465.00 $ 5,276.00 EQ/Small Company Index $ 1,248.00 $ 1,983.00 $ 2,371.00 $ 5,103.00 EQ/T. Rowe Price Growth Stock $ 1,305.00 $ 2,148.00 $ 2,637.00 $ 5,585.00 EQ/Templeton Growth $ 1,328.00 $ 2,215.00 $ 2,744.00 $ 5,774.00 EQ/UBS Growth and Income $ 1,303.00 $ 2,142.00 $ 2,627.00 $ 5,568.00 EQ/Van Kampen Comstock $ 1,291.00 $ 2,108.00 $ 2,574.00 $ 5,472.00 EQ/Van Kampen Emerging Markets Equity $ 1,353.00 $ 2,287.00 $ 2,859.00 $ 5,975.00 EQ/Van Kampen Mid Cap Growth $ 1,297.00 $ 2,123.00 $ 2,598.00 $ 5,516.00 EQ/Van Kampen Real Estate $ 1,324.00 $ 2,202.00 $ 2,725.00 $ 5,740.00 - ------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------- If you annuitize at the end of the If you do not surrender applicable time period and select a non-life contin- your contract at the end gent period certain annuity option with less than five of the applicable years time period - ----------------------------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years 1 year 3 years - ----------------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap N/A $ 2,111.00 $ 2,579.00 $ 5,481.00 $ 492.00 $ 1,511.00 EQ/Franklin Income N/A $ 2,184.00 $ 2,696.00 $ 5,689.00 $ 518.00 $ 1,584.00 EQ/Franklin Small Cap Value N/A $ 2,193.00 $ 2,710.00 $ 5,715.00 $ 521.00 $ 1,593.00 EQ/Franklin Templeton Founding Strategy N/A $ 2,266.00 $ 2,826.00 $ 5,917.00 $ 546.00 $ 1,666.00 EQ/GAMCO Mergers and Acquisitions N/A $ 2,196.00 $ 2,715.00 $ 5,723.00 $ 522.00 $ 1,596.00 EQ/GAMCO Small Company Value N/A $ 2,133.00 $ 2,613.00 $ 5,542.00 $ 500.00 $ 1,533.00 EQ/International Core PLUS N/A $ 2,151.00 $ 2,642.00 $ 5,594.00 $ 506.00 $ 1,551.00 EQ/International Growth N/A $ 2,205.00 $ 2,729.00 $ 5,749.00 $ 525.00 $ 1,605.00 EQ/JPMorgan Core Bond N/A $ 2,035.00 $ 2,455.00 $ 5,258.00 $ 466.00 $ 1,435.00 EQ/JPMorgan Value Opportunities N/A $ 2,090.00 $ 2,544.00 $ 5,419.00 $ 485.00 $ 1,490.00 EQ/Large Cap Core PLUS N/A $ 2,099.00 $ 2,559.00 $ 5,445.00 $ 488.00 $ 1,499.00 EQ/Large Cap Growth PLUS N/A $ 2,096.00 $ 2,554.00 $ 5,437.00 $ 487.00 $ 1,496.00 EQ/Legg Mason Value Equity N/A $ 2,114.00 $ 2,583.00 $ 5,489.00 $ 493.00 $ 1,514.00 EQ/Long Term Bond N/A $ 2,026.00 $ 2,440.00 $ 5,231.00 $ 463.00 $ 1,426.00 EQ/Lord Abbett Growth and Income N/A $ 2,111.00 $ 2,579.00 $ 5,481.00 $ 492.00 $ 1,511.00 EQ/Lord Abbett Large Cap Core N/A $ 2,127.00 $ 2,603.00 $ 5,525.00 $ 498.00 $ 1,527.00 EQ/Lord Abbett Mid Cap Value N/A $ 2,123.00 $ 2,598.00 $ 5,516.00 $ 497.00 $ 1,523.00 EQ/Marsico Focus N/A $ 2,163.00 $ 2,662.00 $ 5,629.00 $ 510.00 $ 1,563.00 EQ/Mid Cap Value PLUS N/A $ 2,111.00 $ 2,579.00 $ 5,481.00 $ 492.00 $ 1,511.00 EQ/Money Market N/A $ 2,001.00 $ 2,401.00 $ 5,158.00 $ 455.00 $ 1,401.00 EQ/Montag & Caldwell Growth N/A $ 2,139.00 $ 2,623.00 $ 5,559.00 $ 502.00 $ 1,539.00 EQ/Mutual Shares N/A $ 2,202.00 $ 2,725.00 $ 5,740.00 $ 524.00 $ 1,602.00 EQ/Oppenheimer Global N/A $ 2,311.00 $ 2,897.00 $ 6,040.00 $ 562.00 $ 1,711.00 EQ/Oppenheimer Main Street Opportunity N/A $ 2,263.00 $ 2,821.00 $ 5,908.00 $ 545.00 $ 1,663.00 EQ/Oppenheimer Main Street Small Cap N/A $ 2,287.00 $ 2,859.00 $ 5,975.00 $ 553.00 $ 1,687.00 EQ/PIMCO Real Return N/A $ 2,075.00 $ 2,520.00 $ 5,375.00 $ 480.00 $ 1,475.00 EQ/Short Duration Bond N/A $ 2,041.00 $ 2,465.00 $ 5,276.00 $ 468.00 $ 1,441.00 EQ/Small Company Index N/A $ 1,983.00 $ 2,371.00 $ 5,103.00 $ 448.00 $ 1,383.00 EQ/T. Rowe Price Growth Stock N/A $ 2,148.00 $ 2,637.00 $ 5,585.00 $ 505.00 $ 1,548.00 EQ/Templeton Growth N/A $ 2,215.00 $ 2,744.00 $ 5,774.00 $ 528.00 $ 1,615.00 EQ/UBS Growth and Income N/A $ 2,142.00 $ 2,627.00 $ 5,568.00 $ 503.00 $ 1,542.00 EQ/Van Kampen Comstock N/A $ 2,108.00 $ 2,574.00 $ 5,472.00 $ 491.00 $ 1,508.00 EQ/Van Kampen Emerging Markets Equity N/A $ 2,287.00 $ 2,859.00 $ 5,975.00 $ 553.00 $ 1,687.00 EQ/Van Kampen Mid Cap Growth N/A $ 2,123.00 $ 2,598.00 $ 5,516.00 $ 497.00 $ 1,523.00 EQ/Van Kampen Real Estate N/A $ 2,202.00 $ 2,725.00 $ 5,740.00 $ 524.00 $ 1,602.00 - ----------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------ If you do not surrender your contract at applicable time period - ------------------------------------------------------------------------ Portfolio Name 5 years 10 years - ------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------ EQ/FI Mid Cap $ 2,579.00 $ 5,481.00 EQ/Franklin Income $ 2,696.00 $ 5,689.00 EQ/Franklin Small Cap Value $ 2,710.00 $ 5,715.00 EQ/Franklin Templeton Founding Strategy $ 2,826.00 $ 5,917.00 EQ/GAMCO Mergers and Acquisitions $ 2,715.00 $ 5,723.00 EQ/GAMCO Small Company Value $ 2,613.00 $ 5,542.00 EQ/International Core PLUS $ 2,642.00 $ 5,594.00 EQ/International Growth $ 2,729.00 $ 5,749.00 EQ/JPMorgan Core Bond $ 2,455.00 $ 5,258.00 EQ/JPMorgan Value Opportunities $ 2,544.00 $ 5,419.00 EQ/Large Cap Core PLUS $ 2,559.00 $ 5,445.00 EQ/Large Cap Growth PLUS $ 2,554.00 $ 5,437.00 EQ/Legg Mason Value Equity $ 2,583.00 $ 5,489.00 EQ/Long Term Bond $ 2,440.00 $ 5,231.00 EQ/Lord Abbett Growth and Income $ 2,579.00 $ 5,481.00 EQ/Lord Abbett Large Cap Core $ 2,603.00 $ 5,525.00 EQ/Lord Abbett Mid Cap Value $ 2,598.00 $ 5,516.00 EQ/Marsico Focus $ 2,662.00 $ 5,629.00 EQ/Mid Cap Value PLUS $ 2,579.00 $ 5,481.00 EQ/Money Market $ 2,401.00 $ 5,158.00 EQ/Montag & Caldwell Growth $ 2,623.00 $ 5,559.00 EQ/Mutual Shares $ 2,725.00 $ 5,740.00 EQ/Oppenheimer Global $ 2,897.00 $ 6,040.00 EQ/Oppenheimer Main Street Opportunity $ 2,821.00 $ 5,908.00 EQ/Oppenheimer Main Street Small Cap $ 2,859.00 $ 5,975.00 EQ/PIMCO Real Return $ 2,520.00 $ 5,375.00 EQ/Short Duration Bond $ 2,465.00 $ 5,276.00 EQ/Small Company Index $ 2,371.00 $ 5,103.00 EQ/T. Rowe Price Growth Stock $ 2,637.00 $ 5,585.00 EQ/Templeton Growth $ 2,744.00 $ 5,774.00 EQ/UBS Growth and Income $ 2,627.00 $ 5,568.00 EQ/Van Kampen Comstock $ 2,574.00 $ 5,472.00 EQ/Van Kampen Emerging Markets Equity $ 2,859.00 $ 5,975.00 EQ/Van Kampen Mid Cap Growth $ 2,598.00 $ 5,516.00 EQ/Van Kampen Real Estate $ 2,725.00 $ 5,740.00 - ------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix V at the end of this Prospectus. Fee table 17 CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. 18 Fee table 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT You may purchase a contract by making payments to us that we call "contributions." We require a minimum initial contribution of $10,000 for you to purchase a contract. You may make additional contributions of: (i) at least $500 each for NQ, QP and Rollover TSA contracts; (ii) $50 each for Rollover IRA and Roth conversion IRA contracts; and (iii) $1,000 for Inherited IRA contracts, subject to limitations noted below. The following table summarizes our rules regarding contributions to your contract. In some states, our rules may vary. Both the owner and the annuitant named in the contract must meet the issue age requirements shown in the table and contributions are based on the age of the older of the original owner and annuitant. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000 ($500,000 for owners or annuitants who are age 81 and older at contract issue). We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first year contributions. We currently impose that limitation, except that we permit contributions greater than the 150% limit if both: (i) the owner (or joint owner or joint annuitant, if applicable) is 75 or younger; and (ii) the total contributions in any year after the 150% limit is reached do not exceed 100% of the prior year's contributions. We may accept less than the minimum initial contribution under a contract if an aggregate amount of contracts purchased at the same time by an individual (including spouse) meets the minimum. - -------------------------------------------------------------------------------- The "owner" is the person who is the named owner in the contract and, if an individual, is the measuring life for determining contract benefits. The "annuitant" is the person who is the measuring life for determining the contract's maturity date. The annuitant is not necessarily the contract owner. Where the owner of a contract is non-natural, the annuitant is the measuring life for determining contract benefits. - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ Available for owner and Contract annuitant Minimum Limitations on type issue ages contributions Source of contributions contributions+ - ------------------------------------------------------------------------------------------------------------------------------------ NQ 0 through 85 o $10,000 (initial) o After-tax money. o No additional contributions may o $500 (additional) be made after attainment of age o $100 monthly and $300 o Paid to us by check or transfer of 86, or if later, the first quarterly under our auto- contract value in a tax-deferred contract date anniversary* matic investment exchange under Section 1035 of program (additional) the Internal Revenue Code. - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 19
- ------------------------------------------------------------------------------------------------------------------------------------ Available for owner and annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions+ - ------------------------------------------------------------------------------------------------------------------------------------ Rollover IRA 20 through 85 o $10,000 (initial) o Eligible rollover distributions o No rollover or direct transfer o $50 (additional) from 403(b) plans, qualified contributions may be made o $100 monthly and $300 plans, and governmental employer after attainment of age 86, or quarterly under our auto- 457(b) plans. if later, the first contract matic investment date anniversary.* program (additional) o Rollovers from another tradi- (subject to tax maximums) tional individual retirement o Contributions after age 70-1/2 arrangement. must be net of required minimum distributions. o Direct custodian-to-custodian transfers from another o Although we accept regular IRA traditional individual $5,000), contributions retirement arrangement. (limited to under the Rollover IRA contracts, we intend that o Regular IRA contributions. this contract be used primarily for rollover and o Additional catch-up direct transfer contributions. contributions. o Additional catch-up contributions of up to $1,000 per calendar year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made - ------------------------------------------------------------------------------------------------------------------------------------ Roth Conversion 20 through 85 o $10,000 (initial) o Rollovers from another o No additional rollover or IRA o $50 (additional) Roth IRA. direct transfer contributions o $100 monthly and $300 may be made after attainment quarterly under our auto- o Rollovers from a "designated of age 86, or if later, the matic investment Roth contribution account" under first contract date program (additional) a 401(k) plan or 403(b) plan. anniversary.* (subject to tax maximums) o Conversion rollovers from a o Conversion rollovers after traditional IRA or other age 70-1/2 must be net of eligible retirement plan. required minimum distributions for the traditional IRA or o Direct transfers from another other eligible retirement plan Roth IRA. which is the source of the conversion rollover. o Regular Roth IRA contributions. o You cannot roll over funds o Additional catch-up contribu- from a traditional IRA or tions. other eligible retirement plan if your adjusted gross income is $100,000 or more. o Although we accept regular Roth IRA contributions (limited to $5,000) under the Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contributions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribution is made. - ------------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits - -------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions - -------------------------------------------------------------------------------- Inherited IRA 0 through 70 o $10,000 (initial) Beneficiary Con- tinuation Contract o $1,000 (additional) (traditional IRA or Roth IRA) - -------------------------------------------------------------------------------- Rollover TSA** 20 through 85 o $10,000 (initial) o $500 (additional) - -------------------------------------------------------------------------------- QP 20 through 75 o $10,000 (initial) o $500 (additional) - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------ Contract type Source of contributions Limitations on contributions+ - ------------------------------------------------------------------------------------------------------------------ Inherited IRA o Direct custodian-to-custodian o Any additional contributions must Beneficiary Con- transfers of your interest as a be from the same type of IRA of tinuation Contract death beneficiary of the deceased the same deceased owner. (traditional IRA or owner's traditional individual Roth IRA) retirement arrangement or Roth o Non-spousal beneficiary direct IRA to an IRA of the same type. rollover contributions from qual- ified plans, 403(b) plans and governmental employer 457(b) plans may be made to a tradi- tional inherited IRA contract under specified circumstances. - ------------------------------------------------------------------------------------------------------------------ Rollover TSA** o With documentation of employer o No additional rollover or direct or plan approval, and limited to transfer contributions may be pre-tax funds, direct plan-to-plan made after attainment of age 86, transfers from another 403(b) or if later, the first contract date plan or contract exchanges from anniversary.* another 403(b) contract under the same plan. o Contributions after age 70-1/2 must o With documentation of employer be net of any required minimum or plan approval, and limited to distributions. pre-tax funds, eligible rollover distributions from other 403(b) o We do not accept employer- plans, qualified plans, govern- remitted contributions. mental employer 457(b) plans or traditional IRAs. o We do not accept after tax contri- butions, including designated Roth contributions. - ------------------------------------------------------------------------------------------------------------------ QP o Only transfer contributions from o A separate QP contract must be other investments within an established for each plan participant. existing defined qualified plan trust. o We do not accept regular ongoing payroll contributions or contribu- o The plan must be qualified under tions directly from the employer. Section 401(a) of the Internal Revenue Code. o Only one additional transfer con- tribution may be made during a o For 401(k) plans, transferred contract year. contributions may not include any after-tax contributions, o No additional transfer contribu- including designated Roth contri- tions after participant's butions. attainment of age 76 or, if later, the first contract date anniversary. o Contributions after age 70-1/2 must be net of any required minimum distribution. Please refer to Appendix II at the end of this Prospectus for a discussion of QP contracts. - ------------------------------------------------------------------------------------------------------------------
+ Additional contributions may not be permitted under certain conditions in your state. Please see Appendix VII later in the Prospectus to see if additional contributions are permitted in your state. If you are participating in a Principal guarantee benefit, contributions will only be permitted for the first six months after the contract is issued and no further contributions will be permitted for the life of the contract. For the Guaranteed withdrawal benefit for life option, additional contributions are not permitted after the later of: (i) the end of the first contract year, and (ii) the date you make your first withdrawal. * Please see Appendix VII later in this Prospectus for information on state variations. * ** May not be available from all Selling broker-dealers. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. Contract features and benefits 21 OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. For the Spousal continuation feature to apply, the spouses must either be joint owners, or, for Single life contracts, the surviving spouse must be the sole primary beneficiary. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. In general, we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your state. For NQ contracts (with a single owner, joint owners or a non-natural owner) purchased through an exchange that is not taxable under Section 1035 of the Internal Revenue Code, we permit joint annuitants. We also permit joint annuitants in non-exchange sales if you elect the Guaranteed withdrawal benefit for life on a Joint life basis, and the contract is owned by a non-natural owner. In all cases, the joint annuitants must be spouses. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. See "Inherited IRA beneficiary continuation contract" later in this section for Inherited IRA owner and annuitant requirements. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II at the end of this Prospectus for more information on QP contracts. Certain benefits under your contract, as described later in this Prospectus, are based on the age of the owner. If the owner of the contract is not a natural person, these benefits will be based on the age of the annuitant. Under QP contracts, all benefits are based on the age of the annuitant. In this Prospectus, when we use the terms owner and joint owner, we intend these to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If GWBL is elected, the terms owner and Successor Owner are intended to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If the contract is jointly owned or is issued to a non-natural owner and the GWBL has not been elected, benefits are based on the age of the older joint owner or older joint annuitant, as applicable. PURCHASE CONSIDERATIONS FOR A CHARITABLE REMAINDER TRUST If you are purchasing this contract to fund a charitable remainder trust and elect either the Guaranteed minimum income benefit ("GMIB") or the Guaranteed withdrawal benefit for life ("GWBL"), or an enhanced death benefit, you should strongly consider "split-funding": that is the trust holds investments in addition to this Accumulator(R) Elite(SM) contract. Charitable remainder trusts, are required to take specific distributions. The charitable remainder trust annual withdrawal requirement may be equal to a percentage of the donated amount or a percentage of the current value of the donated amount. If your Accumulator(R) Elite(SM) contract is the only source for such distributions, the payments you need to take may significantly reduce the value of those guaranteed benefits. Such amount may be greater than the annual increase in the GMIB, GWBL and/or the enhanced death benefit base and/or greater than the Guaranteed annual withdrawal amount under GWBL. See the discussion of these benefits later in this section. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept initial and additional contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealer. Additional contributions may also be made under our automatic investment program. These methods of payment, are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- Your initial contribution must generally be accompanied by an application and any other form we need to process the payments. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain that information. If we are unable to obtain all of the information we require within five business days after we receive an incomplete application or form, we will inform the financial professional submitting the application on your behalf. We will then return the contribution to you unless you specifically direct us to 22 Contract features and benefits keep your contribution until we receive the required information. The contribution will be applied as of the date we receive the missing information. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option, the fixed maturity options and the account for special dollar cost averaging. If you elect the 100% Principal guarantee benefit, the Guaranteed withdrawal benefit for life or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the following variable investment options: the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio ("permitted variable investment options"). If you elect the 125% Principal guarantee benefit, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the AXA Moderate Allocation Portfolio. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. Contract features and benefits 23 PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features including those optional benefits that restrict allocations to the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- -------------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. - -------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. - -------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a ALLOCATION greater emphasis on current income. - -------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. - -------------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, ALLOCATION with a greater emphasis on capital appreciation. - -------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. EQUITY - -------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital appreciation, consistent with a prudent level of risk. - -------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. - -------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current income and capital appreciation. - -------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. EQUITY - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS o AXA Equitable ALLOCATION - -------------------------------------------------------------------------------- AXA MODERATE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------- AXA MODERATE-PLUS o AXA Equitable ALLOCATION - -------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - -------------------------------------------------------------------------------- MULTIMANAGER CORE BOND o BlackRock Financial Management, Inc. o Pacific Investment Management Company LLC - -------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - -------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD o Pacific Investment Management Company LLC o Post Advisory Group, LLC - -------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - --------------------------------------------------------------------------------
24 Contract features and benefits
- --------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP o AXA Equitable - --------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - ---------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 25
- ---------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - ---------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. - ---------------------------------------------------------------------------------------- EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear LONG/SHORT EQUITY markets using strategies that are designed to limit expo- sure to general equity market risk. - ---------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, EQUITY income. - ---------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of VALUE income, accompanied by growth of capital. - ---------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to INCOME achieve an above-average and consistent total return. - ---------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. RESPONSIBLE - ---------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. - ---------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. RESEARCH - ---------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. YIELD BOND - ---------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. - ---------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ---------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. BOND - ---------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. - ---------------------------------------------------------------------------------------- EQ/FI MID CAP Seeks to achieve long-term growth of capital. - ---------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects for capital appreciation. - ---------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. - ---------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily seeks FOUNDING STRATEGY income. - ---------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. ACQUISITIONS - ---------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. VALUE - ---------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. - ---------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. - ---------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ---------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II o Ariel Capital Management, LLC - ---------------------------------------------------------------------------------------- EQ/AXA ROSENBERG VALUE o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY - ---------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE o BlackRock Investment Management, LLC EQUITY - ---------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL o BlackRock Investment Management VALUE International Limited - ---------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY o Boston Advisors, LLC INCOME - ---------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ---------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH o Capital Guardian Trust Company - ---------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company RESEARCH - ---------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH o Caywood-Scholl Capital Management YIELD BOND - ---------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE o Davis Selected Advisers, L.P. EQ/EQUITY 500 INDEX o AllianceBernstein L.P. - ---------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ---------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA o Evergreen Investment Management Company, LLC - ---------------------------------------------------------------------------------------- EQ/FI MID CAP o Fidelity Management & Research Company - ---------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME o Franklin Advisers, Inc. - ---------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE o Franklin Advisory Services, LLC - ---------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON o AXA Equitable FOUNDING STRATEGY - ---------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND o GAMCO Asset Management Inc. ACQUISITIONS - ---------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY o GAMCO Asset Management Inc. VALUE - ---------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ---------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH o MFS Investment Management - ----------------------------------------------------------------------------------------
26 Contract features and benefits
- ------------------------------------------------------------------------------------------ EQ Advisors Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------ EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with mod- erate risk to capital and maintenance of liquidity. - ------------------------------------------------------------------------------------------ EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. OPPORTUNITIES - ------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- ondary objective to seek reasonable current income. For purposes of this Portfolio, the words "reasonable current income" mean moderate income. - ------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. - ------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------ EQ/LONG TERM BOND Seeks to maximize income and capital appreciation through investment in long-maturity debt obligations. - ------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of INCOME income without excessive fluctuation in market value. - ------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of CORE income with reasonable risk. - ------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. - ------------------------------------------------------------------------------------------ EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve its assets and maintain liquidity. - ------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. GROWTH - ------------------------------------------------------------------------------------------ EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- sionally be short-term, and secondarily, income. - ------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. OPPORTUNITY - ------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. SMALL CAP - ------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with preservation of real capital and prudent investment man- agement. - ------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility of principal. - ------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the deduction of Portfolio expenses) the total return of the Russell 2000 Index. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND o JPMorgan Investment Management Inc. - -------------------------------------------------------------------------------- EQ/JPMORGAN VALUE o JPMorgan Investment Management Inc. OPPORTUNITIES - -------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS o AXA Equitable o Institutional Capital LLC o Mellon Capital Management Corporation - -------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - -------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY o Legg Mason Capital Management, Inc. - -------------------------------------------------------------------------------- EQ/LONG TERM BOND o BlackRock Financial Management, Inc. - -------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND o Lord, Abbett & Co. LLC INCOME - -------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP o Lord, Abbett & Co. LLC CORE - -------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE o Lord, Abbett & Co. LLC - -------------------------------------------------------------------------------- EQ/MARSICO FOCUS o Marsico Capital Management, LLC - -------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - -------------------------------------------------------------------------------- EQ/MONEY MARKET o The Dreyfus Corporation - -------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL o Montag & Caldwell, Inc. GROWTH - -------------------------------------------------------------------------------- EQ/MUTUAL SHARES o Franklin Mutual Advisers, LLC - -------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL o OppenheimerFunds, Inc. - -------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. OPPORTUNITY - -------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. SMALL CAP - -------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN o Pacific Investment Management Company, LLC - -------------------------------------------------------------------------------- EQ/SHORT DURATION BOND o BlackRock Financial Management, Inc. - -------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX o AllianceBernstein L.P.
Contract features and benefits 27
- ------------------------------------------------------------------------------------------ EQ Advisors Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and STOCK secondarily, income. - ------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. - ------------------------------------------------------------------------------------------ EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation with income as a secondary consideration. - ------------------------------------------------------------------------------------------ EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. - ------------------------------------------------------------------------------------------ EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. MARKETS EQUITY - ------------------------------------------------------------------------------------------ EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. GROWTH - ------------------------------------------------------------------------------------------ EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- term capital appreciation. - ------------------------------------------------------------------------------------------ - -------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH o T. Rowe Price Associates, Inc. STOCK - -------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH o Templeton Global Advisors Limited - -------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME o UBS Global Asset Management (Americas) Inc. - -------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK o Morgan Stanley Investment Management Inc. - -------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING o Morgan Stanley Investment Management Inc. MARKETS EQUITY - -------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP o Morgan Stanley Investment Management Inc. GROWTH - -------------------------------------------------------------------------------- EQ/VAN KAMPEN REAL ESTATE o Morgan Stanley Investment Management Inc. - --------------------------------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. 28 Contract features and benefits GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges, any withdrawal charges, and any optional benefit charges. See Appendix VII later in this Prospectus for state variations. Depending on the state where your contract is issued, your lifetime minimum rate ranges from 1.00% to 3.00%. The data page for your contract shows the lifetime minimum rate. Check with your financial professional as to which rate applies in your state. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75% or 3.00%, depending on your lifetime minimum rate. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfer from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional or see Appendix VII later in this Prospectus to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options range from one to ten years to maturity. - -------------------------------------------------------------------------------- On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for owner and annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you apply for an Accumulator(R) Elite(SM) contract, a 60-day rate lock-in will apply from the date the application is signed. Any contributions received and designated for a fixed maturity option during this period will receive the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever is greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed below in "Allocating your contributions," would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value (there may be a withdrawal charge). If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008 the next available maturity date was February 15, 2015. If no fixed maturity options are available we will transfer your maturity value to the EQ/Money Market Option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market Contract features and benefits 29 value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options (adjusted to reflect a similar maturity date), and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING The account for special dollar cost averaging is part of our general account. We pay interest at guaranteed rates in this account. We will credit interest to the amounts that you have in the account for special dollar cost averaging every day. We set the interest rates periodically, according to procedures that we have. We reserve the right to change these procedures. We guarantee to pay our current interest rate that is in effect on the date that your contribution is allocated to this account. Your guaranteed interest rate for the time period you select will be shown in your contract for an initial contribution. The rate will never be less than the lifetime minimum rate for the guaranteed interest option. See "Allocating your contributions" below for rules and restrictions that apply to the special dollar cost averaging program. ALLOCATING YOUR CONTRIBUTIONS You may choose between self-directed and dollar cost averaging to allocate your contributions under your contract. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, the guaranteed interest option (subject to restrictions in certain states -- see Appendix VII later in this Prospectus for state variations) and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. No more than 25% of any contribution may be allocated to the guaranteed interest option. The total of your allocations into all available investment options must equal 100%. If an owner or annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options or the guaranteed interest option. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- SPECIAL DOLLAR COST AVERAGING PROGRAM. Under the special dollar cost averaging program, you may choose to allocate all or a portion of any eligible contribution to the account for special dollar cost averaging. Contributions into the account for special dollar cost averaging may not be transfers from other investment options. Your initial allocation to any special dollar cost averaging program time period must be at 30 Contract features and benefits least $2,000 and any subsequent contribution to that same time period must be at least $250. You may only have one time period in effect at any time and once you select a time period, you may not change it. In Pennsylvania, we refer to this program as "enhanced rate dollar cost averaging." You may have your account value transferred to any of the variable investment options available under your contract. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life, the 100% Principal guarantee benefit or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. We will transfer amounts from the account for special dollar cost averaging into the variable investment options over an available time period that you select. We offer time periods of 3, 6 or 12 months during which you will receive an enhanced interest rate. We may also offer other time periods. Your financial professional can provide information on the time periods and interest rates currently available in your state, or you may contact our processing office. If the special dollar cost averaging program is selected at the time of application to purchase the Accumulator(R) Elite(SM) contract, a 60 day rate lock will apply from the date of application. Any contribution(s) received during this 60 day period will be credited with the interest rate offered on the date of application for the remainder of the time period selected at application. Any contribution(s) received after the 60 day rate lock period has ended will be credited with the then current interest rate for the remainder of the time period selected at application. Contribution(s) made to a special dollar cost averaging program selected after the Accumulator(R) Elite(SM) contract has been issued will be credited with the then current interest rate on the date the contribution is received by AXA Equitable for the time period initially selected by you. Once the time period you selected has run, you may then select another time period for future contributions. At that time, you may also select a different allocation for transfers to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, your account value will be transferred from the account for special dollar cost averaging into the variable investment options on a monthly basis. We may offer this program in the future with transfers on a different basis. We will transfer all amounts out of the account for special dollar cost averaging by the end of the chosen time period. The transfer date will be the same day of the month as the contract date, but not later than the 28th day of the month. For a special dollar cost averaging program selected after application, the first transfer date and each subsequent transfer date for the time period selected will be one month from the date the first contribution is made into the special dollar cost averaging program, but not later than the 28th day of the month. If you choose to allocate only a portion of an eligible contribution to the account for special dollar cost averaging, the remaining balance of that contribution will be allocated to the variable investment options, guaranteed interest option or fixed maturity options according to your instructions. The only transfers that will be made from the account for special dollar cost averaging are your regularly scheduled transfers to the variable investment options. No amounts may be transferred from the account for special dollar cost averaging to the guaranteed interest option or the fixed maturity options. If you request to transfer or withdraw any other amounts from the account for special dollar averaging, we will transfer all of the value that you have remaining in the account for special dollar cost averaging to the investment options according to the allocation percentages for special dollar cost averaging we have on file for you. You may ask us to cancel your participation at any time. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. If you are participating in a Principal guarantee benefit, the general dollar cost averaging program is not available. If you elect the Guaranteed withdrawal benefit for life or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, general dollar cost averaging is not available. INVESTMENT SIMPLIFIER FIXED-DOLLAR OPTION. Under this option, you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life, the 100% Principal guarantee benefit or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. Unlike the account for special dollar cost averaging, this option does not offer enhanced rates. Also, this option is subject to the guaranteed Contract features and benefits 31 interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date, your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. INTEREST SWEEP OPTION. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life, the 100% Principal guarantee benefit or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Under the Option I rebalancing program you may participate in any of the dollar cost averaging programs except general dollar cost averaging. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" immediately below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. Not all dollar cost averaging programs are available in all states (see Appendix VII later in this Prospectus for more information on state availability). GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit and the death benefits, as described in this section. The benefit base for the Guaranteed minimum income benefit and an enhanced death benefit will be calculated as described below in this section whether these options are elected individually or in combination. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 6-1/2% (OR 6%, IF APPLICABLE) ROLL-UP TO AGE 85 (USED FOR THE GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to this benefit base is: o 6-1/2% (or 6%, if applicable) with respect to the variable investment options (other than EQ/Money Market) and the account for special dollar cost averaging; the effective annual rate may be 4% in some states. Please see Appendix VII later in this Prospectus to see what applies in your state; and o 3% with respect to the EQ/Money Market, the fixed maturity options, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up on the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM 32 Contract features and benefits INCOME BENEFIT). Your benefit base is equal to the greater of either: o your initial contribution to the contract (plus any additional contributions), or o your highest account value of any contract date anniversary up to the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday plus any contributions made since the most recent Annual Ratchet, less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of the deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. GREATER OF 6-1/2% (OR 6%, IF APPLICABLE) ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6-1/2% (or 6%, as applicable) Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. For the Guaranteed minimum income benefit, the benefit base is reduced by any applicable withdrawal charge remaining when the option is exercised. For more information see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 3% ROLL-UP TO AGE 85 (USED FOR THE GREATER OF 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to the benefit base is 3%. The benefit base stops rolling up on the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday. GREATER OF 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 3% Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. GUARANTEED MINIMUM INCOME BENEFIT AND THE ROLL-UP BENEFIT BASE RESET. You will be eligible to reset your Guaranteed minimum income benefit Roll-Up benefit base on each contract date anniversary until the contract date anniversary following age 75. If you elect the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%, if applicable) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, you may reset its Roll-Up benefit base on each contract date anniversary until the contract date anniversary following age 75 AND your investment option choices will be limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. The reset amount would equal the account value as of the contract date anniversary on which you reset your Roll-Up benefit base. The Roll-Up continues to age 85 on any reset benefit base. If you elect both the Guaranteed minimum income benefit AND the Greater of 6-1/2% (or 6%, if applicable) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit (the "Greater of enhanced death benefit"), you will be eligible to reset the Roll-Up benefit base for these guaranteed benefits to equal the account value on any contract date anniversary until the contract date anniversary following age 75 and your investment options will not be restricted. If you elect both options, they are not available with different Roll-Up benefit bases: each option must include either the 6-1/2% Roll-Up or 6% Roll-Up benefit base. We will send you a notice in each year that the Roll-Up benefit base is eligible to be reset, and you will have 30 days from your contract date anniversary to reset your Roll-Up benefit base. If your request to reset your Roll-Up benefit base is received at our processing office more than 30 days after your contract date anniversary, your Roll-Up benefit base will reset on the next contract date anniversary on which you are eligible for a reset. You may choose one of the three available reset methods: one-time reset option, automatic annual reset program or automatic customized reset program. - -------------------------------------------------------------------------------- ONE-TIME RESET OPTION - resets your Roll-Up benefit base on a single contract date anniversary. AUTOMATIC ANNUAL RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary you are eligible for a reset. AUTOMATIC CUSTOMIZED RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary, if eligible, for the period you designate. - -------------------------------------------------------------------------------- If you wish to cancel your elected reset program, your request must be received by our processing office at least 30 days prior to your contract date anniversary to terminate your reset program for such contract date anniversary. Cancellation requests received after this window will be applied the following year. A reset cannot be cancelled after it has occurred. For more information, see "How to reach us" earlier in this Prospectus. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset until the next contract date anniversary. If after your death your spouse continues this contract, the benefit base will be eligible to be reset on each contract date anniversary, if applicable. The last age at which the benefit base Contract features and benefits 33 is eligible to be reset is the contract date anniversary following owner (or older joint owner, if applicable) age 75. If you elect to reset your Roll-Up benefit base on any contract date anniversary, we may increase the charge for the Guaranteed minimum income benefit and the Greater of 6-1/2% (or 6%, if applicable) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. There is no charge increase for the Annual Ratchet to age 85 enhanced death benefit. See both "Guaranteed minimum death benefit charge" and "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus for more information. It is important to note that once you have reset your Roll-Up benefit base, a new waiting period to exercise the Guaranteed minimum income benefit will apply from the date of the reset; you may not exercise until the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. See "Exercise Rules" under "Guaranteed minimum income benefit option" below for more information. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the exercise waiting period. Also, even when there is no additional charge when you reset your Roll-Up benefit base, the total dollar amount charged on future contract date anniversaries may increase as a result of the reset since the charges may be applied to a higher benefit base than would have been otherwise applied. See "Charges and expenses" in the Prospectus. If you are a traditional IRA, TSA or QP contract owner, before you reset your Roll-Up benefit base, please consider the effect of the 10-year exercise waiting period on your requirement to take lifetime required minimum distributions with respect to this contract. If you must begin taking lifetime required minimum distributions during the 10-year waiting period, you may want to consider taking the annual lifetime required minimum distribution calculated for this contract from another traditional IRA, TSA or QP contract that you maintain. If you withdraw the lifetime required minimum distribution from this contract, and the required minimum distribution is more than 6-1/2% (or 6%) of the reset benefit base, the withdrawal would cause a pro-rata reduction in the benefit base. Alternatively, resetting the benefit base to a larger amount would make it less likely that the required minimum distributions would exceed the 6-1/2% (or 6%) threshold. See "Lifetime required minimum distribution withdrawals" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money." Also, see "Required minimum distributions" under "Individual retirement arrangements (IRAs)" and "Tax-sheltered annuity contracts (TSAs)" in "Tax information" and Appendix II- "Purchase considerations for QP Contracts," later in this Prospectus. If you elect both a "Greater of" enhanced death benefit and the Guaranteed minimum income benefit, the Roll-Up benefit bases for both are reset simultaneously when you request a Roll-Up benefit base reset. You cannot elect a Roll-Up benefit base reset for one benefit and not the other. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed under "Guaranteed minimum income benefit option" below and annuity payout options are discussed in "Accessing your money" later in this Prospectus. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the owner's (and any joint owner's) age and sex in certain instances. We may provide more favorable current annuity purchase factors for the annuity payout options. GUARANTEED MINIMUM INCOME BENEFIT The Guaranteed minimum income benefit is available if the owner is age 20 through 75 at the time the contract is issued. Subject to state availability (see Appendix VII later in this Prospectus), you may elect one of the following: o The Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base. o The Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base. Both options include the ability to reset your Guaranteed minimum income benefit base on each contract date anniversary until the contract date anniversary following age 75. See "Guaranteed minimum income benefit and the Roll-Up benefit base reset" earlier in this section. If you elect the Guaranteed minimum income benefit with a "Greater of" death benefit, you can choose between one of the following two combinations: o the Greater of the 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base, or o the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base. If you elect the Guaranteed minimum income benefit without the Greater of the 6-1/2% (or 6%) Roll-Up to age 85 or the Annual ratchet to age 85 enhanced death benefit, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. If the contract is jointly owned, the guaranteed minimum income benefit will be calculated on the basis of the older owner's age. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. If you elect both the Guaranteed minimum income benefit and a "Greater of" enhanced death benefit, the Roll-Up rate you elect must be the same for both features. If you are purchasing this contract as an inherited IRA, or if you elect a Principal guarantee benefit, or the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit is not available. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split- 34 Contract features and benefits funding so that those distributions do not adversely impact your guaranteed minimum income benefit. See "Owner and annuitant requirements" earlier in this section. For IRA, QP and Rollover TSA contracts, owners over age 60 at contract issue should consider the impact of the minimum distributions required by tax law in relation to the withdrawal limitations under the Guaranteed minimum income benefit. See "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. If you elect the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the owner's age as follows: - ----------------------------------------------------- Level payments - ----------------------------------------------------- Period certain years ----------------------- Owner's age at exercise - ----------------------------------------------------- 80 and younger 10 81 9 82 8 83 7 84 6 85 5 - ----------------------------------------------------- We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit should be regarded as a safety net only. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base, less any applicable withdrawal charge remaining, to guaranteed annuity purchase factors, or (ii) the income provided by applying your account value to our then current annuity purchase factors. For Rollover TSA only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. Before you elect the Guaranteed minimum income benefit, you should consider the fact that the it provides a form of insurance and is based on conservative actuarial factors. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. GUARANTEED MINIMUM INCOME BENEFIT "NO LAPSE GUARANTEE". In general, if your account value falls to zero (except as discussed below, if your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days), the Guaranteed minimum income benefit will be exercised automatically, based on the owner's (or older joint owner's, if applicable) current age and benefit base as follows: o You will be issued a supplementary contract based on a single life with a maximum 10 year period certain. Payments will be made annually starting one year from the date the account value fell to zero. o You will have 30 days from when we notify you to change the payout option and/or the payment frequency. Please note that we will not automatically exercise the Guaranteed minimum income benefit, as described above, if you have a TSA contract and withdrawal restrictions apply. The no lapse guarantee will terminate under the following circumstances: o If your aggregate withdrawals during any contract year exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days); o Upon the contract date anniversary following the owner (or older joint owner, if applicable) reaching age 85. Please note that if you participate in our Automatic RMD service, an automatic withdrawal under that program will not cause the no lapse guarantee to terminate even if a withdrawal causes your total contract year withdrawals to exceed 6-1/2% (or 6%, if applicable) of your Roll-Up benefit base at the beginning of the contract year. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male owner age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date Contract features and benefits 35 of this Prospectus, assuming no additional contributions, withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to EQ/Money Market, the guaranteed interest option, the fixed maturity options or the loan reserve account under rollover TSA contracts. - ----------------------------------------------------------- Guaranteed minimum income Contract date benefit -- annual income anniversary at exercise payable for life - ----------------------------------------------------------- 10 $10,065 15 $15,266 - ----------------------------------------------------------- EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us, along with all required information within 30 days following your contract date anniversary, in order to exercise this benefit. Upon exercise of the Guaranteed minimum income benefit, the owner (or older joint owner) will become the annuitant, and the contract will be annuitized on the basis of the annuitant's life. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payment contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death, or if later, the end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. Eligibility to exercise the Guaranteed minimum income benefit is based on the owner's (or older joint owner's, if applicable) age as follows: o If you were at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If you were at least age 45 and no older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after age 60. o If you were at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your 85th birthday; (ii) if you were age 75 when the contract was issued, or the Roll-Up benefit base was reset, the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your attainment of age 85; (iii) for Accumulator(R) Elite(SM) QP contracts, the Plan participant can exercise the Guaranteed minimum income benefit only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) Elite(SM) QP contract into an Accumulator(R) Elite(SM) Rollover IRA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for the Plan participant to be eligible to exercise. However, if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, a rollover into an IRA will not be effected and payments will be made directly to the trustee; (iv) Since no partial exercise is permitted, owners of defined benefit QP contracts who plan to change ownership of the contract to the participant must first compare the participant's lump sum benefit amount and annuity benefit amount to the GMIB benefit amount and account value, and make a withdrawal from the contract if necessary. See "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this prospectus. (v) for Accumulator(R) Elite(SM) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Elite(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (vi) if you reset the Roll-Up benefit base (as described earlier in this section), your new exercise date will be the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the waiting period; (vii) a spouse beneficiary or younger spouse joint owner under Spousal continuation may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original owner could have exercised the benefit. In addition, the spouse beneficiary or younger spouse joint owner must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The spouse beneficiary or younger spouse joint owner's age on the date of the owner's death replaces the owner's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules; 36 Contract features and benefits (viii) if the contract is jointly owned, you can elect to have the Guaranteed minimum income benefit paid either: (a) as a joint life benefit or (b) as a single life benefit paid on the basis of the older owner's age; and (ix) if the contract is owned by a trust or other non-natural person, eligibility to elect or exercise the Guaranteed minimum income benefit is based on the annuitant's (or older joint annuitant's, if applicable) age, rather than the owner's. See "Effect of the owner's death" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. Your contract provides a standard death benefit. If you do not elect one of the enhanced death benefits described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions, adjusted for withdrawals (and any associated withdrawal charges). The standard death benefit is the only death benefit available for owners (or older joint owners, if applicable) ages 81 through 85 at issue. Once your contract is issued, you may not change or voluntarily terminate your death benefit. If you elect one of the enhanced death benefits, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, information and forms necessary to effect payment, or your elected enhanced death benefit on the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals (and associated withdrawal charges), whichever provides the higher amount. See "Payment of death benefit" later in this Prospectus for more information. Any of the enhanced death benefits (other than the Greater of 3% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit) or the standard death benefit can be elected by themselves or with the Guaranteed minimum income benefit. Each enhanced death benefit has an additional charge. There is no additional charge for the standard death benefit. If you elect one of the enhanced death benefit options described below and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, any enhanced death benefit elected will be replaced with the standard death benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Subject to state availability (see Appendix VII later in this Prospectus for state availability of these benefits), your age at contract issue, and your contract type, you may elect one of the following enhanced death benefits: Optional enhanced death benefit applicable for owner (or older joint owner, if applicable) ages 0 through 75 at issue of NQ contracts; 20 through 75 at issue of Rollover IRA, Roth Conversion IRA, and Rollover TSA contracts; 0 through 70 at issue for Inherited IRA contracts; and 20 through 75 at issue of QP contracts. o Annual Ratchet to age 85 o The Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 o The Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 Optional enhanced death benefit applicable for owner (or older joint owner, if applicable) ages 76 through 80 at issue of NQ, Rollover IRA, Roth Conversion IRA, and Rollover TSA contracts. o The Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 The Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 is not available for QP and Inherited IRA contracts. For contracts with non-natural owners, the available death benefits are based on the annuitant's age. Each enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Once you have made your enhanced death benefit election, you may not change it. As discussed earlier in this Prospectus, you can elect a "Greater of" enhanced death benefit with a corresponding Guaranteed minimum income benefit. You can elect one of the following two combinations: o the Greater of 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base, or o the Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base. If you purchase a "Greater of" enhanced death benefit with the Guaranteed minimum income benefit, you will be eligible to reset your Roll-Up benefit base on each contract date anniversary until the contract date anniversary following age 75. If you purchase a "Greater of" enhanced death benefit without the Guaranteed minimum income benefit, no reset is available. See "Guaranteed minimum income benefit and the Roll-Up benefit base reset" earlier in this section. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum Contract features and benefits 37 income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your enhanced death benefit. See "Owner and annuitant requirements" earlier in this section. See Appendix IV later in this Prospectus for an example of how we calculate an enhanced death benefit. Earnings enhancement benefit Subject to state and contract availability (see Appendix VII later in this Prospectus for state availability of these benefits), if you are purchasing a contract, under which the Earnings enhancement benefit is available, you may elect the Earnings enhancement benefit at the time you purchase your contract, if the owner is age 75 or younger. The Earnings enhancement benefit provides an additional death benefit as described below. See the appropriate part of "Tax information" later in this Prospectus for the potential tax consequences of electing to purchase the Earnings enhancement benefit in an NQ, IRA or Rollover TSA contract. Once you purchase the Earnings enhancement benefit, you may not voluntarily terminate this feature. If you elect the Guaranteed withdrawal benefit for life, the Earnings enhancement benefit is not available. If you elect the Earnings enhancement benefit described below and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the owner (or older joint owner, if applicable) is 70 or younger when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is 70 or younger when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 40% of: the greater of: o the account value or o any applicable death benefit Decreased by: o total net contributions. For purposes of calculating your Earnings enhancement benefit, the following applies: (i) "Net contributions" are the total contributions made (or if applicable, the total amount that would otherwise have been paid as a death benefit had the spouse beneficiary or younger spouse joint owner not continued the contract plus any subsequent contributions) adjusted for each withdrawal that exceeds your Earnings enhancement benefit earnings. "Net contributions" are reduced by the amount of that excess. Earnings enhancement benefit earnings are equal to (a) minus (b) where (a) is the greater of the account value and the death benefit immediately prior to the withdrawal, and (b) is the net contributions as adjusted by any prior withdrawals; and (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable Guaranteed minimum death benefit as of the date of death. If the owner (or older joint owner, if applicable) is age 71 through 75 when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is between the ages of 71 and 75 when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 25% of: the greater of: o the account value or o any applicable death benefit Decreased by: o total net contributions. The value of the Earnings enhancement benefit is frozen on the first contract date anniversary after the owner (or older joint owner, if applicable) turns age 80, except that the benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce the benefit by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If the benefit is $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and the benefit after the withdrawal would be $24,000 ($40,000 - $16,000). For an example of how the Earnings enhancement benefit death benefit is calculated, please see Appendix VI. For contracts continued under Spousal continuation, upon the death of the spouse (or older spouse, in the case of jointly owned contracts), the account value will be increased by the value of the Earnings enhancement benefit as of the date we receive due proof of death. The benefit will then be based on the age of the surviving spouse as of the date of the deceased spouse's death for the remainder of the contract. If the surviving spouse is age 76 or older, the benefit will terminate and the charge will no longer be in effect. The spouse may also take the death benefit (increased by the Earnings enhancement benefit) in a lump sum. See "Spousal continuation" in "Payment of death benefit" later in this Prospectus for more information. The Earnings enhancement benefit must be elected when the contract is first issued: neither the owner nor the successor owner can add it subsequently. Ask your financial professional or see Appendix VII later in this Prospectus to see if this feature is available in your state. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL") For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL") guarantees that you can take withdrawals up to a maximum amount per year (your "Guaranteed annual withdrawal amount"). GWBL is only available at issue. This benefit is not available at issue ages younger than 45. GWBL is not available if you have elected the Guaranteed minimum income benefit, the Earnings enhancement benefit or one of our Principal guarantee benefits, described later in this 38 Contract features and benefits Prospectus. You may elect one of our automated payment plans or you may take partial withdrawals. All withdrawals reduce your account value and Guaranteed minimum death benefit. See "Accessing your money" later in this Prospectus. Your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. You may buy this benefit on a single life ("Single life") or a joint life ("Joint life") basis. Under a Joint life contract, lifetime withdrawals are guaranteed for the life of both the owner and successor owner. For Joint life contracts, a successor owner may be named at contract issue only. The successor owner must be the owner's spouse. If you and the successor owner are no longer married, you may either: (i) drop the original successor owner or (ii) replace the original successor owner with your new spouse. This can only be done before the first withdrawal is made from the contract. After the first withdrawal, the successor owner can be dropped but cannot be replaced. If the successor owner is dropped after withdrawals begin, the charge will continue based on a Joint Life basis. For NQ contracts, you have the option to designate the successor owner as a joint owner. For Joint life contracts owned by a non-natural owner, a joint annuitant may be named at contract issue only. The annuitant and joint annuitant must be spouses. If the annuitant and joint annuitant are no longer married, you may either: (i) drop the joint annuitant or (ii) replace the original joint annuitant with the annuitant's new spouse. This can only be done before the first withdrawal. After the first withdrawal, the joint annuitant may be dropped but cannot be replaced. If the joint annuitant is dropped after withdrawals begin, the charge continues based on a Joint life basis. Joint life QP and TSA contracts are not permitted. This benefit is not available under an Inherited IRA contract. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your guaranteed withdrawal benefit for life. See "Owner and annuitant requirements" earlier in this section. The charge for the GWBL benefit will be deducted from your account value on each contract date anniversary. Please see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus for a description of the charge. You should not purchase this benefit if: o You plan to take withdrawals in excess of your Guaranteed annual withdrawal amount because those withdrawals may significantly reduce or eliminate the value of the benefit (see "Effect of Excess withdrawals" below in this section); o You are not interested in taking withdrawals prior to the contract's maturity date; o You are using the contract to fund a Rollover TSA or QP contract where withdrawal restrictions will apply; or o You plan to use it for withdrawals prior to age 59-1/2, as the taxable amount of the withdrawal will be includible in income and subject to an additional 10% federal income tax penalty, as discussed later in this Prospectus. The Federal Defense of Marriage Act precludes same-sex married couples, domestic partners, and civil union partners from being considered married under federal law. Such individuals, therefore, are not entitled to the favorable tax treatment accorded spouses under federal tax law. As a result, mandatory distributions from the contract must be made after the death of the first individual. Accordingly, the GWBL will have little or no value to the surviving same-gender spouse or partner. You should consult with your tax adviser for more information on this subject. For traditional IRAs, TSA and QP contracts, you may take your lifetime required minimum distributions ("RMDs") without losing the value of the GWBL benefit, provided you comply with the conditions described under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, this benefit may have limited usefulness for you and you should consider whether it is appropriate. Please consult your tax adviser. GWBL BENEFIT BASE At issue, your GWBL benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL benefit base increases by any subsequent contributions. o Your GWBL benefit base may be increased on each contract date anniversary, as described below under "Annual ratchet" and "5% deferral bonus." o Your GWBL benefit base is not reduced by withdrawals except those withdrawals that cause total withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess withdrawals" below in this section. GUARANTEED ANNUAL WITHDRAWAL AMOUNT Your initial Guaranteed annual withdrawal amount is equal to a percentage of the GWBL benefit base. The initial applicable percentage ("Applicable percentage") is based on the owner's age at the time of the first withdrawal. For Joint life contracts, the initial Applicable percentage is based on the age of the owner or successor owner, whoever is younger at the time of the first withdrawal. If your GWBL benefit base ratchets, as described below in this section under "Annual ratchet," on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. The Applicable percentages are as follows: - ---------------------------------------- Age Applicable percentage - ---------------------------------------- 45-64 4.0% 65-74 5.0% 75-84 6.0% 85 and older 7.0% - ---------------------------------------- We will recalculate the Guaranteed annual withdrawal amount on each contract date anniversary and as of the date of any subsequent contribution or Excess withdrawal, as described below under "Effect of Contract features and benefits 39 Excess withdrawals" and "Subsequent contributions." The withdrawal amount is guaranteed never to decrease as long as there are no Excess withdrawals. Your Guaranteed annual withdrawals are not cumulative. If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. The withdrawal charge, if applicable, is waived for withdrawals up to the Guaranteed annual withdrawal amount, but all withdrawals are counted toward your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. EFFECT OF EXCESS WITHDRAWALS An Excess withdrawal is caused when you withdraw more than your Guaranteed annual withdrawal amount in any contract year. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, the entire amount of that withdrawal and each subsequent withdrawal in that contract year are considered Excess withdrawals. An Excess withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount. If you make an Excess withdrawal, we will recalculate your GWBL benefit base and the Guaranteed annual withdrawal amount, as follows: o The GWBL benefit base is reset as of the date of the Excess with drawal to equal the lesser of: (i) the GWBL benefit base immediately prior to the Excess withdrawal and (ii) the account value immediately following the Excess withdrawal. o The Guaranteed annual withdrawal amount is recalculated to equal the Applicable percentage multiplied by the reset GWBL benefit base. You should not purchase this contract if you plan to take withdrawals in excess of your Guaranteed annual withdrawal amount as such withdrawals may significantly reduce or eliminate the value of the GWBL benefit. If your account value is less than your GWBL benefit base (due, for example, to negative market performance), an Excess withdrawal, even one that is only slightly more than your Guaranteed annual withdrawal amount, can significantly reduce your GWBL benefit base and the Guaranteed annual withdrawal amount. For example, assume your GWBL benefit base is $100,000 and your account value is $80,000 when you decide to begin taking withdrawals at age 65. Your Guaranteed annual withdrawal amount is equal to $5,000 (5.0% of $100,000). You take an initial withdrawal of $8,000. Since your GWBL benefit base is immediately reset to equal the lesser of your GWBL benefit base prior to the Excess withdrawal ($100,000) and your account value immediately following the Excess withdrawal ($80,000 minus $8,000), your GWBL benefit base is now $72,000. In addition, your Guaranteed annual withdrawal amount is reduced to $3,600 (5.0% of $72,000), instead of the original $5,000. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds the greater of (i) the Guaranteed annual withdrawal amount or (ii) the 10% free withdrawal amount. A withdrawal charge would not be applied in the example above since the $8,000 withdrawal (equal to 10% of the contract's account value as of the beginning of the contract year) falls within the 10% free withdrawal amount. Under the example above, additional withdrawals during the same contract year could result in a further reduction of the GWBL benefit base and the Guaranteed annual withdrawal amount, as well as an application of withdrawal charges, if applicable. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. You should note that an Excess withdrawal that reduces your account value to zero terminates the contract, including all benefits, without value. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA, QP or TSA and participate in our Automatic RMD service, an automatic withdrawal under that program will not cause an Excess withdrawal, even if it exceeds your Guaranteed annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. Loans are not available under Rollover TSA contracts if GWBL is elected. ANNUAL RATCHET Your GWBL benefit base is recalculated on each contract date anniversary to equal the greater of: (i) the account value and (ii) the most recent GWBL benefit base. If your account value is greater, we will ratchet up your GWBL benefit base to equal your account value. If your GWBL benefit base ratchets on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. Your Guaranteed annual withdrawal amount will also be increased, if applicable, to equal your Applicable percentage times your new GWBL benefit base. If your GWBL benefit base ratchets, we may increase the charge for the benefit. Once we increase the charge, it is increased for the life of the contract. We will permit you to opt out of the ratchet if the charge increases. If you choose to opt out, your charge will stay the same but your GWBL benefit base will no longer ratchet. Upon request, we will permit you to accept a GWBL benefit base ratchet with the charge increase on a subsequent contract date anniversary. For a description of the charge increase, see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus. 5% DEFERRAL BONUS At no additional charge, during the first ten contract years, in each year you have not taken a withdrawal, we will increase your GWBL benefit base by an amount equal to 5% of your total contributions. If the Annual Ratchet (as discussed immediately above) occurs on any contract date anniversary, for the next and subsequent contract years, the bonus will be 5% of the most recent ratcheted GWBL benefit base plus any subsequent contributions. If the GWBL benefit base is reduced due to an Excess withdrawal, the 5% deferral bonus will be calculated using the reset GWBL benefit base plus any applicable contributions. The deferral bonus generally excludes contributions made in the prior 40 Contract features and benefits 12 months. In the first contract year, the deferral bonus is determined using all contributions received in the first 90 days of the contract year. On any contract date anniversary on which you are eligible for a bonus, we will calculate the applicable bonus amount. If, when added to the current GWBL benefit base, the amount is greater than your account value, that amount will become your new GWBL benefit base. If that amount is less than or equal to your account value, your GWBL benefit base will be ratcheted to equal your account value, and the 5% deferral bonus will not apply. If you opt out of the Annual Ratchet (as discussed immediately above), the 5% deferral bonus will still apply. SUBSEQUENT CONTRIBUTIONS Subsequent contributions are not permitted after the later of: (i) the end of the first contract year and (ii) the date the first withdrawal is taken. Anytime you make an additional contribution, your GWBL benefit base will be increased by the amount of the contribution. Your Guaranteed annual withdrawal amount will be equal to the Applicable percentage of the increased GWBL benefit base. GWBL GUARANTEED MINIMUM DEATH BENEFIT There are two guaranteed minimum death benefits available if you elect the GWBL option: (i) the GWBL Standard death benefit, which is available at no additional charge for owner issue ages 45-85, and (ii) the GWBL Enhanced death benefit, which is available for an additional charge for owner issue ages 45-75. Please see Appendix VII later in this Prospectus to see if these guaranteed death benefits are available in your state. The GWBL Standard death benefit is equal to the GWBL Standard death benefit base. The GWBL Standard death benefit base is equal to your initial contribution and any additional contributions less a deduction that reflects any withdrawals you make (see "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus). The GWBL Enhanced death benefit is equal to the GWBL Enhanced death benefit base. Your initial GWBL Enhanced death benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL Enhanced death benefit base increases by any subsequent contribution; o Your GWBL Enhanced death benefit base increases to equal your account value if your GWBL benefit base is ratcheted, as described above in this section; o Your GWBL Enhanced death benefit base increases by any 5% deferral bonus, as described above in this section; o Your GWBL Enhanced death benefit base decreases by an amount which reflects any withdrawals you make. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. The death benefit is equal to your account value (adjusted for any pro rata optional benefit charges) as of the date we receive satisfactory proof of death, any required instructions for method of payment, information and forms necessary to effect payment or the applicable GWBL Guaranteed minimum death benefit on the date of the owner's death (adjusted for any subsequent withdrawals and withdrawal charges), whichever provides a higher amount. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO If your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no further payments or benefits. If an Excess withdrawal results in a withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. However, if your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, please note the following: o Your Accumulator(R) Elite(SM) contract terminates and you will receive a supplementary life annuity contract setting forth your continuing benefits. The owner of the Accumulator(R) Elite(SM) contract will be the owner and annuitant. The successor owner, if applicable, will be the joint annuitant. If the owner is non-natural, the annuitant and joint annuitant, if applicable, will be the same as under the your Accumulator(R) Elite(SM) contract. o No subsequent contributions will be permitted. o If you were taking withdrawals through the "Maximum payment plan," we will continue the scheduled withdrawal payments on the same basis. o If you were taking withdrawals through the "Customized payment plan" or in unscheduled partial withdrawals, we will pay the balance of the Guaranteed annual withdrawal amount for that contract year in a lump sum. Payment of the Guaranteed annual withdrawal amount will begin on the next contract date anniversary. o Payments will continue at the same frequency for Single or Joint life contracts, as applicable, or annually if automatic payments were not being made. o Any guaranteed minimum death benefit remaining under the original contract will be carried over to the supplementary life annuity contract. The death benefit will no longer grow and will be reduced on a dollar for dollar basis as payments are made. If there is any remaining death benefit upon the death of the owner and successor owner, if applicable, we will pay it to the beneficiary. o The charge for the Guaranteed withdrawal benefit for life and the GWBL Enhanced death benefit will no longer apply. o If at the time of your death the Guaranteed annual withdrawal amount was being paid to you as a supplementary life annuity contract, your beneficiary may not elect the Beneficiary continuation option. Contract features and benefits 41 OTHER IMPORTANT CONSIDERATIONS o This benefit is not appropriate if you do not intend to take withdrawals prior to annuitization. o Amounts withdrawn in excess of your Guaranteed annual withdrawal amount may be subject to a withdrawal charge, if applicable, as described in "Charges and expenses" later in the Prospectus. In addition, all withdrawals count toward your free withdrawal amount for that contract year. Excess withdrawals can significantly reduce or completely eliminate the value of the GWBL and GWBL Enhanced death benefit. See "Effect of Excess withdrawals" above in this section and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o Withdrawals are not considered as annuity payments for tax purposes, and may be subject to an additional 10% Federal income tax penalty if they are taken before age 59-1/2. See "Tax information" later in this Prospectus. o All withdrawals reduce your account value and Guaranteed minimum death benefit. See "How withdrawals are taken from your account value" and "How withdrawals affect your Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. o The GWBL benefit terminates if the contract is continued under the beneficiary continuation option or under the Spousal continuation feature if the spouse is not the successor owner. o If you surrender your contract to receive its cash value and your cash value is greater than your Guaranteed annual withdrawal amount, all benefits under the contract will terminate, including the GWBL benefit. o If you transfer ownership of this contract, you terminate the GWBL benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. o Withdrawals are available under other annuity contracts we offer and this contract without purchasing a withdrawal benefit. o For IRA, QP and TSA contracts, if you have to take a required minimum distribution ("RMD") and it is your first withdrawal under the contract, the RMD will be considered your "first withdrawal" for the purposes of establishing your GWBL Applicable percentage. o If you elect GWBL on a Joint life basis and subsequently get divorced, your divorce will not automatically terminate the contract. For both Joint life and Single life contracts, it is possible that the terms of your divorce decree could significantly reduce or completely eliminate the value of this benefit. PRINCIPAL GUARANTEE BENEFITS We offer two 10-year Principal guarantee benefits at an additional charge: the 100% Principal guarantee benefit and the 125% Principal guarantee benefit. You may only elect one Principal guarantee benefit ("PGB"). 100% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 100% Principal guarantee benefit is equal to your initial contribution and additional permitted contributions, adjusted for withdrawals. Under the 100% Principal guarantee benefit, your investment options are limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. 125% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 125% Principal guarantee benefit is equal to 125% of your initial contribution and additional permitted contributions, adjusted for withdrawals. Under the 125% Principal guarantee benefit, your investment options are limited to the guaranteed interest option, the account for special dollar cost averaging and the AXA Moderate Allocation Portfolio. Under both Principal guarantee benefits, if, on the 10th contract date anniversary (or later if you've exercised a reset as explained below) ("benefit maturity date"), your account value is less than the guaranteed amount, we will increase your account value to equal the applicable guaranteed amount. Any such additional amounts added to your account value will be allocated pursuant to the allocation instructions for additional contributions we have on file. After the benefit maturity date, the guarantee will terminate. You have the option to reset (within 30 days following each applicable contract date anniversary) the guaranteed amount to the account value or 125% of the account value, as applicable, as of your fifth and later contract date anniversaries. If you exercise this option, you are eligible for another reset on each fifth and later contract date anniversary after the last reset up to the contract date anniversary following an owner's 85th birthday. If you elect to reset the guaranteed amount, your benefit maturity date will be extended to be the 10th contract date anniversary after the anniversary on which you reset the guaranteed amount. This extension applies each time you reset the guaranteed amount. Neither PGB is available under Inherited IRA contracts. If you elect either PGB, you may not elect the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, the systematic withdrawals option or the substantially equal withdrawals option. If you purchase a PGB, you may not make additional contributions to your contract after six months from the contract issue date. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your Principal guarantee benefit. See "Owner and annuitant requirements" earlier in this section. If you are planning to take required minimum distributions from this contract, this benefit may not be appropriate. See "Tax information" later in this Prospectus. If you elect a PGB and change ownership of the contract, your PGB will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. 42 Contract features and benefits Once you purchase a PGB, you may not voluntarily terminate this benefit. Your PGB will terminate if the contract terminates before the benefit maturity date, as defined below. If you die before the benefit maturity date and the contract continues, we will continue the PGB only if the contract can continue through the benefit maturity date. If the contract cannot so continue, we will terminate your PGB and the charge. See "Non-spousal joint owner contract continuation" in "Payment of death benefit" later in this Prospectus. The PGB will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a charge for the Principal guarantee benefits (see "Charges and expenses" later in this Prospectus). You should note that the purchase of a PGB is not appropriate if you want to make additional contributions to your contract beyond the first six months after your contract is issued. The purchase of a PGB is also not appropriate if you plan on terminating your contract before the benefit maturity date. The purchase of a PGB may not be appropriate if you plan on taking withdrawals from your contract before the benefit maturity date. Withdrawals from your contract before the benefit maturity date reduce the guaranteed amount under a PGB on a pro rata basis. You should also note that if you intend to allocate a large percentage of your contributions to the guaranteed interest option, the purchase of a PGB may not be appropriate because of the guarantees already provided by this option at no additional charge. Please note that loans (applicable to TSA contracts only) are not permitted under either PGB. INHERITED IRA BENEFICIARY CONTINUATION CONTRACT This contract is available to an individual beneficiary of a traditional IRA or a Roth IRA where the deceased owner held the individual retirement account or annuity (or Roth individual retirement account or annuity) with an insurance company or financial institution other than AXA Equitable. The purpose of the inherited IRA beneficiary continuation contract is to permit the beneficiary to change the funding vehicle that the deceased owner selected ("original IRA") while taking the required minimum distribution payments that must be made to the beneficiary after the deceased owner's death. See the discussion of required minimum distributions under "Tax information." This contract is intended only for beneficiaries who want to take payments at least annually over their life expectancy. These payments generally must begin (or must have begun) no later than December 31 of the calendar year following the year the deceased owner died. This contract is not suitable for beneficiaries electing the "5-year rule." See "Beneficiary continuation option for IRA and Roth IRA contracts" under "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. You should discuss with your tax adviser your own personal situation. This contract may not be available in all states. Please speak with your financial professional for further information. The Inherited traditional IRA is also available to non-spousal beneficiaries of deceased plan participants in qualified plans, 403(b) plans and governmental employer 457(b) plans ("Applicable Plan(s)"). In this discussion, unless otherwise indicated, references to "deceased owner" include "deceased plan participant"; references to "original IRA" include "the deceased plan participant's interest or benefit under the Applicable Plan", and references to "individual beneficiary of a traditional IRA" include "individual non-spousal beneficiary under an Applicable Plan." The inherited IRA beneficiary continuation contract can only be purchased by a direct transfer of the beneficiary's interest under the deceased owner's original IRA. In the case of a non-spousal beneficiary under a deceased plan participant's Applicable Plan, the Inherited traditional IRA can only be purchased by a direct rollover of the death benefit under the Applicable Plan. The owner of the inherited IRA beneficiary continuation contract is the individual who is the beneficiary of the original IRA. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. The contract must also contain the name of the deceased owner. In this discussion, "you" refers to the owner of the inherited IRA beneficiary continuation contract. The inherited IRA beneficiary continuation contract can be purchased whether or not the deceased owner had begun taking required minimum distribution payments during his or her life from the original IRA or whether you had already begun taking required minimum distribution payments of your interest as a beneficiary from the deceased owner's original IRA. You should discuss with your own tax adviser when payments must begin or must be made. Under the inherited IRA beneficiary continuation contract: o You must receive payments at least annually (but can elect to receive payments monthly or quarterly). Payments are generally made over your life expectancy determined in the calendar year after the deceased owner's death and determined on a term certain basis. o You must receive payments from this contract even if you are receiving payments from another IRA of the deceased owner in an amount that would otherwise satisfy the amount required to be distributed from this contract. o The beneficiary of the original IRA will be the annuitant under the inherited IRA beneficiary continuation contract. In the case where the beneficiary is a "see-through trust," the oldest beneficiary of the trust will be the annuitant. o An inherited IRA beneficiary continuation contract is not available for owners over age 70. o The initial contribution must be a direct transfer from the deceased owner's original IRA and is subject to minimum contribution amounts. See "How you can purchase and contribute to your contract" earlier in this section. o Subsequent contributions of at least $1,000 are permitted but must be direct transfers of your interest as a beneficiary from another IRA with a financial institution other than AXA Equitable, where the deceased owner is the same as under the original IRA contract. A non-spousal beneficiary under an Applicable Plan cannot make subsequent contributions to an Inherited traditional IRA contract. o You may make transfers among the investment options. Contract features and benefits 43 o You may choose at any time to withdraw all or a portion of the account value. Any partial withdrawal must be at least $300. Withdrawal charges will apply as described in "Charges and expenses" later in this Prospectus. o The Guaranteed minimum income benefit, Spousal continuation, special dollar cost averaging program automatic investment program, Principal guarantee benefits, the Guaranteed withdrawal benefit for life and systematic withdrawals are not available under the Inherited IRA beneficiary continuation contract. o If you die, we will pay to a beneficiary that you choose the greater of the account value or the applicable death benefit. o Upon your death, your beneficiary has the option to continue taking required minimum distributions based on your remaining life expectancy or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If your beneficiary elects to continue to take distributions, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value as of the date we receive satisfactory proof of death and any required instructions, information and forms. Thereafter, withdrawal charges (if applicable under your contract) will no longer apply. If you had elected any enhanced death benefits, they will no longer be in effect and charges for such benefits will stop. The Guaranteed minimum death benefit will also no longer be in effect. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law requires, this "free look" period may be longer. Other state variations may apply. Please contact your financial professional and/or see Appendix VII to find out what applies in your state. Generally, your refund will equal your account value (less loan reserve account under TSA contracts) under the contract on the day we receive notification of your decision to cancel the contract and will reflect (i) any investment gain or loss in the variable investment options (less the daily charges we deduct), (ii) any guaranteed interest in the guaranteed interest option, (iii) any positive or negative market value adjustments in the fixed maturity options through the date we receive your contract, and (iv) any interest in the account for special dollar cost averaging through the date we receive your contract. Some states require that we refund the full amount of your contribution (not reflecting (i), (ii), (iii), or (iv) above). For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. If you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office, or your financial professional, can provide you with the cancellation instructions. In addition to the cancellation right described above, you have the right to surrender your contract, rather than cancel it. Please see "Surrendering your contract to receive its cash value," later in this Prospectus. Surrendering your contract may yield results different than canceling your contract, including a greater potential for taxable income. In some cases, your cash value upon surrender may be greater than your contributions to the contract. Please see "Tax information," later in this Prospectus. 44 Contract features and benefits 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; (iv) the account for special dollar cost averaging and (v) the loan reserve account (applicable to Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less: (i) the total amount or a pro rata portion of the annual administrative charge as well as optional benefit charges; (ii) any applicable withdrawal charges and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, when we deduct the enhanced death benefit, Guaranteed minimum income benefit, Principal guarantee benefits, Guaranteed withdrawal benefit for life and/or Earnings enhancement benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest option at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING Your value in the account for special dollar cost averaging at any time will equal your contribution allocated to that option, plus interest, less the sum of all amounts that have been transferred to the variable investment options you have selected. If you apply for this contract by electronic means, please see Appendix VII for additional information. INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all your rights under your contract and any applicable guaranteed benefits, except as discussed below. See Appendix VII later in this Prospectus for any state variations with regard to terminating your contract. GUARANTEED MINIMUM INCOME BENEFIT NO LAPSE GUARANTEE. In certain circumstances, even if your account value falls to zero, your Guaranteed minimum income benefit will still have value. Please see "Contract features and benefits" earlier in this Prospectus for information on this feature. PRINCIPAL GUARANTEE BENEFITS. If you take no withdrawals, and your account value is insufficient to pay charges, we will not terminate your Determining your contract's value 45 contract if you are participating in a PGB. Your contract will remain in force and we will pay your guaranteed amount at the benefit maturity date. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. If you elect the Guaranteed withdrawal benefit for life and your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary life annuity contract, even if your GWBL benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, the benefit will still have value. See "Contract features and benefits" earlier in this Prospectus. 46 Determining your contract's value 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer any amount to the account for special dollar cost averaging. o You may not transfer to a fixed maturity option that has a rate to maturity of 3%. o If an owner or annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the annuity account value being allocated to the guaranteed interest option, based on the annuity account value as of the previous business day. In addition, we reserve the right to restrict transfers among variable investment options including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option and interest sweep option dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or, (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the investment options in the prior contract year; or (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, Transferring your money among investment options 47 which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We currently offer two rebalancing programs that you can use to automatically reallocate your account value among your investment options. Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers from the guaranteed interest option to the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into or out of the guaranteed interest option to initiate the rebalancing program will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. 48 Transferring your money among investment options You may not elect Option II if you are participating in any dollar cost averaging program. You may not elect Option I if you are participating in general dollar cost averaging. If you elect a benefit that limits your variable investment options, those limitations will also apply to the rebalancing programs. Transferring your money among investment options 49 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate.
- -------------------------------------------------------------------------------- Method of withdrawal ----------------------------------------------------------------- Automatic Pre-age payment 59-1/2 Lifetime plans substan- required (GWBL System- tially minimum Contract only) Partial atic equal distribution - -------------------------------------------------------------------------------- NQ Yes Yes Yes No No - -------------------------------------------------------------------------------- RRollover IRA Yes Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Conver- sion IRA Yes Yes Yes Yes No - -------------------------------------------------------------------------------- Inherited IRA No Yes No No * - -------------------------------------------------------------------------------- QP** Yes Yes No No Yes - -------------------------------------------------------------------------------- Rollover TSA*** Yes Yes Yes No Yes - --------------------------------------------------------------------------------
* This contract pays out post-death required minimum distributions. See "Inherited IRA beneficiary continuation contract" in "Contract features and benefits" earlier in this Prospectus. ** All payments are made to the trust as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. *** Employer or plan approval required for all transactions. Your ability to take withdrawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. AUTOMATIC PAYMENT PLANS (For contracts with GWBL only) You may take automatic withdrawals under either the Maximum payment plan or the Customized payment plan, as described below. Under either plan, you may take withdrawals on a monthly, quarterly or annual basis. You may change the payment frequency of your withdrawals at any time, and the change will become effective on the next contract date anniversary. You may elect either the Maximum payment plan or the Customized payment plan at any time. You must wait at least 28 days from contract issue before automatic payments begin. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will increase following any Annual Ratchet or 5% deferral bonus. If you elect the Maximum payment plan and start monthly or quarterly payments after the beginning of a contract year, the payments you take that year will be less than your Guaranteed annual withdrawal amount. If you take a partial withdrawal while the Maximum payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will not be increased following any Annual Ratchet or 5% deferral bonus. You must elect to change the scheduled payment amount. It is important to note that if you elect the Customized payment plan and start monthly or quarterly withdrawals after the beginning of a contract year, you could select scheduled payment amounts that would cause an Excess withdrawal. If your selected scheduled payment would cause an Excess withdrawal, we will notify you. As discussed earlier in the Prospectus, Excess withdrawals may significantly reduce the value of the Guaranteed withdrawal benefit for life benefit. See "Effect of Excess withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you take a partial withdrawal while the Customized payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Partial withdrawals will be subject to a withdrawal charge if they exceed the 10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. 50 Accessing your money Any request for a partial withdrawal will terminate your participation in either the Maximum payment plan or Customized payment plan, if applicable. SYSTEMATIC WITHDRAWALS (All contracts except Inherited IRA and QP) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required.). You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of your account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 10% free withdrawal amount. Systematic withdrawals are not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. SUBSTANTIALLY EQUAL WITHDRAWALS (Rollover IRA and Roth Conversion IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals that we calculate for you are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). The substantially equal withdrawal program is not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This service is not available under defined benefit QP contracts. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in Accessing your money 51 calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- We do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our automatic RMD service except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 10% free withdrawal amount. Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH GWBL. Generally, if you elect our Automatic RMD service, any lifetime required minimum distribution payment we make to you under our Automatic RMD service will not be treated as an Excess withdrawal. If you elect either the Maximum payment plan or the Customized payment plan AND our Automatic RMD service, we will make an extra payment, if necessary, on December 1st that will equal your lifetime required minimum distribution less all payments made through November 30 and any scheduled December payment. The combined automatic plan payments and lifetime required minimum distribution payment will not be treated as Excess withdrawals, if applicable. However, if you take any partial withdrawals in addition to your lifetime required minimum distribution and automatic payment plan payments, your applicable automatic payment plan will be terminated. The partial withdrawal may cause an Excess withdrawal and may be subject to a withdrawal charge. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. Further, your GWBL benefit base and Guaranteed annual withdrawal amount may be reduced. See "Effect of Excess Withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you elect our Automatic RMD service and elect to take your Guaranteed annual withdrawal amount in partial withdrawals without electing one of our available payment plans, we will make a payment, if necessary, on December 1st that will equal your required minimum distribution less all withdrawals made through November 30th. If prior to December 1st you make a partial withdrawal that exceeds your Guaranteed annual withdrawal amount, but not your RMD amount, that partial withdrawal will be treated as an Excess withdrawal, as well as any subsequent partial withdrawals made during the same contract year. However, if by December 1st your withdrawals have not exceeded your RMD amount, the RMD payment we make to you will not be treated as an Excess withdrawal. FOR CONTRACTS WITH THE GUARANTEED MINIMUM INCOME BENEFIT. The no lapse guarantee will not be terminated if a required minimum distribution payment using our automatic RMD service causes your cumulative withdrawals in the contract year to exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received within the first 90 days). Owners of tax-qualified contracts (IRA, TSA and QP) generally should not reset the Roll-Up benefit base if lifetime required minimum distributions must begin before the end of the new exercise waiting period. See "Guaranteed minimum death benefit/Guaranteed minimum income benefit Roll-Up benefit base reset" in "Contract features and benefits" earlier in this Prospectus. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options and the guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options in the order of the earliest maturity date(s) first. If the FMO amounts are insufficient, we will deduct all or a portion of the withdrawal from the account for special dollar cost averaging. A market value adjustment will apply to withdrawals from the fixed maturity options. HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND PRINCIPAL GUARANTEE BENEFITS In general, withdrawals (including RMDs) will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and your new benefit after the withdrawal would be $24,000 ($40,000-$16,000). For purposes of calculating the adjustment to your guaranteed benefits, the amount of the withdrawal will include the amount of any applicable withdrawal charge. Using the example above, the $12,000 withdrawal would include the withdrawal amount paid to you and the amount of any applicable withdrawal charge deducted from your account value. For information on the calculation of the charge, see "Withdrawal charge" later in the Prospectus. With respect to the Guaranteed minimum income benefit and the Greater of 6-1/2% (or 6% or 3%, as applicable) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' 6-1/2% (or 6% or 3%, as applicable) Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6-1/2% (or 6% or 3%, as applicable) or less of the 52 Accessing your money 6-1/2% (or 6% or 3%, as applicable) Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. For this purpose, in the first contract year, all contributions received in the first 90 days after contract issue will be considered to have been received on the first day of the contract year. In subsequent contract years, additional contributions made during the contract year do not affect the amount of withdrawals that can be taken on a dollar-for- dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6-1/2% (or 6% or 3%, as applicable) of the benefit base on the most recent anniversary, that entire withdrawal (including RMDs) and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6-1/2% (or 6% or 3%, as applicable) Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for each Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. HOW WITHDRAWALS AFFECT YOUR GWBL AND GWBL GUARANTEED MINIMUM DEATH BENEFIT Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes cumulative withdrawals in a contract year to exceed the Guaranteed annual withdrawal amount. Withdrawals that exceed the Guaranteed annual withdrawal amount, however, can significantly reduce your GWBL benefit base and Guaranteed annual withdrawal amount. For more information, see "Effect of Excess withdrawals" and "Other important considerations" under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus. Your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a dollar-for-dollar basis by any withdrawal up to the Guaranteed annual withdrawal amount. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a pro rata basis. If the reduced GWBL Enhanced death benefit base is greater than your account value (after the Excess withdrawal), we will further reduce your GWBL Enhanced death benefit base to equal your account value. For purposes of calculating your GWBL and GWBL Guaranteed minimum death benefit amount, the amount of the excess withdrawal will include the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information on the calculation of the charge, see "Withdrawal charge" later in the Prospectus. WITHDRAWALS TREATED AS SURRENDERS If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. In addition, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. The rules in the preceding sentence do not apply if the Guaranteed minimum income benefit no lapse guarantee is in effect on your contract. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is an Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to an Excess withdrawal. In other words, if you take an Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Guaranteed withdrawal benefit for life" in "Contract features and benefits," earlier in this Prospectus, for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans from a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." If you elect the GWBL option or a PGB, loans are not permitted. You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. If you elect the Guaranteed withdrawal for life benefit, loans are not permitted. Please see Appendix VII later in this Prospectus for any state restrictions you may be subject to if you take a loan from a Rollover TSA contract. Also, see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan, including any accrued but unpaid loan interest, will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day Accessing your money 53 of the calendar quarter in which the rate is determined. See Appendix VII later in this Prospectus to see if a different interest rate applies in your state. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the "loan reserve account." Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options, in the order of the earliest maturity date(s) first. A market value adjustment may apply. If such fixed maturity amounts are insufficient, we will deduct all or a portion of the loan from the account for special dollar cost averaging. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while an owner is living (or for contracts, with non-natural owners while the annuitant is living) and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of the date we receive the required information, including the Guaranteed withdrawal benefit for life (if applicable), if your cash value is greater than your Guaranteed annual withdrawal amount remaining that year. If your cash value is not greater than your Guaranteed annual withdrawal amount remaining that year, then you will receive a supplementary life annuity contract. For more information, please see "Effect of your account value falling to zero" in "Contract features and benefits" earlier in this Prospectus. Also, if the Guaranteed minimum income benefit no lapse guarantee is in effect, the benefit will terminate without value if your cash value plus any other withdrawals taken in the contract year exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base (as of the beginning of the contract year). For more information, please see "Insufficient account value" in "Determining your contract value" and "Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal charges) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of which sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option, fixed maturity options and the account for special dollar cost averaging (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery or wire transfer service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Elite(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized your Accumulator(R) Elite(SM) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Elite(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Elite(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. Please see Appendix VII later in this Prospectus for variations that may apply to your state. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or 54 Accessing your money the owner's and annuitant's ages at contract issue. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect the Guaranteed withdrawal benefit for life and choose to annuitize your contract, the Guaranteed withdrawal benefit for life will terminate without value even if your GWBL benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under GWBL. See "Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus for further information. - -------------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------------- Income Manager(R) payout options Life annuity with period (available for owners and annu- certain itants age 83 or less at contract Period certain annuity issue) - -------------------------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager(R) payout option without life contingencies unless withdrawal charges are no longer in effect under your contract. For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. Accessing your money 55 You may choose to apply your account value of your Accumulator(R) Elite(SM) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) Elite(SM), and we will deduct any applicable withdrawal charge. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income benefit option, different payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any withdrawal charges. If amounts in a fixed maturity option are used to purchase any annuity payout option prior to the maturity date, a market value adjustment will apply. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. The withdrawal charge applicable under our contract is imposed if you select a non-life contingent period certain payout annuity. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For the Income Manager(R) life contingent payout options no withdrawal charge is imposed under your contract. If the withdrawal charge that otherwise would have been applied to your account value under your contract is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager(R) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin but it may not be earlier than thirteen months from the Accumulator(R) Elite(SM) contract date. Please see Appendix VII later in this Prospectus for information on state variations. Except with respect to the Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments, or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is based on the age of the original annuitant at contract issue and cannot be changed even if you name a new annuitant. For contracts with joint annuitants, the maturity age is based on the older annuitant. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elect the Guaranteed withdrawal benefit for life and your contract is annuitized at maturity, we will offer an annuity payout option that guarantees you will receive payments for life that are at least equal to what you would have received under the Guaranteed withdrawal benefit for life. You will not be able to take withdrawals in addition to the payments under this annuity payout option. You will still be able to surrender the contract at any time for the remaining account value. As described in "Contract features and benefits" under "Guaranteed withdrawal benefit for life," these payments will have the potential to increase with favorable investment performance. Any remaining Guaranteed minimum death benefit value will be transferred to the annuity payout contract as your "minimum death benefit." If the enhanced death benefit had been elected, its value as of the date the annuity payout contract is issued will become your minimum death benefit, and it will continue to ratchet annually if your account value is greater than your minimum death benefit base. The minimum death benefit will be reduced dollar-for-dollar by each payment. If you die while there is any minimum death benefit remaining, it will be paid to your beneficiary. Please see Appendix VII later in this Prospectus for variations that may apply in your state. 56 Accessing your money 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o On each contract date anniversary, a charge for each optional benefit you elect: a death benefit (other than the Standard and GWBL Standard death benefit); the Guaranteed minimum income benefit; the Guaranteed withdrawal benefit for life; and the Earnings enhancement benefit. o On any contract date anniversary on which you are participating in a PGB -- a charge for a PGB. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 1.10% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the Guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. Administrative charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.30% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if available) in order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered Charges and expenses 57 or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceeds the 10% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or to apply your cash value to a non-life contingent annuity payout option. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options -- the amount applied to purchase an annuity payout option" in "Accessing your money" earlier in the Prospectus. The withdrawal charge equals a percentage of the contributions withdrawn in any of the first four years after we receive a contribution. The percentage that applies depends on how long each contribution has been invested in the contract. We determine the withdrawal charge separately for each contribution according to the following table: - -------------------------------------------------------------------------------- Contract year - -------------------------------------------------------------------------------- 1 2 3 4 5 - -------------------------------------------------------------------------------- Percentage of contribution 8% 7% 6% 5% 0% - -------------------------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1" and the withdrawal charge is reduced or expires on each applicable contract date anniversary. Amounts withdrawn up to the free withdrawal amount are not considered withdrawals of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and withdrawal charge from your account value. The amount deducted to pay withdrawal charges is also subject to that same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each investment option. The withdrawal charge helps cover sales expenses. For purposes of calculating reductions in your guaranteed benefits and associated benefit bases, the withdrawal amount includes both the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information, see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier in the Prospectus. The withdrawal charge does not apply in the circumstances described below. 10% free withdrawal amount. Each contract year you can withdraw up to 10% of your account value without paying a withdrawal charge. The 10% free withdrawal amount is determined using your account value at the beginning of each contract year. In the first contract year, the 10% free withdrawal amount is determined using all contributions received in the first 90 days of the contract year. Additional contributions during the contract year do not increase the 10% free withdrawal amount. The 10% free withdrawal amount does not apply if you surrender your contract except where required by law. For NQ contracts issued to a charitable remainder trust, the free withdrawal amount will equal the greater of: (1) the current account value less contributions that have not been withdrawn (earnings in the contract), and (2) the 10% free withdrawal amount defined above. Certain withdrawals. If you elected the Guaranteed minimum income benefit and/or the Greater of 6-1/2% (or 6%, if applicable) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6-1/2% (or 6%, if applicable) of the beginning of contract year 6-1/2% (or 6%, if applicable) Roll-Up to age 85 benefit base, even if such withdrawals exceed the free withdrawal amount. Also, a withdrawal charge does not apply to a withdrawal that exceeds 6-1/2% (or 6%, if applicable) of the beginning of contract year 6-1/2% (or 6%, if applicable) Roll-Up to age 85 benefit base as long as it does not exceed the free withdrawal amount. If you are age 76-80 at issue and elected the Greater of 3% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, this waiver applies to withdrawals up to 3% of the beginning of the contract year 3% Roll-Up to age 85 benefit base. If your withdrawals exceed the amount described above, this waiver is not applicable to that withdrawal, or to any subsequent withdrawals for the life of the contract. If you elect the Guaranteed withdrawal benefit for life, we will waive any withdrawal charge for any withdrawals during the contract year up to the Guaranteed annual withdrawal amount, even if such withdrawals exceed the free withdrawal amount. However, each withdrawal reduces the free withdrawal amount for that contract year by the amount of the withdrawal. Also, a withdrawal charge does not apply to a withdrawal that exceeds the Guaranteed annual withdrawal amount as long as it does not exceed the free withdrawal amount. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds both the free withdrawal amount and the Guaranteed annual withdrawal amount. Disability, terminal illness or confinement to nursing home. The withdrawal charge also does not apply if: (i) An owner (or older joint owner, if applicable) has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or (ii) We receive proof satisfactory to us (including certification by a licensed physician) that an owner's (or older joint owner's, if applicable) life expectancy is six months or less; or 58 Charges and expenses (iii) An owner (or older joint owner, if applicable) has been confined to a nursing home for more than 90 days (or such other period, as required in your state) as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: -- its main function is to provide skilled, intermediate, or custodial nursing care; -- it provides continuous room and board to three or more persons; -- it is supervised by a registered nurse or licensed practical nurse; -- it keeps daily medical records of each patient; -- it controls and records all medications dispensed; and -- its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions as described in (i), (ii) or (iii) above existed at the time a contribution was remitted or if the condition began within 12 months of the period following remittance. Some states may not permit us to waive the withdrawal charge in the above circumstances, or may limit the circumstances for which the withdrawal charge may be waived. Your financial professional can provide more information or you may contact our processing office. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.80% of the Greater of the 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. If you opt to reset your Roll-Up benefit base on any contract date anniversary, we reserve the right to increase the charge for this enhanced death benefit up to a maximum of 0.95% of the applicable benefit base. You will be notified of the increased charge at the time we notify you of your eligibility to reset. The increased charge, if any, will apply as of the next contract date anniversary following the reset and on all contract date anniversaries thereafter. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.65% of the greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. If you opt to reset your Roll-Up benefit base on any contract date anniversary, if applicable, we reserve the right to increase the charge for this enhanced death benefit up to a maximum of 0.80% of the applicable benefit base. You will be notified of the increased charge at the time we notify you of your eligibility to reset. The increased charge, if any, will apply as of the next contract date anniversary following the reset and on all contract date anniversaries thereafter. GREATER OF 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.65% of the Greater of the 3% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. GWBL ENHANCED DEATH BENEFIT. This death benefit is only available if you elect the GWBL option. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary. The charge is equal to 0.30% of the GWBL Enhanced death benefit base. We will deduct this charge from your value in the variable investment options (or, if applicable, the permitted variable investment options) and the guaranteed interest option on a pro rata basis (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if applicable) in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If such fixed maturity option amounts are still insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. STANDARD DEATH BENEFIT AND GWBL STANDARD DEATH BENEFIT. There is no additional charge for these standard death benefits. PRINCIPAL GUARANTEE BENEFITS CHARGE If you purchase a PGB, we deduct a charge annually from your account value on each contract date anniversary on which you are participating in a PGB. The charge is equal to 0.50% of the account value for the 100% Principal guarantee benefit and 0.75% of the account value for the 125% Principal guarantee benefit. We will continue to deduct this charge until your benefit maturity date. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If such amounts are insufficient, we will deduct all or a portion from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaran- Charges and expenses 59 teed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. GUARANTEED MINIMUM INCOME BENEFIT CHARGE If you elect the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary after the owner (or older joint owner, if applicable) reaches age 85, whichever occurs first. If you elect the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base, the charge is equal to 0.80% of the applicable benefit base on the contract date anniversary. If you elect the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base, the charge is equal to 0.65% of the applicable benefit base. If you opt to reset your Roll-Up benefit base on any contract date anniversary, we reserve the right to increase the charge for this benefit up to a maximum of 1.10% for the benefit that includes the 6-1/2% Roll-Up benefit base or 0.95% for the benefit that includes the 6% Roll-Up benefit base. You will be notified of the increased charge at the time we notify you of your eligibility to reset. The increased charge, if any, will apply as of the next contract date anniversary following the reset and on all contract date anniversaries thereafter. If you opt to reset your Roll-Up benefit base on any contract date anniversary, if applicable, we reserve the right to increase the charge for this benefit up to a maximum of 0.95% of the applicable benefit base. You will be notified of the increased charge at the time we notify you of your eligibility to reset. The increased charge, if any, will apply as of the next contract date anniversary following the reset and on all contract date anniversaries thereafter. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If such fixed maturity option amounts are still insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. EARNINGS ENHANCEMENT BENEFIT CHARGE If you elect the Earnings enhancement benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.35% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE BENEFIT CHARGE If you elect the Guaranteed withdrawal benefit for life ("GWBL"), we deduct a charge annually as a percentage of your GWBL benefit base on each contract date anniversary. If you elect the Single Life option, the charge is equal to 0.60%. If you elect the Joint Life option, the charge is equal to 0.75%. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option on a pro rata basis. (See Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state.) If those amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. GWBL BENEFIT BASE ANNUAL RATCHET CHARGE. If your GWBL benefit base ratchets, we reserve the right to raise the charge at the time of an Annual Ratchet. The maximum charge for the Single Life option is 0.75%. The maximum charge for the Joint Life option is 0.90%. The increased charge, if any, will apply as of the contract date anniversary on which your GWBL benefit base ratchets and on all contract date anniversaries thereafter. We will permit you to opt out of the ratchet if the charge increases. For Joint life contracts, if the successor owner or joint annuitant is dropped before you take your first withdrawal, we will adjust the charge at that time to reflect a Single life. If the successor owner or joint annuitant is dropped after withdrawals begin, the charge will continue based on a Joint life. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY ANNUITIZATION PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. 60 Charges and expenses CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to the 12b-1 fee. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. Charges and expenses 61 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. Under a contract with a non-natural owner that has joint annuitants, the surviving annuitant is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. In either case, the death benefit is increased by any amount applicable under the Earnings enhancement benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) and any amount applicable under the Earnings enhancement benefit, as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. - -------------------------------------------------------------------------------- When we use the terms owner and joint owner, we intend these to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If the contract is jointly owned or is issued to a non- natural owner and the GWBL has not been elected, the death benefit is payable upon the death of the older joint owner or older joint annuitant, as applicable. Under contracts with GWBL, the terms Owner and Successor Owner are intended to be references to Annuitant and Joint Annuitant, respectively, if the contract has a non-natural owner. - -------------------------------------------------------------------------------- Subject to applicable laws and regulations, you may impose restrictions on the timing and manner of the payment of the death benefit to your beneficiary. For example, your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. In general, if the annuitant dies, the owner (or older joint owner, if applicable) will become the annuitant, and the death benefit is not payable. If the contract had joint annuitants, it will become a single annuitant contract. EFFECT OF THE OWNER'S DEATH In general, if the owner dies while the contract is in force, the contract terminates and the applicable death benefit is paid. If the contract is jointly owned, the death benefit is payable upon the death of the older owner. For Joint life contracts with GWBL, the death benefit is paid to the beneficiary at the death of the second to die of the owner and successor owner. There are various circumstances, however, in which the contract can be continued by a successor owner or under a Beneficiary continuation option ("BCO"). For contracts with spouses who are joint owners, the surviving spouse will automatically be able to continue the contract under the "Spousal continuation" feature or under our Beneficiary continuation option, as discussed below. For contracts with non-spousal joint owners, the joint owner will be able to continue the contract as a successor owner subject to the limitations discussed below under "Non-spousal joint owner contract continuation." If you are the sole owner and your spouse is the sole primary beneficiary, your surviving spouse can continue the contract as a successor owner under "Spousal continuation" or under our Beneficiary continuation option, as discussed below. If the surviving joint owner is not the surviving spouse or, for single owner contracts, if the beneficiary is not the surviving spouse, federal income tax rules generally require payments of amounts under the contract to be made within five years of an owner's death (the "5-year rule"). In certain cases, an individual beneficiary or non-spousal surviving joint owner may opt to receive payments over his/her life (or over a period not in excess of his/her life expectancy) if payments commence within one year of the owner's death. Any such election must be made in accordance with our rules at the time of death. If the ben- If the surviving joint owner is not the surviving spouse or, for single owner contracts, if the beneficiary is not the surviving spouse, federal income tax rules generally require payments of amounts under the contract to be made within five years of an owner's death (the "5-year rule"). In certain cases, an individual beneficiary or non-spousal surviving joint owner may opt to receive payments over his/her life (or over a period not in excess of his/her life expectancy) if payments commence within one year of the owner's death. Any such election must be made in accordance with our rules at the time of death. If the ben- Payment of death benefit 62 eficiary of a contract with one owner or a younger non-spousal joint owner continues the contract under the 5-year rule, in general, all guaranteed benefits and their charges will end. If a PGB election is in effect upon your death with a benefit maturity date of less than five years from the date of death, it will remain in effect. For more information on non-spousal joint owner contract continuation, see the section immediately below. NON-SPOUSAL JOINT OWNER CONTRACT CONTINUATION Upon the death of either owner, the surviving joint owner becomes the sole owner. Any death benefit (if the older owner dies first) or cash value (if the younger owner dies first) must be fully paid to the surviving joint owner within five years. The surviving owner may instead elect to receive a life annuity, provided payments begin within one year of the deceased owner's death. If the life annuity is elected, the contract and all benefits terminate. If the older owner dies first, we will increase the account value to equal the Guaranteed minimum death benefit, if higher, and by the value of the Earnings enhancement benefit. The surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the Guaranteed minimum death benefit and charge and the Guaranteed minimum income benefit and charge will then be discontinued. Withdrawal charges will no longer apply, and no additional contributions will be permitted. If the younger owner dies first, the surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the death benefit is not payable, and the Guaranteed minimum death benefit and the Earnings enhancement benefit, if applicable, will continue without change. If the Guaranteed minimum income benefit cannot be exercised within the period required by federal tax laws, the benefit and charge will terminate as of the date we receive proof of death. Withdrawal charges will continue to apply and no additional contributions will be permitted. Upon the death of either owner, if the surviving owner elects the 5-year rule and a PGB was in effect upon the owner's death with a maturity date of more than five years from the date of death, we will terminate the benefit and the charge. SPOUSAL CONTINUATION If you are the contract owner and your spouse is the sole primary beneficiary or you jointly own the contract with your younger spouse or if the contract owner is a non-natural person and you and your younger spouse are joint annuitants, your spouse may elect to continue the contract as successor owner upon your death. Spousal beneficiaries (who are not also joint owners) must be 85 or younger as of the date of the deceased spouse's death in order to continue the contract under Spousal continuation. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. Upon your death, the younger spouse joint owner (for NQ contracts only) or the spouse beneficiary (under a Single owner contract) may elect to receive the death benefit, continue the contract under our Beneficiary continuation option (as discussed below in this section) or continue the contract as follows: o As of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary, we will increase the account value to equal the elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit, and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. o In general, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. o The applicable Guaranteed minimum death benefit option may continue as follows: o If you elected either the Annual Ratchet to age 85 or the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, and if your surviving spouse is age 75 or younger on the date of your death, and you were age 84 or younger at death, the enhanced death benefit continues and will continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. If you were age 85 or older at death, we will reinstate the Guaranteed minimum death benefit you elected. The benefit base (which had previously been frozen at age 85) will now continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. o If you elected the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, and your surviving spouse is age 80 or younger at the date of your death, and you were age 84 or younger at death, the enhanced death benefit continues and will grow according to its terms until the contract date anniversary following the surviving spouse's 85th birthday. If you were age 85 or older at death, we will reinstate the enhanced death benefit you elected. The benefit base (which had been previously frozen at age 85) will now continue to grow according to its terms until the contract date anniversary following the surviving spouse's 85th birthday. If your spouse is younger than age 75, before electing to continue the contract, your spouse should consider that he or she could purchase a new contract and elect the Greater of 6% (as opposed to 3%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit at the same cost. He or she could also purchase a contract with a "Greater of " 6-1/2% enhanced death benefit at an additional cost. o If you elected either the Annual Ratchet to age 85 or the Greater of the 6-1/2% (or 6%) Roll-Up to age 85 or Annual Payment of death benefit 63 Ratchet to age 85 enhanced death benefit and your surviving spouse is age 76 or older on the date of your death, the Guaranteed minimum death benefit and charge will be discontinued. If you elected the Greater of the 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit and your surviving spouse is 81 or older, the Guaranteed minimum death benefit and charge will be discontinued. o If the Guaranteed minimum death benefit continues, the Roll-Up benefit base reset, if applicable, will be based on the surviving spouse's age at the time of your death. The next available reset will be based on the contract issue date or last reset, as applicable. o For single owner contracts with the GWBL Enhanced death benefit, we will discontinue the benefit and charge. However, we will freeze the GWBL Enhanced death benefit base as of the date of your death (less subsequent withdrawals), and pay it upon your spouse's death. o The Earnings enhancement benefit will be based on the surviving spouse's age at the date of the deceased spouse's death for the remainder of the life of the contract. If the benefit had been previously frozen because the older spouse had attained age 80, it will be reinstated if the surviving spouse is age 75 or younger. The benefit is then frozen on the contract date anniversary after the surviving spouse reaches age 80. If the surviving spouse is age 76 or older, the benefit and charge will be discontinued. o If elected, PGB continues and is based on the same benefit maturity date and guaranteed amount that was guaranteed. o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the surviving spouse's age at the date of the deceased spouse's death. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If you elect the Guaranteed withdrawal benefit for life on a Joint life basis, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. Withdrawal charges will continue to apply to all contributions made prior to the deceased spouse's death. No additional contributions will be permitted. If you elect the Guaranteed withdrawal benefit for life on a Single life basis, the benefit and charge will terminate. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. If the deceased spouse was a joint annuitant, the contract will become a single annuitant contract. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For jointly owned NQ contracts, if the younger spouse dies first no death benefit is paid, and the contract continues as follows: o The Guaranteed minimum death benefit and the Earnings enhancement benefit and the Guaranteed minimum income benefit continue to be based on the older spouse's age for the life of the contract. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. If the deceased spouse was a joint annuitant, the contract will become a single annuitant contract. o If a PGB had been elected, the benefit continues and is based on the same benefit maturity date and guaranteed amount. o If you elect the Guaranteed withdrawal benefit for life, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. o The withdrawal charge schedule remains in effect. If you divorce, Spousal continuation does not apply. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state availability. Please speak with your financial professional or see Appendix VII later in this Prospectus for further information. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. For Joint life contracts with GWBL, BCO is only available after the death of the second owner. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit, adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax 64 Payment of death benefit information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o The beneficiary replaces the deceased owner as annuitant. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a portion of the account value and no withdrawal charges, if any, will apply. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. For purposes of this discussion, "beneficiary" refers to the successor owner. This feature must be elected within 9 months following the date of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts: o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB or the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any Payment of death benefit 65 remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If the deceased is the owner or the older joint owner: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the Beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit adjusted for any subsequent withdrawals. o No withdrawal charges will apply to any withdrawals by the beneficiary. If the owner deceased is the younger non-spousal joint owner: o The annuity account value will not be reset to the death benefit amount. o The contract's withdrawal charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments; the contract's free withdrawal amount will continue to apply to withdrawals but does not apply to surrenders. o We do not impose a withdrawal charge on scheduled payments except if, when added to any withdrawals previously taken in the same contract year, including for this purpose a contract surrender, the total amount of withdrawals and scheduled payments exceed the free withdrawal amount. See the "Withdrawal charges" in "Charges and expenses" earlier in this Prospectus. 66 Payment of death benefit 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Elite(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth Conversion IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Elite(SM)'s Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, dollar cost averaging, choice of death benefits, selection of variable investment options, guaranteed interest option, fixed maturity options and its choices of payout options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. Tax information 67 TAXATION OF LIFETIME WITHDRAWALS IF YOU ELECT GUARANTEED WITHDRAWAL BENEFIT FOR LIFE We treat Guaranteed annual withdrawals and other withdrawals as non-annuity payments for income tax purposes. These withdrawals are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. It reduces the investment in the contract. ANNUITY PAYMENTS Guaranteed annual withdrawals that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus, as well as GMIB and other annuitization payments that are based on life or life expectancy, are considered annuity payments for tax purposes. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your unrecovered investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. Collateral assignments are taxable to the extent of any earnings in the contract at the time any portion of the contract's value is assigned as collateral. Therefore, if you assign your contract as collateral for a loan with a third party after the contract is issued but before the end of the first contract year, you may have taxable income even though you receive no payments under the contract. AXA Equitable will report any income attributable to a collateral assignment on Form 1099-R. Also, if AXA Equitable makes payments or distributions to the assignee pursuant to directions under the collateral assignment agreement, any gains in payments may be taxable to you and reportable on Form 1099-R even though you do not receive them. EARNINGS ENHANCEMENT BENEFIT In order to enhance the amount of the death benefit to be paid at the owner's death, you may purchase an Earnings enhancement benefit rider for your NQ contract. Although we regard this benefit as an investment protection feature which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Earnings enhancement benefit rider is not part of the contract. In such a case, the charges for the Earnings enhancement benefit rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable, and for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, AXA Equitable would take all reasonable steps to attempt to avoid this result, which could include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES You may purchase your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that is the source of the funds you are using to purchase the NQ contract is another nonqualified deferred annuity contract (or life insurance or endowment contract). o The owner and the annuitant are the same under the source contract and the Accumulator(R) Elite(SM) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must be the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carries over to the Accumulator(R) Elite(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between carriers, and provision of cost basis information may be required to process this type of an exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a 68 Tax information withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. Beneficiary continuation option We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for a prior similar version of the NQ contract. See the discussion "Beneficiary continuation option for NQ Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2;" o scheduled payments, any additional withdrawals under "Withdrawal Option 2," or contract surrenders under "Withdrawal Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the Withdrawal Option selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling does not specifically address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or any withdrawal that might be taken). The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Account 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Account 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Account 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Account 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets for the benefit of the IRA owner. The assets funding the account typically include mutual funds and/or individual stocks and/or securities in a custodial account and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. Tax information 69 You may purchase the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We also offer the Inherited IRA for payment of post-death required minimum distributions from traditional IRAs and Roth IRAs. We currently do not offer traditional IRA contracts for use as employer-funded SEP IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS requires you to have before you purchase an IRA. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). AXA Equitable has applied for opinion letters from the IRS to approve the respective forms of nearly identical prior versions of the Accumulator(R) Elite(SM) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. It is not clear if and when any such approval may be received. We have in the past received IRS opinion letters approving the respective forms of similar traditional IRA and Roth IRA endorsements for use as a traditional and Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) Elite(SM) traditional and Roth IRA contracts. AXA Equitable has also submitted the respective forms of the Accumulator(R) Elite(SM) Inherited IRA beneficiary continuation contract to the IRS for approval as to form for use as a traditional IRA or Roth IRA, respectively. We do not know if and when any such approval may be granted. Your right to cancel within a certain number of days You can cancel any version of the Accumulator(R) Elite(SM) IRA contract (traditional IRA or ROTH IRA) by following the directions in "Your right to cancel with in a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or ROTH IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. Traditional individual retirement annuities (traditional IRAs) Contributions to traditional IRAs. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers") Regular contributions to traditional IRAs Limits on contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch up contributions" of up to $1,000 to your traditional IRA. Special rules for spouses. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. Deductibility of contributions. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored-tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions." That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $5,000 for people eligible to make age 50-70-1/2 catch-up contributions. 70 Tax information If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits on deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted -------------------- x regular = deductible divided by $10,000 contribution contribution for the year limit Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000 ($53,000, after cost of living adjustment for 2008 ). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution, and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. Nondeductible regular contributions. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the maximum $5,000 per person limit for the applicable taxable year . The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. When you can make regular contributions. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. Rollover and transfer contributions to traditional IRAs Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans ; and o other traditional IRAs. Tax information 71 Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. Rollovers from "eligible retirement plans" other than traditional IRAs Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Rollovers from traditional IRAs to traditional IRAs You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVER AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. Excess contributions Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contribution amount for the applicable taxable year); or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this sec- 72 Tax information tion under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. Recharacterizations Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. Withdrawals, payments and transfers of funds out of traditional IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Taxation of payments. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. Required minimum distributions BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing, Please consult your tax adviser concerning applicability of these complex rules to your situation. Lifetime required minimum distributions. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. When you have to take the first lifetime required minimum distribution. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that Tax information 73 year--the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. How you can calculate required minimum distributions. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. Do you have to pick the same method to calculate your required minimum distributions for all of your traditional IRAs and other retirement plans? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. Will we pay you the annual amount every year from your traditional IRA based on the method you choose? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. What if you take more than you need to for any year? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. What if you take less than you need to for any year? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. What are the required minimum distribution payments after you die? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. Individual beneficiary. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. Spousal beneficiary. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. Non-individual beneficiary. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death 74 Tax information required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. Spousal continuation If the contract is continued under Spousal continuation, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. Payments to a beneficiary after your death IRA death benefits are taxed the same as IRA distributions. Borrowing and loans are prohibited transactions You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. Early distribution penalty tax A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special federal income tax definition); or o used to pay medical insurance premiums for unemployed individuals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special federal income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies using an IRS-approved distribution method. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. To meet the substantially equal periodic payments exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" above. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under this option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager payments for purposes of determining whether the penalty applies. Roth individual retirement annuities (Roth IRAs) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Elite(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. Contributions to Roth IRAs Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eligible retirement plans ("conversion" rollover contributions); or o tax-free rollover contributions from other Roth individual retirement arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Tax information 75 Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. Regular contributions to Roth IRAs Limits on regular contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the years is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion under "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be able to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment); o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008 $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. When you can make contributions. Same as traditional IRAs. Deductibility of contributions. Roth IRA contributions are not tax deductible. Rollovers and direct transfers What is the difference between rollover and direct transfer transactions? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make rollovers between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Conversion rollover contributions to Roth IRAs In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth 76 Tax information accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting -- a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. How to recharacterize. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. Distributions from Roth IRAs Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax Tax information 77 returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contributions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. Required minimum distributions during life Lifetime required minimum distributions do not apply. Required minimum distributions at death Same as traditional IRA under "What are the required minimum distribution payments after you die?" assuming death before the Required Beginning Date. Payments to a beneficiary after your death Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. Borrowing and loans are prohibited transactions Same as traditional IRA. Excess contributions Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). 78 Tax information You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. Early distribution penalty tax Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) ELITE(SM) TSA CONTRACT Because the Accumulator(R) Elite(SM) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Elite(SM) TSA contract are extremely limited as described below. Accumulator(R) Elite(SM) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Elite(SM) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Elite(SM) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Elite(SM) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) contract status of Accumulator(R) Elite(SM) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the follow- Tax information 79 ing discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) Elite(SM) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve 80 Tax information the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Elite(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Elite(SM) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. Guaranteed annual withdrawal amounts are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" in this Prospectus, as well as GMIB and other annuitization payments that are based on the annuitant's life or life expectancy, are considered annuity payments for tax purposes. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax pur- Tax information 81 poses) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Elite(SM) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Elite(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Elite(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Elite(SM) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. 82 Tax information SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribution from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. Tax information 83 A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT ON TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. 84 Tax information 8. More information - -------------------------------------------------------------------------------- ABOUT OUR SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of the Separate Account's operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. The Separate Account is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Account invests solely in class IB/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from the Separate Account or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in the prospectuses for each Trust, which generally accompany this Prospectus, or in the respective SAIs which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below:
- -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 - --------------------------------------------------------------------------------
More information 85
- -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2013 3.00%* $ 86.25 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - --------------------------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw any of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMOs maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. Any withdrawal charges that are deducted from a fixed maturity option will result in a market value adjustment calculated in the same way. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) above would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined by using a widely published index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and the fixed maturity options and the account for special dollar cost averaging, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contract in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is 86 More information not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. However, the market value adjustment interests under the contracts are registered under the Securities Act of 1933. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept initial and subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information provided through certain broker-dealers with which we have established electronic facilities. In any such cases, you must sign our Acknowledgement of Receipt form. Where we require a signed application, the above procedures do not apply and no financial transactions will be permitted until we receive the signed application and have issued the contract. Where we issue a contract based on information provided through electronic facilities, we require an Acknowledgement of Receipt form, and financial transactions are only permitted if you request them in writing, sign the request and have it signature guaranteed, until we receive the signed Acknowledgement of Receipt form. After your contract has been issued, additional contributions may be transmitted by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. After your contract has been issued, additional contributions may be transmitted by wire. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, ROLLOVER IRA OR ROTH CONVERSION IRA CONTRACTS You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ, Rollover IRA or Roth Conversion IRA contract on a monthly or quarterly basis. AIP is not available for Inherited IRA Beneficiary Continuation (traditional IRA and Roth IRA), QP or Rollover TSA contracts. Please see Appendix VII later in this Prospectus to see if the automatic investment program is available in your state. The minimum amounts we will deduct are $100 monthly and $300 quarterly. Under Rollover IRA and Roth Conversion IRA contracts these amounts are subject to tax maximums. AIP additional contributions may be allocated to any of the variable investment options, the guaranteed interest option and available fixed maturity options, but not the account for special dollar cost averaging. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. For contracts with GWBL, AIP will be automatically terminated after the later of: (i) the end of the first contract year, or (ii) the date the first withdrawal is taken. For contracts with PGB, AIP will be automatically terminated at the end of the first six months. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. More information 87 o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Initial contributions allocated to the account for special dollar cost averaging receive the interest rate in effect on that business day. At certain times, we may offer the opportunity to lock in the interest rate for an initial contribution to be received under Section 1035 exchanges and trustee to trustee transfers. Your financial professional can provide information, or you can call our processing office. o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; or o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in the prospectuses for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustee or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or distribution of the contracts. 88 More information FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive written notification of any change at our processing office. If you elected the Guaranteed minimum death benefit, a PGB, the Earnings enhancement benefit and/or the Guaranteed withdrawal benefit for life ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. The Benefit will not terminate if the ownership of the contract is transferred from a non-natural owner to an individual but the contract will continue to be based on the annuitant's life. The Benefit will also not terminate if you transfer your individually-owned contract to a trust held for your (or your and your immediate family's) benefit; the Benefit will continue to be based on your life. If you were not the annuitant under the individually-owned contract, you will become the annuitant under the new contract. Please speak with your financial professional for further information. See Appendix VII later in this Prospectus for any state variations with regard to terminating any benefits under your contract. You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available and you cannot assign Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts as security for a loan or other obligation. If the employer that provided the funds does not restrict them, loans are available under a Rollover TSA contract. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract to another similar arrangement under federal income tax rules. In the case of such a transfer, which involves a surrender of your contract, we will impose a withdrawal charge, if one applies. Loans are not available under your NQ contract. In certain circumstances, you may collaterally assign all or a portion of the value of your NQ contract as security for a loan with a third party lender. The terms of the assignment are subject to our approval. The amount of the assignment may never exceed your account value on the day prior to the date we receive all necessary paperwork to effect the assignment. Only one assignment per contract is permitted, and any such assignment must be made prior to the first contract date anniversary. You must indicate that you have not purchased, and will not purchase, any other AXA Equitable (or affiliate's) NQ deferred annuity contract in the same calendar year that you purchase this contract. A collateral assignment does not terminate your benefits under the contract. However, all withdrawals, distributions and benefit payments, as well as the exercise of any benefits, are subject to the assignee's prior approval and payment directions. We will follow such directions until AXA Equitable receives written notification satisfactory to us that the assignment has been terminated. If the owner or beneficiary fails to provide timely notification of the termination, it is possible that we could pay the assignee more than the amount of the assignment, or continue paying the assignee pursuant to existing directions after the collateral assignment has in fact been terminated. Our payment of any death benefit to the beneficiary will also be subject to the terms of the assignment until we receive written notification satisfactory to us that the assignment has been terminated. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). More information 89 AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 1.20% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 6.50% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker- dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) Elite(SM) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable product. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash com- 90 More information pensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. More information 91 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Guaranteed Interest Account with Market Value Adjustment (the "Registration Statement"). This Prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Guaranteed Interest Account with Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a web site that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to The AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa-equitable.com. 92 Incorporation of certain documents by reference Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.65%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ----------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------- 2007 2006 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 15.09 $ 14.45 $ 12.46 $ 11.72 $ 10.66 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 64,596 32,813 12,508 4,674 195 - ----------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 11.79 $ 11.33 $ 10.83 $ 10.75 $ 10.31 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,068 5,935 3,738 1,736 116 - ----------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 12.43 $ 11.98 $ 11.20 $ 11.03 $ 10.41 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 23,580 16,150 9,271 3,928 215 - ----------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 13.13 $ 12.57 $ 11.58 $ 11.24 $ 10.51 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 117,390 83,885 52,197 21,440 970 - ----------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 14.48 $ 13.84 $ 12.29 $ 11.72 $ 10.67 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 240,939 152,231 69,680 21,528 560 - ----------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 13.93 $ 13.69 $ 12.58 $ 12.26 $ 10.92 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,057 7,207 5,402 2,957 158 - ----------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.74 $ 10.22 $ 10.07 $ 10.12 $ 10.09 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,177 1,691 1,398 905 69 - ----------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 19.68 $ 17.91 $ 14.74 $ 13.00 $ 11.19 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,529 7,675 3,716 1,270 66 - ----------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 13.66 $ 12.19 $ 12.46 $ 11.02 $ 10.34 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,311 2,506 1,386 595 44 - ----------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.96 $ 10.66 $ 10.44 $ 10.40 $ 10.20 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,138 3,340 2,303 1,119 95 - ----------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 16.27 $ 14.18 $ 13.22 $ 12.06 $ 10.75 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,846 2,926 1,783 913 81 - ----------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 14.17 $ 15.10 $ 12.65 $ 12.20 $ 10.93 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 19,894 14,100 9,522 5,080 310 - ----------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 11.00 $ 11.32 $ 10.35 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,556 907 118 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 11.10 $ 10.92 $ 10.95 $ 10.35 $ 10.16 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,847 3,611 2,568 878 43 - -----------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------- 2007 2006 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 14.23 $ 14.30 $ 12.02 $ 11.87 $ 10.92 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,001 5,785 4,888 3,020 210 - ----------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 19.38 $ 17.89 $ 14.47 $ 13.27 $ 11.09 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,184 7,223 4,026 1,161 30 - ----------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 6.74 $ 6.61 $ 5.80 $ 5.55 -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,771 4,814 3,177 208 -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 13.04 $ 11.83 $ 11.43 $ 10.68 $ 10.49 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 982 894 571 194 5 - ----------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 12.24 $ 11.80 $ 11.17 $ 10.80 $ 10.41 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,279 6,225 2,419 273 15 - ----------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 13.44 $ 13.44 $ 12.20 $ 11.69 $ 10.72 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 17,200 6,674 4,879 2,900 86 - ----------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 11.14 $ 11.02 $ 10.38 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,709 1,957 563 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 11.06 $ 10.84 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,823 1,788 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 14.00 $ 13.56 $ 11.98 $ 11.67 $ 10.76 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 11,756 9,866 7,495 4,181 204 - ----------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.65 $ 9.91 $ 9.74 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,959 2,013 172 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 13.11 $ 11.98 $ 11.50 $ 11.25 $ 10.69 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,691 1,979 1,528 1,146 126 - ----------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 15.77 $ 14.84 $ 13.53 $ 12.93 $ 11.33 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,337 8,706 5,920 3,260 291 - ----------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.46 $ 10.42 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 19,931 3,992 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 9.71 $ 10.81 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,069 384 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 9.50 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 36,003 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 11.77 $ 11.57 $ 10.48 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,502 1,759 442 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 27.94 $ 26.00 $ 22.24 $ 21.68 -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,011 1,796 802 76 -- - -----------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------- For the years ending December 31, 2007 2006 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 19.11 $ 16.87 $ 14.38 $ 12.48 $ 11.17 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,092 11,624 7,243 3,564 178 - ----------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 16.21 $ 14.18 $ 11.48 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,860 1,674 373 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.89 $ 10.74 $ 10.50 $ 10.44 $ 10.20 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 14,134 11,680 7,995 3,501 284 - ----------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 14.06 $ 14.47 $ 12.22 $ 11.96 $ 10.97 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,094 1,769 1,018 473 42 - ----------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 13.85 $ 13.56 $ 12.21 $ 11.58 $ 10.57 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,364 1,455 1,271 643 69 - ----------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 14.66 $ 12.89 $ 12.16 $ 11.34 $ 10.24 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,960 1,215 705 369 29 - ----------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.34 $ 11.17 $ 10.63 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,005 5,957 563 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.55 $ 9.99 $ 9.98 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,635 878 743 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 12.41 $ 12.19 $ 10.58 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,773 3,163 874 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 12.71 $ 11.68 $ 10.54 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,698 1,248 527 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 12.17 $ 12.30 $ 11.13 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,885 5,585 2,163 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 15.09 $ 13.45 $ 12.51 $ 11.49 $ 10.57 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 25,093 20,022 11,881 5,249 435 - ----------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 15.00 $ 15.51 $ 14.02 $ 12.80 $ 11.04 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,668 6,490 4,526 2,213 149 - ----------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.55 $ 10.24 $ 9.97 $ 9.87 $ 9.96 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 8,854 4,632 2,041 1,005 42 - ----------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 5.69 $ 4.79 $ 4.51 $ 4.35 -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,503 1,430 883 38 -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.70 $ 10.70 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,811 2,470 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 11.52 $ 11.08 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,779 367 -- -- -- - -----------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------- For the years ending December 31 ----------------------------------------------------------- 2007 2006 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 11.11 $ 10.92 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 743 133 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.71 $ 11.09 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,662 182 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.73 $ 9.79 $ 9.91 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 14,527 8,303 3,300 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.55 $ 10.18 $ 9.96 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,217 1,594 402 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 14.21 $ 14.72 $ 12.72 $ 12.40 $ 10.71 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,773 4,061 2,210 1,215 79 - ----------------------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 16.46 $ 15.61 $ 16.53 $ 16.17 -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,120 907 526 22 -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 10.79 $ 10.75 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,518 2,001 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 6.07 $ 6.10 $ 5.43 $ 5.07 -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,079 2,346 952 71 -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 11.38 $ 11.86 $ 10.41 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,921 7,856 2,852 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 34.34 $ 24.59 $ 18.24 $ 13.97 $ 11.48 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 8,306 6,050 3,408 1,047 46 - ----------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 15.97 $ 13.27 $ 12.35 -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,059 2,350 533 -- -- - ----------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 8.27 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 11,901 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 14.17 $ 12.93 $ 12.51 $ 11.75 $ 10.66 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,191 976 442 210 15 - ----------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 11.08 $ 10.61 $ 10.39 $ 10.38 $ 10.16 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,566 5,315 4,566 2,210 301 - ----------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 13.61 $ 12.70 $ 12.28 $ 11.67 $ 10.59 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,083 3,143 1,765 716 86 - ----------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 12.58 $ 12.40 $ 11.47 $ 11.32 $ 10.59 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,716 6,956 5,292 3,135 282 - ----------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ----------------------------------------------------------------------------------------------------------------------- Unit value $ 20.15 $ 18.23 $ 14.79 $ 13.02 $ 11.23 - ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,136 5,220 2,536 1,127 65 - -----------------------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------------------------------- 2007 2006 2005 2004 2003 - --------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - --------------------------------------------------------------------------------------------------------------------- Unit value $ 13.82 $ 13.38 $ 11.98 $ 11.41 $ 10.58 - --------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,624 1,487 1,016 456 20 - --------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - --------------------------------------------------------------------------------------------------------------------- Unit value $ 12.49 $ 11.42 $ 11.59 $ 10.97 $ 10.45 - --------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,875 3,137 2,204 1,141 59 - --------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - --------------------------------------------------------------------------------------------------------------------- Unit value $ 15.69 $ 15.40 $ 13.12 $ 12.46 $ 11.07 - --------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,335 5,165 3,109 1,455 59 - --------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - --------------------------------------------------------------------------------------------------------------------- Unit value $ 14.63 $ 13.30 $ 12.33 $ 11.57 $ 10.53 - --------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,883 3,570 2,515 1,381 97 - --------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - --------------------------------------------------------------------------------------------------------------------- Unit value $ 14.60 $ 14.83 $ 13.15 $ 12.45 $ 10.99 - --------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,025 3,627 2,566 1,506 103 - --------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - --------------------------------------------------------------------------------------------------------------------- Unit value $ 8.75 $ 8.58 $ 7.91 $ 7.49 -- - --------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,231 3,530 1,416 31 -- - --------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - --------------------------------------------------------------------------------------------------------------------- Unit value $ 13.12 $ 14.80 $ 12.96 $ 12.59 $ 10.93 - --------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,224 7,719 5,307 2,979 191 - --------------------------------------------------------------------------------------------------------------------- Multimanager Technology - --------------------------------------------------------------------------------------------------------------------- Unit value $ 14.29 $ 12.29 $ 11.65 $ 10.64 $ 10.31 - --------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,743 2,164 1,431 675 35 - ---------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-5 Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- Trustees who are considering the purchase of an Accumulator(R) Elite(SM) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this Prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) Elite(SM) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) Elite(SM) QP contract to fund a plan for the contract's features and benefits other than tax deferral, after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or contributions directly from the employer.. For 401(k) plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge and/or market value adjustment may apply. If in a defined benefit plan, the plan's actuary determines that an overfunding in the QP contract has occurred, then any transfers of plan assets out of the QP contract may result in the assessment of a withdrawal charge or a market value adjustment on the amount being transferred. For defined benefit plans, the maximum percentage of actuarial value of the plan participant's normal retirement benefit that can be funded by a QP contract is 80%. The account value under a QP contract may at any time be more or less than the lump sum actuarial equivalent of the accrued benefit for a defined benefit plan participant. AXA Equitable does not guarantee that the account value under a QP contract will at any time equal the actuarial value of 80% of a participant/employee's accrued benefit. AXA Equitable will not perform or provide any plan recordkeeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for annuitants after age 70-1/2, trustees should consider: o whether required minimum distributions under QP contracts would cause withdrawals in excess of 6-1/2% (or 6-1/2%,as applicable) of the Guaranteed minimum income benefit Roll-Up benefit base; ; o provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed; and o if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, payments will be made to the trustee. Finally, because the method of purchasing the QP contract, including the large initial contribution and the features of the QP contract may appeal more to plan participants who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisers whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. B-1 Appendix II: Purchase considerations for QP contracts Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00% ("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a).
- ------------------------------------------------------------------------------------------------------ Hypothetical assumed rate to maturity ("j" in the calculations below) February 15, 2012 ---------------------------- 5.00% 9.00% - ------------------------------------------------------------------------------------------------------ As of February 15, 2012 before withdrawal - ------------------------------------------------------------------------------------------------------ (1) Market adjusted amount(b) $141,389 $121,737 - ------------------------------------------------------------------------------------------------------ (2) Fixed maturity amount(c) $131,104 $131,104 - ------------------------------------------------------------------------------------------------------ (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ------------------------------------------------------------------------------------------------------ On February 15, 2012 after $50,000 withdrawal - ------------------------------------------------------------------------------------------------------ (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ------------------------------------------------------------------------------------------------------ (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ------------------------------------------------------------------------------------------------------ (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ------------------------------------------------------------------------------------------------------ (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ------------------------------------------------------------------------------------------------------ (8) Maturity value(d) $111,099 $101,287 - ------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 -------------- = --------- where j is either 5% or 9% (1+j)(D/365) (1+j)(1,461/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 -------------- = -------- (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) x (1+0.07)(1,461/365)
Appendix III: Market value adjustment example C-1 Appendix IV: Enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the enhanced death benefit, if elected. The following illustrates the enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/Money Market, the guaranteed interest option or the fixed maturity options), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the enhanced death benefit for an owner age 45 would be calculated as follows:
- -------------------------------------------------------------------------------------------------------------------------------- End of contract 6-1/2% Roll-Up to age 85 6% Roll-Up to age 85 Annual Ratchet to age 85 GWBL Enhanced year Account value death benefit base death benefit base death benefit base death benefit base - -------------------------------------------------------------------------------------------------------------------------------- 1 $105,000 $ 106,500(4) $ 106,000(6) $ 105,000(1) $ 105,000(7) - -------------------------------------------------------------------------------------------------------------------------------- 2 $115,500 $ 113,423(3) $ 112,360(5) $ 115,500(1) $ 115,500(7) - -------------------------------------------------------------------------------------------------------------------------------- 3 $129,360 $ 120,795(3) $ 119,102(5) $ 129,360(1) $ 129,360(7) - -------------------------------------------------------------------------------------------------------------------------------- 4 $103,488 $ 128,647(3) $ 126,248(5) $ 129,360(2) $ 135,828(8) - -------------------------------------------------------------------------------------------------------------------------------- 5 $113,837 $ 137,009(4) $ 133,823(6) $ 129,360(2) $ 142,296(8) - -------------------------------------------------------------------------------------------------------------------------------- 6 $127,497 $ 145,914(4) $ 141,852(6) $ 129,360(2) $ 148,764(8) - -------------------------------------------------------------------------------------------------------------------------------- 7 $127,497 $ 155,399(4) $ 150,363(6) $ 129,360(2) $ 155,232(8) - --------------------------------------------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. ANNUAL RATCHET TO AGE 85 (1) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (2) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown would be the greater of the amounts shown under the 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85. (3) At the end of contract years 2 through 4, the enhanced death benefit will be based on the Annual Ratchet to age 85. (4) At the end of contract years 1 and 5 through 7, the enhanced death benefit will be based on the 6-1/2% Roll-Up to age 85. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown would be the greater of the amounts shown under the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. (5) At the end of contract years 2 through 4, the enhanced death benefit will be based on the Annual Ratchet to age 85. (6) At the end of contract years 1, and 5 through 7, the enhanced death benefit will be based on the 6% Roll-Up to age 85. GWBL ENHANCED DEATH BENEFIT This example assumes no withdrawals. The GWBL Enhanced death benefit is a guaranteed minimum death benefit that is only available if you elect the Guaranteed withdrawal benefit for life. If you plan to take withdrawals during any of the first seven contract years, this illustration is of limited usefulness to you. (7) At the end of contract years 1 through 3, the GWBL enhanced death benefit is equal to the current account value. (8) At the end of contract years 4 through 7, the GWBL enhanced death benefit is greater than the current account value. D-1 Appendix IV: Enhanced death benefit example Appendix V: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "Greater of 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85" enhanced death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Elite(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying portfolios (as described below), the corresponding net annual rates of return would be (2.88)% and 3.12% for the Accumulator(R) Elite(SM) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges, but they do not reflect the charges we deduct from your account value annually for the enhanced death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return shown would be lower; however, the values shown in the following tables reflect the following contract charges: the "Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85" enhanced death benefit charge, the Earnings enhancement benefit charge, the Guaranteed minimum income benefit charge, and any applicable administrative charge and withdrawal charge. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios, as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this Prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. Appendix V: Hypothetical illustrations E-1 Variable deferred annuity Accumulator(R) Elite(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Greater of 6-1/2% Roll-Up or Annual Ratchet to age 85 Guaranteed minimum death benefit Earnings enhancement benefit Guaranteed minimum income benefit
Greater of 6-1/2% Roll-Up to age 85 Lifetime Annual or Annual Ratchet Guaranteed Minimum to age 85 Income Benefit Guaranteed Total Death Benefit ---------------------------------- Minimum Death with the Earnings Guaranteed Hypothetical Account Value Cash Value Benefit enhancement benefit Income Income Contract ------------------- ------------------ ------------------- ------------------- ----------------- ---------------- Age Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% - ----- --------- --------- --------- -------- --------- --------- --------- --------- --------- -------- -------- -------- ------- 60 1 100,000 100,000 92,000 92,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A 61 2 95,076 101,055 88,076 94,055 106,500 106,500 109,100 109,100 N/A N/A N/A N/A 62 3 90,200 102,029 84,200 96,029 113,423 113,423 118,792 118,792 N/A N/A N/A N/A 63 4 85,363 102,911 80,363 97,911 120,795 120,795 129,113 129,113 N/A N/A N/A N/A 64 5 80,556 103,692 80,556 103,692 128,647 128,647 140,105 140,105 N/A N/A N/A N/A 65 6 75,770 104,361 75,770 104,361 137,009 137,009 151,812 151,812 N/A N/A N/A N/A 66 7 70,996 104,905 70,996 104,905 145,914 145,914 164,280 164,280 N/A N/A N/A N/A 67 8 66,223 105,314 66,223 105,314 155,399 155,399 177,558 177,558 N/A N/A N/A N/A 68 9 61,443 105,571 61,443 105,571 165,500 165,500 191,699 191,699 N/A N/A N/A N/A 69 10 56,644 105,664 56,644 105,664 176,257 176,257 206,760 206,760 N/A N/A N/A N/A 74 15 31,906 103,059 31,906 103,059 241,487 241,487 298,082 298,082 14,441 14,441 14,441 14,441 79 20 4,891 93,409 4,891 93,409 330,859 330,859 423,202 423,202 22,168 22,168 22,168 22,168 84 25 0 73,222 0 73,222 0 453,305 0 554,251 0 36,264 0 36,264 89 30 0 59,183 0 59,183 0 482,770 0 583,716 N/A N/A N/A N/A 94 35 0 47,405 0 47,405 0 482,770 0 583,716 N/A N/A N/A N/A 95 36 0 44,821 0 44,821 0 482,770 0 583,716 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. E-2 Appendix V: Hypothetical illustrations Appendix VI: Earnings enhancement benefit example - -------------------------------------------------------------------------------- The following illustrates the calculation of a death benefit that includes the Earnings enhancement benefit for an owner age 45. The example assumes a contribution of $100,000 and no additional contributions. Where noted, a single withdrawal in the amount shown is also assumed. The calculation is as follows:
No Withdrawal $3,000 withdrawal $6,000 withdrawal - --------------------------------------------------------------------------------------------------------------------- A Initial contribution 100,000 100,000 100,000 - --------------------------------------------------------------------------------------------------------------------- B Death benefit: prior to withdrawal.* 104,000 104,000 104,000 - --------------------------------------------------------------------------------------------------------------------- Earnings enhancement benefit earnings: death C benefit less net contributions (prior to the withdrawal in 4,000 4,000 4,000 D). B minus A. - --------------------------------------------------------------------------------------------------------------------- D Withdrawal 0 3,000 6,000 - --------------------------------------------------------------------------------------------------------------------- Excess of the withdrawal over the Earnings E enhancement benefit earnings 0 0 2,000 greater of D minus C or zero - --------------------------------------------------------------------------------------------------------------------- F Net contributions (adjusted for the withdrawal in D) 100,000 100,000 98,000 A minus E - --------------------------------------------------------------------------------------------------------------------- G Death benefit (adjusted for the withdrawal in D) 104,000 101,000 98,000 B minus D - --------------------------------------------------------------------------------------------------------------------- H Death benefit less net contributions 4,000 1,000 0 G minus F - --------------------------------------------------------------------------------------------------------------------- I Earnings enhancement benefit factor 40% 40% 40% - --------------------------------------------------------------------------------------------------------------------- J Earnings enhancement benefit 1,600 400 0 H times I - --------------------------------------------------------------------------------------------------------------------- K Death benefit: Including Earnings enhancement benefit 105,600 101,400 98,000 G plus J - ---------------------------------------------------------------------------------------------------------------------
* The death benefit is the greater of the account value or any applicable death benefit. Appendix VI: Earnings enhancement benefit example F-1 Appendix VII: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- The following information is a summary of the states where the Accumulator(R) Elite(SM) contract or certain features and/or benefits are either not available as of the date of this Prospectus or vary from the contract's features and benefits as previously described in this Prospectus. STATES WHERE CERTAIN ACCUMULATOR(R) ELITE(SM) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- CALIFORNIA See "Contract features and benefits"--"Your right to can- cel within a certain number of days" - -------------------------------------------------------------------------------- ILLINOIS See "Loans under Rollover TSA contracts" in "Accessing your money" See "Selecting an annuity payout option" under "Your annuity payout options" in "Accessing your money" - -------------------------------------------------------------------------------- MASSACHUSETTS Annual administrative charge See "Disability, terminal illness or confinement to nursing home" under "Withdrawal charge" in "Charges and expenses" - -------------------------------------------------------------------------------- MISSISSIPPI Automatic Investment Program QP (defined contribution and defined benefit) contracts See "How you can purchase and contribute to your con- tract" in "Contract features and benefits" - -------------------------------------------------------------------------------- The following information applies to Accumulator(R) Elite(SM) contracts sold in New Jersey from May 29, 2007 to September 10, 2007: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- CALIFORNIA If you reside in the state of California and you are age 60 and older at the time the contract is issued, you may return your variable annuity contract within 30 days from the date that you receive it and receive a refund as described below. If you allocate your entire initial contribution to the EQ/Money Market option (and/or guaranteed interest option, if available), the amount of your refund will be equal to your contribution less interest, unless you make a trans- fer, in which case the amount of your refund will be equal to your account value on the date we receive your request to cancel at our processing office. This amount could be less than your initial contribution. If the Principal guarantee ben- efit or Guaranteed withdrawal benefit for life is elected, the investment allocation during the 30 day free look period is limited to the guaranteed interest option. If you allocate any portion of your initial contribution to the variable invest- ment options (other than the EQ/Money Market option) and/or fixed maturity options, your refund will be equal to your account value on the date we receive your request to cancel at our processing office. - -------------------------------------------------------------------------------- ILLINOIS Your loan interest rate will not exceed 8% (or any lower maximum rate that may become required by Illinois or fed- eral law). The following sentence replaces the first sentence of the second paragraph in this section: You can choose the date annuity payments begin but it may not be earlier than twelve months from the Accumulator(R) Elite(SM) contract date. - -------------------------------------------------------------------------------- MASSACHUSETTS The annual administrative charge will not be deducted from amounts allocated to the Guaranteed interest option. This section is deleted in its entirety. - -------------------------------------------------------------------------------- MISSISSIPPI Not Available Not Available Additional contributions are limited to the first year after the contract issue date only. The 150% limitation rule does not apply. - --------------------------------------------------------------------------------
The following information applies to Accumulator(R) Elite(SM) contracts sold in New Jersey from May 29, 2007 to September 10, 2007. G-1 Appendix VII: State contract availability and/or variations of certain features and benefits
- -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- NEW JERSEY "Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit" See "Guaranteed minimum death benefit charge" in "Fee table" See "Guaranteed minimum death benefit charge" and "Guaranteed minimum income benefit charge" in "Fee table" See "Guaranteed minimum income benefit and the Roll-Up benefit base reset" in "Contract features and benefits" - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- NEW JERSEY All references to this feature are deleted in their entirety. You have the choice of the following guaranteed minimum death benefits: the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85; the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85; the Annual Ratchet to age 85; the Standard death benefit; the GWBL Standard death benefit; or the GWBL Enhanced death benefit. The charge for the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 is 0.60% The charge for the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 is 0.60% Footnote (4) (and all related text) is deleted in its entirety. We do not reserve the right to increase your charge if you reset your Greater of 6% to age 85 or Annual Ratchet to age 85 enhanced death benefit and Guaranteed minimum income benefit Roll-Up benefit base. All references to resetting your Roll-Up benefit base on each contract date anniversary are deleted in their entirety here and throughout the Prospectus. Instead, if you elect the Guaranteed minimum income benefit alone or together with the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, you will be eligible to reset the Roll-Up benefit base for these guaranteed benefits to equal the account value as of the 5th or later contract date anniversary. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset for five years. The Guaranteed minimum income ben- efit that includes 6-1/2% Roll-Up benefit base is not available in combination with the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. - --------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-2
- ----------------------------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ----------------------------------------------------------------------------------------------------------------------------------- NEW JERSEY See "Guaranteed minimum income benefit option" in The table showing the maximum periods certain available (CONTINUED) "Contract features and benefits" under the life with a period certain payout option is deleted in its entirely and replaced with the following: ---------------------------- Level payments --------------------------- Period certain years Owner's ---------- age at exercise IRAs NQ --------------------------- 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 --------------------------- See "Greater of 6% Roll-Up to age 85 or Annual Ratchet The second sentence of the first paragraph and the entire to age 85" under "Guaranteed minimum death benefit second paragraph are deleted in their entirety and replaced charge" in "Charges and expenses" with the following: The charge is equal to 0.60% of the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. See "Greater of 3% Roll-Up to age 85 or Annual Ratchet The second sentence is deleted in its entirety and replaced to age 85" under "Guaranteed minimum death benefit with the following: charge" in "Charges and expenses" The charge is equal to 0.60% of the Greater of the 3% Roll-up to age 85 or the Annual Ratchet to age 85 benefit base. See "Guaranteed minimum income benefit charge" in The third paragraph is deleted in its entirety. "Charges and expenses" - ----------------------------------------------------------------------------------------------------------------------------------- PENNSYLVANIA Contributions Your contract refers to contributions as premiums. Special dollar cost averaging program In Pennsylvania, we refer to this program as "enhanced rate dollar cost averaging." See "Disability, terminal illness, or confinement to o Item (iii) under this section is deleted in its entirety. nursing home" under "withdrawal charge" in "Charges and expenses" Required disclosure for Pennsylvania customers In Pennsylvania, we refer to this program as "enhanced rate dollar cost averaging." Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. - -----------------------------------------------------------------------------------------------------------------------------------
G-3 Appendix VII: State contract availability and/or variations of certain features and benefits
- ----------------------------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ----------------------------------------------------------------------------------------------------------------------------------- PUERTO RICO Beneficiary continuation option (IRA) Not Available IRA, Roth IRA, Inherited IRA, Rollover TSA and QP (Defined Not Available Benefit) contracts See "How you can purchase and contribute to your con- Specfic requirements for purchasing QP contracts tract" in "Contract features and benefits" in Puerto Rico are outlined below in "Purchase considerations for QP (Defined Contribution) contracts in Puerto Rico". See "Exercise Rules" under "How you can purchase and Exercise restrictions for the GMIB on a Puerto Rico contribute to your contract" in "Contract features and ben- QPDC contract are described below, under "Purchase efits" considerations for QP (Defined Contribution) contracts in Puerto Rico", and in your contract. See "Income Manager(R) payout options" in "Accessing your This payout option is not available with QPDC money" contracts. See "Transfers of ownership, collateral assignments, loans Transfers of ownership of QP contracts and borrowing" in "More information" are governed by Puerto Rico law. Please consult your tax, legal or plan advisor if you intend to transfer ownership of your contract. "Purchase considerations for QP (Defined Contribution) Purchase considerations for QP (Defined Contribution) contracts in Puerto Rico" -- this section replaces "Appen- contracts in Puerto Rico: dix II: Purchase considerations for QP contracts" in your Trustees who are considering the purchase of an Prospectus. Accumulator(R) Elite(SM) QP contract in Puerto Rico should discuss with their tax, legal and plan advisors whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of Puerto Rico income tax rules. The QP contract and this Prospectus should be reviewed in full, and the following factors, among others, should be noted. Limits on Contract Ownership: o The QP contract is offered only as a funding vehicle to qualified plan trusts of single participant defined contribution plans that are tax-qualified under Puerto Rico law, not United States law. The contract is not available to US qualified plans or to defined benefit plans qualifying under Puerto Rico law. o The QP contract owner is the qualified plan trust. The annuitant under the contract is the self-employed Puerto Rico resident, who is the sole plan participant. o This product should not be purchased if the self- employed individual anticipates having additional employees become eligible for the plan. We will not allow additional contracts to be issued for participants other than the original business owner. o If the business that sponsors the plan adds another employee, no further contributions may be made to the contract. If the employer moves the funds to another funding vehicle that can accommodate more than one employee, this move could result in surrender charges, if applicable, and the loss of guaranteed benefits in the contract. - -----------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-4
- ----------------------------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ----------------------------------------------------------------------------------------------------------------------------------- PUERTO RICO Limits on Contributions: (CONTINUED) o All contributions must be direct transfers from other investments within an existing qualified plan trust. o Employer payroll contributions are not accepted. o Only one additional transfer contribution may be made per contract year. o Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. o As mentioned above, if a new employee becomes eligible for the plan, the trustee will not be permitted to make any further contributions to the contract established for the original business owner. Limits on Payments: o Loans are not available under the contract. o All payments are made to the plan trust as owner, even though the plan participant/annuitant is the ultimate recipient of the benefit payment. o AXA Equitable does no tax reporting or withholding of any kind. The plan administrator or trustee will be solely responsible for performing or providing for all such services. o AXA Equitable does not offer contracts that qualify as IRAs under Puerto Rico law. The plan trust will exercise the GMIB and must continue to hold the supplementary contract for the duration of the GMIB payments. Plan Termination: o If the plan participant terminates the business, and as a result wishes to terminate the plan, the trust would have to be kept in existence to receive payments. This could create expenses for the plan. o If the plan participant terminates the plan and the trust is dissolved, or if the plan trustee (which may or may not be the same as the plan participant) is unwilling to accept payment to the plan trust for any reason, AXA Equitable would have to change the contract from a Puerto Rico QP to NQ in order to make payments to the individual as the new owner. Depending on when this occurs, it could be a taxable distribution from the plan, with a potential tax of the entire account value of the contract. Puerto Rico income tax withholding and reporting by the plan trustee could apply to the distribution transaction. o If the plan trust is receiving GMIB payments and the trust is subsequently terminated, transforming the contract into an individually owned NQ contract, the trustee would be responsible for the applicable Puerto Rico income tax withholding and reporting on the present value of the remaining annuity payment stream. - -----------------------------------------------------------------------------------------------------------------------------------
G-5 Appendix VII: State contract availability and/or variations of certain features and benefits
- ---------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ---------------------------------------------------------------------------------------------------------------- PUERTO RICO o AXA Equitable is a U.S. insurance (CONTINUED) company, therefore distributions under the NQ contract could be subject to United States taxation and withholding on a "taxable amount not determined" basis. Tax information -- Special rules for Income from NQ contracts we issue is U.S. source. A NQ contracts Puerto Rico resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico source income of Puerto Rico residents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable portion of amounts distributed from a con- tract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S. tax paid. Depending on your per- sonal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. - ------------------------------------------------------------------------------------------------------------------- TEXAS See "Annual administrative charge" in The annual administrative charge will not be "Charges and expenses" deducted from amounts allocated to the Guaranteed interest option. - ------------------------------------------------------------------------------------------------------------------- WASHINGTON Guaranteed interest option Not Available Investment simplifier -- Fixed-dollar Not Available option and Interest sweep option Fixed maturity options Not Available Income Manager(R) payout option Not Available Earnings enhancement benefit Not Available Special dollar cost averaging program o Available only at issue o Subsequent contributions cannot be used to elect new programs. You may make subsequent contributions to the initial programs while they are still running. "Greater of 6-1/2% Roll-Up to age 85 or All references to these features are deleted in Annual Ratchet to age 85 enhanced death their entirety. benefit"; "Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 You have the choice of the following guaranteed enhanced death benefit"; and "GWBL minimum death benefits: the Greater of 4% Roll-Up Enhanced death benefit" to age 85 or Annual Ratchet to age 85 enhanced death benefit; the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit; the Annual Ratchet to age 85; the Standard death benefit; or the GWBL Standard death benefit. See "Guaranteed minimum death benefit The charge for the Greater of 4% Roll-Up to age 85 charge" in "Fee table" and in "Charges or Annual Ratchet to age 85 is 0.65% and cannot be and expenses" increased. See "How you can purchase and contribute o For contracts with GWBL, the $1,500,000 to your con tract" in "Contract features contribution limit applies for all issue and benefits" ages. o The second sentence of the third paragraph is deleted. The paragraph now reads: "We limit aggregate contributions made after the first contract year to 150% of first- year contributions." - -------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-6
- ----------------------------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ----------------------------------------------------------------------------------------------------------------------------------- WASHINGTON See "Guaranteed minimum death benefit and Guaranteed o If you elect the 6-1/2% (or 6%, as (CONTINUED) minimum income benefit base" in "Contract features and applicable) Guaranteed minimum income benefits" benefit with the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, the variable investment options (other than EQ/Money Market) and the account for special dollar cost averaging will roll up at an annual rate of 6-1/2% (or 6%, as applicable) for the Guaranteed minimum income benefit base and 4% for the 4% Roll-Up to age 85 benefit base. o If you elect the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, without a Guaranteed minimum income benefit, the variable investment options (other than EQ/Money Market) and the account for special dollar cost averaging will roll up at an annual rate of 4% for the 4% Roll-Up to age 85 benefit base. See "Guaranteed minimum death benefit/Guaranteed mini- Your "Greater of 4% Roll-Up to Age 85 or Annual mum income benefit roll-up benefit benefit base reset" in Ratchet to age 85 enhanced death benefit" benefit "Contract features and benefits" base will reset only if your account value is greater than your Guaranteed minimum income benefit Roll-Up base. See "How withdrawals affect your Guaranteed minimum The first sentence of the third paragraph is income benefit and Guaranteed minimum death benefit" in replaced with the following: "Accessing your money" o With respect to the 6-1/2% (or 6%, as applicable) Guaranteed minimum income benefit, withdrawals (including any applicable withdrawal charges) will reduce the 6-1/2% (or 6%, as applicable) Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6-1/2% (or 6%, as applicable) or less of the 6-1/2% (or 6%, as applicable) Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. o With respect to the Guaranteed minimum income benefit and the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, if elected in combination, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6-1/2% (or 6%, as applicable) or less of the Guaranteed minimum income benefit's Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. - -----------------------------------------------------------------------------------------------------------------------------------
G-7 Appendix VII: State contract availability and/or variations of certain features and benefits
- ----------------------------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ----------------------------------------------------------------------------------------------------------------------------------- WASHINGTON o With respect to the Greater of 4% Roll-Up to (CONTINUED) age 85 or Annual Ratchet to age 85 enhanced death benefit, if elected without the Guaranteed minimum income benefit, withdrawals (including any applicable withdrawal charges) will reduce the 4% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6% or less of the 4% Roll-Up to age 85 benefit base on the contract issue date or the most recent contract date anniversary, if later. o With respect to the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, withdrawals (including any applicable withdrawal charges) will reduce the 3% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the with- drawals in a contract year is 3% or less of the 3% Roll-Up to age 85 enhanced death benefit base on the contract issue date or the most recent contract date anniversary, if later. See "Guaranteed minimum death benefit" in You have a choice of the standard death benefit, "Contract features and benefits" the Annual Ratchet to age 85 enhanced death benefit, the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, or the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. See "GWBL Guaranteed minimum death benefit" under Only the GWBL Standard death benefit is available. "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" See "Annual administrative charge" in "Charges and The second paragraph of this section is replaced expenses" with the following: The annual administrative charge will be deducted from the value in the variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of that charge for the year. See "10% free withdrawal amount" under "Withdrawal The 10% free withdrawal amount applies to full charge" in "Charges and expenses" surrenders. See "Certain withdrawals" under "Withdrawal charge" in If you elect the Greater of 4% Roll-Up to age 85 "Charges and expenses" or Annual Ratchet to age 85 enhanced death benefit without a Guaranteed minimum income benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6% of the beginning of contract year 4% Roll-Up to age 85 benefit base, even if such withdrawals exceed the free withdrawal amount.
Appendix VII: State contract availability and/or variations of certain features and benefits G-8
- ----------------------------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ----------------------------------------------------------------------------------------------------------------------------------- WASHINGTON See "Withdrawal charge" in "Charges and expenses" under The owner (or older joint owner, if applicable) (CONTINUED) "Disability, terminal illness, or confinement to nursing has qualified to receive Social Security home" disability benefits as certified by the Social Security Administration or a statement from an independent U.S. licensed physician stating that the owner (or older joint owner, if applicable) meets the definition of total disability for at least 6 continuous months prior to the notice of claim. Such disability must be re-certified every 12 months. - -----------------------------------------------------------------------------------------------------------------------------------
G-9 Appendix VII: State contract availability and/or variations of certain features and benefits Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 HOW TO OBTAIN AN ACCUMULATOR(R) ELITE(SM) STATEMENT OF ADDITIONAL INFORMATION FOR SEPARATE ACCOUNT NO. 49 Send this request form to: Accumulator(R) Elite(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 ................................................................................. Please send me an Accumulator(R) Elite(SM) SAI for SEPARATE ACCOUNT NO. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name: - -------------------------------------------------------------------------------- Address: - -------------------------------------------------------------------------------- City State Zip x1890/Elite '02/ '04, '04(NY), '06, '06.5 and '07 Series Accumulator(R) Plus(SM) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before taking any action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) PLUS(SM)? Accumulator(R) Plus(SM) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers death benefit protection and a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option or fixed maturity options ("investment options"). Certain features and benefits described in this Prospectus may vary in your state; all features and benefits may not be available in all contracts, in all states or from all selling broker-dealers. Please contact your financial professional and/or review your contract for state variations that may apply to you. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street Small o EQ/Ariel Appreciation II Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (The "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option and the fixed maturity options, which are discussed later in this Prospectus. TYPES OF CONTRACTS. Contracts were offered for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). o An annuity that is an investment vehicle for a qualified defined contribution plan ("QP") (Rollover and direct transfer contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $10,000 was required to purchase a contract. We add an amount ("credit") to your contract with each contribution you make. Expenses for this contract may be higher than for a comparable contract without a credit. Over time, the amount of the credit may be more than offset by fees and charges associated with the credit. A registration statement relating to this offering has been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. This contract is no longer available for new purchasers. This contract is no longer being sold. This Prospectus is designed for current contract owners. In addition to the possible state variations noted above, you should note that your contract features and charges may vary depending on the date on which you purchased your contract. For more information about the particular features, charges and options applicable to you, please contact your financial professional or refer to your contract, as well as review Appendix VI later in this Prospectus for contract variation information and timing. You may not change your contract or its features as issued. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01885/Plus/ML '02 Series Contents of this Prospectus - -------------------------------------------------------------------------------- ACCUMULATOR(R) PLUS(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 5 How to reach us 6 Accumulator(R) Plus(SM) at a glance -- key features 8 - -------------------------------------------------------------------------------- FEE TABLE 11 - -------------------------------------------------------------------------------- Example 15 Condensed financial information 18 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 19 - -------------------------------------------------------------------------------- How you can contribute to your contract 19 Owner and annuitant requirements 22 How you can make your contributions 22 What are your investment options under the contract? 22 Portfolios of the Trusts 23 Allocating your contributions 29 Credits 30 Your benefit base 31 Annuity purchase factors 32 Living Benefit option 32 Guaranteed minimum death benefit 34 Your right to cancel within a certain number of days 35 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 36 - -------------------------------------------------------------------------------- Your account value and cash value 36 Your contract's value in the variable investment options 36 Your contract's value in the guaranteed interest account 36 Your contract's value in the fixed maturity options 36 Insufficient account value 36 - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG THE INVESTMENT OPTIONS 37 - -------------------------------------------------------------------------------- Transferring your account value 37 Disruptive transfer activity 37 Rebalancing your account value 38 - ---------------------- "We," "our," and "us" refer to AXA Equitable. When we address the reader of this prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 40 - -------------------------------------------------------------------------------- Withdrawing your account value 40 How withdrawals are taken from your account value 41 How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit 41 Loans under rollover TSA contracts 42 Surrendering your contract to receive its cash value 42 When to expect payments 42 Your annuity payout options 42 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 45 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 45 Charges that the Trusts deduct 47 Group or sponsored arrangements 47 Other distribution arrangements 48 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 49 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 49 How death benefit payment is made 50 Beneficiary continuation option 50 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 53 - -------------------------------------------------------------------------------- Overview 53 Contracts that fund a retirement arrangement 53 Transfers among variable investment options 53 Taxation of nonqualified annuities 53 Individual retirement arrangements (IRAs) 55 Tax-Sheltered Annuity contracts (TSAs) 64 Federal and state income tax withholding and information reporting 69 Special rules for contracts funding qualified plans 70 Impact of taxes to AXA Equitable 70 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 71 - -------------------------------------------------------------------------------- About Separate Account No. 49 71 About the Trusts 71 About our fixed maturity options 71 About the general account 72 About other methods of payment 73 Dates and prices at which contract events occur 73 About your voting rights 74 About legal proceedings 74 Financial statements 74 Transfers of ownership, collateral assignments, loans and borrowing 74 Distribution of the contracts 75 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 77 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Guaranteed enhanced death benefit example D-1 V -- Hypothetical illustrations E-1 VI -- Contract variations F-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page 6% Roll-Up to age 85 enhanced death benefit 31 account value 36 administrative charge 45 annual administrative charge 45 Annual ratchet to age 85 enhanced death benefit 31 annuitant 19 annuitization 42 annuity maturity date 44 annuity payout options 42 annuity purchase factors 32 automatic investment program 73 beneficiary 49 Beneficiary continuation option ("BCO") 50 benefit base 31 business day 73 cash value 36 charges for state premium and other applicable taxes 47 contract date 9 contract date anniversary 9 contract year 9 contributions to traditional IRAs 56 regular contributions 56 rollovers and transfers 57 credit 30 disability, terminal illness or confinement to nursing home 46 disruptive transfer activity 37 distribution charge 45 EQAccess 6 ERISA 48 Fixed-dollar option 30 fixed maturity options 28 free look 35 free withdrawal amount 46 general account 72 General dollar cost averaging 30 guaranteed interest option 28 guaranteed minimum death benefit 34 guaranteed minimum death benefit charge 46 guaranteed minimum income benefit 32 IRA cover IRS 53 investment simplifier 30 lifetime required minimum distribution withdrawals 41 Limits on contributions 56 Living Benefit option 32 Living Benefit charge 47 loan reserve account 42 loans under Rollover TSA contracts 42 market adjusted amount 28 market value adjustment 28 market timing 37 maturity dates 28 maturity value 28 Mortality and expense risks charge 45 NQ cover partial withdrawals 40 Portfolio cover principal assurance allocation 29 processing office 6 Protection Plus(SM) 34 Protection Plus(SM) charge 47 QP cover rate to maturity 28 Rebalancing 38 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 29 Separate Account No. 49 71 Standard death benefit 31 substantially equal withdrawals 40 Successor owner and annuitant 50 systematic withdrawals 40 TOPS 6 TSA cover traditional IRA cover Trusts 71 unit 36 variable investment options 22 wire transmittals and electronic applications 73 Withdrawal charge 45 To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract or supplemental materials. Your financial professional can provide further explanation about your contract or supplemental materials.
- -------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - -------------------------------------------------------------------------------- fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Living Benefit Guaranteed Minimum Income Benefit Guaranteed Interest Option Guaranteed Interest Account
4 Index of key words and phrases Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. Who is AXA Equitable? 5 HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) Plus(SM) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) Plus(SM) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) Plus(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) Plus(SM) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility to exercise the guaranteed minimum income benefit, if applicable. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options; o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the variable investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (through EQ Access only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQ Access by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of your transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any 6 Who is AXA Equitable? act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts; (7) tax withholding elections; (8) election of the beneficiary continuation option; (9) IRA contribution recharacterizations; (10) Section 1035 exchanges; (11) direct transfers and rollovers; (12) purchase by, or change of ownership to, a non-natural person; (13) exercise of the Guaranteed minimum income benefit; and (14) death claims. WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; and (3) general dollar cost averaging (including the fixed dollar and interest sweep options). TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) dollar cost averaging (including the fixed dollar amount and interest sweep options); (3) substantially equal withdrawals; (4) systematic withdrawals; and (5) the date annuity payments are to begin. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners both must sign. Who is AXA Equitable? 7 Accumulator(R) Plus(SM) at a glance -- key features - ------------------------------------------------------------------------------------------------------------------------------------ Professional investment Accumulator(R) Plus(SM) variable investment options invest in different Portfolios managed by professional management investment advisers. - ------------------------------------------------------------------------------------------------------------------------------------ Fixed maturity o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to options availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. -------------------------------------------------------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - ------------------------------------------------------------------------------------------------------------------------------------ Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among variable investment options inside the contract. - ------------------------------------------------------------------------------------------------------------------------------------ You should be aware that annuity contracts that were purchased as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code arrangements. Before you purchased your contract, you should have considered its features and benefits beyond tax deferral, as well as its features, benefits and costs relative to any other investment that you may have chosen in connection with your retirement plan or arrangement, to determine whether it would meet your needs and goals. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ------------------------------------------------------------------------------------------------------------------------------------ Living Benefit protection The Living Benefit provides a guaranteed minimum income benefit. The guaranteed minimum income benefit provides income protection for you during the annuitant's life once you elect to annuitize the contract. - ------------------------------------------------------------------------------------------------------------------------------------ Contribution amounts o Additional minimum: $500 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) (subject to tax maximums) $50 (IRA contracts) -------------------------------------------------------------------------------------------------------- Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million under all Accumulator(R) series contracts with the same owner or annuitant. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. See "How you can contribute to your contract" in "Contract features and benefits" later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------ Credit We allocate your contributions to your account value. We allocate a credit to your account value at the same time that we allocate your contributions. The amount of credit may be up to 5% of each contribution, depending on certain factors. The credit is subject to recovery by us in certain limited circumstances. - ------------------------------------------------------------------------------------------------------------------------------------ Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ------------------------------------------------------------------------------------------------------------------------------------ Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option)
8 Accumulator(R) Plus(SM) at a glance -- key features - -------------------------------------------------------------------------------- Additional features o Guaranteed minimum death benefit options o Principal assurance allocation o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually, and annually) o Free transfers o Waiver of withdrawal charge for disability, terminal illness, or confinement to a nursing home o Protection Plus(SM), an optional death benefit available under certain contracts (subject to state availability) - -------------------------------------------------------------------------------- Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense risks, administrative, and distribution charges at an annual rate of 1.40%. o The charges for the guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the applicable benefit base. The benefit base is described under "Your benefit base" in "Contract features and benefits" later in this Prospectus. o An annual charge of 0.35% of the account value for the Protection Plus(SM) optional death benefit. o An annual charge of 0.60% of the applicable benefit base charge for the optional Living Benefit until you exercise your guaranteed minimum income benefit, elect another annuity payout or the contract date anniversary after the annuitant reaches age 85, whichever occurs first. The benefit base is described under "Your benefit base" in "Contract features and benefits" later in this Prospectus. o If your account value at the end of the contract year is less than $50,000, we deduct an annual administrative charge equal to $30, or during the first two contract years, 2% of your account value, if less. If your account value, on the contract date anniversary, is $50,000 or more, we will not deduct the charge. o No sales charge deducted at the time you make contributions. o During the first eight contract years following a contribution, a charge will be deducted from amounts that you withdraw that exceed 15% of your account value. We use the account value at the beginning of each contract year to calculate the 15% amount available. The charge is 8% in each of the first two contract years following a contribution; the charge is 7% in the third and fourth contract years following a contribution; thereafter, it declines by 1% each year in the fifth to eighth contract year following a contribution. There is no withdrawal charge in the ninth and later contract years following a contribution. Certain other exemptions apply. ------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we received the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date appears in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. ------------------------------------------------------- o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. This charge is generally deducted from the amount applied to an annuity payout option. o We currently deduct a $350 annuity administrative fee from amounts applied to purchase the variable immediate annuitization payout option. This option is described in a separate prospectus that is available from your financial professional. o Annual expenses of the Trusts' Portfolios are calculated as a percentage of the average daily net assets invested in each Portfolio. Please see "Fee table" later in this Prospectus for details. - -------------------------------------------------------------------------------- Annuitant issue ages NQ: 0-80 Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-80 QP: 20-70 - -------------------------------------------------------------------------------- The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available in your state or at certain ages. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. Accumulator(R) Plus(SM) at a glance -- key features 9 OTHER CONTRACTS We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts, based on issue age or other criteria established by the selling broker-dealer. The level of credits, fees, charges and features may vary depending (among other things) on the distribution costs associated with your particular selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. 10 Accumulator(R) Plus(SM) at a glance -- key features Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you pay when owning and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay at the time you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply. - -------------------------------------------------------------------------------- Charges we deduct from your account value at the time you request certain transactions - -------------------------------------------------------------------------------- Maximum withdrawal charge as a percentage of contributions withdrawn (deducted if you surrender your contract, make certain withdrawals, or apply your cash value to certain payout options).(1) 8.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $350 - -------------------------------------------------------------------------------- The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses. - -------------------------------------------------------------------------------- Charges we deduct from your account value on each contract date anniversary - -------------------------------------------------------------------------------- Maximum annual administrative charge If your account value on a contract date anniversary is less than $50,000(2) $30 If your account value on a contract date anniversary is $50,000 or more $0 - -------------------------------------------------------------------------------- Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - -------------------------------------------------------------------------------- SEPARATE ACCOUNT ANNUAL EXPENSES: Mortality and expense risks 0.90%(3) Administrative 0.25% Distribution 0.25% ------- Total Separate account annual expenses 1.40% - -------------------------------------------------------------------------------- Charges we deduct from your account value each year if you elect any optio al benefits - -------------------------------------------------------------------------------- Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually on each contract date anniversary for which the benefit is in effect.) Standard death benefit 0.00% Annual Ratchet to age 85 0.30% of the Annual Ratchet to age 85 benefit base 6% Roll-Up to age 85 0.45% of the 6% Roll-Up to age 85 benefit base Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 0.60% of the greater of the 6% Roll-Up to age 85 benefit base or the Annual Ratchet to age 85 benefit base, as applicable - -------------------------------------------------------------------------------- Living Benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually on each contract date anniversary for which the benefit is in effect.) 0.60% - -------------------------------------------------------------------------------- Protection Plus(SM) benefit charge (calculated as a percentage of the account value. Deducted annually on each contract date anniver- sary for which the benefit is in effect.) 0.35%
Fee table 11 You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio. - ------------------------------------------------------------------------------------------------------ Portfolio operating expenses expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or other expenses)(4) 0.63% 3.56%
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
Management 12b-1 Other Portfolio Name Fees(5) Fees(6) Expenses(7) - --------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - --------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.10% 0.25% 0.17% AXA Conservative Allocation 0.10% 0.25% 0.21% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% AXA Moderate Allocation 0.10% 0.25% 0.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - --------------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% Acquired Total Fund Annual Net Annual Fees and Expenses Fee Waivers Expenses Expenses (Before and/or (After (Underlying Expense Expense Expense Portfolio Name Portfolios)(8) Limitations) Reimbursements(9) Limitations) - ------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - ------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% - ------------------------------------------------------------------------------------------------------------------------
12 Fee table
Acquired Fund Total Fees and Annual Expenses Expenses Fee Waiv- Net Annual (Underly- (Before ers and/or Expenses Manage- ing Expense Expense (After ment 12b-1 Other Portfo- Limita- Reimburse- Expense Portfolio Name Fees(5) Fees(6) Expenses(7) lios)(8) tions) ments(9) Limitations) - ---------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% 1.05% 1.57% (0.12)% 1.45%(10) EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.60% 0.25% 0.30% 0.04% 1.19% (0.05)% 1.14% EQ/International Growth 0.85% 0.25% 0.27% -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% -- 1.07% (0.07)% 1.00% EQ/Long Term Bond 0.40% 0.25% 0.13% -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% -- 1.10% (0.05)% 1.05% EQ/Marsico Focus 0.85% 0.25% 0.13% -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% 0.02% 1.06% (0.04)% 1.02% EQ/Money Market 0.32% 0.25% 0.13% -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% -- 1.15% 0.00% 1.15% EQ/Mutual Shares 0.90% 0.25% 0.21% -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.95% 0.25% 0.51% 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return 0.55% 0.25% 0.14% -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond 0.43% 0.25% 0.15% -- 0.83% 0.00% 0.83% EQ/Small Company Index 0.25% 0.25% 0.14% -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% -- 1.18% (0.03)% 1.15% EQ/Templeton Growth 0.95% 0.25% 0.20% -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% -- 1.36% (0.10)% 1.26% - ----------------------------------------------------------------------------------------------------------------------------------
Notes: (1) Deducted upon a withdrawal of amounts in excess of the 15% free withdrawal amount, if applicable. The withdrawal charge percentage we use is determined by the contract year in which you make Contract the withdrawal or surrender your contract. For each contribution, we consider the contract Year year in which we receive that contribution to be "contract year 1") 1 8.00% 2 8.00% 3 7.00% 4 7.00% 5 6.00% 6 5.00% 7 4.00% 8 3.00% 9+ 0.00%
(2) During the first two contract years this charge, if it applies, is equal to the lesser of $30 or 2% of your account value. Thereafter, the charge is $30 for each contract year. Fee table 13 (3) These charges compensate us for certain risks we assume and expenses we incur under the contract. They also compensate us for the expense associated with the credit. We expect to make a profit from these charges. (4) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (5) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (9) and (10) for any expense limitation agreement infor mation. (6) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. For the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust, the 12b-1 fees will not be increased for the life of the contract. (7) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (9) and (10) for any expense limitation agreement information. (8) Each of these variable investment options invest in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (9) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements, plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: --------------------------------------------- Portfolio Name --------------------------------------------- Multimanager Aggressive Equity 0.97% --------------------------------------------- Multimanager Health Care 1.67% --------------------------------------------- Multimanager Large Cap Core Equity 1.34% --------------------------------------------- Multimanager Large Cap Growth 1.29% --------------------------------------------- Multimanager Large Cap Value 1.26% --------------------------------------------- Multimanager Mid Cap Growth 1.52% --------------------------------------------- Multimanager Mid Cap Value 1.53% --------------------------------------------- Multimanager Small Cap Growth 1.35% --------------------------------------------- Multimanager Small Cap Value 1.45% --------------------------------------------- Multimanager Technology 1.67% --------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% --------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% --------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% --------------------------------------------- EQ/AllianceBernstein Value 0.87% --------------------------------------------- EQ/Ariel Appreciation II 1.09% --------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% --------------------------------------------- EQ/Davis New York Venture 1.25% --------------------------------------------- EQ/Evergreen Omega 1.12% --------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% --------------------------------------------- EQ/GAMCO Small Company Value 1.10% --------------------------------------------- EQ/International Core PLUS 1.05% --------------------------------------------- EQ/Large Cap Core PLUS 0.83% --------------------------------------------- EQ/Large Cap Growth PLUS 0.82% --------------------------------------------- EQ/Legg Mason Value Equity 0.97% --------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% --------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% --------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% --------------------------------------------- EQ/Mid Cap Value PLUS 0.81% --------------------------------------------- EQ/Montag & Caldwell Growth 1.13% --------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% --------------------------------------------- EQ/UBS Growth and Income 1.04% --------------------------------------------- EQ/Van Kampen Comstock 0.99% --------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% --------------------------------------------- (10) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and adminis tration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. 14 Fee table EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the Living Benefit with the enhanced death benefit that provides for the greater of the 6% Roll-Up or the Annual Ratchet to age 85 and Protection Plus(SM)) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.007% of contract value. The fixed maturity options and guaranteed interest option are not covered by the example. However, the annual administrative charge, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options and guaranteed interest option. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Fee table 15
If you surrender your contract at the end of the applicable time period -------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------ AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation $ 1,281.00 $ 2,172.00 $ 3,102.00 $ 5,259.00 AXA Conservative Allocation $ 1,261.00 $ 2,112.00 $ 3,004.00 $ 5,081.00 AXA Conservative-Plus Allocation $ 1,266.00 $ 2,128.00 $ 3,030.00 $ 5,128.00 AXA Moderate Allocation $ 1,270.00 $ 2,140.00 $ 3,050.00 $ 5,166.00 AXA Moderate-Plus Allocation $ 1,275.00 $ 2,153.00 $ 3,071.00 $ 5,203.00 Multimanager Aggressive Equity $ 1,238.00 $ 2,044.00 $ 2,895.00 $ 4,880.00 Multimanager Core Bond $ 1,234.00 $ 2,035.00 $ 2,879.00 $ 4,851.00 Multimanager Health Care $ 1,308.00 $ 2,248.00 $ 3,224.00 $ 5,478.00 Multimanager High Yield $ 1,234.00 $ 2,035.00 $ 2,879.00 $ 4,851.00 Multimanager International Equity $ 1,286.00 $ 2,185.00 $ 3,122.00 $ 5,296.00 Multimanager Large Cap Core Equity $ 1,272.00 $ 2,143.00 $ 3,055.00 $ 5,175.00 Multimanager Large Cap Growth $ 1,274.00 $ 2,150.00 $ 3,066.00 $ 5,194.00 Multimanager Large Cap Value $ 1,268.00 $ 2,134.00 $ 3,040.00 $ 5,147.00 Multimanager Mid Cap Growth $ 1,293.00 $ 2,207.00 $ 3,158.00 $ 5,360.00 Multimanager Mid Cap Value $ 1,292.00 $ 2,204.00 $ 3,153.00 $ 5,351.00 Multimanager Small Cap Growth $ 1,296.00 $ 2,213.00 $ 3,168.00 $ 5,378.00 Multimanager Small Cap Value $ 1,284.00 $ 2,178.00 $ 3,112.00 $ 5,277.00 Multimanager Technology $ 1,308.00 $ 2,248.00 $ 3,224.00 $ 5,478.00 - ------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock $ 1,217.00 $ 1,983.00 $ 2,796.00 $ 4,695.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,220.00 $ 1,993.00 $ 2,811.00 $ 4,725.00 EQ/AllianceBernstein International $ 1,249.00 $ 2,076.00 $ 2,947.00 $ 4,977.00 EQ/AllianceBernstein Large Cap Growth $ 1,264.00 $ 2,121.00 $ 3,019.00 $ 5,109.00 EQ/AllianceBernstein Quality Bond $ 1,221.00 $ 1,996.00 $ 2,817.00 $ 4,734.00 EQ/AllianceBernstein Small Cap Growth $ 1,246.00 $ 2,070.00 $ 2,937.00 $ 4,957.00 EQ/AllianceBernstein Value $ 1,229.00 $ 2,019.00 $ 2,853.00 $ 4,803.00 EQ/Ariel Appreciation II $ 1,262.00 $ 2,115.00 $ 3,009.00 $ 5,091.00 EQ/AXA Rosenberg Value Long/Short Equity $ 1,513.00 $ 2,830.00 $ 4,137.00 $ 7,014.00 EQ/BlackRock Basic Value Equity $ 1,226.00 $ 2,009.00 $ 2,838.00 $ 4,774.00 EQ/BlackRock International Value $ 1,261.00 $ 2,112.00 $ 3,004.00 $ 5,081.00 EQ/Boston Advisors Equity Income $ 1,249.00 $ 2,076.00 $ 2,947.00 $ 4,977.00 EQ/Calvert Socially Responsible $ 1,248.00 $ 2,073.00 $ 2,942.00 $ 4,967.00 EQ/Capital Guardian Growth $ 1,239.00 $ 2,048.00 $ 2,900.00 $ 4,890.00 EQ/Capital Guardian Research $ 1,234.00 $ 2,035.00 $ 2,879.00 $ 4,851.00 EQ/Caywood-Scholl High Yield Bond $ 1,234.00 $ 2,035.00 $ 2,879.00 $ 4,851.00 EQ/Davis New York Venture $ 1,264.00 $ 2,121.00 $ 3,019.00 $ 5,109.00 EQ/Equity 500 Index $ 1,193.00 $ 1,913.00 $ 2,680.00 $ 4,476.00 EQ/Evergreen International Bond $ 1,246.00 $ 2,070.00 $ 2,937.00 $ 4,957.00 EQ/Evergreen Omega $ 1,250.00 $ 2,080.00 $ 2,952.00 $ 4,986.00 - ------------------------------------------------------------------------------------------------------ If you annuitize at the end of the applicable time period and select a non-life contingent period certain annuity option with less than five years -------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------ AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation N/A $ 2,172.00 $ 3,102.00 $ 5,259.00 AXA Conservative Allocation N/A $ 2,112.00 $ 3,004.00 $ 5,081.00 AXA Conservative-Plus Allocation N/A $ 2,128.00 $ 3,030.00 $ 5,128.00 AXA Moderate Allocation N/A $ 2,140.00 $ 3,050.00 $ 5,166.00 AXA Moderate-Plus Allocation N/A $ 2,153.00 $ 3,071.00 $ 5,203.00 Multimanager Aggressive Equity N/A $ 2,044.00 $ 2,895.00 $ 4,880.00 Multimanager Core Bond N/A $ 2,035.00 $ 2,879.00 $ 4,851.00 Multimanager Health Care N/A $ 2,248.00 $ 3,224.00 $ 5,478.00 Multimanager High Yield N/A $ 2,035.00 $ 2,879.00 $ 4,851.00 Multimanager International Equity N/A $ 2,185.00 $ 3,122.00 $ 5,296.00 Multimanager Large Cap Core Equity N/A $ 2,143.00 $ 3,055.00 $ 5,175.00 Multimanager Large Cap Growth N/A $ 2,150.00 $ 3,066.00 $ 5,194.00 Multimanager Large Cap Value N/A $ 2,134.00 $ 3,040.00 $ 5,147.00 Multimanager Mid Cap Growth N/A $ 2,207.00 $ 3,158.00 $ 5,360.00 Multimanager Mid Cap Value N/A $ 2,204.00 $ 3,153.00 $ 5,351.00 Multimanager Small Cap Growth N/A $ 2,213.00 $ 3,168.00 $ 5,378.00 Multimanager Small Cap Value N/A $ 2,178.00 $ 3,112.00 $ 5,277.00 Multimanager Technology N/A $ 2,248.00 $ 3,224.00 $ 5,478.00 - ------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock N/A $ 1,983.00 $ 2,796.00 $ 4,695.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,993.00 $ 2,811.00 $ 4,725.00 EQ/AllianceBernstein International N/A $ 2,076.00 $ 2,947.00 $ 4,977.00 EQ/AllianceBernstein Large Cap Growth N/A $ 2,121.00 $ 3,019.00 $ 5,109.00 EQ/AllianceBernstein Quality Bond N/A $ 1,996.00 $ 2,817.00 $ 4,734.00 EQ/AllianceBernstein Small Cap Growth N/A $ 2,070.00 $ 2,937.00 $ 4,957.00 EQ/AllianceBernstein Value N/A $ 2,019.00 $ 2,853.00 $ 4,803.00 EQ/Ariel Appreciation II N/A $ 2,115.00 $ 3,009.00 $ 5,091.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,830.00 $ 4,137.00 $ 7,014.00 EQ/BlackRock Basic Value Equity N/A $ 2,009.00 $ 2,838.00 $ 4,774.00 EQ/BlackRock International Value N/A $ 2,112.00 $ 3,004.00 $ 5,081.00 EQ/Boston Advisors Equity Income N/A $ 2,076.00 $ 2,947.00 $ 4,977.00 EQ/Calvert Socially Responsible N/A $ 2,073.00 $ 2,942.00 $ 4,967.00 EQ/Capital Guardian Growth N/A $ 2,048.00 $ 2,900.00 $ 4,890.00 EQ/Capital Guardian Research N/A $ 2,035.00 $ 2,879.00 $ 4,851.00 EQ/Caywood-Scholl High Yield Bond N/A $ 2,035.00 $ 2,879.00 $ 4,851.00 EQ/Davis New York Venture N/A $ 2,121.00 $ 3,019.00 $ 5,109.00 EQ/Equity 500 Index N/A $ 1,913.00 $ 2,680.00 $ 4,476.00 EQ/Evergreen International Bond N/A $ 2,070.00 $ 2,937.00 $ 4,957.00 EQ/Evergreen Omega N/A $ 2,080.00 $ 2,952.00 $ 4,986.00 - ------------------------------------------------------------------------------------------------------ If you do not surrender your contract at the end of the applicable time period -------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------ AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation $ 481.00 $ 1,472.00 $ 2,502.00 $ 5,259.00 AXA Conservative Allocation $ 461.00 $ 1,412.00 $ 2,404.00 $ 5,081.00 AXA Conservative-Plus Allocation $ 466.00 $ 1,428.00 $ 2,430.00 $ 5,128.00 AXA Moderate Allocation $ 470.00 $ 1,440.00 $ 2,450.00 $ 5,166.00 AXA Moderate-Plus Allocation $ 475.00 $ 1,453.00 $ 2,471.00 $ 5,203.00 Multimanager Aggressive Equity $ 438.00 $ 1,344.00 $ 2,295.00 $ 4,880.00 Multimanager Core Bond $ 434.00 $ 1,335.00 $ 2,279.00 $ 4,851.00 Multimanager Health Care $ 508.00 $ 1,548.00 $ 2,624.00 $ 5,478.00 Multimanager High Yield $ 434.00 $ 1,335.00 $ 2,279.00 $ 4,851.00 Multimanager International Equity $ 486.00 $ 1,485.00 $ 2,522.00 $ 5,296.00 Multimanager Large Cap Core Equity $ 472.00 $ 1,443.00 $ 2,455.00 $ 5,175.00 Multimanager Large Cap Growth $ 474.00 $ 1,450.00 $ 2,466.00 $ 5,194.00 Multimanager Large Cap Value $ 468.00 $ 1,434.00 $ 2,440.00 $ 5,147.00 Multimanager Mid Cap Growth $ 493.00 $ 1,507.00 $ 2,558.00 $ 5,360.00 Multimanager Mid Cap Value $ 492.00 $ 1,504.00 $ 2,553.00 $ 5,351.00 Multimanager Small Cap Growth $ 496.00 $ 1,513.00 $ 2,568.00 $ 5,378.00 Multimanager Small Cap Value $ 484.00 $ 1,478.00 $ 2,512.00 $ 5,277.00 Multimanager Technology $ 508.00 $ 1,548.00 $ 2,624.00 $ 5,478.00 - ------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock $ 417.00 $ 1,283.00 $ 2,196.00 $ 4,695.00 EQ/AllianceBernstein Intermediate Government Securities $ 420.00 $ 1,293.00 $ 2,211.00 $ 4,725.00 EQ/AllianceBernstein International $ 449.00 $ 1,376.00 $ 2,347.00 $ 4,977.00 EQ/AllianceBernstein Large Cap Growth $ 464.00 $ 1,421.00 $ 2,419.00 $ 5,109.00 EQ/AllianceBernstein Quality Bond $ 421.00 $ 1,296.00 $ 2,217.00 $ 4,734.00 EQ/AllianceBernstein Small Cap Growth $ 446.00 $ 1,370.00 $ 2,337.00 $ 4,957.00 EQ/AllianceBernstein Value $ 429.00 $ 1,319.00 $ 2,253.00 $ 4,803.00 EQ/Ariel Appreciation II $ 462.00 $ 1,415.00 $ 2,409.00 $ 5,091.00 EQ/AXA Rosenberg Value Long/Short Equity $ 713.00 $ 2,130.00 $ 3,537.00 $ 7,014.00 EQ/BlackRock Basic Value Equity $ 426.00 $ 1,309.00 $ 2,238.00 $ 4,774.00 EQ/BlackRock International Value $ 461.00 $ 1,412.00 $ 2,404.00 $ 5,081.00 EQ/Boston Advisors Equity Income $ 449.00 $ 1,376.00 $ 2,347.00 $ 4,977.00 EQ/Calvert Socially Responsible $ 448.00 $ 1,373.00 $ 2,342.00 $ 4,967.00 EQ/Capital Guardian Growth $ 439.00 $ 1,348.00 $ 2,300.00 $ 4,890.00 EQ/Capital Guardian Research $ 434.00 $ 1,335.00 $ 2,279.00 $ 4,851.00 EQ/Caywood-Scholl High Yield Bond $ 434.00 $ 1,335.00 $ 2,279.00 $ 4,851.00 EQ/Davis New York Venture $ 464.00 $ 1,421.00 $ 2,419.00 $ 5,109.00 EQ/Equity 500 Index $ 393.00 $ 1,213.00 $ 2,080.00 $ 4,476.00 EQ/Evergreen International Bond $ 446.00 $ 1,370.00 $ 2,337.00 $ 4,957.00 EQ/Evergreen Omega $ 450.00 $ 1,380.00 $ 2,352.00 $ 4,986.00 - ------------------------------------------------------------------------------------------------------
16 Fee table
If you surrender your contract at the end of the applicable time period ------------------------------------------------------------ Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------ AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap $ 1,240.00 $ 2,051.00 $ 2,905.00 $ 4,900.00 EQ/Franklin Income $ 1,266.00 $ 2,128.00 $ 3,030.00 $ 5,128.00 EQ/Franklin Small Cap Value $ 1,269.00 $ 2,137.00 $ 3,045.00 $ 5,156.00 EQ/Franklin Templeton Founding Strategy $ 1,296.00 $ 2,213.00 $ 3,168.00 $ 5,378.00 EQ/GAMCO Mergers and Acquisitions $ 1,270.00 $ 2,140.00 $ 3,050.00 $ 5,166.00 EQ/GAMCO Small Company Value $ 1,248.00 $ 2,073.00 $ 2,942.00 $ 4,967.00 EQ/International Core PLUS $ 1,254.00 $ 2,092.00 $ 2,973.00 $ 5,024.00 EQ/International Growth $ 1,274.00 $ 2,150.00 $ 3,066.00 $ 5,194.00 EQ/JPMorgan Core Bond $ 1,213.00 $ 1,971.00 $ 2,775.00 $ 4,656.00 EQ/JPMorgan Value Opportunities $ 1,232.00 $ 2,028.00 $ 2,869.00 $ 4,832.00 EQ/Large Cap Core PLUS $ 1,236.00 $ 2,038.00 $ 2,885.00 $ 4,861.00 EQ/Large Cap Growth PLUS $ 1,234.00 $ 2,035.00 $ 2,879.00 $ 4,851.00 EQ/Legg Mason Value Equity $ 1,241.00 $ 2,054.00 $ 2,911.00 $ 4,909.00 EQ/Long Term Bond $ 1,209.00 $ 1,961.00 $ 2,759.00 $ 4,626.00 EQ/Lord Abbett Growth and Income $ 1,240.00 $ 2,051.00 $ 2,905.00 $ 4,900.00 EQ/Lord Abbett Large Cap Core $ 1,245.00 $ 2,067.00 $ 2,931.00 $ 4,948.00 EQ/Lord Abbett Mid Cap Value $ 1,244.00 $ 2,064.00 $ 2,926.00 $ 4,938.00 EQ/Marsico Focus $ 1,258.00 $ 2,105.00 $ 2,994.00 $ 5,062.00 EQ/Mid Cap Value PLUS $ 1,240.00 $ 2,051.00 $ 2,905.00 $ 4,900.00 EQ/Money Market $ 1,201.00 $ 1,935.00 $ 2,717.00 $ 4,546.00 EQ/Montag & Caldwell Growth $ 1,250.00 $ 2,080.00 $ 2,952.00 $ 4,986.00 EQ/Mutual Shares $ 1,273.00 $ 2,147.00 $ 3,061.00 $ 5,185.00 EQ/Oppenheimer Global $ 1,312.00 $ 2,261.00 $ 3,244.00 $ 5,514.00 EQ/Oppenheimer Main Street Opportunity $ 1,294.00 $ 2,210.00 $ 3,163.00 $ 5,369.00 EQ/Oppenheimer Main Street Small Cap $ 1,303.00 $ 2,235.00 $ 3,203.00 $ 5,442.00 EQ/PIMCO Real Return $ 1,227.00 $ 2,012.00 $ 2,843.00 $ 4,783.00 EQ/Short Duration Bond $ 1,215.00 $ 1,977.00 $ 2,785.00 $ 4,675.00 EQ/Small Company Index $ 1,194.00 $ 1,916.00 $ 2,685.00 $ 4,486.00 EQ/T. Rowe Price Growth Stock $ 1,253.00 $ 2,089.00 $ 2,968.00 $ 5,015.00 EQ/Templeton Growth $ 1,277.00 $ 2,159.00 $ 3,081.00 $ 5,222.00 EQ/UBS Growth and Income $ 1,251.00 $ 2,083.00 $ 2,957.00 $ 4,996.00 EQ/Van Kampen Comstock $ 1,239.00 $ 2,048.00 $ 2,900.00 $ 4,890.00 EQ/Van Kampen Emerging Markets Equity $ 1,303.00 $ 2,235.00 $ 3,203.00 $ 5,442.00 EQ/Van Kampen Mid Cap Growth $ 1,244.00 $ 2,064.00 $ 2,926.00 $ 4,938.00 EQ/Van Kampen Real Estate $ 1,273.00 $ 2,147.00 $ 3,061.00 $ 5,185.00 - ------------------------------------------------------------------------------------------------------ If you annuitize at the end of the applicable time period and select a non-life contingent period certain annuity option with less than five years ------------------------------------------------------------ Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------ AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap N/A $ 2,051.00 $ 2,905.00 $ 4,900.00 EQ/Franklin Income N/A $ 2,128.00 $ 3,030.00 $ 5,128.00 EQ/Franklin Small Cap Value N/A $ 2,137.00 $ 3,045.00 $ 5,156.00 EQ/Franklin Templeton Founding Strategy N/A $ 2,213.00 $ 3,168.00 $ 5,378.00 EQ/GAMCO Mergers and Acquisitions N/A $ 2,140.00 $ 3,050.00 $ 5,166.00 EQ/GAMCO Small Company Value N/A $ 2,073.00 $ 2,942.00 $ 4,967.00 EQ/International Core PLUS N/A $ 2,092.00 $ 2,973.00 $ 5,024.00 EQ/International Growth N/A $ 2,150.00 $ 3,066.00 $ 5,194.00 EQ/JPMorgan Core Bond N/A $ 1,971.00 $ 2,775.00 $ 4,656.00 EQ/JPMorgan Value Opportunities N/A $ 2,028.00 $ 2,869.00 $ 4,832.00 EQ/Large Cap Core PLUS N/A $ 2,038.00 $ 2,885.00 $ 4,861.00 EQ/Large Cap Growth PLUS N/A $ 2,035.00 $ 2,879.00 $ 4,851.00 EQ/Legg Mason Value Equity N/A $ 2,054.00 $ 2,911.00 $ 4,909.00 EQ/Long Term Bond N/A $ 1,961.00 $ 2,759.00 $ 4,626.00 EQ/Lord Abbett Growth and Income N/A $ 2,051.00 $ 2,905.00 $ 4,900.00 EQ/Lord Abbett Large Cap Core N/A $ 2,067.00 $ 2,931.00 $ 4,948.00 EQ/Lord Abbett Mid Cap Value N/A $ 2,064.00 $ 2,926.00 $ 4,938.00 EQ/Marsico Focus N/A $ 2,105.00 $ 2,994.00 $ 5,062.00 EQ/Mid Cap Value PLUS N/A $ 2,051.00 $ 2,905.00 $ 4,900.00 EQ/Money Market N/A $ 1,935.00 $ 2,717.00 $ 4,546.00 EQ/Montag & Caldwell Growth N/A $ 2,080.00 $ 2,952.00 $ 4,986.00 EQ/Mutual Shares N/A $ 2,147.00 $ 3,061.00 $ 5,185.00 EQ/Oppenheimer Global N/A $ 2,261.00 $ 3,244.00 $ 5,514.00 EQ/Oppenheimer Main Street Opportunity N/A $ 2,210.00 $ 3,163.00 $ 5,369.00 EQ/Oppenheimer Main Street Small Cap N/A $ 2,235.00 $ 3,203.00 $ 5,442.00 EQ/PIMCO Real Return N/A $ 2,012.00 $ 2,843.00 $ 4,783.00 EQ/Short Duration Bond N/A $ 1,977.00 $ 2,785.00 $ 4,675.00 EQ/Small Company Index N/A $ 1,916.00 $ 2,685.00 $ 4,486.00 EQ/T. Rowe Price Growth Stock N/A $ 2,089.00 $ 2,968.00 $ 5,015.00 EQ/Templeton Growth N/A $ 2,159.00 $ 3,081.00 $ 5,222.00 EQ/UBS Growth and Income N/A $ 2,083.00 $ 2,957.00 $ 4,996.00 EQ/Van Kampen Comstock N/A $ 2,048.00 $ 2,900.00 $ 4,890.00 EQ/Van Kampen Emerging Markets Equity N/A $ 2,235.00 $ 3,203.00 $ 5,442.00 EQ/Van Kampen Mid Cap Growth N/A $ 2,064.00 $ 2,926.00 $ 4,938.00 EQ/Van Kampen Real Estate N/A $ 2,147.00 $ 3,061.00 $ 5,185.00 - ------------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period ------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------- EQ/FI Mid Cap $ 440.00 $ 1,351.00 $ 2,305.00 $ 4,900.00 EQ/Franklin Income $ 466.00 $ 1,428.00 $ 2,430.00 $ 5,128.00 EQ/Franklin Small Cap Value $ 469.00 $ 1,437.00 $ 2,445.00 $ 5,156.00 EQ/Franklin Templeton Founding Strategy $ 496.00 $ 1,513.00 $ 2,568.00 $ 5,378.00 EQ/GAMCO Mergers and Acquisitions $ 470.00 $ 1,440.00 $ 2,450.00 $ 5,166.00 EQ/GAMCO Small Company Value $ 448.00 $ 1,373.00 $ 2,342.00 $ 4,967.00 EQ/International Core PLUS $ 454.00 $ 1,392.00 $ 2,373.00 $ 5,024.00 EQ/International Growth $ 474.00 $ 1,450.00 $ 2,466.00 $ 5,194.00 EQ/JPMorgan Core Bond $ 413.00 $ 1,271.00 $ 2,175.00 $ 4,656.00 EQ/JPMorgan Value Opportunities $ 432.00 $ 1,328.00 $ 2,269.00 $ 4,832.00 EQ/Large Cap Core PLUS $ 436.00 $ 1,338.00 $ 2,285.00 $ 4,861.00 EQ/Large Cap Growth PLUS $ 434.00 $ 1,335.00 $ 2,279.00 $ 4,851.00 EQ/Legg Mason Value Equity $ 441.00 $ 1,354.00 $ 2,311.00 $ 4,909.00 EQ/Long Term Bond $ 409.00 $ 1,261.00 $ 2,159.00 $ 4,626.00 EQ/Lord Abbett Growth and Income $ 440.00 $ 1,351.00 $ 2,305.00 $ 4,900.00 EQ/Lord Abbett Large Cap Core $ 445.00 $ 1,367.00 $ 2,331.00 $ 4,948.00 EQ/Lord Abbett Mid Cap Value $ 444.00 $ 1,364.00 $ 2,326.00 $ 4,938.00 EQ/Marsico Focus $ 458.00 $ 1,405.00 $ 2,394.00 $ 5,062.00 EQ/Mid Cap Value PLUS $ 440.00 $ 1,351.00 $ 2,305.00 $ 4,900.00 EQ/Money Market $ 401.00 $ 1,235.00 $ 2,117.00 $ 4,546.00 EQ/Montag & Caldwell Growth $ 450.00 $ 1,380.00 $ 2,352.00 $ 4,986.00 EQ/Mutual Shares $ 473.00 $ 1,447.00 $ 2,461.00 $ 5,185.00 EQ/Oppenheimer Global $ 512.00 $ 1,561.00 $ 2,644.00 $ 5,514.00 EQ/Oppenheimer Main Street Opportunity $ 494.00 $ 1,510.00 $ 2,563.00 $ 5,369.00 EQ/Oppenheimer Main Street Small Cap $ 503.00 $ 1,535.00 $ 2,603.00 $ 5,442.00 EQ/PIMCO Real Return $ 427.00 $ 1,312.00 $ 2,243.00 $ 4,783.00 EQ/Short Duration Bond $ 415.00 $ 1,277.00 $ 2,185.00 $ 4,675.00 EQ/Small Company Index $ 394.00 $ 1,216.00 $ 2,085.00 $ 4,486.00 EQ/T. Rowe Price Growth Stock $ 453.00 $ 1,389.00 $ 2,368.00 $ 5,015.00 EQ/Templeton Growth $ 477.00 $ 1,459.00 $ 2,481.00 $ 5,222.00 EQ/UBS Growth and Income $ 451.00 $ 1,383.00 $ 2,357.00 $ 4,996.00 EQ/Van Kampen Comstock $ 439.00 $ 1,348.00 $ 2,300.00 $ 4,890.00 EQ/Van Kampen Emerging Markets Equity $ 503.00 $ 1,535.00 $ 2,603.00 $ 5,442.00 EQ/Van Kampen Mid Cap Growth $ 444.00 $ 1,364.00 $ 2,326.00 $ 4,938.00 EQ/Van Kampen Real Estate $ 473.00 $ 1,447.00 $ 2,461.00 $ 5,185.00 - ------------------------------------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix V at the end of this Prospectus. Fee table 17 CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. 18 Fee table 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT You may make additional contributions of at least $500 each for NQ, QP and Rollover TSA contracts and $50 each for IRA contracts, subject to limitations noted below. Additional contributions are not permitted in Massachusetts. The following table summarizes our rules regarding contributions to your contract. All ages in the table refer to the age of the annuitant named in the contract. This contract is no longer available to new purchasers. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts that you own would then total more than $2,500,000. - -------------------------------------------------------------------------------- The "annuitant" is the person who is the measuring life for determining contract benefits. The annuitant is not necessarily the contract owner. - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Annuitant Minimum Contract type issue ages contributions - -------------------------------------------------------------------------------- NQ 0 through 80 o $500 (additional) o $100 monthly and $300 quarterly under our automatic investment program (additional) - -------------------------------------------------------------------------------- Rollover IRA 20 through 80 o $50 (additional) - -------------------------------------------------------------------------------------------------- Limitations on Contract type Source of contributions contributions - -------------------------------------------------------------------------------------------------- NQ o After-tax money. o No additional contributions after attainment of age 81 or, if later, o Paid to us by check or transfer of the first contract date anniversary. contract value in a tax-deferred exchange under Section 1035 of the Internal Revenue Code. Rollover IRA o Eligible rollover distributions from o No contributions after attainment 403(b) plans, qualified plans, and of age 81 or, if later, the first governmental employer 457(b) contract date anniversary. plans. o Contributions after age 70-1/2 must o Rollovers from another traditional be net of required minimum individual retirement arrangement. distributions. o Although we accept regular IRA o Direct custodian-to-custodian contributions (limited to $5,000) transfers from another traditional under Rollover IRA contracts, we individual retirement intend that this contract be used arrangement. primarily for rollover and direct transfer contributions. o Regular IRA contributions. o Additional catch-up contributions o Additional catch-up contributions. of up to $1,000 can be made where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - --------------------------------------------------------------------------------------------------
Contract features and benefits 19
- -------------------------------------------------------------------------------- Annuitant Minimum Contract type issue ages contributions - -------------------------------------------------------------------------------- Roth Conversion 20 through 80 o $50 (additional) IRA Rollover TSA 20 through 80 o $500 (additional) - -------------------------------------------------------------------------------------------------- Limitations on Contract type Source of contributions contributions - -------------------------------------------------------------------------------------------------- Roth Conversion o Rollovers from another Roth IRA. o No additional rollover or direct IRA transfer contributions after attainment o Rollovers from a "designated of age 81 or, if later, the first Roth contribution account" under contract date anniversary. a 401(k) plan or 403(b) plan. o Conversion rollovers after age o Conversion rollovers from a 70-1/2 must be net of required traditional IRA or other eligible minimum distributions for the retirement plan. traditional IRA or other eligible retirement plan which is the o Direct transfers from another source of the conversion rollover. Roth IRA. o Regular Roth IRA contributions. o You cannot roll over funds from a traditional IRA or other eligible o Additional catch-up contributions. retirement plan if your adjusted gross income is $100,000 or more. o Although we accept regular Roth IRA contributions (limited to $5,000 ) under the Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contributions of up to $1,000 can be made where the owner is at least age 50 at any time during the calendar year for which the contribution is made. - -------------------------------------------------------------------------------------------------- Rollover TSA o With documentation of employer o Additional rollover or direct trans- or plan approval, and limited to fer contributions may be made up pre-tax funds, direct plan-to-plan to attainment of age 81 or, if later, transfers from another 403(b) the first contract date anniversary. plan or contract exchanges from another 403(b) contract under o Rollover or direct transfer the same plan. contributions after age 70-1/2 must be net of any required minimum distributions. o With documentation of employer o We do not accept employer- or plan approval, and limited to remitted contributions. pre-tax funds, eligible rollover distributions from other 403(b) o We do not accept after tax contributions, plans, qualified plans, govern- including designated mental employer 457(b) plans or Roth contributions. traditional IRAs. - --------------------------------------------------------------------------------------------------
20 Contract features and benefits
- -------------------------------------------------------------------------------- Annuitant Minimum Contract type issue ages contributions - -------------------------------------------------------------------------------- QP 20 through 70 o $500 (additional) See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------- Limitations on Contract type Source of contributions contributions - -------------------------------------------------------------------------------------------------- QP o Only transfer contributions from o A separate QP contract must be other investments within an established for each plan existing defined contribution participant. qualified plan trust. o We do not accept regular ongoing o The plan must be qualified under payroll contributions, or contributions Section 401(a) of the Internal directly from the employer. Revenue Code. o Only one additional transfer o For 401(k) plans, transferred contribution may be made during a contributions may not include contract year. any after-tax contributions including designated Roth o No additional transfer contributions contributions. after attainment of age 71 or, if later, the first contract date anniversary. o We do not accept contributions from defined benefit plans. See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. - --------------------------------------------------------------------------------
See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. Contract features and benefits 21 OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. In general we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your state. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II at the end of this Prospectus for more information on QP contracts. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealers. Additional contributions may also be made under our automatic investment program. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain this information. These methods of payment are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option and the fixed maturity options. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. 22 Contract features and benefits PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- -------------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a ALLOCATION greater emphasis on current income. AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, ALLOCATION with a greater emphasis on capital appreciation. MULTIMANAGER AGGRESSIVE Long-term growth of capital. EQUITY MULTIMANAGER CORE BOND To seek a balance of high current income and capital appreciation, consistent with a prudent level of risk. MULTIMANAGER HEALTH CARE Long-term growth of capital. MULTIMANAGER HIGH YIELD High total return through a combination of current income and capital appreciation. MULTIMANAGER INTERNATIONAL Long-term growth of capital. EQUITY MULTIMANAGER LARGE CAP Long-term growth of capital. CORE EQUITY - -------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION o AXA Equitable AXA CONSERVATIVE ALLOCATION o AXA Equitable AXA CONSERVATIVE-PLUS o AXA Equitable ALLOCATION AXA MODERATE ALLOCATION o AXA Equitable AXA MODERATE-PLUS o AXA Equitable ALLOCATION MULTIMANAGER AGGRESSIVE o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC MULTIMANAGER CORE BOND o BlackRock Financial Management, Inc. o Pacific Investment Management Company LLC MULTIMANAGER HEALTH CARE o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP MULTIMANAGER HIGH YIELD o Pacific Investment Management Company LLC o Post Advisory Group, LLC MULTIMANAGER INTERNATIONAL o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC MULTIMANAGER LARGE CAP o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - --------------------------------------------------------------------------------------
Contract features and benefits 23
- -------------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. GROWTH MULTIMANAGER LARGE CAP Long-term growth of capital. VALUE MULTIMANAGER MID CAP Long-term growth of capital. GROWTH MULTIMANAGER MID CAP VALUE Long-term growth of capital. MULTIMANAGER SMALL CAP Long-term growth of capital. GROWTH MULTIMANAGER SMALL CAP Long-term growth of capital. VALUE MULTIMANAGER TECHNOLOGY Long-term growth of capital. - -------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. MON STOCK EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with MEDIATE GOVERNMENT relative stability of principal. SECURITIES EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. NATIONAL EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. CAP GROWTH EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with BOND moderate risk to capital. EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. CAP GROWTH EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear LONG/SHORT EQUITY markets using strategies that are designed to limit exposure to general equity market risk. - -------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. MULTIMANAGER LARGE CAP o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management MULTIMANAGER MID CAP o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. MULTIMANAGER MID CAP VALUE o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP MULTIMANAGER SMALL CAP o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. MULTIMANAGER SMALL CAP o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC MULTIMANAGER TECHNOLOGY o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - -------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- o AllianceBernstein L.P. MON STOCK EQ/ALLIANCEBERNSTEIN INTER- o AllianceBernstein L.P. MEDIATE GOVERNMENT SECURITIES EQ/ALLIANCEBERNSTEIN INTER- o AllianceBernstein L.P. NATIONAL EQ/ALLIANCEBERNSTEIN LARGE o AllianceBernstein L.P. CAP GROWTH EQ/ALLIANCEBERNSTEIN QUALITY o AllianceBernstein L.P. BOND EQ/ALLIANCEBERNSTEIN SMALL o AllianceBernstein L.P. CAP GROWTH EQ/ALLIANCEBERNSTEIN VALUE o AllianceBernstein L.P. EQ/ARIEL APPRECIATION II o Ariel Capital Management, LLC EQ/AXA ROSENBERG VALUE o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY - --------------------------------------------------------------------------------------
24 Contract features and benefits
- -------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, EQUITY income. EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of VALUE income, accompanied by growth of capital. EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to INCOME achieve an above-average and consistent total return. EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. RESPONSIBLE EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. RESEARCH EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. YIELD BOND EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. BOND EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. EQ/FI MID CAP Seeks to achieve long-term growth of capital. EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects for capital appreciation. EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily seeks FOUNDING STRATEGY income. EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. ACQUISITIONS EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. VALUE EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with mod- erate risk to capital and maintenance of liquidity. EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. OPPORTUNITIES - -------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE o BlackRock Investment Management, LLC EQUITY EQ/BLACKROCK INTERNATIONAL o BlackRock Investment Management VALUE International Limited EQ/BOSTON ADVISORS EQUITY o Boston Advisors, LLC INCOME EQ/CALVERT SOCIALLY o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. EQ/CAPITAL GUARDIAN GROWTH o Capital Guardian Trust Company EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company RESEARCH EQ/CAYWOOD-SCHOLL HIGH o Caywood-Scholl Capital Management YIELD BOND EQ/DAVIS NEW YORK VENTURE o Davis Selected Advisers, L.P. EQ/EQUITY 500 INDEX o AllianceBernstein L.P. EQ/EVERGREEN INTERNATIONAL o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") EQ/EVERGREEN OMEGA o Evergreen Investment Management Company, LLC EQ/FI MID CAP o Fidelity Management & Research Company EQ/FRANKLIN INCOME o Franklin Advisers, Inc. EQ/FRANKLIN SMALL CAP VALUE o Franklin Advisory Services, LLC EQ/FRANKLIN TEMPLETON o AXA Equitable FOUNDING STRATEGY EQ/GAMCO MERGERS AND o GAMCO Asset Management Inc. ACQUISITIONS EQ/GAMCO SMALL COMPANY o GAMCO Asset Management Inc. VALUE EQ/INTERNATIONAL CORE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. EQ/INTERNATIONAL GROWTH o MFS Investment Management EQ/JPMORGAN CORE BOND o JPMorgan Investment Management Inc. EQ/JPMORGAN VALUE o JPMorgan Investment Management Inc. OPPORTUNITIES - --------------------------------------------------------------------------------------
Contract features and benefits 25
- -------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- ondary objective to seek reasonable current income. For purposes of this Portfolio, the words "reasonable current income" mean moderate income. EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. EQ/LONG TERM BOND Seeks to maximize income and capital appreciation through investment in long-maturity debt obligations. EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of INCOME income without excessive fluctuation in market value. EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of CORE income with reasonable risk. EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve its assets and maintain liquidity. EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. GROWTH EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- sionally be short-term, and secondarily, income. EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. OPPORTUNITY EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. SMALL CAP EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with preservation of real capital and prudent investment man- agement. EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility of principal. EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the deduction of Portfolio expenses) the total return of the Russell 2000 Index. EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and STOCK secondarily, income. EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. - -------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS o AXA Equitable o Institutional Capital LLC o Mellon Capital Management Corporation EQ/LARGE CAP GROWTH PLUS o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation EQ/LEGG MASON VALUE EQUITY o Legg Mason Capital Management, Inc. EQ/LONG TERM BOND o BlackRock Financial Management, Inc. EQ/LORD ABBETT GROWTH AND o Lord, Abbett & Co. LLC INCOME EQ/LORD ABBETT LARGE CAP o Lord, Abbett & Co. LLC CORE EQ/LORD ABBETT MID CAP VALUE o Lord, Abbett & Co. LLC EQ/MARSICO FOCUS o Marsico Capital Management, LLC EQ/MID CAP VALUE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP EQ/MONEY MARKET o The Dreyfus Corporation EQ/MONTAG & CALDWELL o Montag & Caldwell, Inc. GROWTH EQ/MUTUAL SHARES o Franklin Mutual Advisers, LLC EQ/OPPENHEIMER GLOBAL o OppenheimerFunds, Inc. EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. OPPORTUNITY EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. SMALL CAP EQ/PIMCO REAL RETURN o Pacific Investment Management Company, LLC EQ/SHORT DURATION BOND o BlackRock Financial Management, Inc. EQ/SMALL COMPANY INDEX o AllianceBernstein L.P. EQ/T. ROWE PRICE GROWTH o T. Rowe Price Associates, Inc. STOCK EQ/TEMPLETON GROWTH o Templeton Global Advisors Limited - --------------------------------------------------------------------------------------
26 Contract features and benefits
- -------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation with income as a secondary consideration. EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. MARKETS EQUITY EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. GROWTH EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- term capital appreciation. - -------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME o UBS Global Asset Management (Americas) Inc. EQ/VAN KAMPEN COMSTOCK o Morgan Stanley Investment Management Inc. EQ/VAN KAMPEN EMERGING o Morgan Stanley Investment Management Inc. MARKETS EQUITY EQ/VAN KAMPEN MID CAP o Morgan Stanley Investment Management Inc. GROWTH EQ/VAN KAMPEN REAL ESTATE o Morgan Stanley Investment Management Inc. - --------------------------------------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. Contract features and benefits 27 GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges (if permitted in your state) or any withdrawal charges and any optional benefit charges. The minimum yearly guaranteed interest rate is 3% for 2008. The minimum yearly rates we set will never be less than the minimum guaranteed interest rate of 3% for the life of the contract. Current interest rates will never be less than the yearly guaranteed interest rate. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfers from the Guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options generally range from one to ten years to maturity. - -------------------------------------------------------------------------------- The rate to maturity you will receive for each fixed maturity option is the rate to maturity in effect for new contributions allocated to that fixed maturity option on the date we apply your contribution. On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options (except for contracts issued in Maryland and New York) with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you applied for an Accumulator(R) Plus(SM) contract, a 60-day rate lock-in was applied from the date the application was signed. Any contributions received and designated for a fixed maturity option during that period received the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever had been greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from the variable investment options or the guaranteed interest option into a fixed maturity option, or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value (there may be a withdrawal charge). If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008, the next available maturity date was February 15, 2015. If no fixed maturity options are available, we will transfer your maturity value to the EQ/Money Market option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract, or when we make deductions for charges) from a fixed maturity option before it matures, we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including withdrawal charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the 28 Contract features and benefits amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options (adjusted to reflect a similar maturity date), and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ALLOCATING YOUR CONTRIBUTIONS You may choose from among three ways to allocate your contributions under your contract: self-directed, principal assurance (at contract issue only), or dollar cost averaging. We allocate subsequent contributions according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, guaranteed interest option and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. No more than 25% of any contribution may be allocated to the guaranteed interest option. The total of your allocations into all available investment options must equal 100%. If the annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. PRINCIPAL ASSURANCE ALLOCATION Principal assurance allocation was only available at contract issue. If you chose this allocation program, you selected a fixed maturity option. We specified a portion of your initial contribution and allocated it to that fixed maturity option in an amount that will cause the maturity value to equal the amount of your entire initial contribution (plus any applicable credit) on the fixed maturity option's maturity date. The maturity date you selected generally could not be later than 10 years, or earlier than 7 years from your contract date. If you were to make any withdrawals or transfers from the fixed maturity option before the option's maturity date, the amount in the fixed maturity option will be adjusted and may no longer grow to equal your initial contribution under the principal insurance allocation. Principal assurance was not available if none of those maturity dates were available at the time your contract was issued. You allocated the remainder of your initial contribution to the investment options and guaranteed interest option however you chose. For example, if your initial contribution is $10,000, and on February 15, 2008 you chose the fixed maturity option with a maturity date of February 15, 2018 since the rate to maturity was % on February 15, 2008, we would have allocated $ to that fixed maturity option and the balance to your choice of variable investment options. On the maturity date your value in the fixed maturity option would be $10,400. The principal assurance allocation was only available for annuitants ages 80 or younger when the contract was issued. Had the annuitant been age 76-80, your principal assurance allocation was limited to the seven year fixed maturity option only. If you anticipated taking required minimum distributions, you should have considered whether your values in the variable investment options and guaranteed interest option would be sufficient to meet your required minimum distributions. See "Tax information" later in this Prospectus. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit's value is low and fewer units if the unit's value is high. Therefore, you may get a lower average cost per unit over the long term. This plan of Contract features and benefits 29 investing, however, does not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. INVESTMENT SIMPLIFIER Fixed-dollar option. Under this option, you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. The fixed-dollar option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date, your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. Interest sweep option. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. On the last day of each month, we check to see whether you have at least $7,500 in the guaranteed interest option. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not currently participate in any dollar cost averaging program if you are participating in our Option II rebalancing program. Investment Simplifier is currently available with Option I only. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. CREDITS A credit will also be allocated to your account value at the same time that we allocate your contribution. Credits are allocated to the same investment options based on the same percentages used to allocate your contributions. The amount of the credit will be 4%, 4.5% or 5% of each contribution based on the following breakpoints and rules: - -------------------------------------------------------------------------------- Credit percentage First year total contributions* applied to Breakpoints contributions - -------------------------------------------------------------------------------- Less than $500,000 4% - -------------------------------------------------------------------------------- $500,000-$999,999.99 4.5% - -------------------------------------------------------------------------------- $1 million or more 5% - -------------------------------------------------------------------------------- - ---------------------- * First year total contributions means your total contributions made in the first contract year. The percentage of the credit is based on your first year total contributions. This credit percentage will be credited to each contribution made in the first year (after adjustment as described below), as well as the second and later contract years. Although the credit, as adjusted at the end of the first contract year, will be based upon first year total contributions, the following rules affect the percentage with which contributions made in the first contract year are credited during the first contract year: o Indication of intent: If you indicated in the application at the time you purchased your contract an intention to make additional contributions to meet one of the breakpoints (the "Expected First Year Contribution Amount") and your initial contribution was at least 50% of the Expected First Year Contribution Amount, your credit percentage is as follows: o For any contributions resulting in total contributions to date less than or equal to your Expected First Year Contribution Amount, the credit percentage is the percentage that applies to the Expected First Year Contribution Amount based on the table above. 30 Contract features and benefits o For any subsequent contribution that results in your total contributions to date exceeding your Expected First Year Contribution Amount, such that the credit percentage should have been higher, we increased the credit percentage applied to that contribution, as well as any prior or subsequent contributions made in the first contract year, accordingly. o For contracts issued in New York, the "Indication of intent" approach to first year contributions is not available. o No indication of intent: o For your initial contribution, we applied the credit percentage based upon the above table. o For any subsequent contribution that results in a higher applicable credit percentage (based on total contributions to date), we increased the credit percentage applied to that contribution, as well as any prior or subsequent contributions made in the first contract year, accordingly. We may recover all of the credit or a portion of the credit in the following situations: o If you exercise your right to cancel the contract, we will recover the entire credit made to your contract (see "Your right to cancel within a certain number of days" later in this Prospectus)(1) o If you start receiving annuity payments within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. o If at the end of the first contract year your year total contributions were lower than your Expected First Year Contribution Amount such that the credit applied should have been lower, we will recover any Excess Credit. The Excess Credit is equal to the difference between the credit that was actually applied based on your Expected First Year Contribution Amount (as applicable) and the credit that should have been applied based on first year total contributions. We will recover any credit on a pro rata basis from the value in your variable investment options and guaranteed interest option. If there is insufficient value or no value in the variable investment options and guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options in order of the earliest maturing date(s). A market value adjustment may apply to withdrawals from the fixed maturity options. We do not consider credits to be contributions for purposes of any discussion in this Prospectus. Credits are also not considered to be part of your investment in the contract for tax purposes. We use a portion of the mortality and expense risks charge and withdrawal charge to help recover our cost of providing the credit. See "Charges and expenses" later in this Prospectus. The charge associated with the credit may, over time, exceed the sum of the credit and any related earnings. You should consider this possibility before purchasing the contract. YOUR BENEFIT BASE A benefit base is used to calculate the guaranteed minimum income benefit and any death benefit, as described in this section. Your benefit base is not an account value or a cash value. See also "Living Benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o any applicable credit; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 6% ROLL-UP TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o any applicable credit; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to this benefit base is: o 6% (4% in Washington for the enhanced death benefit only) with respect to the variable investment options (other than EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market and EQ/Short Duration Bond); and o 3% with respect to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market and EQ/Short Duration Bond, the fixed maturity options, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up after the contract date anniversary following the annuitant's 85th birthday. ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT OPTION. Your benefit base is equal to the greater of either: o your initial contribution to the contract and any additional contributions; plus o any applicable credit; - ---------------------- (1) The amount we return to you upon exercise of this right to cancel will not include any credit or the amount of charges deducted prior to cancellation but will reflect, except in states where we are required to return the amount of your contributions, any investment gain or loss in the variable investment options associated with your contributions and with the full amount of the credit. Contract features and benefits 31 or o your highest account value on any contract date anniversary up to the contract date anniversary following the annuitant's 85th birthday, plus any contribution (and any applicable credit) made since the most recent Annual Ratchet; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of the deduction is described under "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. GREATER OF THE 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6% Roll-Up to age 85 or the benefit base computed for the Annual ratchet to age 85, as described immediately above, on each contract date anniversary. For the guaranteed minimum income benefit, the benefit base is reduced by any applicable withdrawal charge remaining when the option is exercised. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the guaranteed minimum income benefit and annuity payout options. The guaranteed minimum income benefit is discussed under "Living Benefit option" below and annuity payout options are discussed under "Your annuity payout options" in "Accessing your money" later in this Prospectus. The guaranteed annuity purchase factors are those factors specified in your contract. The current annuity purchase factors are any more favorable factors that may be in effect at any given time. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in certain instances. LIVING BENEFIT OPTION The following section provides information about the Living Benefit option, which was only available at the time you purchased your contract. The annuitant was age 20 through 75 at the time of contract issue. The Living Benefit option is a guaranteed minimum income benefit. If you elected the Living Benefit option at purchase, you pay an additional charge that is described under "Living Benefit charge" in "Charges and expenses" or in Appendix VI, depending on when the contract was issued, later in this Prospectus. If you purchased your contract to fund a Charitable Remainder Trust, the guaranteed minimum income benefit was generally not available to you. The guaranteed minimum income benefit was available for certain split-funded Charitable Remainder Trusts. The guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or an Income Manager(R) level payment life with a period certain payout option subject to state availability. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your guaranteed minimum income benefit. The maximum period certain available under the Income Manager(R) payout option is 10 years. This period may be shorter, depending on the annuitant's age as follows: Level payments - ------------------------------------------- Period certain years Annuitant's age at ---------------------- exercise IRAs NQ - ------------------------------------------- 60 to 75 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - ------------------------------------------- We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The guaranteed minimum income benefit, which is also known as a living benefit, should be regarded as a safety net only. It provides income protection if you elect an income payout while the annuitant is alive. - -------------------------------------------------------------------------------- When you exercise the guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your guaranteed minimum income benefit which is calculated by applying your guaranteed minimum income benefit base, less any applicable withdrawal charge remaining, at guaranteed annuity purchase factors, or (ii) the income provided by applying your account value at our then current annuity purchase factors. For Rollover TSA only, we will subtract from the benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the Living Benefit guaranteed annuity purchase factors in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of guaranteed minimum income benefit" below. The guaranteed minimum income benefit provides a form of insurance and is based on conservative actuarial factors. The guaranteed annuity 32 Contract features and benefits purchase factors we use to determine your Income Manager(R) benefit under the Living Benefit are more conservative than the guaranteed annuity purchase factors we use for the Income Manager(R) payout annuity option. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the Living Benefit Income Manager(R) will be smaller than each periodic payment under the Income Manager(R) payout annuity option. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male annuitant age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options or the loan reserve account under Rollover TSA contracts. - --------------------------------------------------- guaranteed minimum Contract date income benefit -- annual anniversary at exercise income payable for life - --------------------------------------------------- 10 $11,891 15 $18,597 - --------------------------------------------------- EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the guaranteed minimum income benefit. You must return your contract to us along with any required information within 30 days following your contract date anniversary, in order to exercise this benefit. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payout contract is issued. Payments are always made on the 15th of the month and generally begin one payment mode from issue. You may choose to take a withdrawal prior to exercising the guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death, or if later, the end of the period certain (where the payout option chosen includes a period certain). You will be eligible to exercise the guaranteed minimum income benefit during your life and the annuitant's life, as follows: o If the annuitant was at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If the annuitant was at least age 45 and no older than age 49 when the contract was issued, you are eligible to exercise the guaranteed minimum income benefit within 30 days following each contract date anniversary after the annuitant is age 60. o If the annuitant was at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the guaranteed minimum income benefit is the contract date anniversary following the annuitant's 85th birthday; (ii) if the annuitant was age 75 when the contract was issued, the only time you may exercise the guaranteed minimum income benefit is within 30 days following the first contract date anniversary that it becomes available; (iii) If the annuitant was older than age 60 at the time an IRA, QP or Rollover TSA contract was issued, the Living Benefit option may not be an appropriate feature because the minimum distributions required by tax law generally must begin before the guaranteed minimum income benefit can be exercised; (iv) for Accumulator(R) Plus(SM) QP contracts, the Plan participant can exercise the Living Benefit option only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) Plus(SM) QP contract into an Accumulator(R) Plus(SM) Rollover IRA. This process must be completed within the 30-day time frame following the contract date anniversary in order for the Plan participant to be eligible to exercise; (v) for Accumulator(R) Plus(SM) Rollover TSA contracts, you may exercise the Living Benefit option only if you effect a rollover of the TSA contract to an Accumulator(R) Plus(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (vi) for a successor owner/annuitant, the earliest exercise date is based on the original contract issue date and the age of the successor owner/annuitant as of the Processing Date successor owner/annuitant takes effect; and (vii) if you are the owner but not the annuitant and you die prior to exercise, then the following applies: o A successor owner who is not the annuitant may not be able to exercise the Living Benefit option without causing a tax problem. You should consider naming the annuitant as successor owner, or if you do not name a successor owner, as Contract features and benefits 33 the sole primary beneficiary. You should carefully review your successor owner and/or beneficiary designations at least one year prior to the first contract date anniversary on which you could exercise the benefit. o If the successor owner is the annuitant, the Living Benefit option continues only if the benefit could be exercised under the rules described above on a contract date anniversary that is within one year following the owner's death. This would be the only opportunity for the successor owner to exercise. If the Living Benefit option cannot be exercised within this timeframe, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. o If you designate your surviving spouse as successor owner, the Living Benefit option continues and your surviving spouse may exercise the benefit according to the rules described above even if your spouse is not the annuitant and even if the benefit is exercised more than one year after your death. If your surviving spouse dies prior to exercise, the rule described in the previous bullet applies. o A successor owner or beneficiary that is a trust or other non- natural person may not exercise the benefit; in this case, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. See "When an NQ contract owner dies before the annuitant" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract's value" and "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT Your contract provides a death benefit. If you did not elect one of the enhanced death benefits described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment OR the standard death benefit, whichever provides the highest amount. The standard death benefit is equal to your total contributions, plus any applicable credit (adjusted for any withdrawals and any withdrawal charges, and any taxes that apply). The standard death benefit was the only death benefit available for annuitants who were age 85 at issue. If you elected one of the guaranteed death benefits, the death benefit is equal to your account value as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment OR your elected guaranteed death benefit on the date of the annuitant's death (adjusted for any subsequent withdrawals, withdrawal charges and taxes that apply) whichever provides the highest amount. Any of the enhanced death benefits or the standard death benefit can be elected by themselves or with the Living Benefit option. OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANTS WHO WERE AGES 0 THROUGH 80 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 80 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 70 AT ISSUE OF QP CONTRACTS. Subject to state availability, you may have elected one of the following enhanced death benefits: 6% ROLL-UP TO AGE 85. ANNUAL RATCHET TO AGE 85. THE GREATER OF THE 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85. Each enhanced death benefit is equal to its corresponding benefit base described earlier in "Your benefit base." Your enhanced death benefit election may not be changed. In New York only the standard death benefit and the Annual ratchet to age 85 enhanced death benefit were available. Please see both "Insufficient account value" in "Determining your contract's value" and "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus for more information on these guaranteed benefits. See Appendix IV at the end of this Prospectus for an example of how we calculate an enhanced minimum death benefit. PROTECTION PLUS(SM) The following section provides information about the Protection Plus(SM) option (subject to state availability), which was only available at the time you purchased your contract. If Protection Plus(SM) was not elected when the contract was first issued, neither the owner nor the successor owner/annuitant can add it subsequently. Protection Plus(SM) is an additional death benefit as described below. See the appropriate part of "Tax information" later in this Prospectus for the potential tax consequences of having purchased the Protection Plus(SM) feature in an NQ, IRA or Rollover TSA contract. If the annuitant was 70 or younger when we issued your contract (or if the successor owner/annuitant is 70 or younger when he or she becomes the successor owner/annuitant), the death benefit will be: the greater of: o the account value or o any applicable death benefit Increased by: o such death benefit less total net contributions, multiplied by 40% For purposes of calculating your Protection Plus(SM) benefit, the following applies: (i) "Net contributions" are the total contributions made (or, if applicable, the total amount that would otherwise have been paid as a death benefit had the successor owner/annuitant election 34 Contract features and benefits not been made plus any subsequent contributions) reduced on a pro rata basis to reflect withdrawals (including surrender charges and loans). Credit amounts are not included in "net contributions." Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce net contributions by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If contributions aggregated $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and net contributions after the withdrawal would be $24,000 ($40,000-$16,000); (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable guaranteed minimum death benefit as of the date of death. If the annuitant was age 71 through 79 when we issued your contract (or if the successor owner/annuitant is between the ages of 71 and 79 when he or she becomes the successor owner/annuitant under a contract where Protection Plus(SM) had been elected at issue), the death benefit will be: the greater of: o the account value or o any applicable death benefit Increased by: o such death benefit (as described above) less total net contributions, multiplied by 25% The value of the Protection Plus(SM) death benefit is frozen on the first contract date anniversary after the annuitant turns age 80, except that the benefit will be reduced for withdrawals on a pro rata basis. This feature is not available in every state. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS This is provided for informational purposes only. Since this contract is no longer available to new purchasers, this cancellation provision is no longer applicable. If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law requires, this "free look" period may be longer. Generally, your refund will equal your account value (less loan reserve account) under the contract on the day we receive notification to cancel the contract and will reflect (i) any investment gain or loss in the variable investment options (less the daily charges we deduct), (ii) any guaranteed interest in the guaranteed interest option, and (iii) any positive or negative market value adjustments in the fixed maturity options through the date we receive your contract. Some states require that we refund the full amount of your contribution (not reflecting (i), (ii) or (iii) above). For any IRA contracts returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. Please note that you will forfeit the credit by exercising this right of cancellation. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. In addition to the cancellation right described above, if you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office or your financial professional can provide you with the cancellation instructions. Contract features and benefits 35 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total value of the values you have in: (i) the variable investment options; (ii) the guaranteed interest account; (iii) market adjusted amounts in the fixed maturity options; and (iv) the loan reserve account (applies for Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value less: (i) the total amount or a pro rata portion of the annual administrative charge; (ii) any applicable withdrawal charge; and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense risks; (ii) administrative, and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions plus the credit; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect transfer into, or decreased to reflect transfer out of a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, when we deduct the enhanced death benefit, Living Benefit and/or Protection Plus(SM) benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST ACCOUNT Your value in the guaranteed interest account at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all of your rights under your contract and any applicable guaranteed benefits. 36 Determining your contract's value 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the variable investment options, subject to the following: o You may not transfer to a fixed maturity option that has a rate to maturity of 3% or less. o If the annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied, the rate to maturity is 3%. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the annuity account value being allocated to the guaranteed interest option, based on the annuity account value as of the previous business day. If you are an existing contract owner, this restriction may not apply. See Appendix for contract variation. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option and interest sweep option dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or, (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the Investment options in the prior contract year; or, (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contracts features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies Transferring your money among investment options 37 present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We offer rebalancing, which you can use to automatically reallocate your account value among your investment options. We currently offer two options: "Option I" and "Option II". Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQ Access. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers between the guaranteed interest option and the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into or out of the guaranteed interest option to initiate the rebalancing pro- 38 Transferring your money among investment options gram will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. You may not elect Option II if you are participating in any dollar cost averaging program. You may not elect Option I if you are participating in general dollar cost averaging. Transferring your money among investment options 39 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus and "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. - -------------------------------------------------------------------------------- Method of withdrawal - -------------------------------------------------------------------------------- Lifetime required Substantially minimum Contract Partial Systematic equal distribution - -------------------------------------------------------------------------------- NQ Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Con- version IRA Yes Yes Yes No - -------------------------------------------------------------------------------- Rollover - -------------------------------------------------------------------------------- TSA* Yes Yes No Yes - -------------------------------------------------------------------------------- QP** Yes No No Yes - -------------------------------------------------------------------------------- * Employer or plan approval is required for all transactions. Your ability to take withdrawals, or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity Contracts (TSAs)" in "Tax information" later in this Prospectus. ** All payments are made to the trust as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Partial withdrawals will be subject to a withdrawal charge if they exceed the 15% free withdrawal amount (see "15% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. SYSTEMATIC WITHDRAWALS (All contracts except QP) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required). You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 1.2% monthly, 3.6% quarterly and 15% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of your account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 15% free withdrawal amount. SUBSTANTIALLY EQUAL WITHDRAWALS (Rollover IRA and Roth Conversion IRA contracts only) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After con- 40 Accessing your money sultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "15% free withdrawal amount" in "Charges and expenses" later in this Prospectus). LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA and Rollover TSA and QP contracts only -- See "Tax information" later in this Prospectus). We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or the Living Benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- Currently, we do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our "automatic required minimum distribution (RMD) service" except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 15% free withdrawal amount. Under Rollover TSA contracts, you may not elect minimum distribution withdrawals if a loan is outstanding. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest account. If there is insufficient value or no value in the variable investment options and the guaranteed interest account, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options in order of the earliest maturity date(s) first. A market value adjustment may apply to withdrawals from the fixed maturity options. HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar basis or on a pro rata basis as explained below: INCOME BENEFIT AND DEATH BENEFIT Your applicable benefit base will be reduced on a dollar-for-dollar basis as long as the sum of your withdrawals in a contract year is 6% or less of the applicable benefit base on the most recent contract date anniversary. Any portion of a withdrawal that causes the sum of your withdrawals in a contract year to exceed 6% of the applicable benefit base on the most recent contract date anniversary and any subsequent withdrawals in that same contract year will reduce your applicable benefit base on a pro rata basis. Additional contributions made during the contract year do not affect the amount of withdrawals that can be taken on a dollar-for-dollar basis in that contract year. The timing of your withdrawals and whether they exceed the 6% threshold described above can have a significant impact on your guaranteed minimum income benefit or guaranteed minimum death benefit. Reduction on a dollar-for-dollar basis means that your current benefit will be reduced by the dollar amount of the withdrawal. Reduction on Accessing your money 41 a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by that same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your guaranteed minimum death benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and your new guaranteed minimum death benefit after the withdrawal would be $24,000 ($40,000 - $16,000.) This pro rata example assumes that the annual 6% threshold described above has already been exceeded. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subjected to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Also, see "Tax information" later in this Prospectus, for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of the loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan will be deducted from the death benefit amounts, plus any accrued and unpaid loan interest). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT On the date your loan is processed, we will transfer the amount of your loan to the loan reserve account. Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If these amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment may apply. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. Loan repayments are not considered contributions and therefore are not eligible for additional credits. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while the annuitant is living and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required). For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of that date. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal charge) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of which sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest account and fixed maturity options (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Plus(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) Plus(SM) contract and all its benefits will terminate and you 42 Accessing your money will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Plus(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Plus(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments which can be either level or increasing, and others enable you to receive variable annuity payments. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the annuitant's age when the contract was issued. In addition, if you are exercising your guaranteed minimum income benefit under the Living Benefit, your choice of payout options are those that are available under the Living Benefit (see "Living Benefit option" in "Contract features and benefits" earlier in this Prospectus). - -------------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------------- Income Manager(R) payout Life annuity with period options (available for annuitants certain age 83 or less at contract issue) Period certain annuity o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide you with details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period Accessing your money 43 certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager(R) payout option without life contingencies unless withdrawal charges are no longer in effect under your Accumulator(R) Plus(SM). For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply your account value of your Accumulator(R) Plus(SM) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) Plus(SM). For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Living Benefit option, different payout options may apply as well as other various differences. See "Living Benefit Option" in "Contract features and benefits" earlier in this Prospectus as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any withdrawal charges. If amounts in a fixed maturity option are used to purchase any annuity payout option prior to the maturity date, a market value adjustment will apply. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. The withdrawal charge applicable under your Accumulator(R) Plus(SM) is imposed if you select a non-life contingent period certain payout annuity. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For the Income Manager(R) payout life contingent options, no withdrawal charge is imposed under the Accumulator(R) Plus(SM). If the withdrawal charge that otherwise would have been applied to your account value under your Accumulator(R) Plus(SM) is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager(R) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin but it may not be earlier than five years from the Accumulator(R) Plus(SM) contract date. Except with respect to Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. If you elect to start receiving annuity payments within three years of making an additional contribution, we will recover the amount of any credit that applies to that contribution. The amount of each annuity payment will be less with a greater frequency of payments or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. For contracts issued in Pennsylvania, the maturity date is related to the contract issue date, as follows: - ---------------------------------- Maximum Issue age annuitization age - ---------------------------------- 0-75 85 76 86 77 87 78-80 88 - ---------------------------------- 44 Accessing your money 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o On each contract date anniversary, a charge for each optional benefit that you elect: a death benefit (other than the Standard death benefit): the Living Benefit; and Protection Plus(SM). o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. To help with your retirement planning, we may offer other annuities with different charges, benefits, and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 0.90% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. A portion of this charge also compensates us for the contract credit. For a discussion of the credit, see "Credits" in "Contract features and benefits" earlier in this Prospectus. We expect to make a profit from this charge. Administrative charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (except for contracts issued in Massachusetts and Texas) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in order of the earliest maturity date(s) first. A market value adjustment may apply. If you surrender your contract on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceed the 15% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or apply your cash value to a non life contingent annuity payout option. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options--The amount applied to purchase an annuity payout option" in "Accessing your money" earlier in the Prospectus. A portion of this charge also compensates us for the contract credit. For a discussion of the credit, see "Credits" in "Contract features and benefits" earlier in this Prospectus. We expect to make a profit from this charge. Charges and expenses 45 The withdrawal charge equals a percentage of the contributions withdrawn. We do not consider credits to be contributions. Therefore, there is no withdrawal charge associated with a credit. The percentage of the withdrawal charge that applies to each contribution depends on how long each contribution has been invested in the contract. We determine the withdrawal charge separately for each contribution according to the following table: - -------------------------------------------------------------------------------- Contract year - -------------------------------------------------------------------------------- 1 2 3 4 5 6 7 8 9+ - -------------------------------------------------------------------------------- Percentage of contribution 8% 8% 7% 7% 6% 5% 4% 3% 0% - -------------------------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1." Amounts withdrawn up to the free withdrawal amount are not considered withdrawals of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and the withdrawal charge from your account value. Any amount deducted to pay withdrawal charges is also subject to the same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each variable investment option. The withdrawal charge helps cover our sales expenses. For purposes of calculating reductions in your guaranteed benefits and your benefit base, the withdrawal amount includes both the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information, see "Your benefit base" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier in the Prospectus. The withdrawal charge does not apply in the circumstances described below. 15% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 15% of your account value without paying a withdrawal charge. The 15% free withdrawal amount is determined using your account value at the beginning of each contract year, or in the case of the first contract year, your initial contribution, minus any other withdrawals made during the contract year. Additional contributions during the contract year do not increase your 15% free withdrawal amount. The 15% free withdrawal amount does not apply if you surrender your contract except where required by law. DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal charge does not apply if: (i) The annuitant has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or (ii) We receive proof satisfactory to us (including certification by a licensed physician) that the annuitant's life expectancy is six months or less; or (iii) The annuitant has been confined to a nursing home for more than 90 days (or such other period, as required in your state) as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: -- its main function is to provide skilled, intermediate, or custodial nursing care; -- it provides continuous room and board to three or more persons; -- it is supervised by a registered nurse or licensed practical nurse; -- it keeps daily medical records of each patient; -- it controls and records all medications dispensed; and -- its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions as described in (i), (ii) or (iii) above existed at the time a contribution was remitted or if the condition began within 12 months of the period following remittance. Some states may not permit us to waive the withdrawal charge in the above circumstances, or may limit the circumstances for which the withdrawal charge may be waived. Your financial professional can provide more information or you may contact our processing office. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elected the Annual ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.30% of the Annual ratchet to age 85 benefit base. If you are an existing contract owner, your charge may be less. Please see Appendix VI later in this Prospectus or your contract for more information. 6% ROLL-UP TO AGE 85. If you elected the 6% Roll-Up to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.45% of the 6% Roll-Up to age 85 benefit base. If you are an existing contract owner, your charge may be less. Please see Appendix VI later in this Prospectus or your contract for more information. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elected this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.60% of the greater of the 6% Roll-Up to age 85 or the Annual ratchet to age 85 benefit base. If you are an existing contract owner, your charge may be less. Please see Appendix VI later in this Prospectus or your contract for more information. 46 Charges and expenses We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro-rata basis. If those amount are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in order of the earliest maturity date(s) first. A market value adjustment may apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. STANDARD DEATH BENEFIT. There is no additional charge for the Standard death benefit. LIVING BENEFIT CHARGE If you elected the Living Benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the guaranteed minimum income benefit, elect another annuity payout option or the contract date anniversary after the annuitant reaches age 85, whichever occurs first. The charge is equal to 0.60% of the applicable benefit base in effect on the contract date anniversary. If you are an existing contract owner, your charge may be less. Please see Appendix VI later in this Prospectus or your contract for more information. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in order of the earliest maturity date(s) first. A market value adjustment may apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. PROTECTION PLUS(SM) If you elected Protection Plus(SM), we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.35% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment may apply to deductions from the fixed maturity options. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY ANNUITIZATION PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity annuitization payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge or change the minimum initial contribution requirements. We also may change the guaranteed minimum death benefit or offer variable investment options that invest in shares of the Trusts that are not subject to the 12b-1 fee. If permitted under the terms of our exemptive order regarding Accumulator Plus(SM) bonus feature, we may also change the crediting percentage that applies to contributions. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these Charges and expenses 47 rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. 48 Charges and expenses 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designated your beneficiary when you applied for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable guaranteed minimum death benefit. We determine the amount of the death benefit (other than the applicable guaranteed minimum death benefit) and any amount applicable under the Protection Plus(SM) feature, as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment. The amount of the applicable guaranteed minimum death benefit will be such guaranteed minimum death benefit as of the date of the annuitant's death, adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. EFFECT OF THE ANNUITANT'S DEATH If the annuitant dies before the annuity payments begin, we will pay the death benefit to your beneficiary. Generally, the death of the annuitant terminates the contract. However, a surviving spouse of the deceased owner/annuitant can choose to be treated as the successor owner/annuitant and continue the contract. Only a spouse who is the sole primary beneficiary can be a successor owner/annuitant. The successor owner/annuitant feature is only available under NQ and individually-owned IRA contracts. For NQ and all types of IRA contracts, a beneficiary may be able to have limited ownership as discussed under "Beneficiary continuation option" below. WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT Under certain conditions the owner changes after the original owner's death for purposes of receiving federal tax law required distributions from the contract. When you are not the annuitant under an NQ contract and you die before annuity payments begin, unless you specify otherwise, the beneficiary named to receive the death benefit upon the annuitant's death will become the successor owner. If you do not want this beneficiary to be the successor owner, you should name a specific successor owner. You may name a successor owner at any time during your life by sending satisfactory notice to our processing office. If the contract is jointly owned and the first owner to die is not the annuitant, the surviving owner becomes the sole contract owner. This person will be considered the successor owner for purposes of the distribution rules described in this section. The surviving owner automatically takes the place of any other beneficiary designation. You should carefully consider the following if you have elected the Living Benefit and you are the owner, but not the annuitant. Because the payments under the Living Benefit are based on the life of the annuitant, and the federal tax law required distributions described below are based on the life of the successor owner, a successor owner who is not also the annuitant may not be able to exercise the Living Benefit option, if you die before annuity payments begin. Therefore, one year before you become eligible to exercise the Living Benefit option, you should consider the effect of your beneficiary designations on potential payments after your death. For more information, see "Exercise of guaranteed minimum income benefit" under "Living Benefit option," in "Contract features and benefits" earlier in this Prospectus. Unless the surviving spouse of the owner who has died (or in the case of a joint ownership situation, the surviving spouse of the first owner to die) is the successor owner for this purpose, the entire interest in the contract must be distributed under the following rules: o The cash value of the contract must be fully paid to the successor owner (new owner) within five years after your death (or in a joint ownership situation, the death of the first owner to die). o The successor owner may instead elect to receive the cash value as a life annuity (or payments for a period certain of not longer than the successor owner's life expectancy). Payments must begin within one year after the non-annuitant owner's death. Unless this alter-- Payment of death benefit 49 native is elected, we will pay any cash five years after your death (or the death of the first owner to die). o A successor owner should name a new beneficiary. If the surviving spouse is the successor owner or joint owner, the spouse may elect to continue the contract. No distributions are required as long as the surviving spouse and annuitant are living. An eligible successor owner, including a surviving joint owner after the first owner dies, may elect the beneficiary continuation option for NQ contracts discussed later under "Beneficiary continuation option" below. HOW DEATH BENEFIT PAYMENT IS MADE We will pay the death benefit to the beneficiary in the form of the annuity payout option you have chosen. If you have not chosen an annuity payout option as of the time of the annuitant's death, the beneficiary will receive the death benefit in a single sum. However, subject to any exceptions in the contract, our rules and any applicable requirements under federal income tax rules, the beneficiary may elect to apply the death benefit to one or more annuity payout options we offer at the time. See "Your annuity payout options" in "Accessing your money" earlier in this Prospectus. Please note that any annuity payout option chosen may not extend beyond the life expectancy of the beneficiary. SUCCESSOR OWNER AND ANNUITANT If you are both the contract owner and the annuitant, and your spouse is the sole primary beneficiary or the joint owner, then your spouse may elect to receive the death benefit or continue the contract as successor owner/annuitant. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. If your surviving spouse decides to continue the contract, then as of the date we receive satisfactory proof of your death, any required instructions and information, and forms necessary to effect the successor owner/annuitant feature, we will increase the account value to equal your elected guaranteed minimum death benefit as of the date of your death if such death benefit is greater than your account value, plus any amount applicable under the Protection Plus(SM) feature, and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. Thereafter, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. These additional contributions will be considered to be withdrawn only after all other amounts have been withdrawn. In determining whether your applicable guaranteed minimum death benefit option will continue to grow, we will use your surviving spouse's age (as of the date we receive satisfactory proof of your death, any required instructions and the information and forms necessary to effect the successor owner/annuitant feature). Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state availability. Please speak with your financial professional for further information. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature, and adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: 50 Payment of death benefit o The contract continues with your name on it for the benefit of your beneficiary. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the guaranteed minimum income benefit or an optional enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a portion of the account value and no withdrawal charges, if any, will apply. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACT ONLY. This feature, also known as the Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. If the owner and annuitant are different and the owner dies before the annuitant, for purposes of this discussion, "beneficiary" refers to the successor owner. For a discussion of successor owner, see "When an NQ contract owner dies before the annuitant" earlier in this section. This feature must be elected within 9 months following the date of your death and before any inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts (regardless of whether the owner and the annuitant are the same person): o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the guaranteed minimum income benefit or an optional enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any minimum death benefit feature will no longer be in effect. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If you are both the owner and annuitant: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the annuity account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature, and adjusted for any subsequent withdrawals. Payment of death benefit 51 o No withdrawal charges, if any, will apply to any withdrawals by the beneficiary. If the owner and annuitant are not the same person: o If the beneficiary continuation option is elected, the beneficiary automatically becomes the new annuitant of the contract, replacing the existing annuitant. o The annuity account value will not be reset to the death benefit amount. o The contract's withdrawal charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments; the contract's free corridor amount will continue to apply to withdrawals but does not apply to surrenders. o We do not impose a withdrawal charge on scheduled payments except if, when added to any withdrawals previously taken in the same contract year, including for this purpose a contract surrender, the total amount of withdrawals and scheduled payments exceed the free corridor amount. See the "Withdrawal charges" in "Charges and expenses" earlier in this Prospectus. If a contract is jointly owned: o The surviving owner supersedes any other named beneficiary and may elect the beneficiary continuation option. o If the deceased joint owner was also the annuitant, see "If you are both the owner and annuitant" earlier in this section. o If the deceased joint owner was not the annuitant, see "If the owner and annuitant are not the same person" earlier in this section. 52 Payment of death benefit 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Plus(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Plus(SM), extra credit on each contribution, choice of death benefits, the living benefit guaranteed minimum income benefit guaranteed interest option, selection of variable investment options and its choices of pay-out options that are available in Accumulator(R) Plus(SM), as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, the guaranteed minimum income benefit and enhanced death benefits. You should consider the potential implication of these Regulations before you make additional contributions or decide how to take required minimum distribution payments. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG VARIABLE INVESTMENT OPTIONS You can make transfers among variable investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. Tax information 53 ANNUITY PAYMENTS Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your "investment in the contract." Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. PROTECTION PLUS(SM) FEATURE In order to enhance the amount of the death benefit to be paid at the Annuitant's death, you may have purchased a Protection Plus(SM) rider for your NQ contract. Although we regard this benefit as an investment protection feature which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Protection Plus(SM) rider is not part of the contract. In such a case, the charges for the Protection Plus(SM) rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable, and for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, AXA Equitable would take all reasonable steps to attempt to avoid this result which could include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES The following information applies if you purchased your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange was not taxable under Section 1035 of the Internal Revenue Code if: o the contract that was the source of the funds you used to purchase the NQ contract was another nonqualified deferred annuity contract or life insurance or endowment contract. o the owner and the annuitant were the same under the source contract and the Accumulator(R) Plus(SM) NQ contract. If you used a life insurance or endowment contract, the owner and the insured must have been the same on both sides of the exchange transaction. Section 1035 exchanges are generally not available after the death of the owner (or the annuitant in a non-natural owner contract). The tax basis, also referred to as your investment in the contract, of the source contract carried over to the Accumulator(R) Plus(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between the carriers, and provision of cost basis information may be required to process this type of exchange. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. Beneficiary continuation option We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for NQ contracts. See the discussion "Beneficiary continuation option for NQ contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects Withdrawal Option 1 or Withdrawal Option 2; o scheduled payments, any additional withdrawals under Withdrawal Option 2, or contract surrenders under Withdrawal Option 1 will only be taxable to the beneficiary when amounts are actually paid, regardless of the Withdrawal Option selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with Withdrawal Option 1 will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extend it exceeds any remaining investment in the contract. The ruling specifically does not address the taxation of any payments received by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or any withdrawal that might be taken). 54 Tax information The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Account 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Account 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Account 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Account 49. SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico source income of Puerto Rico residents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable portion of amounts distributed from a contract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S. tax paid. Depending on your personal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets funding the account for the benefit of the IRA owner. The assets typically can include mutual funds and/or individual stocks and/or securities in a custodial account, and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral, regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may have purchased the contract as either a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We currently do not offer traditional IRA contracts for use as employer-funded SEP-IRA or SIMPLE IRA plans, although we may do so in the future. The first part of this section covers some of the special tax rules that apply to traditional IRAs. The next part of this section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We have received an opinion letter from the IRS approving the respective forms of the Accumulator(R) Plus(SM) traditional and Roth IRA contracts for use as a traditional IRA and a Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) Plus(SM) traditional and Roth IRA contracts. Tax information 55 Your right to cancel within a certain number of days This is provided for informational purposes only. Since this contract is no longer available to new purchasers, this cancellation provision is no longer applicable. You can cancel any version of the Accumulator(R) Plus(SM) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel within a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact Traditional individual retirement annuities (traditional IRAs) Contributions to traditional IRAs. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). Regular contributions to traditional IRAs Limits on contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch up contributions" of up to $1,000 to your traditional IRA. Special rules for spouses. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. Deductibility of contributions. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions". That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits to deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or 56 Tax information $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted - ---------------------- x regular = deductible divided by $10,000 contribution contribution for the year limit Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000 ($53,000 after cost of living indexing adjustment for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. Nondeductible regular contributions. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for 2008, for people eligible to make ages 50-70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. When you can make regular contributions. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a tax year. Rollover and transfer contributions to traditional IRAs Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. Rollovers from "eligible retirement plans" other than traditional IRAs Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan, or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or Tax information 57 o substantially equal periodic payments made for a specified period o of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Rollovers from traditional IRAs to traditional IRAs You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Excess contributions Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contri bution amount for the applicable taxable year; or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts, which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. Recharacterizations Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. Withdrawals, payments and transfers of funds out of traditional IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Taxation of payments. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. 58 Tax information Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollovers and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a TSA or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, TSA or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging or long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. Required minimum distributions Background on Regulations -- Required Minimum Distri-butions. Distributions must be made from traditional IRAs according to the rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing. Please consult your tax adviser concerning applicability of these complex rules to your situation. Lifetime required minimum distributions. You must start taking annual distributions from your traditional IRAs for the year in which you turn 70-1/2. When you have to take the first lifetime required minimum distribution. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year -- the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. How you can calculate required minimum distributions. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables Do you have to pick the same method to calculate your required minimum distributions for all of your traditional IRAs and other retirement plans? No. If you want, you can choose a different method for each of your traditional IRAs and other Tax information 59 retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. Will we pay you the annual amount every year from your traditional IRA based on the method you choose? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawals to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. What if you take more than you need to for any year? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. What if you take less than you need to for any year? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. What are the required minimum distribution payments after you die? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. Individual beneficiary. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. Spousal beneficiary. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. The revised proposed rules permit Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. Non-individual beneficiary. If you die after your Required Beginning Date, and your death beneficiary is a non-individual such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. Successor owner and annuitant If your spouse is the sole primary beneficiary and elects to become the successor owner and annuitant, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. Payments to a beneficiary after your death IRA death benefits are taxed the same as IRA distributions. Borrowing and loans are prohibited transactions You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event 60 Tax information occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. Early distribution penalty tax A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2 . Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special fed eral income tax definition); or o used to pay medical insurance premiums for unemployed indi viduals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special fed eral income tax definition); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method. To meet the substantially equal periodic payment exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" earlier in this section. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under either option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. Roth individual retirement annuities (Roth IRAs) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Plus(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. Contributions to Roth IRAs Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eli gible retirement plans ("conversion rollover" contributions); or o tax-free rollover contributions from other Roth individual retire ment arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. Regular contributions to Roth IRAs Limits on regular contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach age 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or Tax information 61 o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. When you can make contributions. Same as traditional IRAs. Deductibility of contributions. Roth IRA contributions are not tax deductible. Rollovers and direct transfers What is the difference between rollover and direct transfer transactions? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make a rollover between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two- year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Conversion rollover contributions to Roth IRAs In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting -- a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." 62 Tax information You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. How to recharacterize. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The condition will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE-IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. Distributions from Roth IRAs Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to the special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time home buyer distribu- Tax information 63 tion" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them) there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contribu tions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. Required minimum distributions during life Lifetime required minimum distributions do not apply. Required minimum distributions at death Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the Required Beginning Date. Payments to a beneficiary after your death Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. Borrowing and loans are prohibited transactions Same as traditional IRA. Excess contributions Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. Early distribution penalty tax Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) General This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- 64 Tax information FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) PLUS(SM) TSA CONTRACT Because the Accumulator(R) Plus(SM) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Plus(SM) TSA contract are extremely limited as described below. Accumulator(R) Plus(SM) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the 403(b) annuity contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Plus(SM) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Plus(SM) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Plus(SM) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Plus(SM) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as Tax information 65 well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) Plus(SM) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Plus(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary 66 Tax information reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Plus(SM) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. Annuity payments. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. Payments to a beneficiary after your death. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeit able accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest out standing loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Plus(SM) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: Tax information 67 o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. Tax-deferred rollovers and funding vehicle transfers. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Plus(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Plus(SM) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or 68 Tax information o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribu tion from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding, as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However, we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. Federal income tax withholding on periodic annuity payments Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. Federal income tax withholding on non-periodic annuity payments (withdrawals) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. Mandatory withholding from TSA and qualified plan distributions Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or Tax information 69 o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan par ticipant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. 70 Tax information 8. More information - -------------------------------------------------------------------------------- ABOUT SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of the Separate Account's operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Account invests solely in class IB/B shares issued by the corresponding Portfolio of its Trusts. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from the Separate Account, or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in the Prospectuses for each Trust, which are generally attached at the end of this Prospectus, or in their respective SAIs which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below. - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 2013 3.00%* $ 86.25 - -------------------------------------------------------------------------------- More information 71 - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - -------------------------------------------------------------------------------- * Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (up or down) we make if you withdraw any of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMOs maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. Any withdrawal charges that are deducted from a fixed maturity option will result in a market value adjustment calculated in the same way. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined by using a widely-published Index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, guaranteed interest option and fixed maturity options as well as our general obligations. Credits allocated to your account value are funded from our general account. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is not registered as an investment company under the Investment Com- 72 More information pany Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accepted the wire order and essential information, a contract generally was not issued until we received and accepted a properly completed application. In certain cases, we may have issued a contract based on information provided through certain broker-dealers with whom we have established electronic facilities. In any such case, you must have signed our Acknowledgement of Receipt form. Where we required a signed application, the above procedures did not apply and no financial transactions were permitted until we received the signed application and issued the contract. Where we issued a contract based on information provided through electronic facilities, we required an Acknowledgement of Receipt form. Financial transactions were only permitted if you requested them in writing, signed the request and had it signature guaranteed, until we received the signed Acknowledgement of Receipt form. After a contract is issued, additional contributions are allowed by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts. The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial More information 73 contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS, CREDITS, AND TRANSFERS o Contributions and credits allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions and credits allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions and credits allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing center. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in the prospectus for each Trust or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a portfolio in the same proportions that contract owners vote. VOTING RIGHTS OF OTHERS Currently, we control the Trusts. Their shares are sold to our separate accounts and an affiliated qualified plan trust. In addition, shares of the Trusts are held by separate accounts of insurance companies both affiliated and unaffiliated with us. Shares held by these separate accounts will probably be voted according to the instructions of the owners of insurance policies and contracts issued by those insurance companies. While this will dilute the effect of the voting instructions of the contract owners, we currently do not foresee any disadvantages because of this. The Board of Trustees of each Trust intends to monitor events in order to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a response to any of those events insufficiently protects our contract owners, we will see to it that appropriate action is taken. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or the distribution of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive written notification of any change at our processing office. You cannot assign your NQ contract as collateral or security for a loan. Loans are also not available under your NQ contract. In some cases, an 74 More information assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. You cannot assign or transfer ownership of a Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available and you cannot assign Rollover IRA, Roth Conversion IRA and QP contracts as security for a loan or other obligation. If the employer that provided the funds does not restrict them, loans are available under a Rollover TSA contract. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract to another similar arrangement under federal income tax rules. In the case of such a transfer, we will impose a withdrawal charge, if one applies. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 0.60% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 0.60% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 6.75% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker- dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) Plus(SM) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. More information 75 The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. 76 More information 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein," formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa- equitable.com. Incorporation of certain documents by reference 77 Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account No. 49 with the same daily asset charges of 1.40%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 - ------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------- Unit value $ 13.76 $ 13.15 Number of units outstanding (000's) 5,174 3,354 - ------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------- Unit value $ 11.37 $ 10.90 Number of units outstanding (000's) 2,948 1,738 - ------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------- Unit value $ 11.80 $ 11.34 Number of units outstanding (000's) 3,876 2,715 - ------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------- Unit value $ 51.61 $ 49.25 Number of units outstanding (000's) 7,097 7,277 - ------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------- Unit value $ 13.24 $ 12.62 Number of units outstanding (000's) 18,918 14,805 - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------- Unit value $268.31 $ 262.99 Number of units outstanding (000's) 602 722 - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------- Unit value $ 19.80 $ 18.80 Number of units outstanding (000's) 4,012 4,496 - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------- Unit value $ 20.17 $ 18.31 Number of units outstanding (000's) 8,075 7,944 - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------- Unit value $ 7.83 $ 6.96 Number of units outstanding (000's) 7,231 7,957 - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------- Unit value $ 16.77 $ 16.27 Number of units outstanding (000's) 5,254 5,875 - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------- Unit value $ 20.80 $ 18.08 Number of units outstanding (000's) 4,176 4,668 - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------- Unit value $ 16.81 $ 17.87 Number of units outstanding (000's) 26,898 20,566 - ------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------- Unit value $ 11.07 $ 11.36 Number of units outstanding (000's) 166 157 - ------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------- Unit value $ 10.95 $ 10.75 Number of units outstanding (000's) 1,129 1,575 - ------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.31 $ 10.61 -- Number of units outstanding (000's) 2,256 1,088 -- - ----------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.39 $ 10.29 -- Number of units outstanding (000's) 1,282 801 -- - ----------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.58 $ 10.39 -- Number of units outstanding (000's) 2,129 1,570 -- - ----------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 45.28 $ 43.82 $ 40.88 Number of units outstanding (000's) 7,819 7,909 6,360 - ----------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.18 $ 10.63 -- Number of units outstanding (000's) 9,443 5,246 -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 240.95 $ 234.29 $ 208.22 Number of units outstanding (000's) 838 942 814 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.49 $ 18.52 $ 18.42 Number of units outstanding (000's) 5,175 5,829 6,022 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.04 $ 13.23 $ 11.35 Number of units outstanding (000's) 8,041 7,600 6,792 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.10 $ 6.27 $ 5.86 Number of units outstanding (000's) 8,965 8,590 8,430 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.90 $ 15.80 $ 15.45 Number of units outstanding (000's) 6,473 7,011 7,296 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.82 $ 15.30 $ 13.61 Number of units outstanding (000's) 5,243 5,878 5,936 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.93 $ 14.36 $ 12.84 Number of units outstanding (000's) 21,943 23,412 21,328 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.36 -- -- Number of units outstanding (000's) 63 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.75 $ 10.14 -- Number of units outstanding (000's) 2,005 774 -- - ----------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------- 2002 - ------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation Unit value $ 34.80 Number of units outstanding (000's) 1,307 - ------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------- Unit value $ 141.20 Number of units outstanding (000's) 112 - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------- Unit value $ 18.29 Number of units outstanding (000's) 2,463 - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------- Unit value $ 8.52 Number of units outstanding (000's) 1,026 - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------- Unit value $ 4.83 Number of units outstanding (000's) 2,607 - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------- Unit value $ 15.13 Number of units outstanding (000's) 2,167 - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------- Unit value $ 9.80 Number of units outstanding (000's) 1,577 - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------- Unit value $ 10.11 Number of units outstanding (000's) 5,924 - ------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED) - ------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------- Unit value $ 24.01 $ 24.06 Number of units outstanding (000's) 6,226 7,155 - ------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------- Unit value $ 24.76 $ 22.79 Number of units outstanding (000's) 5,376 6,439 - ------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------- Unit value $ 6.90 $ 6.75 Number of units outstanding (000's) 2,508 3,452 - ------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------- Unit value $ 9.96 $ 9.01 Number of units outstanding (000's) 793 885 - ------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------- Unit value $ 13.57 $ 13.05 Number of units outstanding (000's) 2,022 2,154 - ------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------- Unit value $ 13.05 $ 13.02 Number of units outstanding (000's) 16,864 6,926 - ------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------- Unit value $ 11.21 $ 11.06 Number of units outstanding (000's) 726 626 - ------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------- Unit value $ 11.09 $ 10.85 Number of units outstanding (000's) 1,370 414 - ------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------- Unit value $ 30.81 $ 29.78 Number of units outstanding (000's) 8,846 10,152 - ------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------- Unit value $ 10.71 $ 9.94 Number of units outstanding (000's) 1,650 604 - ------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------- Unit value $ 9.75 $ 8.89 Number of units outstanding (000's) 2,548 2,818 - ------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------- Unit value $ 13.65 $ 12.82 Number of units outstanding (000's) 12,038 13,979 - ------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------- Unit value $ 10.49 $ 10.43 Number of units outstanding (000's) 3,642 1,197 - ------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------- Unit value $ 9.75 $ 10.82 Number of units outstanding (000's) 265 120 - ------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------- Unit value $ 9.51 -- Number of units outstanding (000's) 1,530 -- - ------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------- Unit value $ 11.85 $ 11.62 Number of units outstanding (000's) 903 738 - ------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------- Unit value $ 29.36 $ 27.24 Number of units outstanding (000's) 1,218 640 - ------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 20.18 $ 19.88 $ 18.24 Number of units outstanding (000's) 7,988 9,113 8,213 - ----------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.39 $ 16.83 $ 14.03 Number of units outstanding (000's) 6,535 6,084 5,257 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.90 $ 5.64 -- Number of units outstanding (000's) 3,461 780 -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.68 $ 8.10 $ 7.93 Number of units outstanding (000's) 933 1,019 964 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.32 $ 11.89 $ 11.43 Number of units outstanding (000's) 2,074 2,253 2,284 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.78 $ 11.27 $ 10.30 Number of units outstanding (000's) 7,742 8,947 8,367 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.39 -- -- Number of units outstanding (000's) 277 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 26.24 $ 25.49 $ 23.45 Number of units outstanding (000's) 11,790 13,022 12,430 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.75 -- -- Number of units outstanding (000's) 48 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.51 $ 8.30 $ 7.87 Number of units outstanding (000's) 3,403 4,201 3,589 - ----------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.66 $ 11.11 $ 9.71 Number of units outstanding (000's) 16,419 17,707 16,254 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.50 -- -- Number of units outstanding (000's) 348 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 23.25 $ 22.60 -- Number of units outstanding (000's) 626 173 -- - ----------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------- 2002 - ------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------ Unit value $ 14.10 Number of units outstanding (000's) 2,399 - ------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------ Unit value $ 11.11 Number of units outstanding (000's) 1,712 - ------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------ Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------ Unit value $ 6.28 Number of units outstanding (000's) 208 - ------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------ Unit value $ 9.35 Number of units outstanding (000's) 762 - ------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------ Unit value $ 7.95 Number of units outstanding (000's) 2,246 - ------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------ Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------ Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------ Unit value $ 18.61 Number of units outstanding (000's) 3,667 - ------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------ Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------ Unit value $ 5.77 Number of units outstanding (000's) 625 - ------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------ Unit value $ 6.86 Number of units outstanding (000's) 3,145 - ------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------ Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------ Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------ Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------ Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------ Unit value -- Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED) - ------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ----------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------ Unit value $ 16.43 $ 14.47 Number of units outstanding (000's) 7,442 8,727 - ------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------ Unit value $ 16.32 $ 14.24 Number of units outstanding (000's) 1,188 436 - ------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------ Unit value $ 14.50 $ 14.27 Number of units outstanding (000's) 14,294 15,682 - ------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------ Unit value $ 15.57 $ 15.99 Number of units outstanding (000's) 3,426 3,983 - ------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------ Unit value $ 10.79 $ 10.54 Number of units outstanding (000's) 3,371 3,928 - ------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------ Unit value $ 17.12 $ 15.02 Number of units outstanding (000's) 2,206 1,899 - ------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------ Unit value $ 10.39 $ 11.20 Number of units outstanding (000's) 692 1,110 - ------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------ Unit value $ 10.63 $ 10.03 Number of units outstanding (000's) 1,010 1,060 - ------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------ Unit value $ 12.49 $ 12.24 Number of units outstanding (000's) 678 1,083 - ------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------ Unit value $ 12.80 $ 11.73 Number of units outstanding (000's) 391 339 - ------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------ Unit value $ 12.25 $ 12.35 Number of units outstanding (000's) 1,256 1,071 - ------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------ Unit value $ 18.43 $ 16.39 Number of units outstanding (000's) 16,976 19,097 - ------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------ Unit value $ 16.95 $ 17.47 Number of units outstanding (000's) 9,165 11,353 - ------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------ Unit value $ 29.97 $ 29.03 Number of units outstanding (000's) 3,210 2,668 - ------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------ Unit value $ 5.82 $ 4.89 Number of units outstanding (000's) 2,244 389 - ------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------ Unit value $ 10.73 $ 10.71 Number of units outstanding (000's) 1,652 565 - ------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------ Unit value $ 11.56 $ 11.09 Number of units outstanding (000's) 647 205 - ------------------------------------------------------------------------------------------------------------------ - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.30 $ 10.65 $ 9.51 Number of units outstanding (000's) 9,574 10,189 8,648 - ----------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.49 -- -- Number of units outstanding (000's) 65 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.90 $ 13.79 $ 13.44 Number of units outstanding (000's) 17,324 17,843 18,211 - ----------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.47 $ 13.15 $ 12.02 Number of units outstanding (000's) 4,419 4,753 4,353 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.46 $ 8.95 $ 8.15 Number of units outstanding (000's) 4,535 4,946 4,865 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.13 $ 13.14 $ 11.84 Number of units outstanding (000's) 2,081 2,192 2,043 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.64 -- -- Number of units outstanding (000's) 315 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.00 -- -- Number of units outstanding (000's) 420 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.59 -- -- Number of units outstanding (000's) 171 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.56 -- -- Number of units outstanding (000's) 153 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.14 -- -- Number of units outstanding (000's) 890 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.21 $ 13.93 $ 12.78 Number of units outstanding (000's) 20,640 21,440 20,675 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.75 $ 14.35 $ 12.35 Number of units outstanding (000's) 12,611 12,978 12,257 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 28.17 $ 27.84 $ 28.02 Number of units outstanding (000's) 2,307 2,473 4,639 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 4.59 $ 4.42 -- Number of units outstanding (000's) 525 46 -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------ 2002 - -------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - -------------------------------------------------------------------------------------------------------------------- Unit value $ 7.27 Number of units outstanding (000's) 1,957 - -------------------------------------------------------------------------------------------------------------------- EQ/International Growth - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - -------------------------------------------------------------------------------------------------------------------- Unit value $ 13.19 Number of units outstanding (000's) 5,930 - -------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - -------------------------------------------------------------------------------------------------------------------- Unit value $ 9.62 Number of units outstanding (000's) 1,383 - -------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - -------------------------------------------------------------------------------------------------------------------- Unit value $ 6.77 Number of units outstanding (000's) 1,329 - -------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - -------------------------------------------------------------------------------------------------------------------- Unit value $ 9.28 Number of units outstanding (000's) 538 - -------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - -------------------------------------------------------------------------------------------------------------------- Unit value $ 9.89 Number of units outstanding (000's) 4,362 - -------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - -------------------------------------------------------------------------------------------------------------------- Unit value $ 9.40 Number of units outstanding (000's) 4,007 - -------------------------------------------------------------------------------------------------------------------- EQ/Money Market - -------------------------------------------------------------------------------------------------------------------- Unit value $ 28.26 Number of units outstanding (000's) 4,457 - -------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - --------------------------------------------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED) - -------------------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------- 2007 2006 - -------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - -------------------------------------------------------------------------------------------------------------------- Unit value $ 11.14 $ 10.93 Number of units outstanding (000's) 153 84 - -------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - -------------------------------------------------------------------------------------------------------------------- Unit value $ 10.75 $ 11.10 Number of units outstanding (000's) 327 49 - -------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - -------------------------------------------------------------------------------------------------------------------- Unit value $ 10.80 $ 9.83 Number of units outstanding (000's) 2,804 2,107 - -------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - -------------------------------------------------------------------------------------------------------------------- Unit value $ 10.62 $ 10.23 Number of units outstanding (000's) 633 497 - -------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - -------------------------------------------------------------------------------------------------------------------- Unit value $ 16.51 $ 17.06 Number of units outstanding (000's) 4,494 5,392 - -------------------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - -------------------------------------------------------------------------------------------------------------------- Unit value $ 17.29 $ 16.36 Number of units outstanding (000's) 2,373 159 - -------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - -------------------------------------------------------------------------------------------------------------------- Unit value $ 10.83 $ 10.76 Number of units outstanding (000's) 963 388 - -------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - -------------------------------------------------------------------------------------------------------------------- Unit value $ 6.21 $ 6.22 Number of units outstanding (000's) 629 633 - -------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - -------------------------------------------------------------------------------------------------------------------- Unit value $ 11.45 $ 11.91 Number of units outstanding (000's) 891 977 - -------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - -------------------------------------------------------------------------------------------------------------------- Unit value $ 26.27 $ 18.76 Number of units outstanding (000's) 8,000 8,412 - -------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - -------------------------------------------------------------------------------------------------------------------- Unit value $ 16.08 $ 13.33 Number of units outstanding (000's) 1,604 553 - -------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - -------------------------------------------------------------------------------------------------------------------- Unit value $ 8.28 -- Number of units outstanding (000's) 3,859 -- - -------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - -------------------------------------------------------------------------------------------------------------------- Unit value $ 64.81 $ 59.02 Number of units outstanding (000's) 259 312 - -------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - -------------------------------------------------------------------------------------------------------------------- Unit value $ 12.02 $ 11.47 Number of units outstanding (000's) 15,088 17,031 - -------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - -------------------------------------------------------------------------------------------------------------------- Unit value $ 12.95 $ 12.05 Number of units outstanding (000's) 4,337 4,980 - -------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - -------------------------------------------------------------------------------------------------------------------- Unit value $ 32.70 $ 32.16 Number of units outstanding (000's) 5,056 5,779 - -------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - -------------------------------------------------------------------------------------------------------------------- Unit value $ 18.73 $ 16.90 Number of units outstanding (000's) 5,534 6,183 - -------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.93 -- -- Number of units outstanding (000's) 1,434 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.98 -- -- Number of units outstanding (000's) 245 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.70 $ 14.30 $ 12.32 Number of units outstanding (000's) 5,841 6,730 6,188 - ----------------------------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.28 $ 16.85 -- Number of units outstanding (000's) 231 37 -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.53 $ 5.15 -- Number of units outstanding (000's) 450 41 -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.42 -- -- Number of units outstanding (000's) 630 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.88 $ 10.60 $ 8.69 Number of units outstanding (000's) 8,800 7,052 5,307 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.37 -- -- Number of units outstanding (000's) 471 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- Number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 56.94 $ 53.37 $ 48.29 Number of units outstanding (000's) 369 391 352 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.21 $ 11.18 $ 10.91 Number of units outstanding (000's) 18,544 20,725 21,868 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.63 $ 11.03 $ 9.97 Number of units outstanding (000's) 5,547 5,832 5,004 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 29.67 $ 29.19 $ 27.25 Number of units outstanding (000's) 6,491 7,606 7,467 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.68 $ 12.01 $ 10.33 Number of units outstanding (000's) 6,014 6,557 5,137 - ----------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------ 2002 - -------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - -------------------------------------------------------------------------------------------------------------------- Unit value $ 8.57 Number of units outstanding (000's) 1,437 - -------------------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - -------------------------------------------------------------------------------------------------------------------- Unit value $ 5.66 Number of units outstanding (000's) 1,261 - -------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - -------------------------------------------------------------------------------------------------------------------- Unit value $ 35.61 Number of units outstanding (000's) 65 - -------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - -------------------------------------------------------------------------------------------------------------------- Unit value $ 10.67 Number of units outstanding (000's) 7,979 - -------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - -------------------------------------------------------------------------------------------------------------------- Unit value $ 7.89 Number of units outstanding (000's) 1,289 - -------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - -------------------------------------------------------------------------------------------------------------------- Unit value $ 22.55 Number of units outstanding (000's) 1,128 - -------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - -------------------------------------------------------------------------------------------------------------------- Unit value $ 7.80 Number of units outstanding (000's) 1,360 - --------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED) - -------------------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------- 2007 2006 - -------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - -------------------------------------------------------------------------------------------------------------------- Unit value $ 12.73 $ 12.30 Number of units outstanding (000's) 3,600 4,067 - -------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - -------------------------------------------------------------------------------------------------------------------- Unit value $ 10.54 $ 9.61 Number of units outstanding (000's) 7,322 8,795 - -------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - -------------------------------------------------------------------------------------------------------------------- Unit value $ 14.63 $ 14.32 Number of units outstanding (000's) 7,330 8,778 - -------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - -------------------------------------------------------------------------------------------------------------------- Unit value $ 12.03 $ 10.90 Number of units outstanding (000's) 8,344 9,978 - -------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - -------------------------------------------------------------------------------------------------------------------- Unit value $ 13.70 $ 13.89 Number of units outstanding (000's) 6,493 8,053 - -------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - -------------------------------------------------------------------------------------------------------------------- Unit value $ 8.95 $ 8.76 Number of units outstanding (000's) 1,926 1,478 - -------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - -------------------------------------------------------------------------------------------------------------------- Unit value $ 17.40 $ 19.58 Number of units outstanding (000's) 7,409 9,327 - -------------------------------------------------------------------------------------------------------------------- Multimanager Technology - -------------------------------------------------------------------------------------------------------------------- Unit value $ 12.32 $ 10.57 Number of units outstanding (000's) 5,764 5,828 - -------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.98 $ 10.44 $ 9.65 Number of units outstanding (000's) 4,576 5,046 4,778 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.74 $ 9.19 $ 8.74 Number of units outstanding (000's) 9,386 10,463 9,505 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.17 $ 11.53 $ 10.22 Number of units outstanding (000's) 9,367 9,747 8,731 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.09 $ 9.44 $ 8.57 Number of units outstanding (000's) 11,279 12,924 12,264 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.28 $ 11.60 $ 10.21 Number of units outstanding (000's) 8,958 10,507 9,465 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.06 $ 7.60 -- Number of units outstanding (000's) 1,311 67 -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.10 $ 16.57 $ 14.35 Number of units outstanding (000's) 10,810 12,065 10,965 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.99 $ 9.11 $ 8.90 Number of units outstanding (000's) 6,644 7,471 3,799 - ----------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------ 2002 - -------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - -------------------------------------------------------------------------------------------------------------------- Unit value $ 7.64 Number of units outstanding (000's) 1,529 - -------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - -------------------------------------------------------------------------------------------------------------------- Unit value $ 6.78 Number of units outstanding (000's) 2,593 - -------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - -------------------------------------------------------------------------------------------------------------------- Unit value $ 7.90 Number of units outstanding (000's) 2,676 - -------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - -------------------------------------------------------------------------------------------------------------------- Unit value $ 6.20 Number of units outstanding (000's) 3,087 - -------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - -------------------------------------------------------------------------------------------------------------------- Unit value $ 7.37 Number of units outstanding (000's) 2,371 - -------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - -------------------------------------------------------------------------------------------------------------------- Unit value -- Number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - -------------------------------------------------------------------------------------------------------------------- Unit value $ 10.59 Number of units outstanding (000's) 3,006 - -------------------------------------------------------------------------------------------------------------------- Multimanager Technology - -------------------------------------------------------------------------------------------------------------------- Unit value $ 5.66 Number of units outstanding (000's) 1,127 - --------------------------------------------------------------------------------------------------------------------
A-5 Appendix I: Condensed financial information Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- Trustees who purchased an Accumulator(R) Plus(SM) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the Living Benefit option and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) Plus(SM) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) Plus(SM) QP contract to fund a plan for the contract's features and benefits other than tax deferral, after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. We will not accept defined benefit plans. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or other contributions from the employer. For 401(k) plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge and/or market value adjustment may apply. AXA Equitable will not perform or provide any plan recordkeeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for participants after age 70-1/2, trustees should consider that: o the QP contract may not be an appropriate purchase for participants approaching or over age 70-1/2; o provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed; o contributions after age 70-1/2 must be net of any required minimum distributions; and o the guaranteed minimum income benefit under the Living Benefit may not be an appropriate feature for participants who are older than 60-1/2 when the contract is issued. Finally, because the method of purchasing the QP contract, including the large initial contribution, and the features of the QP contract may appeal more to plan participants who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisors whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. Appendix II: Purchase considerations for QP contracts B-1 Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 16, 2016 (eight years later) at a hypothetical rate to maturity of 7.00%("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a),
- ------------------------------------------------------------------------------------------------------------- Hypothetical assumed rate to maturity ("j" in the calculations below) February 15, 2012 -------------------------------- 5.00% 9.00% - ------------------------------------------------------------------------------------------------------------- As of February 15, 2012 before withdrawal - ------------------------------------------------------------------------------------------------------------- (1) Market adjusted amount(b) $141,389 $121,737 - ------------------------------------------------------------------------------------------------------------- (2) Fixed maturity amount(c) $131,104 $131,104 - ------------------------------------------------------------------------------------------------------------- (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) On February 15, 2012 after $50,000 withdrawal - ------------------------------------------------------------------------------------------------------------- (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ------------------------------------------------------------------------------------------------------------- (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ------------------------------------------------------------------------------------------------------------- (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ------------------------------------------------------------------------------------------------------------- (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ------------------------------------------------------------------------------------------------------------- (8) Maturity value(d) $111,099 $101,287 - -------------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ where j is either 5% or 9% (1+j)(D/365) (1+j)(1,461/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ________________ = ___________________ (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) x (1+0.07)(1,461/365)
C-1 Appendix III: Market value adjustment example Appendix IV: Guaranteed enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the enhanced death benefit. The following illustrates the enhanced death benefit calculation. Assuming $100,000 (plus the applicable 4% credit) is allocated to the variable investment options (with no allocation to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option or the fixed maturity options), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the enhanced death benefit for an annuitant age 45 would be calculated as follows:
- --------------------------------------------------------------------------------------------------- 6% Roll-Up to age 85 Annual ratchet to age 85 End of Contract Year Account Value benefit base benefit base - --------------------------------------------------------------------------------------------------- 1 109,200 110,240(1) 109,200(3) - --------------------------------------------------------------------------------------------------- 2 120,120 116,854(2) 120,120(3) - --------------------------------------------------------------------------------------------------- 3 134,534 123,866(2) 134,534(3) - --------------------------------------------------------------------------------------------------- 4 107,628 131,298(1) 134,534(4) - --------------------------------------------------------------------------------------------------- 5 118,390 139,175(1) 134,534(4) - --------------------------------------------------------------------------------------------------- 6 132,597 147,526(1) 134,534(4) - --------------------------------------------------------------------------------------------------- 7 132,597 156,378(1) 134,534(4) - ---------------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. 6% ROLL-UP TO AGE 85 (1) At the end of contract years 1 and 4 through 7, the 6% Roll-Up to age 85 enhanced death benefit is greater than the current account value. (2) At the end of contract years 2 and 3, the 6% Roll-Up to age 85 enhanced death benefit is equal to the current account value. ANNUAL RATCHET TO AGE 85 (3) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (4) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. GREATER OF 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown is the greater of the amounts shown under the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. At the end of contract years 1 and 5 through 7, the enhanced death benefit will be based on the 6% Roll-Up to age 85. At the end of contract years 2 through 4, the enhanced death benefit will be based on the Annual Ratchet to age 85. Appendix IV: Guaranteed enhanced death benefit example D-1 Appendix V: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "greater of 6% Roll-Up to Age 85 or the Annual Ratchet to Age 85" guaranteed minimum death benefit, the Protection Plus(SM) benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Plus(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying Portfolios (as described below), the corresponding net annual rates of return would be (2.63%), 3.37% for the Accumulator(R) Plus(SM) Contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges but they do not reflect the charges we deduct from your account value annually for the Guaranteed minimum death benefit, Protection Plus(SM) benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return would be lower; however, the values shown in the following tables reflect all contract charges. The values shown under "Lifetime Annual Guaranteed Minimum Income Benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the Death Benefit and/or "Lifetime Annual Guaranteed Minimum Income Benefit" columns indicates that the contract has terminated due to insufficient account value and, consequently, the guaranteed benefit has no value. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. E-1 Appendix V: Hypothetical illustrations Variable deferred annuity Accumulator(R) Plus(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 Guaranteed minimum death benefit Protection Plus Guaranteed minimum income benefit
Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 Guaranteed Minimum Death Benefit ------------------- Account Value Cash Value ------------------- ------------------ Age Contract Year 0% 6% 0% 6% 0% 6% - ----- -------------- --------- --------- -------- --------- --------- --------- 60 1 104,000 104,000 96,000 96,000 104,000 104,000 61 2 99,587 105,806 91,587 97,806 110,240 110,240 62 3 95,227 107,586 88,227 100,586 116,854 116,854 63 4 90,911 109,336 83,911 102,336 123,866 123,866 64 5 86,635 111,050 80,635 105,050 131,298 131,298 65 6 82,391 112,720 77,391 107,720 139,175 139,175 66 7 78,173 114,341 74,173 110,341 147,526 147,526 67 8 73,974 115,904 70,974 112,904 156,378 156,378 68 9 69,787 117,401 69,787 117,401 165,760 165,760 69 10 65,606 118,825 65,606 118,825 175,706 175,706 74 15 44,479 124,471 44,479 124,471 235,134 235,134 79 20 22,168 126,510 22,168 126,510 314,662 314,662 84 25 0 122,840 0 122,840 0 421,089 89 30 0 125,225 0 125,225 0 446,355 94 35 0 131,008 0 131,008 0 446,355 95 36 0 132,270 0 132,270 0 446,355 Lifetime Annual Guaranteed Minimum Income Benefit ---------------------------------- Total Death Benefit with Protection Guaranteed Hypothetical Plus Income Income ------------------- ----------------- ---------------- Age 0% 6% 0% 6% 0% 6% - ----- --------- --------- -------- -------- -------- ------- 60 104,000 104,000 N/A N/A N/A N/A 61 114,336 114,336 N/A N/A N/A N/A 62 123,596 123,596 N/A N/A N/A N/A 63 133,412 133,412 N/A N/A N/A N/A 64 143,817 143,817 N/A N/A N/A N/A 65 154,846 154,846 N/A N/A N/A N/A 66 166,536 166,536 N/A N/A N/A N/A 67 178,929 178,929 N/A N/A N/A N/A 68 192,064 192,064 N/A N/A N/A N/A 69 205,988 205,988 N/A N/A N/A N/A 74 289,188 289,188 14,837 14,837 14,837 14,837 79 400,527 400,527 21,208 21,208 21,208 21,208 84 0 514,506 36,214 36,214 36,214 36,214 89 0 539,771 N/A N/A N/A N/A 94 0 539,771 N/A N/A N/A N/A 95 0 539,771 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. Appendix V: Hypothetical illustrations E-2 Appendix VI: Contract variations - -------------------------------------------------------------------------------- The contract described in this Prospectus is no longer sold. You should note that your contract features and charges may vary from what is described in this Prospectus depending on the date on which you purchased your contract. You may not change your contract or its features after issue. This Appendix reflects contract variations that differ from what is described in this Prospectus but may have been in effect at the time you purchased your contract. In addition, options and/or features may vary among states in light of applicable regulations or state approvals. Any such state variations are generally not included here. For more information about state variations applicable to you, as well as particular features, charges and options available under your contract based upon when you purchased it, please contact your financial professional and/or refer to your contract.
- ------------------------------------------------------------------------------------------------------------------------------------ Approximate Time Period Feature/Benefit Variation - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - July 2003 Guaranteed interest option No limitations regarding allocations or transfers into the guaranteed interest account. - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - February 2003 Fee table Guaranteed minimum death benefit charge: Annual Ratchet to age 85: 0.20% 6% Roll-Up to age 85: 0.35% The Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85: 0.45% Guaranteed minimum income benefit: 0.45% - ------------------------------------------------------------------------------------------------------------------------------------
F-1 Appendix VI: Contract variations Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to obtain an Accumulator(R) Plus(SM) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) Plus(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 - -------------------------------------------------------------------------------- Please send me an Accumulator(R) Plus(SM) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip X1889/Plus '02/'04, ML'02, '04(NY), '06/'06.5 and '07 Series Accumulator(R) Plus(SM) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing or taking any other action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) PLUS(SM)? Accumulator(R) Plus(SM) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers death benefit protection and a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option or fixed maturity options ("investment options"). This contract may not currently be available in all states. Certain features and benefits described in this Prospectus may vary in your state; all features and benefits may not be available in all contracts, in all states or from all selling broker-dealers. Please see Appendix VIII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street Small o EQ/Ariel Appreciation II Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities Portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option and the fixed maturity options, which are discussed later in this Prospectus. TYPES OF CONTRACTS. Contracts were offered for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). o An annuity that is an investment vehicle for a qualified defined contribution plan ("QP") (Rollover and direct transfer contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $10,000 was required to purchase a contract. We add an amount ("credit") to your contract with each contribution you make. Expenses for this contract may be higher than for a comparable contract without a credit. Over time, the amount of the credit may be more than offset by fees and charges associated with the credit. A registration statement relating to this offering has been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. This contract is no longer available for new purchasers. This contract is no longer being sold. This Prospectus is designed for current contract owners. In addition to the possible state variations noted above, you should note that your contract features and charges may vary depending on the date on which you purchased your contract. For more information about the particular features, charges and options applicable to you, please contact your financial professional or refer to your contract, as well as review Appendix IX later in this Prospectus for contract variation information and timing. You may not change your contract or its features as issued. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01895/Plus '02/'04 Series Contents of this Prospectus - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (Not all of the features listed are available under all contracts or in all states.) - -------------------------------------------------------------------------------- ACCUMULATOR(R) PLUS(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) Plus(SM) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 12 - -------------------------------------------------------------------------------- Example 16 Condensed financial information 19 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 20 - -------------------------------------------------------------------------------- How you can contribute to your contract 20 Owner and annuitant requirements 23 How you can make your contributions 23 What are your investment options under the contract? 23 Portfolios of the Trusts 24 Allocating your contributions 30 Credits 33 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 34 Annuity purchase factors 35 Guaranteed minimum income benefit option* 35 Guaranteed minimum death benefit 38 Principal Protector(SM) 39 Your right to cancel within a certain number of days 42 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 44 - -------------------------------------------------------------------------------- Your account value and cash value 44 Your contract's value in the variable investment options 44 Your contract's value in the guaranteed interest option 44 Your contract's value in the fixed maturity options 44 Insufficient account value 44 - ---------------------- *Depending on when you purchased your contract, this benefit may be called the "Living Benefit." Accordingly, if applicable, all references to the Guaranteed minimum income benefit in this Prospectus and any related registration statement documents are references to the Living Benefit. "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG THE INVESTMENT OPTIONS 46 - -------------------------------------------------------------------------------- Transferring your account value 46 Disruptive transfer activity 46 Rebalancing your account value 47 - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 49 - -------------------------------------------------------------------------------- Withdrawing your account value 49 How withdrawals are taken from your account value 50 How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2 51 How withdrawals affect Principal Protector(SM) 51 Withdrawals treated as surrenders 51 Loans under Rollover TSA contracts 51 Surrendering your contract to receive its cash value 52 When to expect payments 52 Your annuity payout options 53 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 56 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 56 Charges that the Trusts deduct 60 Group or sponsored arrangements 60 Other distribution arrangements 60 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 61 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 61 How death benefit payment is made 62 Beneficiary continuation option 63 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 67 - -------------------------------------------------------------------------------- Overview 67 Contracts that fund a retirement arrangement 67 Transfers among variable investment options 67 Taxation of nonqualified annuities 67 Individual retirement arrangements (IRAs) 69 Tax-Sheltered Annuity contracts (TSAs) 78 Federal and state income tax withholding and information reporting 83 Special rules for contracts funding qualified plans 84 Impact of taxes to AXA Equitable 84 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 85 - -------------------------------------------------------------------------------- About Separate Account No. 49 85 About the Trusts 85 About our fixed maturity options 85 About the general account 86 About other methods of payment 87 Dates and prices at which contract events occur 87 About your voting rights 88 About legal proceedings 88 Financial statements 88 Transfers of ownership, collateral assignments, loans and borrowing 88 Distribution of the contracts 89 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 91 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Enhanced death benefit example D-1 V -- Hypothetical illustrations E-1 VI -- Guaranteed principal benefit example F-1 VII -- Protection Plus(SM) example G-1 VIII -- State contract availability and/or variations of certain features and benefits H-1 IX -- Contract variations I-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page 6% Roll-Up to age 85 enhanced death benefit 34 account value 44 administrative charge 56 annual administrative charge 56 Annual Ratchet to age 85 enhanced death benefit 34 annuitant 20 annuitization 53 annuity maturity date 55 annuity payout options 53 annuity purchase factors 35 automatic investment program 87 beneficiary 61 Beneficiary continuation option ("BCO") 63 benefit base 34 business day 87 cash value 44 charges for state premium and other applicable taxes 60 contract date 23 contract date anniversary 23 contract year 23 Contributions to Roth IRAs 75 regular contributions 75 rollovers and transfers 76 conversion contributions 76 contributions to traditional IRAs 70 regular contributions 70 rollovers and transfers 71 credit 33 disability, terminal illness or confinement to nursing home 58 disruptive transfer activity 46 distribution charge 56 EQAccess 7 ERISA 60 Fixed-dollar option 32 fixed maturity options 29 free look 43 free withdrawal amount 57 general account 86 General dollar cost averaging 32 guaranteed interest option 29 Guaranteed minimum death benefit 38 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 34 Guaranteed minimum death benefit charge 58 Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset option 35 Guaranteed minimum income benefit 35 Guaranteed minimum income benefit "no lapse guarantee" 36 Guaranteed minimum income benefit charge 59 Guaranteed principal benefits 30 IRA cover IRS 67 Investment simplifier 32 lifetime required minimum distribution withdrawals 50 loan reserve account 52 loans under Rollover TSA 51 market adjusted amount 29 market value adjustment 29 market timing 46 maturity dates 29 maturity value 30 Mortality and expense risks charge 56 NQ cover Optional step up charge 59 partial withdrawals 49 Portfolio cover Principal assurance 31 processing office 7 Principal Protector(SM) 39 Principal Protector(SM) charge 59 Protection Plus(SM) 59 Protection Plus(SM) charge 59 QP cover rate to maturity 29 Rebalancing 47 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 30 Separate Account No. 49 85 Spousal protection 63 Standard death benefit 34 substantially equal withdrawals 49 Successor owner and annuitant 62 systematic withdrawals 49 TOPS 7 TSA cover traditional IRA cover Trusts 85 unit 44 variable investment options 23 wire transmittals and electronic applications 87 withdrawal charge 57 4 Index of key words and phrases To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract or supplemental materials. Also, depending on when you purchased your contract, some of these may not apply to you or may be named differently under your contract. Your financial professional can provide further explanation about your contract or supplemental materials.
- ------------------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - ------------------------------------------------------------------------------------------- fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guarantee minimum income benefit Guaranteed Income Benefit or Living Benefit guaranteed interest option Guaranteed Interest Account Principal Protector(SM) Guaranteed withdrawal benefit GWB benefit base Principal Protector(SM) benefit base GWB Annual withdrawal amount Principal Protector(SM) Annual withdrawal amount GWB Annual withdrawal option Principal Protector(SM) Annual withdrawal option GWB Excess withdrawal Principal Protector(SM) Excess withdrawal - -------------------------------------------------------------------------------------------
Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US You may communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) Plus(SM) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) Plus(SM) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) Plus(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) Plus(SM) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility to exercise the Guaranteed minimum income benefit and/or the Roll-Up benefit base reset option. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options; o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the variable investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of any transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market tim- Who is AXA Equitable? 7 ing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts; (7) tax withholding elections; (8) election of the beneficiary continuation option; (9) IRA contribution recharacterizations; (10) Section 1035 exchanges; (11) direct transfers and rollovers; (12) exercise of the Guaranteed minimum income benefit; (13) requests to reset your Roll-Up benefit base (for certain contracts with both the Guaranteed minimum income benefit and the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit); (14) requests to step up your Guaranteed withdrawal benefit ("GWB") benefit base, if applicable, under the Optional step up provision; (15) requests to terminate or reinstate your GWB, if applicable, under the Beneficiary continuation option, if applicable; (16) death claims; (17) purchase by, or change of ownership to, a non-natural person; (18) change in ownership (NQ only), if available under your contract; and (19) enrollment in our "automatic required minimum distribution (RMD) service." WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; and (3) general dollar cost averaging (including the fixed dollar and interest sweep options) TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) dollar cost averaging (including the fixed dollar amount and interest sweep options); (3) substantially equal withdrawals; (4) systematic withdrawals; and (5) the date annuity payments are to begin. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners both must sign. 8 Who is AXA Equitable? Accumulator(R) Plus(SM) at a glance -- key features - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (Not all of the features listed are available under all contracts or in all states.) - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ Professional investment Accumulator(R) Plus(SM) variable investment options invest in different Portfolios managed by management professional investment advisers. - ------------------------------------------------------------------------------------------------------------------------------------ Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2 only). ------------------------------------------------------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - ------------------------------------------------------------------------------------------------------------------------------------ Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among variable investment options inside the contract. ------------------------------------------------------------------------------------------------------- You should be aware that annuity contracts that were purchased as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before you purchased your contract, you should have considered its features and benefits beyond tax deferral, as well as its features, benefits and costs relative to any other investment that you may have chosen in connection with your retirement plan or arrangement, to determine whether it would meet your needs and goals. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during the annuitant's income benefit (or "Living life once you elect to annuitize the contract. Benefit") - ------------------------------------------------------------------------------------------------------------------------------------ Principal Protector(SM) Principal Protector(SM) is our optional Guaranteed withdrawal benefit ("GWB"), which provides for recovery of your total contributions through withdrawals, even if your account value falls to zero, provided that during each contract year, your total withdrawals do not exceed a specified amount. This feature may not have been available under your contract. - ------------------------------------------------------------------------------------------------------------------------------------ Contribution amounts o Initial minimum: $10,000 o Additional minimum: $500 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $50 (IRA contracts) ------------------------------------------------------------------------------------------------------- Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million. See "How you can contribute to your contract" in "Contract features and benefits" later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------ Credit We allocate your contributions to your account value. We allocate a credit to your account value at the same time that we allocate your contributions. The credit will apply to additional contribution amounts only to the extent that those amounts exceed total withdrawals from the contract. The amount of credit may be up to 5% of each contribution, depending on certain factors. The credit is subject to recovery by us in certain limited circumstances. Please see Appendix IX later in this Prospectus for more information about contract variations relating to credit and credit recovery. - ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Plus(SM) at a glance -- key features 9
- -------------------------------------------------------------------------------- Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - -------------------------------------------------------------------------------- Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - -------------------------------------------------------------------------------- Additional features* o Guaranteed minimum death benefit options o Guaranteed principal benefit options (including Principal assurance) o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually, and annually) o Free transfers o Waiver of withdrawal charge for disability, terminal illness, confinement to a nursing home and certain other withdrawals o Protection Plus(SM), an optional death benefit available under certain contracts (subject to state availability) o Spousal protection (not available under certain contracts) o Successor owner/annuitant o Beneficiary continuation option o Guaranteed minimum income benefit no lapse guarantee (available under contracts with applications that were signed and submitted on or after January 1, 2005 subject to state availability) o Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset (available under contracts with applications that were signed and submitted on or after October 1, 2005 subject to state availability) * Not all features are available under all contracts. Please see Appendix IX later in this Prospectus for more information. - -------------------------------------------------------------------------------- Fees and charges(+) o Daily charges on amounts invested in the variable investment options for mortality and expense risks, administrative, and distribution charges at an annual rate of 1.50%. o The charges for the Guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the applicable benefit base. The benefit base is described under "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" in "Contract features and benefits" later in this Prospectus. o An annual charge of 0.35% of your account value for the Protection Plus(SM) optional death benefit. o An annual charge of 0.35% of your account value for the 5% GWB Annual withdrawal option (if available) or 0.50% of your account value for the 7% GWB Annual withdrawal option (if available) for the Principal Protector(SM) benefit. If you "step up" your GWB benefit base, we reserve the right to raise the charge up to 0.60% and 0.80%, respectively. See "Principal Protector(SM)" in "Contract features and benefits" later in this Prospectus. o An annual charge of 0.65% of the applicable benefit base charge for the optional Guaranteed minimum income benefit, until you exercise the benefit, elect another annuity payout or the contract date anniversary after the annuitant reaches age 85, whichever occurs first. The benefit base is described under "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" in "Contract features and benefits" later in this Prospectus. o An annual charge for the optional Guaranteed principal benefit option 2 (if available) deducted on the first ten contract date anniversaries equal to 0.50% of account value.
10 Accumulator(R) Plus(SM) at a glance -- key features
- -------------------------------------------------------------------------------- Fees and charges o If your account value at the end of the contract year (continued) is less than $50,000, we deduct an annual administrative charge equal to $30, or during the first two contract years, 2% of your account value, if less. If your account value on the contract date anniversary, is $50,000 or more, we will not deduct the charge. o No sales charge deducted at the time you make contributions. o During the first eight contract years following a contribution, a charge will be deducted from amounts that you withdraw that exceed 10% of your account value. We use the account value at the beginning of each contract year to calculate the 10% amount available. The charge is 8% in each of the first two contract years following a contribution; the charge is 7% in the third and fourth contract years following a contribution; thereafter, it declines by 1% each year in the fifth to eighth contract year following a contribution. There is no withdrawal charge in the ninth and later contract years following a contribution. Certain other exemptions may apply. Certain contracts may provide for a higher free withdrawal amount. See Appendix IX later in this Prospectus for the free withdrawal amount that applies to your contract. ------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we received the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date appears in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. ------------------------------------------------------- o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. This charge is generally deducted from the amount applied to an annuity payout option. o We currently deduct a $350 annuity administrative fee from amounts applied to purchase the variable immediate annuitization payout option. This option is described in a separate prospectus that is available from your financial professional. o Annual expenses of the Trusts' Portfolios are calculated as a percentage of the average daily net assets invested in each Portfolio. Please see "Fee table" later in this Prospectus for details. + The fees and charges shown in this section are the maximum charges a contract owner will pay. Please see your contract for the fees and charges that apply to you. Also, some of the optional benefits may not be available under your contract. - -------------------------------------------------------------------------------- Annuitant issue ages NQ: 0-80 Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-80 QP: 20-70 - --------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available in your state or at certain ages. Please see Appendix VIII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. The Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. OTHER CONTRACTS We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts, based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. Accumulator(R) Plus(SM) at a glance -- key features 11 Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you pay when owning and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The fees and charges shown in this section are the maximum fees and charges that a contract owner will pay. Please see your contract and/or Appendix IX later in this Prospectus for the fees and charges that apply under your contract. All features listed below may not be currently available. See Appendix IX later in this Prospectus for more information. The first table describes fees and expenses that you will pay at the time you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply.
- ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value at the time you request certain transactions - ------------------------------------------------------------------------------------------------------------------------------------ Maximum withdrawal charge as a percentage of contributions withdrawn (deducted if you surrender your contract, make certain withdrawals, or apply your cash value to certain payout options).(1) 8.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - ------------------------------------------------------------------------------------------------------------------------------------ The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value on each contract date anniversary - ------------------------------------------------------------------------------------------------------------------------------------ Maximum annual administrative charge(2) If your account value on a contract date anniversary is less than $50,000(3) $ 30 If your account value on a contract date anniversary is $50,000 or more $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks 0.90%(4) Administrative 0.35% Distribution 0.25% ------- Total Separate account annual expenses 1.50% - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value each year if you elect any of the following optional benefits - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) Standard death benefit 0.00% Annual Ratchet to age 85 0.30% of the Annual Ratchet to age 85 benefit base (maximum); 0.25% (current) 6% Roll-Up to age 85 0.45% of the 6% Roll-Up to age 85 benefit base Greater of 5% Roll-Up to age 85 or Annual Ratchet to age 85 0.50% of the greater of 5% Roll-Up to age 85 benefit base of the Annual Ratchet to age 85 benefit base, as applicable. Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 0.60% of the greater of 6% Roll-Up to age 85 benefit base or the Annual Ratchet to age 85 benefit base, as applicable - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed principal benefit charge for option 2 (calculated as a percentage of the account value. Deducted annually(2) on the first 10 contract date anniversaries.) 0.50% - ------------------------------------------------------------------------------------------------------------------------------------
12 Fee table - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum income benefit (or "Living Benefit") charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) 0.65% - ------------------------------------------------------------------------------------------------------------------------------------ Protection Plus(SM) benefit charge (calculated as a percentage of the account value. Deducted annually(2) on each contract date anniver- sary for which the benefit is in effect.) 0.35% - ------------------------------------------------------------------------------------------------------------------------------------ Principal Protector(SM) benefit charge (calculated as a percentage 0.35% for the 5% GWB Annual withdrawal option of the account value. Deducted annually(2) on each contract date 0.50% for the 7% GWB Annual withdrawal option anniversary, provided your GWB benefit base is greater than zero.) If you "step up" your GWB benefit base, we reserve the right to 0.60% for the 5% GWB Annual withdrawal option increase your charge up to: 0.80% for the 7% GWB Annual withdrawal option Please see "Principal Protector(SM)" in "Contract features and benefits" for more information about this feature, including its benefit base and the Optional step up provision, and "Principal Protector(SM) charge" in "Charges and expenses," both later in this Prospectus, for more information about when the charge applies. - ------------------------------------------------------------------------------------------------------------------------------------ Net loan interest charge -- Rollover TSA contracts only (calculated and deducted daily as a percentage of the outstanding loan amount) 2.00%(5) - ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio. - ----------------------------------------------------------------------------------------------------- Portfolio operating expenses expressed as an annual percentage of daily net assets - ----------------------------------------------------------------------------------------------------- Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, ------ ------- and/or other expenses)(6) 0.63% 3.56%
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- -------------------------------------------------------------------------------- Manage- ment 12b-1 Other Portfolio Name Fees(7) Fees(8) Expenses(9) - -------------------------------------------------------------------------------- AXA Premier VIP Trust: - -------------------------------------------------------------------------------- AXA Aggressive Allocation 0.10% 0.25% 0.17% AXA Conservative Allocation 0.10% 0.25% 0.21% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% AXA Moderate Allocation 0.10% 0.25% 0.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - -------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- Acquired Net Fund Total Annual Fee Waivers Annual Fees and Expenses and/or Expenses Expenses (Before Expense (After Underlying Expense Reimburse- Expense Portfolio Name Portfolios)(10) Limitations) ments(11) Limitations) - ----------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - ----------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - -----------------------------------------------------------------------------------------------
Fee table 13
- --------------------------------------------------------------------------------------------- Manage- ment 12b-1 Other Portfolio Name Fees(7) Fees(8) Expenses(9) - --------------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% - --------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Acquired Net Fund Total Annual Fee Waivers Annual Fees and Expenses and/or Expenses Expenses (Before Expense (After (Underlying Expense Reimburse- Expense Portfolio Name Portfolios)(10) Limitations) ments(11) Limitations) - ----------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(12) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate -- 1.36% (0.10)% 1.26% - -----------------------------------------------------------------------------------------------------------------------------
Notes: (1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal amount, if applicable. 14 Fee table The withdrawal charge percentage we use is determined by the contract year in Contract which you make the withdrawal or surrender your contract. For each contribution, Year we consider the contract year in which we receive that contribution to be 1 .............. 8.00% "contract year 1") 2 .............. 8.00% 3 .............. 7.00% 4 .............. 7.00% 5 .............. 6.00% 6 .............. 5.00% 7 .............. 4.00% 8 .............. 3.00% 9+ ............. 0.00%
(2) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. If you are an existing contract owner, this pro rata deduction may not apply under your contract. See Appendix IX later in this Prospectus for more information. For Principal Protector(SM) only (if available), if the contract and benefit are continued under the Beneficiary continuation option with Principal Protector(SM), the pro rata deduction for the Principal Protector(SM) charge is waived. (3) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, if applicable, the charge is $30 for each contract year. (4) These charges compensate us for certain risks we assume and expenses we incur under the contract. They also compensate us for the expense associated with the credit. We expect to make a profit from these charges. (5) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (6) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (7) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (11) and (12) for any expense limitation agreement information. (8) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. For the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust, the 12b-1 fees will not be increased for the life of the contract. (9) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (11) and (12) for any expense limitation agreement information. (10) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (11) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: --------------------------------------------- Portfolio Name --------------------------------------------- Multimanager Aggressive Equity 0.97% --------------------------------------------- Multimanager Health Care 1.67% --------------------------------------------- Multimanager Large Cap Core Equity 1.34% --------------------------------------------- Multimanager Large Cap Growth 1.29% --------------------------------------------- Multimanager Large Cap Value 1.26% --------------------------------------------- Multimanager Mid Cap Growth 1.52% --------------------------------------------- Multimanager Mid Cap Value 1.53% --------------------------------------------- Multimanager Small Cap Growth 1.35% --------------------------------------------- Multimanager Small Cap Value 1.45% --------------------------------------------- Multimanager Technology 1.67% --------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% --------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% --------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% --------------------------------------------- EQ/AllianceBernstein Value 0.87% --------------------------------------------- EQ/Ariel Appreciation II 1.09% --------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% --------------------------------------------- EQ/Davis New York Venture 1.25% --------------------------------------------- EQ/Evergreen Omega 1.12% --------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% --------------------------------------------- EQ/GAMCO Small Company Value 1.10% --------------------------------------------- EQ/International Core PLUS 1.05% --------------------------------------------- EQ/Large Cap Core PLUS 0.83% --------------------------------------------- EQ/Large Cap Growth PLUS 0.82% --------------------------------------------- EQ/Legg Mason Value Equity 0.97% --------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% --------------------------------------------- Fee table 15 --------------------------------------------- Portfolio Name --------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% --------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% --------------------------------------------- EQ/Mid Cap Value PLUS 0.81% --------------------------------------------- EQ/Montag & Caldwell Growth 1.13% --------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% --------------------------------------------- EQ/UBS Growth and Income 1.04% --------------------------------------------- EQ/Van Kampen Comstock 0.99% --------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% --------------------------------------------- (12) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and administration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the Guaranteed minimum income benefit with the enhanced death benefit that provides for the greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 and Protection Plus(SM)) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.007% of contract value. The fixed maturity options and guaranteed interest option are not covered by the examples. However, the annual administrative charge, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options and guaranteed interest option. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above) the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual cost may be higher or lower, based on these assumptions, your cost would be: 16 Fee table
- ------------------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period ----------------------------------------------------------- 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,293.00 $ 2,204.00 $ 3,154.00 $ 5,353.00 AXA Conservative Allocation $ 1,272.00 $ 2,144.00 $ 3,057.00 $ 5,178.00 AXA Conservative-Plus Allocation $ 1,277.00 $ 2,160.00 $ 3,082.00 $ 5,224.00 AXA Moderate Allocation $ 1,282.00 $ 2,173.00 $ 3,103.00 $ 5,261.00 AXA Moderate-Plus Allocation $ 1,286.00 $ 2,185.00 $ 3,123.00 $ 5,298.00 Multimanager Aggressive Equity $ 1,249.00 $ 2,077.00 $ 2,948.00 $ 4,979.00 Multimanager Core Bond $ 1,246.00 $ 2,068.00 $ 2,933.00 $ 4,950.00 Multimanager Health Care $ 1,319.00 $ 2,280.00 $ 3,275.00 $ 5,571.00 Multimanager High Yield $ 1,246.00 $ 2,068.00 $ 2,933.00 $ 4,950.00 Multimanager International Equity $ 1,297.00 $ 2,217.00 $ 3,174.00 $ 5,390.00 Multimanager Large Cap Core Equity $ 1,283.00 $ 2,176.00 $ 3,108.00 $ 5,271.00 Multimanager Large Cap Growth $ 1,285.00 $ 2,182.00 $ 3,118.00 $ 5,289.00 Multimanager Large Cap Value $ 1,279.00 $ 2,166.00 $ 3,092.00 $ 5,243.00 Multimanager Mid Cap Growth $ 1,305.00 $ 2,239.00 $ 3,210.00 $ 5,454.00 Multimanager Mid Cap Value $ 1,303.00 $ 2,236.00 $ 3,205.00 $ 5,445.00 Multimanager Small Cap Growth $ 1,307.00 $ 2,246.00 $ 3,220.00 $ 5,472.00 Multimanager Small Cap Value $ 1,295.00 $ 2,211.00 $ 3,164.00 $ 5,372.00 Multimanager Technology $ 1,319.00 $ 2,280.00 $ 3,275.00 $ 5,571.00 - ------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,228.00 $ 2,017.00 $ 2,849.00 $ 4,796.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,232.00 $ 2,026.00 $ 2,865.00 $ 4,825.00 EQ/AllianceBernstein International $ 1,260.00 $ 2,109.00 $ 3,000.00 $ 5,074.00 EQ/AllianceBernstein Large Cap Growth $ 1,275.00 $ 2,154.00 $ 3,072.00 $ 5,206.00 EQ/AllianceBernstein Quality Bond $ 1,233.00 $ 2,029.00 $ 2,870.00 $ 4,835.00 EQ/AllianceBernstein Small Cap Growth $ 1,258.00 $ 2,103.00 $ 2,990.00 $ 5,055.00 EQ/AllianceBernstein Value $ 1,240.00 $ 2,052.00 $ 2,907.00 $ 4,902.00 EQ/Ariel Appreciation II $ 1,273.00 $ 2,147.00 $ 3,062.00 $ 5,187.00 EQ/AXA Rosenberg Value Long/Short Equity $ 1,524.00 $ 2,861.00 $ 4,185.00 $ 7,089.00 EQ/BlackRock Basic Value Equity $ 1,237.00 $ 2,042.00 $ 2,891.00 $ 4,873.00 EQ/BlackRock International Value $ 1,272.00 $ 2,144.00 $ 3,057.00 $ 5,178.00 EQ/Boston Advisors Equity Income $ 1,260.00 $ 2,109.00 $ 3,000.00 $ 5,074.00 EQ/Calvert Socially Responsible $ 1,259.00 $ 2,106.00 $ 2,995.00 $ 5,065.00 EQ/Capital Guardian Growth $ 1,250.00 $ 2,080.00 $ 2,953.00 $ 4,989.00 EQ/Capital Guardian Research $ 1,246.00 $ 2,068.00 $ 2,933.00 $ 4,950.00 EQ/Caywood-Scholl High Yield Bond $ 1,246.00 $ 2,068.00 $ 2,933.00 $ 4,950.00 EQ/Davis New York Venture $ 1,275.00 $ 2,154.00 $ 3,072.00 $ 5,206.00 EQ/Equity 500 Index $ 1,205.00 $ 1,946.00 $ 2,734.00 $ 4,579.00 EQ/Evergreen International Bond $ 1,258.00 $ 2,103.00 $ 2,990.00 $ 5,055.00 EQ/Evergreen Omega $ 1,261.00 $ 2,112.00 $ 3,005.00 $ 5,084.00 EQ/FI Mid Cap $ 1,251.00 $ 2,084.00 $ 2,959.00 $ 4,998.00 EQ/Franklin Income $ 1,277.00 $ 2,160.00 $ 3,082.00 $ 5,224.00 - ------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period, and select a non-life contingent period certain annuity option with less than five years --------------------------------------------------------- 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 2,204.00 $ 3,154.00 $ 5,353.00 AXA Conservative Allocation N/A $ 2,144.00 $ 3,057.00 $ 5,178.00 AXA Conservative-Plus Allocation N/A $ 2,160.00 $ 3,082.00 $ 5,224.00 AXA Moderate Allocation N/A $ 2,173.00 $ 3,103.00 $ 5,261.00 AXA Moderate-Plus Allocation N/A $ 2,185.00 $ 3,123.00 $ 5,298.00 Multimanager Aggressive Equity N/A $ 2,077.00 $ 2,948.00 $ 4,979.00 Multimanager Core Bond N/A $ 2,068.00 $ 2,933.00 $ 4,950.00 Multimanager Health Care N/A $ 2,280.00 $ 3,275.00 $ 5,571.00 Multimanager High Yield N/A $ 2,068.00 $ 2,933.00 $ 4,950.00 Multimanager International Equity N/A $ 2,217.00 $ 3,174.00 $ 5,390.00 Multimanager Large Cap Core Equity N/A $ 2,176.00 $ 3,108.00 $ 5,271.00 Multimanager Large Cap Growth N/A $ 2,182.00 $ 3,118.00 $ 5,289.00 Multimanager Large Cap Value N/A $ 2,166.00 $ 3,092.00 $ 5,243.00 Multimanager Mid Cap Growth N/A $ 2,239.00 $ 3,210.00 $ 5,454.00 Multimanager Mid Cap Value N/A $ 2,236.00 $ 3,205.00 $ 5,445.00 Multimanager Small Cap Growth N/A $ 2,246.00 $ 3,220.00 $ 5,472.00 Multimanager Small Cap Value N/A $ 2,211.00 $ 3,164.00 $ 5,372.00 Multimanager Technology N/A $ 2,280.00 $ 3,275.00 $ 5,571.00 - ------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 2,017.00 $ 2,849.00 $ 4,796.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 2,026.00 $ 2,865.00 $ 4,825.00 EQ/AllianceBernstein International N/A $ 2,109.00 $ 3,000.00 $ 5,074.00 EQ/AllianceBernstein Large Cap Growth N/A $ 2,154.00 $ 3,072.00 $ 5,206.00 EQ/AllianceBernstein Quality Bond N/A $ 2,029.00 $ 2,870.00 $ 4,835.00 EQ/AllianceBernstein Small Cap Growth N/A $ 2,103.00 $ 2,990.00 $ 5,055.00 EQ/AllianceBernstein Value N/A $ 2,052.00 $ 2,907.00 $ 4,902.00 EQ/Ariel Appreciation II N/A $ 2,147.00 $ 3,062.00 $ 5,187.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,861.00 $ 4,185.00 $ 7,089.00 EQ/BlackRock Basic Value Equity N/A $ 2,042.00 $ 2,891.00 $ 4,873.00 EQ/BlackRock International Value N/A $ 2,144.00 $ 3,057.00 $ 5,178.00 EQ/Boston Advisors Equity Income N/A $ 2,109.00 $ 3,000.00 $ 5,074.00 EQ/Calvert Socially Responsible N/A $ 2,106.00 $ 2,995.00 $ 5,065.00 EQ/Capital Guardian Growth N/A $ 2,080.00 $ 2,953.00 $ 4,989.00 EQ/Capital Guardian Research N/A $ 2,068.00 $ 2,933.00 $ 4,950.00 EQ/Caywood-Scholl High Yield Bond N/A $ 2,068.00 $ 2,933.00 $ 4,950.00 EQ/Davis New York Venture N/A $ 2,154.00 $ 3,072.00 $ 5,206.00 EQ/Equity 500 Index N/A $ 1,946.00 $ 2,734.00 $ 4,579.00 EQ/Evergreen International Bond N/A $ 2,103.00 $ 2,990.00 $ 5,055.00 EQ/Evergreen Omega N/A $ 2,112.00 $ 3,005.00 $ 5,084.00 EQ/FI Mid Cap N/A $ 2,084.00 $ 2,959.00 $ 4,998.00 EQ/Franklin Income N/A $ 2,160.00 $ 3,082.00 $ 5,224.00 - ------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period ---------------------------------------------------------- 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 493.00 $ 1,504.00 $ 2,554.00 $ 5,353.00 AXA Conservative Allocation $ 472.00 $ 1,444.00 $ 2,457.00 $ 5,178.00 AXA Conservative-Plus Allocation $ 477.00 $ 1,460.00 $ 2,482.00 $ 5,224.00 AXA Moderate Allocation $ 482.00 $ 1,473.00 $ 2,503.00 $ 5,261.00 AXA Moderate-Plus Allocation $ 486.00 $ 1,485.00 $ 2,523.00 $ 5,298.00 Multimanager Aggressive Equity $ 449.00 $ 1,377.00 $ 2,348.00 $ 4,979.00 Multimanager Core Bond $ 446.00 $ 1,368.00 $ 2,333.00 $ 4,950.00 Multimanager Health Care $ 519.00 $ 1,580.00 $ 2,675.00 $ 5,571.00 Multimanager High Yield $ 446.00 $ 1,368.00 $ 2,333.00 $ 4,950.00 Multimanager International Equity $ 497.00 $ 1,517.00 $ 2,574.00 $ 5,390.00 Multimanager Large Cap Core Equity $ 483.00 $ 1,476.00 $ 2,508.00 $ 5,271.00 Multimanager Large Cap Growth $ 485.00 $ 1,482.00 $ 2,518.00 $ 5,289.00 Multimanager Large Cap Value $ 479.00 $ 1,466.00 $ 2,492.00 $ 5,243.00 Multimanager Mid Cap Growth $ 505.00 $ 1,539.00 $ 2,610.00 $ 5,454.00 Multimanager Mid Cap Value $ 503.00 $ 1,536.00 $ 2,605.00 $ 5,445.00 Multimanager Small Cap Growth $ 507.00 $ 1,546.00 $ 2,620.00 $ 5,472.00 Multimanager Small Cap Value $ 495.00 $ 1,511.00 $ 2,564.00 $ 5,372.00 Multimanager Technology $ 519.00 $ 1,580.00 $ 2,675.00 $ 5,571.00 - ------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 428.00 $ 1,317.00 $ 2,249.00 $ 4,796.00 EQ/AllianceBernstein Intermediate Government Securities $ 432.00 $ 1,326.00 $ 2,265.00 $ 4,825.00 EQ/AllianceBernstein International $ 460.00 $ 1,409.00 $ 2,400.00 $ 5,074.00 EQ/AllianceBernstein Large Cap Growth $ 475.00 $ 1,454.00 $ 2,472.00 $ 5,206.00 EQ/AllianceBernstein Quality Bond $ 433.00 $ 1,329.00 $ 2,270.00 $ 4,835.00 EQ/AllianceBernstein Small Cap Growth $ 458.00 $ 1,403.00 $ 2,390.00 $ 5,055.00 EQ/AllianceBernstein Value $ 440.00 $ 1,352.00 $ 2,307.00 $ 4,902.00 EQ/Ariel Appreciation II $ 473.00 $ 1,447.00 $ 2,462.00 $ 5,187.00 EQ/AXA Rosenberg Value Long/Short Equity $ 724.00 $ 2,161.00 $ 3,585.00 $ 7,089.00 EQ/BlackRock Basic Value Equity $ 437.00 $ 1,342.00 $ 2,291.00 $ 4,873.00 EQ/BlackRock International Value $ 472.00 $ 1,444.00 $ 2,457.00 $ 5,178.00 EQ/Boston Advisors Equity Income $ 460.00 $ 1,409.00 $ 2,400.00 $ 5,074.00 EQ/Calvert Socially Responsible $ 459.00 $ 1,406.00 $ 2,395.00 $ 5,065.00 EQ/Capital Guardian Growth $ 450.00 $ 1,380.00 $ 2,353.00 $ 4,989.00 EQ/Capital Guardian Research $ 446.00 $ 1,368.00 $ 2,333.00 $ 4,950.00 EQ/Caywood-Scholl High Yield Bond $ 446.00 $ 1,368.00 $ 2,333.00 $ 4,950.00 EQ/Davis New York Venture $ 475.00 $ 1,454.00 $ 2,472.00 $ 5,206.00 EQ/Equity 500 Index $ 405.00 $ 1,246.00 $ 2,134.00 $ 4,579.00 EQ/Evergreen International Bond $ 458.00 $ 1,403.00 $ 2,390.00 $ 5,055.00 EQ/Evergreen Omega $ 461.00 $ 1,412.00 $ 2,405.00 $ 5,084.00 EQ/FI Mid Cap $ 451.00 $ 1,384.00 $ 2,359.00 $ 4,998.00 EQ/Franklin Income $ 477.00 $ 1,460.00 $ 2,482.00 $ 5,224.00 - -------------------------------------------------------------------------------------------------------------------
Fee table 17
- ----------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period ----------------------------------------------------------- 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value $ 1,280.00 $ 2,170.00 $ 3,098.00 $ 5,252.00 EQ/Franklin Templeton Founding Strategy $ 1,307.00 $ 2,246.00 $ 3,220.00 $ 5,472.00 EQ/GAMCO Mergers and Acquisitions $ 1,282.00 $ 2,173.00 $ 3,103.00 $ 5,261.00 EQ/GAMCO Small Company Value $ 1,259.00 $ 2,106.00 $ 2,995.00 $ 5,065.00 EQ/International Core PLUS $ 1,265.00 $ 2,125.00 $ 3,026.00 $ 5,121.00 EQ/International Growth $ 1,285.00 $ 2,182.00 $ 3,118.00 $ 5,289.00 EQ/JPMorgan Core Bond $ 1,224.00 $ 2,004.00 $ 2,829.00 $ 4,757.00 EQ/JPMorgan Value Opportunities $ 1,243.00 $ 2,061.00 $ 2,922.00 $ 4,931.00 EQ/Large Cap Core PLUS $ 1,247.00 $ 2,071.00 $ 2,938.00 $ 4,960.00 EQ/Large Cap Growth PLUS $ 1,246.00 $ 2,068.00 $ 2,933.00 $ 4,950.00 EQ/Legg Mason Value Equity $ 1,252.00 $ 2,087.00 $ 2,964.00 $ 5,008.00 EQ/Long Term Bond $ 1,221.00 $ 1,994.00 $ 2,813.00 $ 4,727.00 EQ/Lord Abbett Growth and Income $ 1,251.00 $ 2,084.00 $ 2,959.00 $ 4,998.00 EQ/Lord Abbett Large Cap Core $ 1,256.00 $ 2,099.00 $ 2,984.00 $ 5,046.00 EQ/Lord Abbett Mid Cap Value $ 1,255.00 $ 2,096.00 $ 2,979.00 $ 5,036.00 EQ/Marsico Focus $ 1,270.00 $ 2,138.00 $ 3,046.00 $ 5,159.00 EQ/Mid Cap Value PLUS $ 1,251.00 $ 2,084.00 $ 2,959.00 $ 4,998.00 EQ/Money Market $ 1,212.00 $ 1,968.00 $ 2,771.00 $ 4,648.00 EQ/Montag & Caldwell Growth $ 1,261.00 $ 2,112.00 $ 3,005.00 $ 5,084.00 EQ/Mutual Shares $ 1,284.00 $ 2,179.00 $ 3,113.00 $ 5,280.00 EQ/Oppenheimer Global $ 1,323.00 $ 2,293.00 $ 3,296.00 $ 5,606.00 EQ/Oppenheimer Main Street Opportunity $ 1,306.00 $ 2,242.00 $ 3,215.00 $ 5,463.00 EQ/Oppenheimer Main Street Small Cap $ 1,314.00 $ 2,268.00 $ 3,255.00 $ 5,535.00 EQ/PIMCO Real Return $ 1,238.00 $ 2,045.00 $ 2,896.00 $ 4,883.00 EQ/Short Duration Bond $ 1,226.00 $ 2,010.00 $ 2,839.00 $ 4,776.00 EQ/Small Company Index $ 1,206.00 $ 1,949.00 $ 2,739.00 $ 4,589.00 EQ/T. Rowe Price Growth Stock $ 1,264.00 $ 2,122.00 $ 3,021.00 $ 5,112.00 EQ/Templeton Growth $ 1,288.00 $ 2,192.00 $ 3,133.00 $ 5,317.00 EQ/UBS Growth and Income $ 1,262.00 $ 2,115.00 $ 3,010.00 $ 5,093.00 EQ/Van Kampen Comstock $ 1,250.00 $ 2,080.00 $ 2,953.00 $ 4,989.00 EQ/Van Kampen Emerging Markets Equity $ 1,314.00 $ 2,268.00 $ 3,255.00 $ 5,535.00 EQ/Van Kampen Mid Cap Growth $ 1,255.00 $ 2,096.00 $ 2,979.00 $ 5,036.00 EQ/Van Kampen Real Estate $ 1,284.00 $ 2,179.00 $ 3,113.00 $ 5,280.00 - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period, and select a non-life contingent period certain annuity option with less than five years ------------------------------------------------------------ 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value N/A $ 2,170.00 $ 3,098.00 $ 5,252.00 EQ/Franklin Templeton Founding Strategy N/A $ 2,246.00 $ 3,220.00 $ 5,472.00 EQ/GAMCO Mergers and Acquisitions N/A $ 2,173.00 $ 3,103.00 $ 5,261.00 EQ/GAMCO Small Company Value N/A $ 2,106.00 $ 2,995.00 $ 5,065.00 EQ/International Core PLUS N/A $ 2,125.00 $ 3,026.00 $ 5,121.00 EQ/International Growth N/A $ 2,182.00 $ 3,118.00 $ 5,289.00 EQ/JPMorgan Core Bond N/A $ 2,004.00 $ 2,829.00 $ 4,757.00 EQ/JPMorgan Value Opportunities N/A $ 2,061.00 $ 2,922.00 $ 4,931.00 EQ/Large Cap Core PLUS N/A $ 2,071.00 $ 2,938.00 $ 4,960.00 EQ/Large Cap Growth PLUS N/A $ 2,068.00 $ 2,933.00 $ 4,950.00 EQ/Legg Mason Value Equity N/A $ 2,087.00 $ 2,964.00 $ 5,008.00 EQ/Long Term Bond N/A $ 1,994.00 $ 2,813.00 $ 4,727.00 EQ/Lord Abbett Growth and Income N/A $ 2,084.00 $ 2,959.00 $ 4,998.00 EQ/Lord Abbett Large Cap Core N/A $ 2,099.00 $ 2,984.00 $ 5,046.00 EQ/Lord Abbett Mid Cap Value N/A $ 2,096.00 $ 2,979.00 $ 5,036.00 EQ/Marsico Focus N/A $ 2,138.00 $ 3,046.00 $ 5,159.00 EQ/Mid Cap Value PLUS N/A $ 2,084.00 $ 2,959.00 $ 4,998.00 EQ/Money Market N/A $ 1,968.00 $ 2,771.00 $ 4,648.00 EQ/Montag & Caldwell Growth N/A $ 2,112.00 $ 3,005.00 $ 5,084.00 EQ/Mutual Shares N/A $ 2,179.00 $ 3,113.00 $ 5,280.00 EQ/Oppenheimer Global N/A $ 2,293.00 $ 3,296.00 $ 5,606.00 EQ/Oppenheimer Main Street Opportunity N/A $ 2,242.00 $ 3,215.00 $ 5,463.00 EQ/Oppenheimer Main Street Small Cap N/A $ 2,268.00 $ 3,255.00 $ 5,535.00 EQ/PIMCO Real Return N/A $ 2,045.00 $ 2,896.00 $ 4,883.00 EQ/Short Duration Bond N/A $ 2,010.00 $ 2,839.00 $ 4,776.00 EQ/Small Company Index N/A $ 1,949.00 $ 2,739.00 $ 4,589.00 EQ/T. Rowe Price Growth Stock N/A $ 2,122.00 $ 3,021.00 $ 5,112.00 EQ/Templeton Growth N/A $ 2,192.00 $ 3,133.00 $ 5,317.00 EQ/UBS Growth and Income N/A $ 2,115.00 $ 3,010.00 $ 5,093.00 EQ/Van Kampen Comstock N/A $ 2,080.00 $ 2,953.00 $ 4,989.00 EQ/Van Kampen Emerging Markets Equity N/A $ 2,268.00 $ 3,255.00 $ 5,535.00 EQ/Van Kampen Mid Cap Growth N/A $ 2,096.00 $ 2,979.00 $ 5,036.00 EQ/Van Kampen Real Estate N/A $ 2,179.00 $ 3,113.00 $ 5,280.00 - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period ----------------------------------------------------------- 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value $ 480.00 $ 1,470.00 $ 2,498.00 $ 5,252.00 EQ/Franklin Templeton Founding Strategy $ 507.00 $ 1,546.00 $ 2,620.00 $ 5,472.00 EQ/GAMCO Mergers and Acquisitions $ 482.00 $ 1,473.00 $ 2,503.00 $ 5,261.00 EQ/GAMCO Small Company Value $ 459.00 $ 1,406.00 $ 2,395.00 $ 5,065.00 EQ/International Core PLUS $ 465.00 $ 1,425.00 $ 2,426.00 $ 5,121.00 EQ/International Growth $ 485.00 $ 1,482.00 $ 2,518.00 $ 5,289.00 EQ/JPMorgan Core Bond $ 424.00 $ 1,304.00 $ 2,229.00 $ 4,757.00 EQ/JPMorgan Value Opportunities $ 443.00 $ 1,361.00 $ 2,322.00 $ 4,931.00 EQ/Large Cap Core PLUS $ 447.00 $ 1,371.00 $ 2,338.00 $ 4,960.00 EQ/Large Cap Growth PLUS $ 446.00 $ 1,368.00 $ 2,333.00 $ 4,950.00 EQ/Legg Mason Value Equity $ 452.00 $ 1,387.00 $ 2,364.00 $ 5,008.00 EQ/Long Term Bond $ 421.00 $ 1,294.00 $ 2,213.00 $ 4,727.00 EQ/Lord Abbett Growth and Income $ 451.00 $ 1,384.00 $ 2,359.00 $ 4,998.00 EQ/Lord Abbett Large Cap Core $ 456.00 $ 1,399.00 $ 2,384.00 $ 5,046.00 EQ/Lord Abbett Mid Cap Value $ 455.00 $ 1,396.00 $ 2,379.00 $ 5,036.00 EQ/Marsico Focus $ 470.00 $ 1,438.00 $ 2,446.00 $ 5,159.00 EQ/Mid Cap Value PLUS $ 451.00 $ 1,384.00 $ 2,359.00 $ 4,998.00 EQ/Money Market $ 412.00 $ 1,268.00 $ 2,171.00 $ 4,648.00 EQ/Montag & Caldwell Growth $ 461.00 $ 1,412.00 $ 2,405.00 $ 5,084.00 EQ/Mutual Shares $ 484.00 $ 1,479.00 $ 2,513.00 $ 5,280.00 EQ/Oppenheimer Global $ 523.00 $ 1,593.00 $ 2,696.00 $ 5,606.00 EQ/Oppenheimer Main Street Opportunity $ 506.00 $ 1,542.00 $ 2,615.00 $ 5,463.00 EQ/Oppenheimer Main Street Small Cap $ 514.00 $ 1,568.00 $ 2,655.00 $ 5,535.00 EQ/PIMCO Real Return $ 438.00 $ 1,345.00 $ 2,296.00 $ 4,883.00 EQ/Short Duration Bond $ 426.00 $ 1,310.00 $ 2,239.00 $ 4,776.00 EQ/Small Company Index $ 406.00 $ 1,249.00 $ 2,139.00 $ 4,589.00 EQ/T. Rowe Price Growth Stock $ 464.00 $ 1,422.00 $ 2,421.00 $ 5,112.00 EQ/Templeton Growth $ 488.00 $ 1,492.00 $ 2,533.00 $ 5,317.00 EQ/UBS Growth and Income $ 462.00 $ 1,415.00 $ 2,410.00 $ 5,093.00 EQ/Van Kampen Comstock $ 450.00 $ 1,380.00 $ 2,353.00 $ 4,989.00 EQ/Van Kampen Emerging Markets Equity $ 514.00 $ 1,568.00 $ 2,655.00 $ 5,535.00 EQ/Van Kampen Mid Cap Growth $ 455.00 $ 1,396.00 $ 2,379.00 $ 5,036.00 EQ/Van Kampen Real Estate $ 484.00 $ 1,479.00 $ 2,513.00 $ 5,280.00 - -----------------------------------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix V at the end of this Prospectus. 18 Fee table CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as the end of the periods shown for each of the variable investment options available as of December 31, 2007. Fee table 19 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT You may make additional contributions of at least $500 each for NQ, QP and Rollover TSA contracts and $50 each for IRA contracts, subject to limitations noted below. The following table summarizes our rules regarding contributions to your contract. All ages in the table refer to the age of the annuitant named in the contract. Additional contributions may not be permitted in your state. Please see Appendix VIII later in this Prospectus to see if additional contributions are permitted in your state. Initial contributions are provided for informational purposes only. This contract is no longer available to new purchasers. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000. We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. - -------------------------------------------------------------------------------- The "annuitant" is the person who is the measuring life for determining contract benefits. The annuitant is not necessarily the contract owner. - --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------- Available for annuitant Contract type issue ages* Minimum contributions - ---------------------------------------------------------------------------------------- NQ 0 through 80 o $10,000 (initial) o $500 (additional) o $100 monthly and $300 quarterly under our automatic investment program (additional) - ---------------------------------------------------------------------------------------- Rollover IRA 20 through 80 o $10,000 (initial) o $50 (additional) - ---------------------------------------------------------------------------------------- Limitations on Contract type Source of contributions contributions+ - ---------------------------------------------------------------------------------------- NQ o After-tax money. o No additional contributions after attainment of age 81 or, if later, o Paid to us by check or transfer the first contract date of contract value in a tax- anniversary.* deferred exchange under Section 1035 of the Internal Revenue Code. - ---------------------------------------------------------------------------------------- Rollover IRA o Eligible rollover distributions o No contributions after attainment from 403(b) plans, qualified of age 81 or, if later, the first plans, and governmental contract date anniversary.* employer 457(b) plans. o Contributions after age 70-1/2 o Rollovers from another must be net of required minimum traditional individual retirement distributions. arrangement. o Although we accept regular IRA o Direct custodian-to-custodian contributions (limited to $5,000) transfers from another under Rollover IRA contracts, we traditional individual retirement intend that this contract be used arrangement. primarily for rollover and direct transfer contributions. o Regular IRA contributions. o Additional catch-up contributions o Additional catch-up of up to $1,000 per calendar contributions. year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - ----------------------------------------------------------------------------------------
20 Contract features and benefits
- -------------------------------------------------------------------------------------------- Available for annuitant Contract type issue ages* Minimum contributions - -------------------------------------------------------------------------------------------- Roth Conversion 20 through 80 o $10,000 (initial) IRA o $50 (additional) - -------------------------------------------------------------------------------------------- Rollover TSA 20 through 80 o $10,000 (initial) o $500 (additional) - -------------------------------------------------------------------------------------------- Limitations on Contract type Source of contributions contributions+ - -------------------------------------------------------------------------------------------- Roth Conversion o Rollovers from another Roth o No additional rollover or direct IRA IRA. transfer contributions after attainment of age 81 or, if later, o Rollovers from a "designated the first contract date Roth contribution account" anniversary.* under a 401(k) plan or 403(b) plan. o Conversion rollovers after age 70-1/2 must be net of required o Conversion rollovers from a minimum distributions for the traditional IRA or other eligible traditional IRA or other eligible retirement plan. retirement plan which is the source of the conversion rollover. o Direct transfers from another Roth IRA. o You cannot roll over funds from a o Regular Roth IRA contributions. traditional IRA or other eligible retirement plan if your adjusted o Additional catch-up gross income is $100,000 or contributions. more. o Although we accept regular Roth IRA contributions (limited to $5,000) under the Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contributions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribution is made. - -------------------------------------------------------------------------------------------- Rollover TSA o With documentation of o Additional rollover or direct employer or plan approval, and transfer contributions may be limited to pre-tax funds, direct made up to attainment of age 81 plan-to-plan transfers from or, if later, the first contract date another 403(b) plan or contract anniversary.* exchanges from another 403(b) contract under the same plan. o Rollover or direct transfer contri- butions after age 70-1/2 must be o With documentation of employer net of any required minimum or plan approval, and limited distributions. to pre-tax funds, eligible rollover distributions from other o We do not accept employer- 403(b) plans, qualified plans, remitted contributions. governmental employer 457(b) plans or traditional IRAs. o We do not accept after tax contributions, including designated Roth contributions. - --------------------------------------------------------------------------------------------
Contract features and benefits 21
- -------------------------------------------------------------------------------------------- Available for annuitant Contract type issue ages* Minimum contributions - -------------------------------------------------------------------------------------------- QP 20 through 70 o $10,000 (initial) o $500 (additional) See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- Limitations on Contract type Source of contributions contributions+ - -------------------------------------------------------------------------------------------- QP o Only transfer contributions from o A separate QP contract must be other investments within an established for each plan existing defined contribution participant. qualified plan trust. o We do not accept regular ongoing o The plan must be qualified payroll contributions or under Section 401(a) of the contributions directly from the Internal Revenue Code. employer. o For 401(k) plans, transferred o Only one additional transfer contributions may not include contribution may be made during a any after-tax contributions, contract year. including designated Roth contributions. o No additional transfer contributions after participants attainment of age 71 or, if later, the first contract date anniversary. o Contributions after age 70-1/2 must be net of any required mini- mum distributions. o We do not accept contributions from defined benefit plans. See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. - --------------------------------------------------------------------------------------------
+ Additional contributions may not be permitted under certain conditions in your state. If you purchase Guaranteed principal benefit option 2, no contributions are permitted after the six month period beginning on the contract date. Please see Appendix VIII later in this Prospectus to see if additional contributions are permitted in your state. * Please see Appendix IX for variations that may apply to your contract. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. 22 Contract features and benefits OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. If the Spousal protection feature is available under your contract and is elected, the spouses must be joint owners, one of the spouses must be the annuitant and both must be named as the only primary beneficiaries. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. In general we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your state. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II later in this Prospectus for more information on QP contracts. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept third-party checks endorsed to us except for rollover contributions, tax-free exchanges or trustee checks that involve no refund. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose. Additional contributions may also be made under our automatic investment program. These methods of payment, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealer, are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option and the fixed maturity options. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. Contract features and benefits 23 PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- -------------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. - -------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. - -------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a ALLOCATION greater emphasis on current income. - -------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. - -------------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, ALLOCATION with a greater emphasis on capital appreciation. - -------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. EQUITY - -------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital appreciation, consistent with a prudent level of risk. - -------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. - -------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current income and capital appreciation. - -------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. EQUITY - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS o AXA Equitable ALLOCATION - -------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------------- AXA MODERATE-PLUS o AXA Equitable ALLOCATION - -------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - -------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND o BlackRock Financial Management, Inc. o Pacific Investment Management Company LLC - -------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - -------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD o Pacific Investment Management Company LLC o Post Advisory Group, LLC - -------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - --------------------------------------------------------------------------------------
24 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. COMMON STOCK - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN Seeks to achieve high current income consistent with o AllianceBernstein L.P. INTERMEDIATE GOVERNMENT relative stability of principal. SECURITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. INTERNATIONAL - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 25
- ------------------------------------------------------------------------------------------------ EQ Advisors Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------------ EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear LONG/SHORT EQUITY markets using strategies that are designed to limit exposure to general equity market risk. - ------------------------------------------------------------------------------------------------ EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, EQUITY income. - ------------------------------------------------------------------------------------------------ EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of VALUE income, accompanied by growth of capital. - ------------------------------------------------------------------------------------------------ EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to INCOME achieve an above-average and consistent total return. - ------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. RESPONSIBLE - ------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. RESEARCH - ------------------------------------------------------------------------------------------------ EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. YIELD BOND - ------------------------------------------------------------------------------------------------ EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------------ EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ------------------------------------------------------------------------------------------------ EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. BOND - ------------------------------------------------------------------------------------------------ EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. - ------------------------------------------------------------------------------------------------ EQ/FI MID CAP Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------------ EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects for capital appreciation. - ------------------------------------------------------------------------------------------------ EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. - ------------------------------------------------------------------------------------------------ EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily seeks FOUNDING STRATEGY income. - ------------------------------------------------------------------------------------------------ EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. ACQUISITIONS - ------------------------------------------------------------------------------------------------ EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. VALUE - ------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ------------------------------------------------------------------------------------------------ EQ/AXA ROSENBERG VALUE o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY - ------------------------------------------------------------------------------------------------ EQ/BLACKROCK BASIC VALUE o BlackRock Investment Management, LLC EQUITY - ------------------------------------------------------------------------------------------------ EQ/BLACKROCK INTERNATIONAL o BlackRock Investment Management VALUE International Limited - ------------------------------------------------------------------------------------------------ EQ/BOSTON ADVISORS EQUITY o Boston Advisors, LLC INCOME - ------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN GROWTH o Capital Guardian Trust Company - ------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company RESEARCH - ------------------------------------------------------------------------------------------------ EQ/CAYWOOD-SCHOLL HIGH o Caywood-Scholl Capital Management YIELD BOND - ------------------------------------------------------------------------------------------------ EQ/DAVIS NEW YORK VENTURE o Davis Selected Advisers, L.P. - ------------------------------------------------------------------------------------------------ EQ/EQUITY 500 INDEX o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------------ EQ/EVERGREEN INTERNATIONAL o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ------------------------------------------------------------------------------------------------ EQ/EVERGREEN OMEGA o Evergreen Investment Management Company, LLC - ------------------------------------------------------------------------------------------------ EQ/FI MID CAP o Fidelity Management & Research Company - ------------------------------------------------------------------------------------------------ EQ/FRANKLIN INCOME o Franklin Advisers, Inc. - ------------------------------------------------------------------------------------------------ EQ/FRANKLIN SMALL CAP VALUE o Franklin Advisory Services, LLC - ------------------------------------------------------------------------------------------------ EQ/FRANKLIN TEMPLETON o AXA Equitable FOUNDING STRATEGY - ------------------------------------------------------------------------------------------------ EQ/GAMCO MERGERS AND o GAMCO Asset Management Inc. ACQUISITIONS - ------------------------------------------------------------------------------------------------ EQ/GAMCO SMALL COMPANY o GAMCO Asset Management Inc. VALUE - ------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL CORE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL GROWTH o MFS Investment Management - ------------------------------------------------------------------------------------------------
26 Contract features and benefits
- ------------------------------------------------------------------------------------------------ EQ Advisors Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------------ EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with moderate risk to capital and maintenance of liquidity. - ------------------------------------------------------------------------------------------------ EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. OPPORTUNITIES - ------------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a secondary objective to seek reasonable current income. For purposes of this Portfolio, the words "reasonable current income" mean moderate income. - ------------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. - ------------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------------ EQ/LONG TERM BOND Seeks to maximize income and capital appreciation through investment in long-maturity debt obligations. - ------------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of INCOME income without excessive fluctuation in market value. - ------------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of CORE income with reasonable risk. - ------------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. - ------------------------------------------------------------------------------------------------ EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve its assets and maintain liquidity. - ------------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. GROWTH - ------------------------------------------------------------------------------------------------ EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occasionally be short-term, and secondarily, income. - ------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. OPPORTUNITY - ------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. SMALL CAP - ------------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with preservation of real capital and prudent investment management. - ------------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility of principal. - ------------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ------------------------------------------------------------------------------------------------ EQ/JPMORGAN CORE BOND o JPMorgan Investment Management Inc. - ------------------------------------------------------------------------------------------------ EQ/JPMORGAN VALUE o JPMorgan Investment Management Inc. OPPORTUNITIES - ------------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS o AXA Equitable o Institutional Capital LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY o Legg Mason Capital Management, Inc. - ------------------------------------------------------------------------------------------------ EQ/LONG TERM BOND o BlackRock Financial Management, Inc. - ------------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND o Lord, Abbett & Co. LLC INCOME - ------------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP o Lord, Abbett & Co. LLC CORE - ------------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE o Lord, Abbett & Co. LLC - ------------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ------------------------------------------------------------------------------------------------ EQ/MONEY MARKET o The Dreyfus Corporation - ------------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL o Montag & Caldwell, Inc. GROWTH - ------------------------------------------------------------------------------------------------ EQ/MUTUAL SHARES o Franklin Mutual Advisers, LLC - ------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL o OppenheimerFunds, Inc. - ------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. OPPORTUNITY - ------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. SMALL CAP - ------------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN o Pacific Investment Management Company, LLC - ------------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND o BlackRock Financial Management, Inc. - ------------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------------
Contract features and benefits 27
- ------------------------------------------------------------------------------------------------ EQ Advisors Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and STOCK secondarily, income. - ------------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. - ------------------------------------------------------------------------------------------------ EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation with income as a secondary consideration. - ------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. - ------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. MARKETS EQUITY - ------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. GROWTH - ------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long-term capital appreciation. - ------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ------------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH o T. Rowe Price Associates, Inc. STOCK - ------------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH o Templeton Global Advisors Limited - ------------------------------------------------------------------------------------------------ EQ/UBS GROWTH AND INCOME o UBS Global Asset Management (Americas) Inc. - ------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN COMSTOCK o Morgan Stanley Investment Management Inc. - ------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN EMERGING o Morgan Stanley Investment Management Inc. MARKETS EQUITY - ------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN MID CAP o Morgan Stanley Investment Management Inc. GROWTH - ------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN REAL ESTATE o Morgan Stanley Investment Management Inc. - ------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. 28 Contract features and benefits GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges, any withdrawal charges and any optional benefit charges. See Appendix VIII later in this Prospectus for state variations. Depending on the state where your contract was issued, your lifetime minimum ranges from 1.50% to 3.00%. The data page for your contract shows the lifetime minimum rate. Check with your financial professional as to which rate applies in your state. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75% or 3.00%, depending on your lifetime minimum rate. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfers from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if, on the date the contribution or transfer is to be applied, the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers, even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional or see Appendix VIII later in this Prospectus to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options generally range from one to ten years to maturity. - -------------------------------------------------------------------------------- Under the Special 10 year fixed maturity option (which is available only under contracts that offer GPB Option 2), additional contributions will have the same maturity date as your initial contribution (See "The guaranteed principal benefits," below). The rate to maturity you will receive for each additional contribution is the rate to maturity in effect for new contributions allocated to that fixed maturity option on the date we apply your contribution. On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value was reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you applied for an Accumulator(R) Plus(SM) contract, a 60-day rate lock-in was applied from the date the application was signed. Any contributions received and designated for a fixed maturity option during that period received the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever had been greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from any of the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value (there may be a withdrawal charge). If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that Contract features and benefits 29 date. As of February 15, 2008, the next available maturity date was February 15, 2015. If no fixed maturity options are available, we will transfer your maturity value to the EQ/Money Market option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract, or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for withdrawal charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options (adjusted to reflect a similar maturity date), and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amounts of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ALLOCATING YOUR CONTRIBUTIONS You may choose from among three ways to allocate your contributions under your contract: self-directed, the guaranteed principal benefits (at contract issue only), or dollar cost averaging. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, the guaranteed interest option (subject to restrictions in certain states--see Appendix VIII later in this Prospectus for state variations) and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. No more than 25% of any contribution may be allocated to the guaranteed interest option. The total of your allocations into all available investment options must equal 100%. If the annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. THE GUARANTEED PRINCIPAL BENEFITS (INCLUDING PRINCIPAL ASSURANCE) We offered a Guaranteed principal benefit ("GPB") with two options. See Appendix VIII later in this Prospectus for more information on state availability and Appendix IX for contract variation and/or availability of these benefits. You could only elect one of the GPBs. We did not offer either GPB when the rate to maturity for the applicable fixed maturity option was 3%. Both GPB options allow you to allocate a portion of your total contributions to the variable investment options, while ensuring that your account value will at least equal your contributions adjusted for withdrawals and transfers on a specified date. GPB Option 2 generally provides you with the ability to allocate more of your contributions to the variable investment options than could be allocated using GPB Option 1 (also known as Principal assurance). If you elected either GPB, you could not elect the Guaranteed minimum income benefit, Principal Protector(SM), the systematic withdrawals option or the substantially equal withdrawals option. However, certain contract owners who elected GPB are not subject to these restrictions. See Appendix IX for information on what applies under your contract. You could elect GPB Option 1 when the contract was issued (after age 75, only the 7-year fixed maturity option was available; for QP the annuitant must be age 70 or younger when the contract was issued). You could elect GPB Option 2 only if the annuitant was age 75 (70 for QP contracts) or younger when the contract was issued. If you purchased an IRA, QP or Rollover TSA contract, before you either purchased GPB Option 2 or elected GPB Option 1 with a maturity year 30 Contract features and benefits that would extend beyond the year in which you will reach age 70-1/2, you should have considered whether your value in the variable investment options, guaranteed interest option and permissible funds outside this contract are sufficient to meet your required minimum distributions. See "Tax information" later in this Prospectus. If you elected GPB Option 2 and change ownership of the contract, GPB Option 2 will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. GUARANTEED PRINCIPAL BENEFIT OPTION 1 (UNDER CERTAIN CONTRACTS, THIS FEATURE IS CALLED "PRINCIPAL ASSURANCE"). GPB Option 1 was available at contract issue only. Under GPB Option 1, you selected a fixed maturity option at the time you signed your application. We specified a portion of your initial contribution (plus any applicable portion of the credit we pay) and allocated it to that fixed maturity option in an amount that will cause the maturity value to equal the amount of your entire initial contribution (plus any credit paid under your contract) on the fixed maturity option's maturity date. The percentage of your contribution allocated to the fixed maturity option was calculated based upon the rate to maturity then in effect for the fixed maturity option you chose. Your contract contains information on the amount of your contribution allocated to the fixed maturity option. The maturity date you selected generally could not be later than 10 years, or earlier than 7 years from your contract date. If you were to make any withdrawals or transfers from the fixed maturity option before the option's maturity date, the amount in the fixed maturity option will be adjusted and may no longer grow to equal your initial contribution under GPB Option 1. You allocated the remainder of your initial contribution to the variable investment options and guaranteed interest option however you chose (unless you elected a dollar cost averaging program, in which case the remainder of your initial contribution was allocated to the dollar cost averaging program). Upon the maturity date of the fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." There is no charge for GPB Option 1. If GPB option 1 continues under the successor owner/annuitant feature, the account value will be reduced by the amount of any Credit attributable to any contributions made within one year of your death. If any portion of the Credit must be recovered from the fixed maturity option selected under GPB Option 1, the amount in the fixed maturity option may not grow to equal your initial contribution plus any applicable credit under GPB option 1. GUARANTEED PRINCIPAL BENEFIT OPTION 2. GPB Option 2 was only available at contract issue. IF YOU PURCHASED GPB OPTION 2, YOU MAY NOT MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE RATE TO MATURITY ON THE SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore, any discussion in this Prospectus that involves any additional contributions after the first six months will be inapplicable. This feature was not available under all contracts. We have specified the portion of your initial contribution (including any applicable portion of the credit we pay), and any additional permitted contributions, to be allocated to a Special 10 year fixed maturity option. Your contract contains information on the percentage of applicable contributions allocated to the Special 10 year fixed maturity option. You may allocate the rest of your contributions among the investment options (other than the Special 10 year fixed maturity option) however you choose, as permitted under your contract and other than the Investment simplifier (unless you elect a dollar cost averaging program, in which case all contributions, other than amounts allocated to the Special 10 year fixed maturity option, must be allocated to the dollar cost averaging program). The Special 10 year fixed maturity option will earn interest at the specified rate to maturity then in effect. If on the 10th contract date anniversary, your annuity account value is less than the amount that is guaranteed under GPB Option 2, we will increase your annuity account value to be equal to the guaranteed amount under GPB Option 2. Any such additional amounts added to your annuity account value will be allocated to the EQ/Money Market investment option. After the maturity date of the Special 10 year fixed maturity option, the guarantee under GPB Option 2 will terminate. Upon the maturity date of the Special 10 year fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." The guaranteed amount under GPB Option 2 is equal to your initial contribution adjusted for any additional permitted contributions (excluding any credit applied to your contract), transfers out of the Special 10 year fixed maturity option and withdrawals from the contract (see "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus). Any transfers or withdrawals from the Special 10 year fixed maturity option will also be subject to a market value adjustment (see "Market value adjustment" under "Fixed maturity options" above in this section). If you purchased the Guaranteed principal benefit option 2, you cannot voluntarily terminate this benefit. GPB Option 2 will terminate if the contract terminates before the maturity date of the Special 10 year fixed maturity option. If the owner and the annuitant are different people and the owner dies before the maturity date of the Special 10 year fixed maturity option, we will continue GPB Option 2 only if the contract can continue through the maturity date of the Special 10 year fixed maturity option. If the contract cannot so continue, we will terminate GPB Option 2. GPB Option 2 will continue where there is a successor owner/annuitant. However, the account value will be reduced by the amount of any Credit attributable to any contributions made within one year of your death. If any portion of the Credit must be recovered from the Special 10-year fixed maturity option, the fixed maturity amount would be affected; however, the guaranteed amount under GPB option 2 will not be affected. GPB Option 2 will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a fee associated with GPB Option 2 (see "Charges and expenses" later in this Prospectus). You should note that the purchase of GPB Option 2 would not have been appropriate if you wanted to Contract features and benefits 31 make additional contributions to your contract beyond the first six months after your contract was issued. If you later decide that you would like to make additional contributions to the Accumulator(R) Plus(SM) contract, we may permit you to purchase another contract. If we do, however, you should note that we do not reduce or waive any of the charges on the new contract, nor do we guarantee that the features available under this contract will be available under the new contract. This means that you might end up paying more with respect to certain charges than if you had simply purchased a single contract (for example, the administrative charge). The purchase of GPB Option 2 also would not have been appropriate if you planned on terminating your contract before the maturity date of the Special 10 year fixed maturity option. In addition, because we prohibit contributions to your contract after the first six months, certain contract benefits that are dependent upon contributions or account value will be limited (for example, the amount of your credit, the Guaranteed death benefits and Protection Plus). You should also note that if you intended to allocate a large percentage of your contributions to the guaranteed interest option or other fixed maturity options, the purchase of GPB Option 2 would not have been appropriate because of the guarantees already provided by these options. In addition, GPB Option 2 protects only contributions (not including the credit), and therefore your account value would have to decline in an amount greater than the credit in order for the benefit to apply. An example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract is included in Appendix VI later in this Prospectus. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit's value is low and fewer units if the unit's value is high. Therefore, you may get a lower average cost per unit over the long term. This plan of investing, however, does not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. INVESTMENT SIMPLIFIER Fixed-dollar option. Under this option, you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. The fixed-dollar option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date, your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. Interest sweep option. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. On the last day of each month, we check to see whether you have at least $7,500 in the guaranteed interest option. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not currently participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Only investment simplifier is available with the Option I rebalancing program. If you elect a GPB, you may also elect the General dollar cost averaging program. If you elect either of these programs, everything other than amounts allocated to the fixed maturity option under the GPB must be allocated to that dollar cost averaging program. You may still elect the Investment simplifier for amounts transferred from investment options (other than the fixed maturity option under the 32 Contract features and benefits GPB you have elected), and, for GPB Option 1, you may also elect Investment simplifier for subsequent contributions. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum income benefit (or the "Living Benefit") base" below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. Not all dollar cost averaging programs are available in all states. See Appendix VIII later in this Prospectus for more information on state availability. CREDITS A credit will also be allocated to your account value at the same time that we allocate your contribution. Credits are allocated to the same investment options based on the same percentages used to allocate your contributions. If you elected Principal Protector(SM) the credit amounts attributable to your contributions are not included for purposes of calculating your Guaranteed withdrawal benefit ("GWB") (see "Principal Protector(SM)" later in this Prospectus for more information) benefit base. The amount of the credit will be 4%, 4.5% or 5% of each contribution based on the following breakpoints and rules: - ------------------------------------------------------------ Credit percentage First year total contributions* applied to Breakpoints contributions(+) - ------------------------------------------------------------ Less than $500,000 4% - ------------------------------------------------------------ $500,000-$999,999.99 4.5% - ------------------------------------------------------------ $1 million or more 5% - ------------------------------------------------------------ - ---------------------- * First year total contributions means your total contributions made in the first contract year. + If you already own an Accumulator(R) Plus contract, the credit percentages applied to your contributions may be higher. See Appendix IX for the credit percentages that apply to your contract. The percentage of the credit is based on your first year total contributions. If you purchased GPB Option 2, you may not make additional contributions after the first six months. This credit percentage is credited to your initial contribution and each additional contribution made in the first contract year (after adjustment as described below), as well as those in the second and later contract years. The credit is applied to an additional contribution only to the extent that the sum of that contribution and all prior contributions to which no Credit was applied exceeds the total withdrawals made from the contract since the issue date.(1) Although the credit, as adjusted at the end of the first contract year, is based upon first year total contributions, the following rules affect the percentage with which contributions made in the first contract year are credited during the first contract year: - ---------------------- (1) See Appendix IX later in this Prospectus for contract variations. (2) The amount we return to you upon exercise of this right to cancel will not include any credit or the amount of charges deducted prior to cancellation but will reflect, except in states where we are required to return the amount of your contributions, any investment gain or loss in the variable investment options associated with your contributions and with the full amount of the credit. o Indication of intent: If you indicated in the application at the time you purchased your contract an intention to make additional contributions to meet one of the breakpoints (the "Expected First Year Contribution Amount") and your initial contribution was at least 50% of the Expected First Year Contribution Amount, your credit percentage is as follows: o For any contributions resulting in total contributions to date less than or equal to your Expected First Year Contribution Amount, the credit percentage is the percentage that applies to the Expected First Year Contribution Amount based on the table above. o For any subsequent contribution that results in your total contri butions to date exceeding your Expected First Year Contribution Amount, such that the credit percentage should have been higher, we will increase the credit percentage applied to that contribution, as well as any prior or subsequent contributions made in the first contract year, accordingly. o If at the end of the first contract year your total contributions were lower than your Expected First Year Contribution Amount such that the credit applied should have been lower, we will recover any Excess Credit. The Excess Credit is equal to the difference between the credit that was actually applied based on your Expected First Year Contribution Amount (as applicable) and the credit that should have been applied based on first year total contributions. o The "Indication of intent" approach to first year contributions is not available in all states. Please see Appendix VIII later in this Prospectus for information on state availability. o No indication of intent: o For your initial contribution (if available in your state), we applied the credit percentage based upon the above table. o For any subsequent contribution that results in a higher applicable credit percentage (based on total contributions to date), we will increase the credit percentage applied to that contribution, as well as any prior or subsequent contributions made in the first contract year, accordingly. In addition to the recovery of any Excess Credit, we will recover all of the credit or a portion of the credit in the following situations: o If you exercise your right to cancel the contract, we will recover the entire credit made to your contract (see "Your right to cancel within a certain number of days" later in this Prospectus)(2) o If you start receiving annuity payments within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. Please see Appendix VIII later in this Prospectus for information on state variations. o If the annuitant dies during the one-year period following our receipt of a contribution to which a credit was applied, we will Contract features and benefits 33 recover the amount of such Credit.(1) See "Guaranteed principal benefit option 1" and "Guaranteed principal benefit option 2" earlier in this section; "Guaranteed minimum death benefit," "Principal Protector(SM)" and "Protection Plus(SM)" later in this section; and "Your beneficiary and payment of benefit"; "Successor owner and annuitant"; "Spousal protection"; and "Beneficiary continuation option" in "Payment of death benefit," later in this Prospectus. We will recover any credit on a pro rata basis from the value in your variable investment options and guaranteed interest option. If there is insufficient value or no value in the variable investment options and guaranteed interest option, the fixed maturity options in order of the earliest maturing date(s), any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the Special 10 year fixed maturity option. A market value adjustment may apply to withdrawals from the fixed maturity options. We do not consider credits to be contributions for purposes of any discussion in this Prospectus. Credits are also not considered to be part of your investment in the contract for tax purposes. We use a portion of the mortality and expense risks charge and withdrawal charge to help recover our cost of providing the credit. See "Charges and expenses" later in this Prospectus. The charge associated with the credit may, over time, exceed the sum of the credit and any related earnings. You should have considered this possibility before you purchased this contract. GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit (known as the "Living Benefit" under certain existing contracts) and the death benefits, as described in this section. The benefit base for the Guaranteed minimum income benefit and an enhanced death benefit will be calculated as described below in this section whether these options are elected individually or in combination. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 6% (OR 5%) ROLL-UP TO AGE 85 (USED FOR THE 6% ROLL-UP TO AGE 85 ENHANCED DEATH BENEFIT AND THE GREATER OF THE 6% (OR 5%) ROLL-UP TO AGE 85 ENHANCED DEATH BENEFIT OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to this benefit base is: o 6% (or 5%) with respect to the variable investment options (other than EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market and EQ/Short Duration Bond); the effective annual rate is 4% in Washington. Please see Appendix VIII later in this Prospectus to see what roll-up rate applies in your state or Appendix IX for what applies to your contract; and o 3% with respect to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market and EQ/Short Duration Bond, the fixed maturity options, the Special 10 year fixed maturity option, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up after the contract date anniversary following the annuitant's 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND THE GREATER OF THE 6% (OR 5%) ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: o your initial contribution to the contract and any additional contributions, or o your highest account value on any contract date anniversary up to the contract date anniversary following the annuitant's 85th birthday, plus any contributions made since the most recent Annual Ratchet, less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of the deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. GREATER OF THE 6% (OR 5%) ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND THE GUARANTEED MINIMUM 34 Contract features and benefits INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6% (or 5%) Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. For the Guaranteed minimum income benefit, the benefit base is reduced by any applicable withdrawal charge remaining when the option is exercised. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. GUARANTEED MINIMUM DEATH BENEFIT/GUARANTEED MINIMUM INCOME BENEFIT ROLL-UP BENEFIT BASE RESET. If both the Guaranteed minimum income benefit AND the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit (the "Greater of enhanced death benefit") are elected, you may reset the Roll-Up benefit base for these guaranteed benefits to equal the account value as of the 5th or later contract date anniversary. The reset amount would equal the account value as of the contract date anniversary on which you reset your Roll-Up benefit base. The 6% Roll-Up continues to age 85 on any reset benefit base. We will send you a notice in each year that the Roll-Up benefit base is eligible to be reset, and you will have 30 days from your contract date anniversary to reset your Roll-Up benefit base. Each time you reset the Roll-Up benefit base your RollUp benefit will not be eligible for another reset for five years. If after your death your spouse continues this contract as Successor owner/annuitant, the benefit base will be eligible to be reset either five years from the contract date or from the last reset date, if applicable. The last age at which the benefit base is eligible to be reset is annuitant age 75. It is important to note that once you have reset your Roll-Up benefit base, a new waiting period to exercise the Guaranteed minimum income benefit will apply from the date of reset; you may not exercise until the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. See "Exercise rules" under "Guaranteed minimum income benefit option" below for more information. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the exercise waiting period. Also, even when there is no additional charge when you reset your Roll-Up benefit base, the total dollar amount charged on future contract date anniversaries may increase as a result of the reset since the charges may be applied to a higher benefit base than would have been otherwise applied. See "Charges and expenses" in the Prospectus. The Roll-Up benefit base for both the Greater of enhanced death benefit and the Guaranteed minimum income benefit are reset simultaneously when you request a Roll-Up benefit base reset. You cannot elect a Roll-Up benefit base reset for one benefit and not the other. For information about whether the Guaranteed death benefit/ Guaranteed minimum income benefit roll-up benefit base reset is available under your contract, please see Appendix IX later in this Prospectus. The availability of the Guaranteed minimum death benefit/ guaranteed minimum income benefit roll-up benefit base reset is also subject to state approval. Please contact your financial professional for more information about availability in your state. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed under "Guaranteed minimum income benefit option" below and annuity payout options are discussed under "Your annuity payout options" in "Accessing your money" later in this Prospectus. Your contract specifies different guaranteed annuity purchase factors for the Guaranteed minimum income benefit and the annuity payout options. We may provide more favorable current annuity purchase factors for the annuity payout options. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in certain instances. GUARANTEED MINIMUM INCOME BENEFIT OPTION (DEPENDING ON WHEN YOU PURCHASED YOUR CONTRACT, THIS BENEFIT MAY BE CALLED THE "LIVING BENEFIT." SEE APPENDIX IX LATER IN THIS PROSPECTUS FOR MORE INFORMATION.) The Guaranteed minimum income benefit was available if the annuitant was age 20 through 75 at the time the contract was issued. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. This feature is not available if you elected a GPB option or Principal Protector(SM). Depending on when you purchased your contract, the Guaranteed minimum income benefit rider may have been available with Principal assurance. If the annuitant was older than age 60 at the time an IRA, QP or Rollover TSA contract was issued, the Guaranteed minimum income benefit may not be an appropriate feature because the minimum distributions required by tax law generally must begin before the Guaranteed minimum income benefit can be exercised. If the owner and annuitant are different in an NQ contract, there may be circumstances where the benefit may not be exercisable after an owner's death. Depending on when you purchased your contract, if you elected the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Also, for more information about when the Guaranteed minimum income benefit will terminate under your contract, please see Appendix IX later in this Prospectus. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option. Depending on when you purchased your contract, your options may be different. See Appendix IX later in this Prospectus for more information. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise Contract features and benefits 35 your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the annuitant's age as follows: - ------------------------------------------- Level payments - ------------------------------------------- Period certain years Annuitant's age at --------------------- exercise IRAs NQ - ------------------------------------------- 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - ------------------------------------------- We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit, should be regarded as a safety net only. It provides income protection if you elect an income payout while the annuitant is alive. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base less, any applicable withdrawal charge remaining, to guaranteed annuity purchase factors, or (ii) the income provided by applying your account value to our then current annuity purchase factors. For Rollover TSA only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. The Guaranteed minimum income benefit provides a form of insurance and is based on conservative actuarial factors. The guaranteed annuity purchase factors we use to determine your payout annuity benefit under the Guaranteed minimum income benefit are more conservative than the guaranteed annuity purchase factors we use for our standard payout annuity options. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the Guaranteed minimum income benefit payout annuity will be smaller than each periodic payment under our standard payout annuity options. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. GUARANTEED MINIMUM INCOME BENEFIT "NO LAPSE GUARANTEE". Subject to state availability, in general, if your account value falls to zero, (except, as discussed below, if your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base as of the beginning of the contract year), the Guaranteed minimum income benefit will be exercised automatically, based on the annuitant's current age and benefit base, as follows: o You will be issued a supplementary contract based on a single life with a maximum 10 year period certain. Payments will be made annually starting one year from the date the account value fell to zero. o You will have 30 days from when we notify you to change the payout option and/or the payment frequency. Please note that we will not automatically exercise the Guaranteed minimum income benefit, as described above, if you have a TSA contract and withdrawal restrictions apply. The no lapse guarantee will terminate under the following circumstances: o If your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year); o If your aggregate withdrawals during any contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year); o On the contract date anniversary following the annuitant's 85th birthday. For information about whether the Guaranteed minimum income benefit no lapse guarantee is available under your contract, please see Appendix IX later in this Prospectus. The availability of the Guaranteed minimum income benefit no lapse guarantee is dependent on when, and in what state, you purchased your contract. Please see Appendices VIII and IX, later in this Prospectus. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the Guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male annuitant age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options (including 36 Contract features and benefits the Special 10 year fixed maturity option, if available) or the loan reserve account under Rollover TSA contracts. - --------------------------------------------------- Guaranteed minimum Contract date income benefit -- annual anniversary at exercise income payable for life - --------------------------------------------------- 10 $11,891 15 $18,597 - --------------------------------------------------- EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us along with all required information within 30 days following your contract date anniversary in order to exercise this benefit. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payment contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death, or if later, the end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income benefit during your life and the annuitant's life, as follows: o If the annuitant was at least age 20 and not older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If the annuitant was at least age 45 and not older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after the annuitant is age 60. o If the annuitant was at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's 85th birthday; (ii) if the annuitant was age 75 when the contract was issued or the Roll-Up benefit base was reset, if applicable, the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's attainment of age 85. (iii) for Accumulator(R) Plus(SM) QP contracts, the Plan participant can exercise the Guaranteed minimum income benefit only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) Plus(SM) QP contract into an Accumulator(R) Rollover IRA. This process must be completed within the 30-day time frame following the contract date anniversary in order for the Plan participant to be eligible to exercise. However, if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee (if available), a rollover into an IRA will not be effected and payments will be made directly to the trustee; (iv) for Accumulator(R) Plus(SM) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Plus(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (v) if you reset the Roll-Up benefit base (if available and as described earlier in this section), your new exercise date will be the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the waiting period; (vi) a successor owner/annuitant may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original annuitant could have exercised the benefit. In addition, the successor owner/annuitant must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The successor owner/annuitant's age on the date of the annuitant's death replaces the annuitant's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules. If Spousal Protection is available under your contract and is elected, and the spouse who is the annuitant dies, the above rules apply if the contract is continued by the surviving spouse as the successor owner annuitant; and (vii) if you are the owner but not the annuitant and you die prior to exercise, then the following applies: o A successor owner who is not the annuitant may not be able to exercise the Guaranteed minimum income benefit without causing a tax problem. You should consider naming the annuitant as successor owner, or if you do not name a successor owner, as the sole primary beneficiary. You should carefully review your successor owner and/or beneficiary designations at least one year prior to the first contract date anniversary on which you could exercise the benefit. o If the successor owner is the annuitant, the Guaranteed Contract features and benefits 37 minimum income benefit continues only if the benefit could be exercised under the rules described above on a contract date anniversary that is within one year following the owner's death. This would be the only opportunity for the successor owner to exercise. If the Guaranteed minimum income benefit cannot be exercised within this timeframe, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. o If you designate your surviving spouse as successor owner, the Guaranteed minimum income benefit continues and your surviving spouse may exercise the benefit according to the rules described above, even if your spouse is not the annuitant and even if the benefit is exercised more than one year after your death. If your surviving spouse dies prior to exercise, the rule described in the previous bullet applies. o A successor owner or beneficiary that is a trust or other non- natural person may not exercise the benefit; in this case, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. See "When an NQ contract owner dies before the annuitant" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT Your contract provides a standard death benefit. If you did not elect one of the enhanced death benefits described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions (adjusted for any withdrawals and any withdrawal charges, and any taxes that apply). The standard death benefit was the only death benefit available for annuitants who were ages 76 to 80 at issue. The applicable issue ages may be different for certain contract owners, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus for more information. Once your contract has been issued, you may not change or voluntarily terminate your death benefit. If you elected one of the guaranteed death benefits, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment, OR your elected guaranteed death benefit on the date of the annuitant's death (adjusted for any subsequent withdrawals, withdrawal charges and taxes that apply) whichever provides the higher amount. If you elected the Spousal protection option, if available, the Guaranteed minimum death benefit is based on the age of the older spouse, who may or may not be the annuitant, for the life of the contract. See "Spousal protection" in "Payment of death benefit" later in this Prospectus for more information. Any of the enhanced death benefits or the standard death benefit can be elected by themselves or with the Guaranteed minimum income benefit. If you elected one of the enhanced death benefit options described below and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, any enhanced death benefit elected will be replaced with the standard death benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the annuitant dies during the one-year period following our receipt of a contribution, the account value used to calculate the applicable guaranteed minimum death benefit will not reflect any Credits applied in the one-year period prior to death. OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANTS AGES 0 THROUGH 75 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 70 AT ISSUE OF QP CONTRACTS. DEPENDING ON WHEN YOU PURCHASED YOUR CONTRACT, YOUR AVAILABLE ISSUE AGES MAY HAVE BEEN OLDER AT THE TIME YOU PURCHASED YOUR CONTRACT. Subject to state and contract availability (please see Appendix VIII for state availability of these benefits and Appendix IX for contract variations later in this Prospectus), the following enhanced death benefits were available: o Annual Ratchet to age 85. o 6% Roll-Up to age 85. o The Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85. o The Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. Each enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Once you have made your enhanced death benefit election, you may not change it. If you elected Principal Protector(SM), only the standard death benefit and the Annual Ratchet to Age 85 enhanced death benefit were available. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal 38 Contract features and benefits benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. See Appendix IV later in this Prospectus for an example of how we calculate an enhanced minimum death benefit. PROTECTION PLUS(SM) The following section provides information about the protection Plus(SM) option, which was only available at the time you purchased your contract. If Protection Plus(SM) was not elected when the contract was first issued, neither the owner nor the successor owner/annuitant can add it subsequently. Protection Plus(SM) is an additional death benefit as described below. See the appropriate part of "Tax information" later in this Prospectus for the potential tax consequences of having purchased the Protection Plus(SM) feature in an NQ, IRA or Rollover TSA contract. If you purchased the Protection Plus(SM) feature, you may not voluntarily terminate the feature. If you elected Principal Protector(SM), the Protection Plus(SM) feature is not available. Depending on when you purchased your contract, if you elected the Protection Plus(SM) option described below and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the annuitant was 70 or younger when we issued your contract (or if the successor owner/annuitant is 70 or younger when he or she becomes the successor owner/annuitant and Protection Plus(SM) had been elected at issue), the death benefit will be: the greater of: o the account value or o any applicable death benefit Increased by: o such death benefit less total net contributions, multiplied by 40%. For purposes of calculating your Protection Plus(SM) benefit, the following applies: (i) "Net contributions" are the total contributions made (or if applicable, the total amount that would otherwise have been paid as a death benefit had the successor owner/annuitant election not been made plus any subsequent contributions) adjusted for each withdrawal that exceeds your Protection Plus(SM) earnings. "Net contributions" are reduced by the amount of that excess. Protection Plus(SM) earnings are equal to (a) minus (b) where (a) is the greater of the account value and the death benefit immediately prior to the withdrawal and (b) is the net contributions as adjusted by any prior withdrawals (credit amounts are not included in "net contributions"); and (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable Guaranteed minimum death benefit as of the date of death. If you are an existing contract owner and not a new purchaser, your net contributions may be reduced on a pro rata basis to reflect withdrawals (including withdrawal charges and any TSA loans). For information about what applies to your contract, see Appendix IX later in this Prospectus. For purposes of calculating the Protection Plus(SM) benefit, if any contributions are made in the one-year period prior to death of the annuitant, the account value will not include any Credits applied in the one-year period prior to death. If the annuitant was age 71 through 75 (this age may be higher for certain contract owners, depending on when you purchased your contract) when we issued your contract (or if the successor owner/ annuitant is between the ages of 71 and 75 when he or she becomes the successor owner/annuitant and Protection Plus(SM) had been elected at issue), the death benefit will be: the greater of: o the account value or o any applicable death benefit o Increased by: o such death benefit (as described above) less total net contributions, multiplied by 25%. The value of the Protection Plus(SM) death benefit is frozen on the first contract date anniversary after the annuitant turns age 80, except that the benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce the benefit by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If the benefit is $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and the benefit after the withdrawal would be $24,000 ($40,000-$16,000). For an example of how the Protection Plus(SM) death benefit is calculated, please see Appendix VII. If you elected Spousal protection, the Protection Plus(SM) benefit is based on the age of the older spouse, who may or may not be the annuitant. Upon the death of the non-annuitant spouse, the account value will be increased by the value of the Protection Plus(SM) benefit as of the date we receive due proof of death. Upon the death of the annuitant, the value of the Protection Plus(SM) benefit is either added to the death benefit payment or to the account value if Successor owner/annuitant is elected. If the surviving spouse elects to continue the contract, the benefit will be based on the age of the surviving spouse as of the date of the deceased spouse's death for the remainder of the contract if the surviving spouse is age 75 or older, the benefit will terminate and the charge will no longer be in effect. See "Spousal protection" in "Payment of death benefit" later in this Prospectus for more information. Ask your financial professional or see Appendix VIII later in this Prospectus to see if this feature was available in your state. PRINCIPAL PROTECTOR(SM) The following section provides information about the Principal Protector(SM) option, which was only available at the time you purchased your contract. If Principal Protector(SM) was not elected when the contract was first issued, neither the owner nor the successor owner/annuitant can add it subsequently. Contract features and benefits 39 As described below, Principal Protector(SM) provides for recovery of your total contributions through withdrawals, even if your account value falls to zero, provided that during each contract year, your total withdrawals do not exceed your GWB Annual withdrawal amount. Principal Protector(SM) is not an automated withdrawal program. You may request a withdrawal through any of our available withdrawal methods. See "Withdrawing your account value" in "Accessing your money" later in this Prospectus. All withdrawals reduce your account value and the guaranteed minimum death benefit. Principal Protector(SM) could be elected at contract issue, for an additional charge, if the annuitant was age 0 through 80 for NQ contracts or age 20 through 75 for all IRA contracts. Please see "Principal Protector(SM) charge" in "Charges and expenses" later in this Prospectus for a description of the charge and when it applies. If you elected this benefit, you cannot terminate it. Depending on when you purchased your contract, this feature may not be available. See Appendix IX later in this Prospectus for more information. If you die, and your beneficiary elects the Beneficiary continuation option, if available, your beneficiary may continue Principal Protector(SM) provided that the beneficiary was 75 or younger on the original contract date. If the beneficiary was older, Principal Protector(SM) will terminate without value even if the GWB benefit base is greater than zero. In the case of multiple beneficiaries, any beneficiary older than 75 may not continue Principal Protector(SM) and that beneficiary's portion of the GWB benefit base will terminate without value, even if it was greater than zero. The ability to continue Principal Protector(SM) under the Beneficiary continuation option is subject to state availability. If it was approved in your state, it was added to your contract if you had already elected GWB. See "Beneficiary continuation option" under "Payment of death benefit" later in the Prospectus for more information on continuing Principal Protector(SM) under the Beneficiary continuation option. If you purchased this contract as a TSA or QP, Principal Protector(SM) was not available. This benefit was also not available if you elected the Guaranteed minimum income benefit, the Greater of 6% Roll-Up to age 85 and Annual Ratchet to Age 85 enhanced death benefit, Protection Plus(SM), or GPB Option 1 or GPB Option 2. This benefit may not have been available under your contract. For more information, please see Appendix IX later in this Prospectus. If you elected the Principal Protector(SM) option and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Withdrawals in excess of your GWB Annual withdrawal amount significantly reduce or eliminate the value of the benefit. See "Effect of GWB Excess withdrawals" below. For traditional IRAs, the Principal Protector(SM) makes provision for you to take lifetime required minimum distributions ("RMDs") without losing the value of the Principal Protector(SM) guarantee, provided you comply with the conditions under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, including utilization of our Automatic RMD service, this benefit may have limited usefulness for you. Please consult your tax adviser. YOUR GWB BENEFIT BASE At issue, your GWB benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWB benefit base increases by the dollar amount of any additional contributions. o Your GWB benefit base decreases by the dollar amount of withdrawals. o Your GWB benefit base may be further decreased if a withdrawal is taken in excess of your GWB Annual withdrawal amount. o Your GWB benefit base may also be increased under the Optional step up provision. o Your GWB benefit base may also be increased under the one time step up applicable with the Beneficiary continuation option. Each of these events is described in detail below. Once your GWB benefit base is depleted, you may continue to make withdrawals from your account value, but they are not guaranteed under Principal Protector(SM). Credit amounts attributable to your contributions are not included for purposes of calculating your GWB benefit base. YOUR GWB ANNUAL WITHDRAWAL AMOUNT Your GWB Annual withdrawal amount is equal to either 5% or 7% ("Applicable percentage"), as applicable, of your initial GWB benefit base, and is the maximum amount that you can withdraw each year without making a GWB Excess withdrawal, as described below. When you purchased your contract, you chose between two available GWB Annual withdrawal options: o 7% GWB Annual withdrawal option o 5% GWB Annual withdrawal option The GWB Annual withdrawal amount may decrease as a result of a GWB Excess withdrawal and may increase as a result of an Automatic reset, additional contributions or a "step up" of the GWB benefit base; each of these transactions are discussed below in detail. Once you elect a GWB Annual withdrawal option, it cannot be changed. Your GWB Annual withdrawal amounts are not cumulative. If you withdraw less than the GWB Annual withdrawal amount in any contract year, you may not add the remainder to your GWB Annual withdrawal amount in any subsequent year. The withdrawal charge, if applicable, is waived for withdrawals up to the GWB Annual withdrawal amount, but all withdrawals are counted toward your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. EFFECT OF GWB EXCESS WITHDRAWALS A GWB Excess withdrawal is caused when you withdraw more than your GWB Annual withdrawal amount in any contract year. Once a withdrawal causes cumulative withdrawals in a contract year to 40 Contract features and benefits exceed your GWB Annual withdrawal amount, the entire amount of the withdrawal and each subsequent withdrawal in that contract year are GWB Excess withdrawals. A GWB Excess withdrawal can cause a significant reduction in both your GWB benefit base and your GWB Annual withdrawal amount. If you make a GWB Excess withdrawal, we will recalculate your GWB benefit base and the GWB Annual withdrawal amount. As of the date of the GWB Excess withdrawal, the GWB benefit base is first reduced by the dollar amount of the withdrawal (including any applicable withdrawal charge), and the reduced GWB benefit base and the GWB Annual withdrawal amount are then further adjusted, as follows: o If the account value after the deduction of the withdrawal is less than the GWB benefit base, then the GWB benefit base is reset equal to the account value. o If the account value after the deduction of the withdrawal is greater than or equal to the GWB benefit base, then the GWB benefit base is not adjusted further. o The GWB Annual withdrawal amount equals the lesser of: (i) the Applicable percentage of the adjusted GWB benefit base and (ii) the GWB Annual withdrawal amount prior to the GWB Excess withdrawal. Withdrawals in excess of your GWB Annual withdrawal amount significantly reduce or eliminate the value of Principal Protector(SM). If your account value is less than your GWB benefit base (due, for example, to negative market performance), a GWB Excess withdrawal, even one that is only slightly more than your GWB Annual withdrawal amount, can significantly reduce your GWB benefit base and the GWB Annual withdrawal amount. For example, if you contribute $100,000 at contract issue, your initial GWB benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option, your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume in contract year four that your account value is $80,000, you have not made any prior withdrawals, and you request an $8,000 withdrawal. Your $100,000 benefit base is first reduced by $8,000 to now equal $92,000. Your GWB benefit base is then further reduced to equal the new account value: $72,000 ($80,000 minus $8,000). In addition, your GWB Annual withdrawal amount is reduced to $5,040 (7% of $72,000), instead of the original $7,000. Withdrawal charges, if applicable, are applied to the amount of the withdrawal exceeding the Guaranteed annual withdrawal amount, assuming the Guaranteed annual withdrawal amount is greater than the 10% free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. Using the example above, if the $8,000 withdrawal is a withdrawal of contributions subject to the withdrawal charge, the withdrawal charge would apply to the $3,000 (the amount of the withdrawal charge above the Guaranteed annual withdrawal amount of $5,000). See "Certain withdrawals" in "Charges and expenses" later in this Prospectus. You should further note that a GWB Excess withdrawal that reduces your account value to zero eliminates any remaining value in your GWB benefit base. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA and participate in our Automatic RMD service, and you do not take any other withdrawals, an automatic withdrawal under that program will not cause a GWB Excess withdrawal, even if it exceeds your GWB Annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. If you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, and chooses scheduled payments, such payments will not cause a GWB Excess withdrawal, provided no additional withdrawals are taken. If your beneficiary chooses the "5-year rule" instead of scheduled payments, this waiver does not apply and a GWB Excess withdrawal may occur if withdrawals exceed the GWB Annual withdrawal amounts. EFFECT OF AUTOMATIC RESET If you take no withdrawals in the first five contract years, the Applicable percentage to determine your GWB Annual withdrawal amount will be automatically reset at no additional charge. The Applicable percentage under the 7% GWB Annual withdrawal option will be increased to 10%, and the Applicable percentage under the 5% GWB Annual withdrawal option will be increased to 7%. The Applicable percentage is automatically reset on your fifth contract date anniversary, and your GWB Annual withdrawal amount will be recalculated. If you die before the fifth contract date anniversary, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, if available, the Automatic reset will apply on the fifth contract date anniversary if you have not taken any withdrawals and: (1) your beneficiary chooses scheduled payments and payments have not yet started; or, (2) if your beneficiary chooses the "5-year rule" option and has not taken withdrawals. See "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. EFFECT OF ADDITIONAL CONTRIBUTIONS Anytime you make an additional contribution, we will recalculate your GWB benefit base and your GWB Annual withdrawal amount. Your GWB benefit base will be increased by the amount of the contribution (credit amounts are not included) and your GWB Annual withdrawal amount will be equal to the greater of (i) the Applicable percentage of the new GWB benefit base, or (ii) the GWB Annual withdrawal amount in effect immediately prior to the additional contribution. If you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, no additional contributions will be permitted. OPTIONAL STEP UP PROVISION Except as stated below, any time after the fifth contract date anniversary, you may request a step up in the GWB benefit base to equal your account value. If your GWB benefit base is higher than the account value as of the date we receive your step up request, no step up will be made. If a step up is made, we may increase the charge for the benefit. For a description of the charge increase, see "Principal Protector(SM) Contract features and benefits 41 charge" in "Charges and expenses" later in this Prospectus. Once you elect to step up the GWB benefit base, you may not do so again for five complete contract years from the next contract date anniversary. Under both the Spousal protection and the successor owner annuitant features, upon the first death, the surviving spouse must wait five complete contract years from the last step up or from contract issue, whichever is later, to be eligible for a step up. As of the date of your GWB benefit base step up, your GWB Annual withdrawal amount will be equal to the greater of (i) your GWB Annual withdrawal amount before the step up, and (ii) your GWB Applicable percentage applied to your stepped up GWB benefit base. It is important to note that a step up in your GWB benefit base may not increase your GWB Annual withdrawal amount. In that situation, the effect of the step up is only to increase your GWB benefit base and support future withdrawals. We will process your step up request even if it does not increase your GWB Annual withdrawal amount, and we will increase the Principal Protector(SM) charge, if applicable. In addition, you will not be eligible to request another step up for five complete contract years. After processing your request, we will send you a confirmation showing the amount of your GWB benefit base and your GWB Annual withdrawal amount. For example, if you contribute $100,000 at contract issue, your initial GWB benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option, your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume you take withdrawals of $7,000 in each of the first five contract years, reducing the GWB benefit base to $65,000. After five contract years, further assume that your account value is $92,000, and you elect to step up the GWB benefit base from $65,000 to $92,000. The GWB Annual withdrawal amount is recalculated to equal the greater of 7% of the new GWB benefit base, which is $6,440 (7% of $92,000), or the current GWB Annual withdrawal amount, $7,000. Therefore, following the step up, even though your GWB benefit base has increased, your GWB Annual withdrawal amount does not increase and remains $7,000. The Optional step up provision is not available once your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option. However, if you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, the GWB benefit base will be stepped up to equal the account value, if higher, as of the transaction date that we receive the Beneficiary continuation option election. The account value will be reduced by any Credits applied to contributions made within one year prior to your death before the comparison with the GWB benefit base, for purposes of the GWB benefit base step up. As of the date of the GWB benefit base step up (if applicable) your beneficiary's GWB Annual withdrawal amount will be equal to the greater of (i) your GWB Annual withdrawal amount before the step up, and (ii) your GWB Applicable percentage applied to the stepped up GWB benefit base. This is a one-time step up at no additional charge. OTHER IMPORTANT CONSIDERATIONS o Principal Protector(SM) protects your principal only through withdrawals. Your account value may be less than your total contributions. o You can take withdrawals under your contract without purchasing Principal Protector(SM). In other words, you do not need this benefit to make withdrawals. o Amounts withdrawn in excess of your GWB Annual withdrawal amount may be subject to a withdrawal charge, if applicable, as described in "Charges and expenses" later in the Prospectus. In addition, all withdrawals count toward your free withdrawal amount for that contract year. o Withdrawals made under Principal Protector(SM) will be treated, for tax purposes, in the same way as other withdrawals under your contract. o All withdrawals are subject to all of the terms and conditions of the contract. Principal Protector(SM) does not change the effect of withdrawals on your account value or guaranteed minimum death benefit; both are reduced by withdrawals whether or not you elect Principal Protector(SM). See "How withdrawals are taken from your account value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. o If you withdraw less than the GWB Annual withdrawal amount in any contract year, you may not add the remainder to your GWB Annual withdrawal amount in any subsequent year. o GWB Excess withdrawals can significantly reduce or completely eliminate the value of this benefit. See "Effect of GWB Excess withdrawals" above in this section and "Withdrawing your account value" in "Accessing your money" later in this Prospectus. o If you surrender your contract to receive its cash value, all benefits under the contract will terminate, including Principal Protector(SM) if your cash value is greater than your GWB Annual withdrawal amount. Therefore, when surrendering your contract, you should seriously consider the impact on Principal Protector(SM) when you have a GWB benefit base that is greater than zero. o If you die and your beneficiary elects the Beneficiary continuation option, then your beneficiary should consult with a tax adviser before choosing to use the "5-year rule." The "5-year rule" is described in "Payment of death benefit" under "Beneficiary continuation option" later in this Prospectus. The GWB benefit base may be adversely affected if the beneficiary makes any withdrawals that cause a GWB Excess withdrawal. Also, when the contract terminates at the end of 5 years, any remaining GWB benefit base would be lost. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS This is provided for informational purposes only. Since this contract is no longer available to new purchasers, this cancellation provision is no longer applicable. If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law 42 Contract features and benefits requires, this "free look" period may be longer. Other state variations may apply. Please contact your financial professional to find out what applies in your state. Generally, your refund will equal your account value (less loan reserve account under Rollover TSA contracts) under the contract on the day we receive notification to cancel the contract and will reflect (i) any investment gain or loss in the variable investment options (less the daily charges we deduct), (ii) any guaranteed interest in the guaranteed interest option, and (iii) any positive or negative market value adjustments in the fixed maturity options through the date we receive your contract. Some states require that we refund the full amount of your contribution (not reflecting (i), (ii) or (iii) above). For any IRA contracts returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. Please note that you will forfeit the credit by exercising this right of cancellation. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract, whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. In addition to the cancellation right described above, if you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office or your financial professional can provide you with the cancellation instructions. Contract features and benefits 43 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total value of the values you have in: (i) the variable investment options; (ii) the guaranteed interest account; (iii) market adjusted amounts in the fixed maturity options; and (iv) the loan reserve account (applies for Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value less: (i) the total amount or a pro rata portion of the annual administrative charge as well as any optional benefit charges;* (ii) any applicable withdrawal charge; and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. ---------------------------------- * Depending on when you purchased your contract, your account value will be reduced by a pro rata portion of the administrative charge only. See Appendix IX later in this Prospectus for more information. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense risks; (ii) administrative, and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions plus the credit; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect transfer into, or decreased to reflect transfer out of a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, if applicable, when we deduct the enhanced death benefit, guaranteed minimum income benefit, GPB Option 2, Principal Protector(SM) and/or Protection Plus(SM) benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest account at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all your rights under your contract and any applicable guaranteed benefits, except as discussed below. See Appendix VIII later in this Prospectus for any state variations with regard to the termination of your contract. GUARANTEED MINIMUM INCOME BENEFIT NO LAPSE GUARANTEE (not available under all contracts). In certain circumstances, even if your account value falls to zero, your Guaranteed minimum income benefit will still have value. Please see "Contract features and benefits" earlier in this Prospectus for information on this feature. PRINCIPAL PROTECTOR(SM) (not available under all contracts) If you elected Principal Protector(SM) and your account value falls to zero due to a GWB Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary annuity contract, as discussed below, even if your GWB benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not a GWB Excess withdrawal or due to a deduction of charges, please note the following: 44 Determining your contract's value o If your GWB benefit base equals zero, we will terminate your contract and make no payment. o If your GWB benefit base is greater than zero but less than or equal to the balance of your GWB Annual withdrawal amount, if any, for that contract year, we will terminate your contract and pay you any remaining GWB benefit base. o If your GWB benefit base is greater than the balance of your remaining GWB Annual withdrawal amount, if any, for that contract year, we will pay you your GWB Annual withdrawal amount balance and terminate your contract, and we will pay you your remaining GWB benefit base as an annuity benefit, as described below. o If the Beneficiary continuation option is elected (not available in all states), and the account value falls to zero while there is a remaining GWB benefit base, we will make payments to the beneficiary as follows: o If the beneficiary had elected scheduled payments we will continue to make scheduled payments over remaining life expectancy until the GWB benefit base is zero, and the Principal Protector(SM) charge will no longer apply. o If the beneficiary had elected the "5-year rule" and the GWB benefit base is greater than the remaining GWB Annual withdrawal amount, if any, for that contract year, we will pay the beneficiary the GWB Annual withdrawal amount balance. We will continue to pay the beneficiary the remaining GWB Annual withdrawal amount each year until the GWB benefit base equals zero, or the contract terminates at the end of the fifth contract year, whichever comes first. Any remaining GWB benefit base at the end of the fifth contract year will terminate without value. ANNUITY BENEFIT. If the contract terminates and the remaining GWB benefit base is to be paid in installments, we will issue you an annuity benefit contract and make annual payments equal to your GWB Annual withdrawal amount on your contract date anniversary beginning on the next contract date anniversary, until the cumulative amount of such payments equals the remaining GWB benefit base (as of the date the contract terminates). The last installment payment may be smaller than the previous installment payments in order for the total of such payments to equal the remaining GWB benefit base. The annuity benefit supplemental contract will carry over the same owner, annuitant and beneficiary as under your contract. If you die before receiving all of your payments, we will make any remaining payments to your beneficiary. The charge for Principal Protector(SM) will no longer apply. If at the time of your death the GWB Annual withdrawal amount was being paid to you as an annuity benefit, your beneficiary may not elect the Beneficiary continuation option. Determining your contract's value 45 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the variable investment options, subject to the following: o You may not transfer to a fixed maturity option that has a rate to maturity of 3% or less. o If the annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied, the rate to maturity is 3%. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment and affect your GPB. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the annuity account value being allocated to the guaranteed interest option, based on the annuity account value as of the previous business day. If you are an existing contract owner, this restriction may not apply. See Appendix IX later in this Prospectus for contract variations. o No transfers are permitted into the Special 10 year fixed maturity option. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option, the interest sweep option and dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the Investment options in the prior contract year; or (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contracts features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a Portfolio to maintain larger amounts of cash or to liquidate Portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a Portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the Portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a Portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of Portfolio investments may impede efficient Portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of Portfolio securities. Similarly, a Portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than Portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting Portfolio securities values occur after the close of the overseas market 46 Transferring your money among investment options but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how Portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, "the trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of Portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each Portfolio on a daily basis. On any day when a Portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its Portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, no trust available under the contract had implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We offer rebalancing, which you can use to automatically reallocate your account value among your investment options. We currently offer two options: "Option I" and "Option II." Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers between the guaranteed interest option and the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into or out of the guaranteed interest option to initiate the rebalancing pro- Transferring your money among investment options 47 gram will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. You may not elect Option II if you are participating in any dollar cost averaging program. You may not elect Option I if you are participating in general dollar cost averaging. 48 Transferring your money among investment options 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. If you withdraw more than 90% of your contract's current cash value, we will treat it as a request to surrender your contract for its cash value. See "Surrendering your contract to receive its cash value" below. For the potential tax consequences of withdrawals, see "Tax information" later in this Prospectus. Please see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2," below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. - -------------------------------------------------------------------------------- Method of withdrawal - -------------------------------------------------------------------------------- Lifetime required Substantially minimum Contract Partial Systematic equal distribution - -------------------------------------------------------------------------------- NQ Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Con- version IRA Yes Yes Yes No - -------------------------------------------------------------------------------- Rollover TSA* Yes Yes No Yes - -------------------------------------------------------------------------------- QP** Yes No No Yes - -------------------------------------------------------------------------------- * Employer or plan approval is required for all transactions. Your ability to take withdrawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. ** All payments are made to the trust as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Partial withdrawals will be subject to a withdrawal charge if they exceed the 10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). If you already own your contract, the applicable free withdrawal percentage may be higher. See Appendix IX later in this Prospectus for the free withdrawal amount that applies to your contract. Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. SYSTEMATIC WITHDRAWALS (All contracts except QP contracts) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If you already own your contract, the applicable percentages may be higher. See Appendix IX later in this Prospectus for information on what applies to your contract. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of your account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 10% free withdrawal amount. This option is not available if you have elected a guaranteed principal benefit -- this restriction may not apply to certain contract owners, depending on when you purchased your contract. See Appendix IX later in this Prospectus for more information. SUBSTANTIALLY EQUAL WITHDRAWALS (All contracts except QP contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the Accessing your money 49 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals that we calculate for you are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Depending on when you purchased your contract, this option may not be available if you have elected a guaranteed principal benefit. If you are an existing contract owner, this restriction may not apply to all contract owners. See Appendix IX later in this Prospectus for contract variations. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA and Rollover TSA and QP contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- We do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our automatic RMD service except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 10% free withdrawal amount. Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH PRINCIPAL PROTECTOR(SM). If you elected Principal Protector(SM), provided no other withdrawals are taken during a contract year in which you participate in our Automatic RMD service, an automatic withdrawal using our service will not cause a GWB Excess withdrawal, even if it exceeds your GWB Annual withdrawal amount. If you take any other withdrawal while you participate in the service, however, this GWB Excess withdrawal exception terminates permanently. In order to take advantage of this exception, you must elect and maintain participation in our Automatic RMD service at your required beginning date, or the contract date, if your required beginning date has occurred before the contract was purchased. See "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus for further information. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest account. If there is insufficient value or no value in the variable investment options and the guaranteed interest account, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options (other than the Special 10 year fixed maturity option, if applicable), in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option). 50 Accessing your money HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2 In general, withdrawals will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000-$16,000). Transfers out of the Special 10 year fixed maturity option will reduce GPB Option 2 on a pro rata basis. In addition, if you make a contract withdrawal from the Special 10 year fixed maturity option, we will reduce your GPB Option 2 in a similar manner; however, the reduction will reflect both a transfer out of the Special 10 year fixed maturity option and a withdrawal from the contract. Therefore, the reduction in GPB Option 2 is greater when you take a contract withdrawal from the Special 10 year fixed maturity option than it would be if you took the withdrawal from another investment option. Similar to the example above, if your account value is $30,000 and you withdraw $12,000 from the Special 10 year fixed maturity option, you have withdrawn 40% of your account value. If your GPB Option 2 benefit was $40,000 before the withdrawal, the reduction to reflect the transfer out of the Special 10 year fixed maturity option would equal $16,000 ($40,000 x .40). The amount used to calculate the reduction to reflect the withdrawal from the contract is $24,000 ($40,000 - $16,000). The reduction to reflect the withdrawal would equal $9,600 ($24,000 x .40), and your new benefit after the withdrawal would be $14,400 ($24,000 - $9,600). For purposes of calculating the adjustment to your guaranteed benefits, the amount of the withdrawal will include the amount of any applicable withdrawal charge. Using the example above, the $12,000 withdrawal would include the withdrawal amount paid to you and the amount of any applicable withdrawal charge deducted from your account value. For more information on the calculation of the charge, see "Withdrawal charge" later in the Prospectus. With respect to the Guaranteed minimum income benefit and the Greater of 6% (or 5%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' 6% (or 5%) Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6% (or 5%) or less of the 6% (or 5%) Roll-Up benefit base on the most recent contract date anniversary. Additional contributions made during the contract year do not affect the amount of the withdrawals that can be taken on a dollar-for-dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6% (or 5%) of the benefit base on the most recent anniversary, that entire withdrawal and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6% (or 5%) Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for each Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. The effect of withdrawals on your Guaranteed minimum income benefit and, Guaranteed minimum death benefit (including the Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit) may be different. See Appendix IX later in this Prospectus for information on what applies to your contract. HOW WITHDRAWALS AFFECT PRINCIPAL PROTECTOR(SM) If you elected Principal Protector(SM), if available, any withdrawal reduces your GWB benefit base by the amount of the withdrawal. In addition, a GWB Excess withdrawal can significantly reduce your GWB Annual withdrawal amount and further reduce your GWB benefit base. For more information, see "Effect of GWB Excess withdrawals" and "Other important considerations" under "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. WITHDRAWALS TREATED AS SURRENDERS If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. Also, under certain contracts, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. If you are an existing contract owner, the rules in the preceding sentence may not apply under your contract or if the Guaranteed minimum income benefit no lapse guarantee is available and in effect on your contract. See Appendix IX later in this Prospectus for information. See also "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR PRINCIPAL PROTECTOR(SM) (IF AVAILABLE). If you elected Principal Protector(SM), all withdrawal methods described above can be used. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is a GWB Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to a GWB Excess withdrawal. In other words, if you take a GWB Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWB benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Principal Protector(SM)" in "Contract features and benefits," earlier in this Prospectus, for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans from a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." Accessing your money 51 You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subjected to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see Appendix VIII later in this Prospectus for any state restrictions you may be subject to if you take a loan from a Rollover TSA contract. Also, see "Tax information" later in this Prospectus, for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of the loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan including any accrued and unpaid loan interest, will be deducted from the death benefit amounts). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the loan reserve account. Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option). If the amounts are withdrawn from the Special 10 year fixed maturity option, the guaranteed benefit will be adversely affected. See "Guaranteed principal benefit option 2" in "Contract features and benefits" earlier in this Prospectus. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. Loan repayments are not considered contributions and therefore are not eligible for additional credits. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while the annuitant is living and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required). For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of the date we receive the required information, including Principal Protector(SM) (if applicable), if your cash value is greater than your GWB Annual withdrawal amount. If you have a GWB benefit base greater than zero, you should consider the impact of a contract surrender on the Principal Protector(SM) benefit. If your surrender request does not constitute a GWB Excess withdrawal, you may be eligible for additional benefits. If, however, your surrender request constitutes a GWB Excess withdrawal, you will lose those benefits. Also, if the Guaranteed minimum income benefit no lapse guarantee is in effect under your contract, the Guaranteed minimum income benefit will terminate without value if your cash value plus any other withdrawals taken in the contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year). For more information, please see "Annuity benefit" under "Insufficient account value" in "Determining your contract value" and "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal charge) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of which sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable because of an emergency, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest account and fixed maturity options (other than for death ben- 52 Accessing your money efits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Plus(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) Plus(SM) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Plus(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Plus(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments which can be either level or increasing, and others enable you to receive variable annuity payments. Please see Appendix VIII later in this Prospectus for variations that may apply to your state. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the annuitant's age when the contract was issued. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect Principal Protector(SM) and choose to annuitize your contract, Principal Protector(SM) will terminate without value even if your GWB benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under Principal Protector(SM). See "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus for further information. - -------------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------------- Income Manager(R) payout Life annuity with period options (available for annuitants certain age 83 or less at contract issue) Period certain annuity - -------------------------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide you with details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Accessing your money 53 Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager(R) payout option without life contingencies unless withdrawal charges are no longer in effect under your Accumulator(R) Plus(SM). For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply your account value of your Accumulator(R) Plus(SM) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) Plus(SM). For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income option (or "Living Benefit" option), different payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any withdrawal charges. If amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date, a market value adjustment will apply. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. The withdrawal charge applicable under your Accumulator(R) Plus(SM) is imposed if you select a non-life contingent period certain payout annuity. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For the Income Manager(R) payout life contingent options, no withdrawal charge is imposed under the Accumulator(R) Plus(SM). If the withdrawal charge that otherwise would have been applied to your account value under your Accumulator(R) Plus(SM) is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager(R) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin from the Accumulator(R) Plus(SM) contract. Generally, the date annuity payments begin may not be earlier than five years (in a limited number of jurisdictions this requirement may be more or less than five years) from the contract date. Please see Appendix VIII later in this Prospectus for information on state variations. Except with respect to Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. If you start receiving annuity payments within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. Please see Appendix VIII later in this Prospectus for information on state variations. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments, or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) annuity payout option is chosen. 54 Accessing your money ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elected Principal Protector(SM) and your contract is annuitized at maturity, we will offer an annuity payout option for life that guarantees you will receive payments that are at least equal to what you would have received under Principal Protector until the point at which your GWB Benefit Base is depleted. After your GWB Benefit Base is depleted, you will continue to receive periodic payments while you are living. The amount of each payment will be the same as the payment amount that you would have received if you had applied your account value on the maturity date to purchase a life annuity at the annuity purchase rate guaranteed in your contract; this payment amount may be more or less than your GWB Annual Withdrawal amount. Please see Appendix VIII later in this Prospectus for variations that may apply in your state. Accessing your money 55 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o On each contract date anniversary, a charge for each optional benefit that you have elected: a death benefit (other than the Standard death benefit); the Guaranteed minimum income benefit; Principal Protector(SM); and Protection Plus(SM). o On the first 10 contract date anniversaries -- a charge for GPB Option 2, if you have elected this optional benefit. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. The fees and charges described are the maximum fees and charges that a contract owner will pay. Please see your contract and/or Appendix IX for the fees and charges that apply under your contract. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits, and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 0.90% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the Guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. A portion of this charge also compensates us for the contract credit. For a discussion of the credit, see "Credits" in "Contract features and benefits" earlier in this Prospectus. We expect to make a profit from this charge. Administrative charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.35% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed 56 Charges and expenses interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceed the 10% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or apply your cash value to a non life contingent annuity payout option. A portion of this charge also compensates us for the contract credit. For a discussion of the credit, see "Credits" in "Contracts features and benefits" earlier in this Prospectus. We expect to make a profit from this charge. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options -- The amount applied to purchase an annuity payout option" in "Accessing your money" earlier in the Prospectus. The withdrawal charge equals a percentage of the contributions withdrawn. We do not consider credits to be contributions. Therefore, there is no withdrawal charge associated with a credit. The percentage of the withdrawal charge that applies to each contribution depends on how long each contribution has been invested in the contract. We determine the withdrawal charge separately for each contribution according to the following table: - -------------------------------------------------------------------------------- Contract year - -------------------------------------------------------------------------------- 1 2 3 4 5 6 7 8 9+ - -------------------------------------------------------------------------------- Percentage of contribution 8% 8% 7% 7% 6% 5% 4% 3% 0% - -------------------------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1." Amounts withdrawn up to the free withdrawal amount are not considered withdrawals of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and the withdrawal charge from your account value. Any amount deducted to pay withdrawal charges is also subject to the same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each variable investment option. The withdrawal charge helps cover our sales expenses. For purposes of calculating reductions in your guaranteed benefits and associated benefit bases, the withdrawal amount includes both the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information, see "Guaranteed minimum death benefit and Guaranteed minimum income benefit (or the "Living Benefit") base" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier in the Prospectus. The withdrawal charge does not apply in the circumstances described below. 10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10% of your account value without paying a withdrawal charge. The 10% free withdrawal amount is determined using your account value at the beginning of each contract year. In the first contract year, the 10% free withdrawal amount is determined using all contributions received in the first 90 days of the contract year. Additional contributions during the contract year do not increase your 10% free withdrawal amount. The 10% free withdrawal amount does not apply if you surrender your contract except where required by law. If you elected Principal Protector(SM), we will waive any withdrawal charge for any withdrawal during the contract year up to the GWB Annual withdrawal amount, even if such withdrawals exceed the free withdrawal amount. However, each withdrawal reduces the free withdrawal amount for that contract year by the amount of the withdrawal. Withdrawal charges are applied to the amount of the withdrawal that exceeds the GWB Annual withdrawal amount. The applicable free withdrawal amount percentage may be higher for certain contract owners, depending on when you purchased your contract. See Appendix IX later in this Prospectus for the free withdrawal amount that applies under your contract. CERTAIN WITHDRAWALS. If you elected the Guaranteed minimum income benefit and/or the Greater of 6% Roll-Up to age 85 or the annual ratchet to age 85 enhanced death benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6% of the beginning of contract year 6% to age 85 Roll-Up benefit base, even if such withdrawals exceed the free withdrawal amount. Also, a withdrawal charge does not apply to a withdrawal that exceeds 6% of the beginning of contract year 6% to age 85 Roll-Up benefit base as long as it does not exceed the free withdrawal amount. If your withdrawal exceeds the amount described above, this waiver is not applicable to that withdrawal, or to any subsequent withdrawal for the life of the contract. See Appendix IX later in this Prospectus to see if this waiver of the withdrawal charge applies under your contract. Charges and expenses 57 DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal charge also does not apply if: (i) The annuitant has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or (ii) We receive proof satisfactory to us (including certification by a licensed physician) that the annuitant's life expectancy is six months or less; or (iii) The annuitant has been confined to a nursing home for more than 90 days (or such other period, as required in your state) as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: -- its main function is to provide skilled, intermediate, or custodial nursing care; -- it provides continuous room and board to three or more persons; -- it is supervised by a registered nurse or licensed practical nurse; -- it keeps daily medical records of each patient; -- it controls and records all medications dispensed; and -- its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions as described in (i), (ii) or (iii) above existed at the time a contribution was remitted or if the condition that began within 12 months of the period following remittance. Some states may not permit us to waive the withdrawal charge in the above circumstances, or may limit the circumstances for which the withdrawal charge may be waived. Your financial professional can provide more information or you may contact our processing office. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elected the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. If you are an existing contract owner, the charge may be as much as 0.30% of the Annual Ratchet to age 85 benefit base. Please see Appendix IX later in this Prospectus or your contract for more information. GREATER OF 5% ROLL-UP TO AGE 85. If you elected this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.50% of the Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elected this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.60% of the greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. For certain contract owners, your charge may be less, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus or your contract for more information. 6% ROLL-UP TO AGE 85. If you elected the 6% Roll-Up to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.45% of the 6% Roll-Up to age 85 benefit base. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed interest account is permitted in your state) on a pro rata basis. If these amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply, depending on when you purchased your contract. See Appendix IX later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. There is no charge if you exercise the Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset option. STANDARD DEATH BENEFIT. There is no additional charge for the standard death benefit. GUARANTEED PRINCIPAL BENEFIT OPTION 2 If you purchased GPB Option 2, we deduct a charge annually from your account value on the first 10 contract date anniversaries. The charge is equal 0.50% of the account value. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct any remaining portion of the charge from amounts in any fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply, depending on when you purchased your 58 Charges and expenses contract. See Appendix IX later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. GUARANTEED MINIMUM INCOME BENEFIT (THE "LIVING BENEFIT") CHARGE If you elected the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option or the contract date anniversary after the annuitant reaches age 85, whichever occurs first. The charge is equal to 0.65% of the applicable benefit base in effect on the contract date anniversary. For certain contract owners, your charge may be less, depending on when you purchased your contract. Please see Appendix IX later in this Prospectus or your contract for more information. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. (See Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state.) If those amounts are still insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, pro rata deduction may not apply, depending on when you purchased your contract. See Appendix IX later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option, if available). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. There is no charge if you exercise the Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset option or for the Guaranteed minimum income benefit no lapse guarantee. This option is not available under all contracts. PROTECTION PLUS(SM) CHARGE If you elected Protection Plus(SM), we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.35% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If you are an existing contract owner, this pro rata deduction may not apply under your contract. See Appendix IX later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. PRINCIPAL PROTECTOR(SM) CHARGE If you elected Principal Protector(SM), we deduct a charge annually as a percentage of your account value on each contract date anniversary. If you elect the 5% GWB Annual withdrawal option, the charge is equal to 0.35%. If you elect the 7% GWB Annual withdrawal option, the charge is equal to 0.50%. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (See Appendix VIII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply, depending on when you purchased your contract. See Appendix IX later in this Prospectus for more information. If you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option we will not deduct a pro rata portion of the charge upon your death. However, the Principal Protector(SM) charge will continue. A market value adjustment will apply to deductions from the fixed maturity options. If your GWB benefit base falls to zero but your contract is still in force, the charge will be suspended as of the next contract date anniversary. The charge will be reinstated, as follows: (i) if you make a subsequent contribution, we will reinstate the charge that was in effect at the time your GWB benefit base became depleted, (ii) if you elect to exercise the Optional step up provision, we will reinstate a charge, as discussed immediately below, and (iii) if your beneficiary elects the Beneficiary continuation option and reinstates the Principal Protector(SM) benefit with a one time step up, we will reinstate the charge that was in effect when the GWB benefit base fell to zero. If your beneficiary elects the Beneficiary continuation option, and is eligible to continue Principal Protector(SM), the benefit and the charge will continue unless your beneficiary tells us to terminate the benefit at the time of election. OPTIONAL STEP UP CHARGE. Every time you elect the Optional step up, we reserve the right to raise the benefit charge at the time of the step up. The maximum charge for Principal Protector(SM) with a 5% GWB Annual withdrawal option is 0.60%. The maximum charge for Principal Protector(SM) with a 7% GWB Annual withdrawal amount option is Charges and expenses 59 0.80%. The increased charge, if any, will apply as of the next contract date anniversary following the step up and on all contract anniversaries thereafter. If you die and your beneficiary elects the Beneficiary continuation option, if available, a one time step up only (at no additional charge) is applicable. For more information on the Optional step up, one time step up and Automatic reset provisions, see "Principal Protector(SM)" in "Contract features and benefits." If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY ANNUITIZATION PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity annuitization payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to 12b-1 fees. If permitted under the terms of our exemptive order regarding Accumulator(R) Plus(SM) bonus feature, we may also change the crediting percentage that applies to contributions. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. 60 Charges and expenses 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designated your beneficiary when you applied for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) and any amount applicable under the Protection Plus(SM) feature, as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the annuitant's death, adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit is made. The account value used to determine the death benefit and Protection Plus(SM) benefit will first be reduced by the amount of any Credits applied in the one-year period prior to the annuitant's death. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. EFFECT OF THE ANNUITANT'S DEATH If the annuitant dies before the annuity payments begin, we will pay the death benefit to your beneficiary. Generally, the death of the annuitant terminates the contract. However, a surviving spouse who is the sole primary beneficiary of the deceased owner/annuitant can choose to be treated as the successor owner/annuitant and continue the contract. The Successor owner/ annuitant feature is only available under NQ and individually-owned IRA contracts. For NQ and all types of IRA contracts, a beneficiary may be able to have limited ownership as discussed under "Beneficiary continuation option" below. WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT Under certain conditions the owner changes after the original owner's death for purposes of receiving required distributions from the contract. When you are not the annuitant under an NQ contract and you die before annuity payments begin, unless you specify otherwise, the beneficiary named to receive the death benefit upon the annuitant's death will become the successor owner. If you do not want this beneficiary to be the successor owner, you should name a specific successor owner. You may name a successor owner at any time during your life by sending satisfactory notice to our processing office. If the contract is jointly owned and the first owner to die is not the annuitant, the surviving owner becomes the sole contract owner. This person will be considered the successor owner for purposes of the distribution rules described in this section. The surviving owner automatically takes the place of any other beneficiary designation. You should carefully consider the following if you have elected the Guaranteed minimum income benefit and you are the owner, but not the annuitant. Because the payments under the Guaranteed minimum income benefit are based on the life of the annuitant, and the federal tax law required distributions described below are based on the life of the successor owner, a successor owner who is not also the annuitant may not be able to exercise the Guaranteed minimum income benefit, if you die before annuity payments begin. Therefore, one year before you become eligible to exercise the Guaranteed minimum income benefit, you should consider the effect of your beneficiary designations on potential payments after your death. For more information, see "Exercise rules" under "Guaranteed minimum income benefit option" in "Contracts features and benefits" earlier in this Prospectus. Unless the surviving spouse of the owner who has died (or in the case of a joint ownership situation, the surviving spouse of the first owner to die) is the successor owner for this purpose, the entire interest in the contract must be distributed under the following rules: Payment of death benefit 61 o The cash value of the contract must be fully paid to the successor owner (new owner) within five years after your death (the "5-year rule"), or in a joint ownership situation, the death of the first owner to die. o If Principal Protector(SM) was elected and if the "5-year rule" is elected and the successor owner dies prior to the end of the fifth year, we will pay any remaining account value in a lump sum and the contract and any remaining GWB benefit base will terminate without value. The successor owner should consult with a tax adviser before choosing to use the "5-year rule." The GWB benefit base may be adversely affected if the successor owner makes any withdrawals that cause a GWB Excess withdrawal. Also, when the contract terminates at the end of 5 years, any remaining GWB benefit base would be lost. If you elected Principal Protector(SM), the successor owner has the option to terminate the benefit and charge upon receipt by us of due proof of death and notice to discontinue the benefit; otherwise, the benefit and charge will automatically continue. o The successor owner may instead elect to receive the cash value as a life annuity (or payments for a period certain of not longer than the successor owner's life expectancy). Payments must begin within one year after the non-annuitant owner's death. Unless this alternative is elected, we will pay any cash five years after your death (or the death of the first owner to die). o A successor owner should consider naming a new beneficiary. If the surviving spouse is the successor owner or joint owner, the spouse may elect to continue the contract. No distributions are required as long as the surviving spouse and annuitant are living. An eligible successor owner, including a surviving joint owner after the first owner dies, may elect the beneficiary continuation option for NQ contracts discussed later under "Beneficiary continuation option" below. HOW DEATH BENEFIT PAYMENT IS MADE We will pay the death benefit to the beneficiary in the form of the annuity payout option you have chosen. If you have not chosen an annuity payout option as of the time of the annuitant's death, the beneficiary will receive the death benefit in a single sum. Payment of the death benefit in a lump sum terminates all rights and any applicable guarantees under the contract, including Guaranteed minimum income benefit, GPB Options 1 and 2, and Principal Protector(SM). However, subject to any exceptions in the contract, our rules and any applicable requirements under federal income tax rules, the beneficiary may elect to apply the death benefit to one or more annuity payout options we offer at the time. See "Your annuity payout options" in "Accessing your money" earlier in this Prospectus. Please note that any annuity payout option chosen may not extend beyond the life expectancy of the beneficiary. SUCCESSOR OWNER AND ANNUITANT If you are both the contract owner and the annuitant, and your spouse is the sole primary beneficiary or the joint owner, then your spouse may elect to receive the death benefit or continue the contract as successor owner/annuitant. The successor owner/annuitant must be 85 or younger as of the date of the non-surviving spouse's death. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. If your surviving spouse decides to continue the contract, then as of the date we receive satisfactory proof of your death, any required instructions and information, and forms necessary to effect the Successor owner/annuitant feature, we will increase the account value to equal your elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than your account value, plus any amount applicable under the Protection Plus(SM) feature, and adjusted for any subsequent withdrawals. If any contributions are made during the one-year period prior to your death, the account value will first be reduced by any Credits applied to any such contributions. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. Thereafter, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. These additional contributions will be considered to be withdrawn only after all other amounts have been withdrawn. In determining whether your applicable guaranteed minimum death benefit option will continue to grow, we will use your surviving spouse's age as of the date we receive satisfactory proof of your death, any required instructions and the information and forms necessary to effect the successor owner/annuitant feature. We will determine whether your applicable Guaranteed minimum death benefit option will continue as follows: o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/annuitant was age 84 or younger at death, the Guaranteed minimum death benefit continues based upon the option that was elected by the original owner/annuitant and will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/annuitant was age 85 or older at death, we will reinstate the Guaranteed minimum death benefit that was elected by the original owner/annuitant. The benefit will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 76 or over on the date of the original owner/annuitant's death, the Guaranteed minimum death benefit will no longer grow, and we will no longer charge for the benefit. If you elected Principal Protector(SM), the benefit and charge will remain in effect. If the GWB benefit base is zero at the time of your death, and the charge has been suspended, the charge will be reinstated if any of the events, described in "Principal Protector (SM) charge" in "Charges and expenses" earlier in this Prospectus, occur. The GWB benefit base will not automatically be stepped up to equal the account value, if higher, 62 Payment of death benefit upon your death. Your spouse must wait five complete years from the prior step up or from contract issue, whichever is later, in order to be eligible for the Optional step up. For more information, see "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For information on the operation of the successor owner/annuitant feature with the Guaranteed minimum income benefit, see "Exercise of Guaranteed minimum income benefit" under "Guaranteed minimum income benefit option" in "Contract features and benefits," earlier in this Prospectus. For information on the operation of this feature with Protection Plus(SM), see "Protection Plus(SM)" in "Guaranteed minimum death benefit" under "Contract features and benefits," earlier in this Prospectus. SPOUSAL PROTECTION SPOUSAL PROTECTION OPTION FOR NQ CONTRACTS ONLY. This feature permits spouses who are joint contract owners to increase the account value to equal the guaranteed minimum death benefit, if higher, and by the value of any Protection Plus(SM) benefit, if elected, upon the death of either spouse. This account value "step up" occurs even if the surviving spouse was the named annuitant. If you and your spouse jointly own the contract and one of you is the named annuitant, you had the right to elect the Spousal protection option at the time you purchased your contract at no additional charge. Both spouses must have been between the ages of 20 and 70 at the time the contract was issued and must each have been named the primary beneficiary in the event of the other's death. The annuitant's age is generally used for the purpose of determining contract benefits. However, for the Annual Ratchet to age 85 and the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 guaranteed minimum death benefits and the Protection Plus(SM) benefit, the benefit is based on the older spouse's age. The older spouse may or may not be the annuitant. However, for purposes of the Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset option, the last age at which the benefit base may be reset is based on the annuitant's age, not the older spouse's age. If the annuitant dies prior to annuitization, the surviving spouse may elect to receive the death benefit, including the value of the Protection Plus(SM) benefit, or, if eligible, continue the contract as the sole owner/ annuitant by electing the successor owner/annuitant option. If the non-annuitant spouse dies prior to annuitization, the surviving spouse continues the contract automatically as the sole owner/annuitant. In either case, the contract would continue, as follows: o As of the date we receive due proof of the spouse's death, the account value will be reset to equal the Guaranteed minimum death benefit as of the date of the non-surviving spouse's death, if higher, increased by the value of the Protection Plus(SM) benefit. If the annuitant spouse dies, the account value will first be reduced by any Credits applied in the one-year period prior to the death of either spouse. o The Guaranteed minimum death benefit continues to be based on the older spouse's age for the life of the contract, even if the younger spouse is originally or becomes the sole owner/annuitant. o The Protection Plus(SM) benefit will now be based on the surviving spouse's age at the date of the non-surviving spouse's death for the remainder of the life of the contract. If the benefit had been previously frozen because the older spouse had attained age 80, it will be reinstated if the surviving spouse is age 75 or younger. The benefit is then frozen on the contract date anniversary after the surviving spouse reaches age 80. If the surviving spouse is age 76 or older, the benefit will be discontinued even if the surviving spouse is the older spouse (upon whose age the benefit was originally based). o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the successor owner/annuitant, if applicable. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If the annuitant dies first, withdrawal charges will no longer apply to any contributions made prior to the annuitant's death. If the non-annuitant spouse dies first, the withdrawal charge schedule remains in effect with regard to all contributions. o If you elected Principal Protector(SM), the benefit and charge will remain in effect. If your GWB benefit base is zero at the time of your death, and the charge had been suspended, the charge will be reinstated if any of the events, described in "Principal Protector(SM) charge" in "Charges and expenses" earlier in this Prospectus, occur. The GWB benefit base will not automatically be stepped up to equal the account value, if higher, upon your death. Your spouse must wait five complete years from the prior step up or from contract issue, whichever is later, in order to be eligible for the Optional step up. For more information, see "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. We will not allow Spousal protection to be added after contract issue. If there is a change in owner or primary beneficiary, the Spousal protection benefit will be terminated. If you divorce, but do not change the owner or primary beneficiary, Spousal protection continues. Depending on when you purchased your contract, this feature may not be available to you. See Appendix IX later in this Prospectus for more information about your contract. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to ben- Payment of death benefit 63 eficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state availability. Please speak with your financial professional or see Appendix VIII later in this Prospectus for further information. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit, if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature, adjusted for any subsequent withdrawals. If you die during the one-year period following our receipt of a contribution, the account value will first be reduced by any Credits applied to such contribution. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs')," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain circumstances) under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. See below for certain circumstances where Principal Protector(SM) may continue to apply. o The beneficiary may choose at any time to withdraw all or a portion of the account value and no withdrawal charges, if any, will apply. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. o If you had elected Principal Protector(SM), your spousal beneficiary may not continue Principal Protector(SM), and the benefit will terminate without value, even if the GWB benefit base is greater than zero. In general, spousal beneficiaries who wish to continue Principal Protector(SM) should consider continuing the contract under the Successor owner and annuitant feature, if eligible. In general, eligibility requires that your spouse must be the sole primary beneficiary. Please see "Successor owner and annuitant" in "How death benefit payment is made" under "Payment of death benefit" earlier in this Prospectus for further details. If there are multiple beneficiaries who elect the Beneficiary continuation option, the spousal beneficiary may continue the contract without Principal Protector(SM) and non-spousal beneficiaries may continue with Principal Protector(SM). In this case, the spouse's portion of the GWB benefit base will terminate without value. o If you had elected Principal Protector(SM), your non-spousal beneficiary may continue the benefit, as follows: o The beneficiary was 75 or younger on the original contract date. o The benefit and charge will remain in effect unless your beneficiary tells us to terminate the benefit at the time of the Beneficiary continuation option election. o One time step up: Upon your death, if your account value is greater than the GWB benefit base, the GWB benefit base will be automatically stepped up to equal the account value, at no additional charge. If Principal Protector(SM) is not in effect at the time of your death because the GWB benefit base is zero, the beneficiary may reinstate the benefit (at the charge that was last in effect) with the one time step up. If you die during the one-year period following our receipt of a contribution to which a Credit was applied, the account value will first be reduced by any Credits applied to such contribution before comparison with the GWB benefit base for purposes of any GWB benefit base step up. If the 64 Payment of death benefit beneficiary chooses not to reinstate the Principal Protector(SM) at the time the Beneficiary continuation option is elected, Principal Protector(SM) will terminate. o If there are multiple beneficiaries each beneficiary's interest in the GWB benefit base will be separately accounted for. o As long as the GWB benefit base is $5,000 or greater, the beneficiary may elect the Beneficiary continuation option and continue Principal Protector(SM) even if the account value is less than $5,000. o If scheduled payments are elected, the beneficiary's scheduled payments will be calculated, using the greater of the account value or the GWB benefit base, as of each December 31. If the beneficiary dies prior to receiving all payments, we will make the remaining payments to the person designated by the deceased non-spousal beneficiary, unless that person elects to take any remaining account value in a lump sum, in which case any remaining GWB benefit base will terminate without value. o If the "5-year rule" is elected and the beneficiary dies prior to the end of the fifth year, we will pay any remaining account value in a lump sum and the contract and any remaining GWB benefit base will terminate without value. o Provided no other withdrawals are taken during a contract year while the beneficiary receives scheduled payments, the scheduled payments will not cause a GWB Excess withdrawal, even if they exceed the GWB Annual withdrawal amount. If the beneficiary takes any other withdrawals while the Beneficiary continuation option scheduled payments are in effect, the GWB Excess withdrawal exception terminates permanently. In order to take advantage of this exception, the beneficiary must elect the scheduled payments rather than the "5-year rule." If the beneficiary elects the "5-year rule," there is no exception. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACT ONLY. This feature, also known as the Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. If the owner and annuitant are different and the owner dies before the annuitant, for purposes of this discussion, "beneficiary" refers to the successor owner. For a discussion of successor owner, see "When an NQ contract owner dies before the annuitant" earlier in this section. This feature must be elected within 9 months following the date of your death and before any inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts (regardless of whether the owner and the annuitant are the same person): o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain circumstances) under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. See below for certain circumstances where Principal Protector(SM) may continue to apply. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. o If you had elected Principal Protector(SM), your spousal beneficiary may not continue Principal Protector(SM), and the benefit will terminate without value, even if the GWB benefit base is greater than zero. In general, spousal beneficiaries who wish to continue Princi- Payment of death benefit 65 pal Protector(SM) should consider continuing the contract under the Successor owner and annuitant feature, if eligible. In general, eligibility requires that you must be the owner and annuitant and your spouse must be the sole primary beneficiary. Please see "Successor owner and annuitant" in "How death benefit payment is made" under "Payment of death benefit" earlier in this Prospectus for further details. If there are multiple beneficiaries who elect the Beneficiary continuation option, the spousal beneficiary may continue the contract without Principal Protector(SM) and non-spousal beneficiaries may continue with Principal Protector(SM). In this case, the spouse's portion of the GWB benefit base will terminate without value. o If the non-spousal beneficiary chooses scheduled payments under "Withdrawal Option 1," as discussed above in this section, Principal Protector(SM) may not be continued and will automatically terminate without value even if the GWB benefit base is greater than zero. o If you had elected Principal Protector(SM), your non-spousal beneficiary may continue the benefit, as follows: o The beneficiary was 75 or younger on the original contract date. o The benefit and charge will remain in effect unless your beneficiary tells us to terminate the benefit at the time of the Beneficiary continuation option election. o One time step up: Upon your death, if your account value is greater than the GWB benefit base, the GWB benefit base will be automatically stepped up to equal the account value, at no additional charge. If Principal Protector(SM) is not in effect at the time of your death because the GWB benefit base is zero, the beneficiary may reinstate the benefit (at the charge that was last in effect) with the one time step up. If you die during the one-year period following our receipt of a contribution to which a Credit was applied, the account value will first be reduced by any Credits applied to such contribution before comparison with the GWB benefit base for purposes of any GWB benefit base step up. If the beneficiary chooses not to reinstate the Principal Protector(SM) at the time the Beneficiary continuation option is elected, Principal Protector(SM) will terminate. o If there are multiple beneficiaries, each beneficiary's interest in the GWB benefit base will be separately accounted for. o As long as the GWB benefit base is $5,000 or greater, the beneficiary may elect the Beneficiary continuation option and continue Principal Protector(SM) even if the account value is less than $5,000. o If scheduled payments under "Withdrawal Option 2" is elected, the beneficiary's scheduled payments will be calculated using the greater of the account value or the GWB benefit base, as of each December 31. If the beneficiary dies prior to receiving all payments, we will make the remaining payments to the person designated by the deceased non-spousal beneficiary, unless that person elects to take any remaining account value in a lump sum, in which case any remaining GWB benefit base will terminate without value. o If the "5-year rule" is elected and the beneficiary dies prior to the end of the fifth year, we will pay any remaining account value in a lump sum and the contract and any remaining GWB benefit base will terminate without value. o Provided no other withdrawals are taken during a contract year while the beneficiary receives scheduled payments, the scheduled payments will not cause a GWB Excess withdrawal, even if they exceed the GWB Annual withdrawal amount. If the beneficiary takes any other withdrawals while the Beneficiary continuation option scheduled payments are in effect, the GWB Excess withdrawal exception terminates permanently. In order to take advantage of this exception, the beneficiary must elect scheduled payments under "Withdrawal Option 2" rather than the "5-year rule." If the beneficiary elects the "5-year rule," there is no exception. If you are both the owner and annuitant: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the annuity account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature, adjusted for any subsequent withdrawals. If you die during the one-year period following our receipt of a contribution, the account value will first be reduced by any Credits applied to such contribution. o No withdrawal charges, if any, will apply to any withdrawals by the beneficiary. If the owner and annuitant are not the same person: o If the beneficiary continuation option is elected, the beneficiary automatically becomes the new annuitant of the contract, replacing the existing annuitant. o The annuity account value will not be reset to the death benefit amount. o The contract's withdrawal charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments; the contract's free corridor amount will continue to apply to withdrawals but does not apply to surrenders. o We do not impose a withdrawal charge on scheduled payments except if, when added to any withdrawals previously taken in the same contract year, including for this purpose a contract surrender, the total amount of withdrawals and scheduled payments exceed the free corridor amount. See the "Withdrawal charges" in "Charges and expenses" earlier in this Prospectus. If a contract is jointly owned: o The surviving owner supersedes any other named beneficiary and may elect the beneficiary continuation option. o If the deceased joint owner was also the annuitant, see "If you are both the owner and annuitant" earlier in this section. o If the deceased joint owner was not the annuitant, see "If the owner and annuitant are not the same person" earlier in this section. 66 Payment of death benefit 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Plus(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Plus'(SM) extra credit on each contribution, choice of death benefits, the Principal Protector(SM) benefit, the Guaranteed minimum income benefit, guaranteed interest option, fixed maturity options, selection of variable investment options and its choices of payout options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, the guaranteed minimum income benefit and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG VARIABLE INVESTMENT OPTIONS You can make transfers among variable investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. Tax information 67 ANNUITY PAYMENTS Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your "investment in the contract." Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. PROTECTION PLUS(SM) FEATURE In order to enhance the amount of the death benefit to be paid at the Annuitant's death, you may have purchased a Protection Plus(SM) rider for your NQ contract. Although we regard this benefit as an investment protection feature which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Protection Plus(SM) rider is not part of the contract. In such a case, the charges for the Protection Plus(SM) rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable, and for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, Equitable would take all reasonable steps to attempt to avoid this result which could include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES The following information applies if you purchased your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that was the source of the funds you used to purchase the NQ contract was another nonqualified deferred annuity contract or life insurance or endowment contract. o the owner and the annuitant were the same under the source contract and the Accumulator(R) Plus(SM) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must have been the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carried over to the Accumulator(R) Plus(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between the carriers, and provision of cost basis information may be required to process this type of exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. Beneficiary continuation option We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for NQ contracts. See the discussion "Beneficiary continuation option for NQ contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2;" o scheduled payments, any additional withdrawals under "Withdrawal Option 2," or contract surrenders under "Withdrawal Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the Withdrawal Option selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling specifically does not address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether 68 Tax information scheduled payments or any withdrawal that might be taken). The ruling also does not address the effect of the retention of the Principal Protector(SM) feature discussed earlier in this Prospectus under "Contract features and benefits," which a non-spousal beneficiary may elect under certain conditions. Before electing the beneficiary continuation option feature, the individuals you designate as beneficiary or successor owner should discuss with their tax advisers the consequences of such elections. The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Accounts 45 and 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Accounts 45 and 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Accounts 45 and 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets funding the account for the benefit of the IRA owner. The assets typically can include mutual funds and/or individual stocks and/or securities in a custodial account, and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral, regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may have purchased the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We currently do not offer traditional IRA contracts for use as employer-funded SEP-IRA or SIMPLE IRA plans, although we may do so in the future. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). For some of the contracts covered by this Prospectus, we have received an opinion letter from the IRS approving the respective forms of the Accumulator(R) Plus(SM) traditional and Roth IRA contracts for use as a traditional IRA and a Roth IRA, respectively. For others, we have not applied for an opinion letter from the IRS to approve the respective forms of the Accumulator(R) Plus(SM) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. We have submitted the respective forms of the Accumulator(R) Plus(SM) Inherited IRA beneficiary continuation contract to the IRS for approval as to form for use as a traditional IRA or Roth IRA, respectively. We do not know if and when any such approval may be granted. This IRS approval is a determina- Tax information 69 tion only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under any series of Accumulator(R) Plus(SM) traditional and Roth IRA contracts. Your right to cancel within a certain number of days This is provided for informational purposes only. Since this contract is no longer available to new purchasers, this cancellation provision is no longer applicable. You can cancel either type of Accumulator(R) Plus(SM) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel within a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation would have an unfavorable tax impact. Traditional individual retirement annuities (traditional IRAs) Contributions to traditional IRAs. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). Regular contributions to traditional IRAs Limits on contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch up contributions" of up to $1,000 to your traditional IRA. Special rules for spouses. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. Deductibility of contributions. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored-tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions." That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments applied to the income limits to deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose 70 Tax information spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted ---------------------- x regular = deductible divided by $10,000 contribution contribution for the year limit Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000 ($53,000 after cost of living indexing adjustment for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution, and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. Nondeductible regular contributions. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. When you can make regular contributions. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. Rollover and transfer contributions to traditional IRAs Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. Rollovers from "eligible retirement plans" other than traditional IRAs Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. Tax information 71 All distributions from a qualified plan, 403(b) plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for record keeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Rollovers from traditional IRAs to traditional IRAs You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. Excess contributions Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contribution amount for the applicable taxable year); or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. Recharacterizations Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. 72 Tax information Withdrawals, payments and transfers of funds out of traditional IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Taxation of payments. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a TSA or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, TSA or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. Required minimum distributions BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts. If you take annual withdrawal instead of annuitizing, please consult your tax adviser concerning applicability of these complex rules to your situation. Lifetime required minimum distributions. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. When you have to take the first lifetime required minimum distribution. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year--the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. How you can calculate required minimum distributions. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional Tax information 73 IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. Do you have to pick the same method to calculate your required minimum distributions for all of your traditional IRAs and other retirement plans? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. Will we pay you the annual amount every year from your traditional IRA based on the method you choose? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. What if you take more than you need to for any year? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. What if you take less than you need to for any year? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. What are the required minimum distribution payments after you die? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. Individual beneficiary. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. Spousal beneficiary. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. Non-individual beneficiary. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. 74 Tax information Successor owner and annuitant If your spouse is the sole primary beneficiary and elects to become the successor owner and annuitant, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. Payments to a beneficiary after your death IRA death benefits are taxed the same as IRA distributions. Borrowing and loans are prohibited transactions You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. Early distribution penalty tax A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special federal income tax definition); or o used to pay medical insurance premiums for unemployed individuals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special federal income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies using an IRS-approved distribution method. To meet this last exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" above. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under this option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. Roth individual retirement annuities (Roth IRAs) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Plus(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. Contributions to Roth IRAs Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRA or other eligible retirement plans ("conversion rollover" contributions); or o tax-free rollover contributions from other Roth individual retirement arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. Regular contributions to Roth IRAs Limits on regular contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions totaling of up to $1,000. Tax information 75 With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. When you can make contributions. Same as traditional IRAs. Deductibility of contributions. Roth IRA contributions are not tax deductible. Rollovers and direct transfers What is the difference between rollover and direct transfer transactions? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only use rollover transactions between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Conversion rollover contributions to Roth IRAs In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA-whether or not it is the traditional IRA you are converting a pro rata portion of the distribution is tax free. Even if you are under age 591/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) 76 Tax information You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately". You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. How to recharacterize. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. Distributions from Roth IRAs Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or Tax information 77 o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contributions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. Required minimum distributions during life Lifetime required minimum distributions do not apply. Required minimum distributions at death Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming the Required Beginning Date. Payments to a beneficiary after your death Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. Borrowing and loans are prohibited transactions Same as traditional IRA. Excess contributions Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. Early distribution penalty tax Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and 78 Tax information operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) PLUS(SM) TSA CONTRACT Because the Accumulator(R) Plus(SM0 TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Plus(SM0 TSA contract are extremely limited as described below. Accumulator(R) Plus(SM0 TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the 403(b) annuity contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Plus(SM0 TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Plus(SM0 TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Plus(SM0 TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) PlusSM Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: Tax information 79 o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) annuity contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) Plus(SM) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. EDGAR PASSTHROUGH ERROR WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Plus(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. 80 Tax information TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Plus(SM) Rollover TSA contract, we do not track your investment in the contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Plus(SM) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated Tax information 81 as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Plus(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Plus(SM) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). 82 Tax information FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribution from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or Tax information 83 o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. 84 Tax information 8. More information - -------------------------------------------------------------------------------- ABOUT SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of the Separate Account's operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Account invests solely in class IB/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from the Separate Account, or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in the prospectuses for each Trust, which generally accompany this Prospectus, or in their respective SAIs which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below: - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 - -------------------------------------------------------------------------------- More information 85 - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2013 3.00%* $ 86.25 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - -------------------------------------------------------------------------------- * Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw any of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMOs maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. Any withdrawal charges that are deducted from a fixed maturity option will result in a market value adjustment calculated in the same way. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined by using a widely-published Index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, guaranteed interest option and fixed maturity options as well as our general obligations. Credits allocated to your account value are funded from our general account. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is 86 More information not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accepted the wire order and essential information, a contract generally was not issued until we received and accepted a properly completed application. In certain cases, we may have issued a contract based on information provided through certain broker-dealers with whom we have established electronic facilities. In any such cases, you must have signed our Acknowledgement of Receipt form. Where we required a signed application, the above procedures did not apply and no financial transactions were permitted until we received the signed application and issued the contract. Where we issued a contract based on information provided through electronic facilities, we required an Acknowledgement of Receipt form. Financial transactions were only permitted if you requested them in writing, signed the request and had it signature guaranteed, until we received the signed Acknowledgement of Receipt form. After a contract is issued, additional contributions are allowed by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, QP, or Rollover TSA contracts, nor is it available with GPB Option 2. Please see Appendix VIII later in this Prospectus to see if the automatic investment program is available in your state. The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day; - on a non-business day: - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your More information 87 broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS, CREDITS, AND TRANSFERS o Contributions and credits allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions and credits allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions and credits allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in the prospectus for each Trust or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustees or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. One result of proportional voting is that a small number of contract owners may control the outcome of a vote. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or the distribution of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive written notification of any change at our processing office. You cannot assign your NQ contract as collateral or security for a loan. Loans are also not available under your NQ contract. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. 88 More information For NQ contracts only, subject to regulatory approval, if you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, Protection Plus(SM) death benefit, Guaranteed principal benefit option 2 and/or the Principal Protector(SM) ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. For certain contract owners, this restriction may not apply to you, depending on when you purchased your contract. See Appendix IX later in this Prospectus for more information. However, the Benefit will not terminate if the ownership of the contract is transferred to: (i) a family member (as defined in the contract); (ii) a trust created for the benefit of a family member or members; (iii) a trust qualified under section 501(c) of the Internal Revenue Code; or (iv) a successor by operation of law, such as an executor or guardian. Please speak with your financial professional for further information. See Appendix VIII later in this Prospectus for any state variations with regard to terminating any benefits under your contract. You cannot assign or transfer ownership of a Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available (except for Rollover TSA contracts) and you cannot assign Rollover IRA, Roth Conversion IRA and QP contracts as security for a loan or other obligation. If the employer that provided the funds does not restrict them, loans are available under a Rollover TSA contract. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract to another similar arrangement under federal income tax rules. In the case of such a transfer, we will impose a withdrawal charge, if one applies. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 0.60% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 6.75% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker- dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset- More information 89 based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) PlusSM on a company and\or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and\or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. 90 More information 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa-equitable.com. Incorporation of certain documents by reference 91 Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account No. 49 with the same daily asset charges of 1.50%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.19 $ 14.52 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 23,792 22,907 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.86 $ 11.39 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,705 7,544 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.51 $ 12.04 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 20,000 19,344 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.22 $ 12.63 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 85,730 84,073 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.58 $ 13.91 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 111,034 104,098 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.02 $ 13.76 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 18,987 21,038 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.81 $ 10.27 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,139 3,263 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.81 $ 18.00 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 12,039 10,530 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.75 $ 12.25 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,186 3,308 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.03 $ 10.71 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,434 6,212 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.37 $ 14.25 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,401 5,108 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.27 $ 15.18 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 29,046 19,714 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.04 $ 11.34 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 643 565 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.17 $ 10.98 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,083 3,527 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.51 $ 11.75 $ 10.67 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 13,134 5,787 212 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.87 $ 10.77 $ 10.31 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,980 2,987 213 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.24 $ 11.05 $ 10.41 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 14,424 6,175 444 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.62 $ 11.26 $ 10.51 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 66,161 30,895 2,029 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.34 $ 11.74 $ 10.67 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 66,976 23,331 995 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.62 $ 12.28 $ 10.93 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 18,381 10,684 698 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.11 $ 10.14 $ 10.10 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,914 2,082 216 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.80 $ 13.03 $ 11.19 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,171 2,946 147 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.51 $ 11.05 $ 10.35 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,395 987 80 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.47 $ 10.42 $ 10.20 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,266 2,713 207 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.27 $ 12.08 $ 10.76 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,772 2,272 157 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.69 $ 12.22 $ 10.94 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 14,454 7,621 544 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.36 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 149 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.99 $ 10.37 $ 10.16 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,846 958 32 - ------------------------------------------------------------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.32 $ 14.37 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 10,153 10,040 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.51 $ 17.98 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,808 10,173 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.84 $ 6.70 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,418 10,601 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.13 $ 11.89 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 748 778 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.32 $ 11.86 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,097 2,829 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.53 $ 13.51 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 11,133 4,660 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.18 $ 11.05 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,432 2,907 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.08 $ 10.84 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,531 815 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.09 $ 13.63 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 16,275 16,937 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.69 $ 9.93 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,771 2,213 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.20 $ 12.04 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,342 2,163 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.87 $ 14.92 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 11,622 11,897 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.48 $ 10.42 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,720 2,190 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.73 $ 10.82 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 511 327 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.51 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,859 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.81 $ 11.60 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,544 2,148 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 28.78 $ 26.74 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,742 2,995 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.06 $ 11.90 $ 10.92 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,863 6,079 371 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.52 $ 13.30 $ 11.10 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,184 2,381 55 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.86 $ 5.61 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,594 538 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.47 $ 10.71 $ 10.49 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 570 333 6 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.21 $ 10.82 $ 10.41 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,697 464 83 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.24 $ 11.72 $ 10.72 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,062 2,784 143 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.39 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,183 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.02 $ 11.69 $ 10.77 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 14,502 8,691 620 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.75 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 228 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.54 $ 11.27 $ 10.69 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,383 1,795 120 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.58 $ 12.96 $ 11.34 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,581 5,395 415 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.49 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 749 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 22.84 $ 22.23 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,015 190 -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.24 $ 16.95 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,196 7,597 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.27 $ 14.22 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,647 1,341 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.96 $ 10.80 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 18,138 17,343 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.15 $ 14.55 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,712 1,785 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.94 $ 13.63 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,258 1,278 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.75 $ 12.95 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,292 2,120 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.37 $ 11.19 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,207 3,427 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.60 $ 10.02 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,861 2,606 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.46 $ 12.22 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,178 2,458 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.77 $ 11.71 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,237 1,013 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.22 $ 12.33 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,635 4,143 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.19 $ 13.52 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 21,594 22,005 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.10 $ 15.58 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,736 10,619 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.62 $ 10.29 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 10,650 9,565 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.77 $ 4.85 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,353 2,170 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.72 $ 10.70 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,106 1,152 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.54 $ 11.09 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 979 270 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.43 $ 12.51 $ 11.18 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,867 3,446 181 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.49 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 371 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.53 $ 10.46 $ 10.20 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 13,723 6,436 460 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.27 $ 11.98 $ 10.97 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,359 815 68 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.25 $ 11.60 $ 10.57 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,164 742 69 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.20 $ 11.36 $ 10.24 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,605 800 49 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.64 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 614 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.99 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,556 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.59 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 807 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.55 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 534 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.14 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,560 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.56 $ 11.51 $ 10.58 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 14,932 7,104 642 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.06 $ 12.83 $ 11.05 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,875 4,167 314 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.00 $ 9.89 $ 9.97 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,802 5,781 1,312 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 4.56 $ 4.39 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,829 144 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.13 $ 10.93 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 516 144 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.73 $ 11.09 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 681 155 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.78 $ 9.81 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,876 8,347 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.59 $ 10.21 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,196 979 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.31 $ 14.80 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,443 5,853 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.95 $ 16.05 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,969 1,017 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.81 $ 10.75 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,461 1,003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.15 $ 6.17 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,065 4,330 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.42 $ 11.89 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,774 3,972 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 34.57 $ 24.71 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 10,658 10,717 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.04 $ 13.30 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,601 2,056 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.28 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 15,751 -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.26 $ 13.00 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,381 1,606 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.16 $ 10.66 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,539 8,806 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.70 $ 12.76 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,087 5,093 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.66 $ 12.46 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 12,794 13,219 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.28 $ 18.32 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,567 6,780 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.92 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,644 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.97 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 400 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.76 $ 12.43 $ 10.72 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,236 2,712 208 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.98 $ 16.58 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 847 92 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.49 $ 5.11 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,805 140 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.42 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,952 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.31 $ 14.00 $ 11.49 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,390 2,669 209 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.36 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 845 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.55 $ 11.78 $ 10.67 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,049 658 70 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.43 $ 10.41 $ 10.17 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,189 4,559 446 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.32 $ 11.70 $ 10.59 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,781 2,001 124 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.51 $ 11.34 $ 10.59 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 11,372 6,690 712 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.84 $ 13.05 $ 11.24 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,388 2,692 191 - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.91 $ 13.45 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,897 1,702 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.57 $ 11.47 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,887 3,872 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.80 $ 15.48 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,644 6,667 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.73 $ 13.36 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,518 4,590 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.70 $ 14.91 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,244 4,683 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.87 $ 8.69 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,997 5,187 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.21 $ 14.88 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,631 11,213 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.38 $ 12.35 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,318 4,306 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.02 $ 11.43 $ 10.58 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,464 886 108 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.64 $ 10.99 $ 10.46 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,154 1,909 136 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.17 $ 12.48 $ 11.07 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,853 2,322 116 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.38 $ 11.59 $ 10.53 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,750 2,441 274 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.19 $ 12.48 $ 11.00 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,833 2,655 288 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.00 $ 7.56 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,774 91 -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.01 $ 12.61 $ 10.94 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,487 5,755 337 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.69 $ 10.66 $ 10.31 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,246 1,826 104 - ------------------------------------------------------------------------------------------------------------------------------------
A-5 Appendix I: Condensed financial information The unit values and number of units outstanding shown below are for contracts offered under Separate Account No. 49 with the same daily asset charges of 1.40%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.76 $ 13.15 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,174 3,354 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.37 $ 10.90 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,948 1,738 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.80 $ 11.34 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,876 2,715 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 51.61 $ 49.25 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,097 7,277 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.24 $ 12.62 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 18,918 14,805 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $268.31 $ 262.99 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 602 722 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.80 $ 18.80 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,012 4,496 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.17 $ 18.31 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,075 7,944 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.83 $ 6.96 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,231 7,957 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.77 $ 16.27 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,254 5,875 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.80 $ 18.08 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,176 4,668 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.81 $ 17.87 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 26,898 20,566 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.07 $ 11.36 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 166 157 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.95 $ 10.75 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,129 1,575 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 24.01 $ 24.06 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,226 7,155 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 24.76 $ 22.79 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,376 6,439 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.31 $ 10.61 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,256 1,088 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.39 $ 10.29 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,282 801 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.58 $ 10.39 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,129 1,570 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 45.28 $ 43.82 $ 40.88 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,819 7,909 6,360 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.18 $ 10.63 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,443 5,246 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 240.95 $ 234.29 $ 208.22 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 838 942 814 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.49 $ 18.52 $ 18.42 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,175 5,829 6,022 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.04 $ 13.23 $ 11.35 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,041 7,600 6,792 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.10 $ 6.27 $ 5.86 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,965 8,590 8,430 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.90 $ 15.80 $ 15.45 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,473 7,011 7,296 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.82 $ 15.30 $ 13.61 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,243 5,878 5,936 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.93 $ 14.36 $ 12.84 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 21,943 23,412 21,328 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.36 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 63 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.75 $ 10.14 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,005 774 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.18 $ 19.88 $ 18.24 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,988 9,113 8,213 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.39 $ 16.83 $ 14.03 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,535 6,084 5,257 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2002 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 34.80 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,307 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 141.20 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 112 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.29 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,463 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.52 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,026 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 4.83 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,607 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.13 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,167 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.80 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,577 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.11 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,924 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.10 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,399 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.11 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,712 - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-6
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.90 $ 6.75 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,508 3,452 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.96 $ 9.01 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 793 885 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.57 $ 13.05 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,022 2,154 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.05 $ 13.02 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 16,864 6,926 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.21 $ 11.06 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 726 626 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.09 $ 10.85 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,370 414 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 30.81 $ 29.78 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,846 10,152 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.71 $ 9.94 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,650 604 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.75 $ 8.89 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,548 2,818 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.65 $ 12.82 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 12,038 13,979 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.49 $ 10.43 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,642 1,197 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.75 $ 10.82 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 265 120 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.51 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,530 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.85 $ 11.62 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 903 738 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 29.36 $ 27.24 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,218 640 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.43 $ 14.47 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,442 8,727 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.32 $ 14.24 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,188 436 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.90 $ 5.64 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,461 780 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.68 $ 8.10 $ 7.93 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 933 1,019 964 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.32 $ 11.89 $ 11.43 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,074 2,253 2,284 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.78 $ 11.27 $ 10.30 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,742 8,947 8,367 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.39 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 277 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 26.24 $ 25.49 $ 23.45 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 11,790 13,022 12,430 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.75 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 48 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.51 $ 8.30 $ 7.87 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,403 4,201 3,589 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.66 $ 11.11 $ 9.71 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 16,419 17,707 16,254 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.50 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 348 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 23.25 $ 22.60 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 626 173 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.30 $ 10.65 $ 9.51 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,574 10,189 8,648 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.49 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 65 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2002 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.28 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 208 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.35 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 762 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.95 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,246 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.61 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,667 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.77 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 625 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.86 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,145 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.27 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,957 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------
A-7 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.50 $ 14.27 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 14,294 15,682 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.57 $ 15.99 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,426 3,983 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.79 $ 10.54 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,371 3,928 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.12 $ 15.02 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,206 1,899 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.39 $ 11.20 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 692 1,110 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.63 $ 10.03 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,010 1,060 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.49 $ 12.24 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 678 1,083 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.80 $ 11.73 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 391 339 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.25 $ 12.35 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,256 1,071 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.43 $ 16.39 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 16,976 19,097 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.95 $ 17.47 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,165 11,353 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 29.97 $ 29.03 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,210 2,668 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.82 $ 4.89 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,244 389 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.73 $ 10.71 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,652 565 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.56 $ 11.09 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 647 205 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.14 $ 10.93 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 153 84 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.75 $ 11.10 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 327 49 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.90 $ 13.79 $ 13.44 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 17,324 17,843 18,211 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.47 $ 13.15 $ 12.02 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,419 4,753 4,353 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.46 $ 8.95 $ 8.15 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,535 4,946 4,865 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.13 $ 13.14 $ 11.84 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,081 2,192 2,043 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.64 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 315 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.00 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 420 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.59 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 171 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.56 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 153 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.14 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 890 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.21 $ 13.93 $ 12.78 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 20,640 21,440 20,675 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.75 $ 14.35 $ 12.35 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 12,611 12,978 12,257 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 28.17 $ 27.84 $ 28.02 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,307 2,473 4,639 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 4.59 $ 4.42 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 525 46 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2002 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.19 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,930 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.62 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,383 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.77 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,329 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.28 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 538 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.89 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,362 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.40 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,007 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 28.26 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,457 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-8
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 2005 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.80 $ 9.83 $ 9.93 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,804 2,107 1,434 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.62 $ 10.23 $ 9.98 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 633 497 245 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.51 $ 17.06 $ 14.70 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,494 5,392 5,841 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.29 $ 16.36 $ 17.28 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,373 159 231 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.83 $ 10.76 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 963 388 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.21 $ 6.22 $ 5.53 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 629 633 450 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.45 $ 11.91 $ 10.42 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 891 977 630 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 26.27 $ 18.76 $ 13.88 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,000 8,412 8,800 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.08 $ 13.33 $ 12.37 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,604 553 471 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen US Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.28 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,859 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 64.81 $ 59.02 $ 56.94 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 259 312 369 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.02 $ 11.47 $ 11.21 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 15,088 17,031 18,544 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.95 $ 12.05 $ 11.63 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 4,337 4,980 5,547 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 32.70 $ 32.16 $ 29.67 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,056 5,779 6,491 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.73 $ 16.90 $ 13.68 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,534 6,183 6,014 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.73 $ 12.30 $ 10.98 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,600 4,067 4,576 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.54 $ 9.61 $ 9.74 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,322 8,795 9,386 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.30 $ 12.32 $ 8.57 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,730 6,188 1,437 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.85 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 37 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.15 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 41 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.60 $ 8.69 $ 5.66 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,052 5,307 1,261 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen US Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 53.37 $ 48.29 $ 35.61 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 391 352 65 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.18 $ 10.91 $ 10.67 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 20,725 21,868 7,979 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.03 $ 9.97 $ 7.89 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,832 5,004 1,289 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 29.19 $ 27.25 $ 22.55 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,606 7,467 1,128 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.01 $ 10.33 $ 7.80 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,557 5,137 1,360 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.44 $ 9.65 $ 7.64 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,046 4,778 1,529 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.19 $ 8.74 $ 6.78 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 10,463 9,505 2,593 - ------------------------------------------------------------------------------------------------------------------------------------
A-9 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.63 $ 14.32 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,330 8,778 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.03 $ 10.90 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,344 9,978 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.70 $ 13.89 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,493 8,053 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.95 $ 8.76 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,926 1,478 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.40 $ 19.58 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 7,409 9,327 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.32 $ 10.57 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,764 5,828 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.17 $ 11.53 $ 10.22 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,367 9,747 8,731 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.09 $ 9.44 $ 8.57 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 11,279 12,924 12,264 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.28 $ 11.60 $ 10.21 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8,958 10,507 9,465 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.06 $ 7.60 -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,311 67 -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.10 $ 16.57 $ 14.35 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 10,810 12,065 10,965 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.99 $ 9.11 $ 8.90 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,644 7,471 3,799 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ---------------------------------------------------- 2002 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.90 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,676 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.20 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,087 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.37 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 2,371 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.59 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,006 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.66 - ------------------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,127 - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-10 Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- This information is provided for historical purposes only. This contract is no longer available to new purchasers. Trustees who are considering the purchase of an Accumulator(R) Plus(SM) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) Plus(SM) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) Plus(SM) QP contract to fund a plan for the contract's features and benefits other than tax deferral, after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. We will not accept defined benefit plans. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or other contributions from the employer. For 401(k) plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge and/or market value adjustment may apply. AXA Equitable will not perform or provide any plan record keeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for participants after age 70-1/2, trustees should consider: o whether required minimum distributions under QP contracts would cause withdrawals in excess of 6% of the Guaranteed minimum income benefit Roll-Up benefit base; o that provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed from the contract; and o that if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, payments will be made to the trustee. Finally, because the method of purchasing the QP contract, including the large initial contribution and the features of the QP contract may appeal more to plan participants who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisors whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. B-1 Appendix II: Purchase considerations for QP contracts Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00% ("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a).
- ------------------------------------------------------------------------------------------------------- Hypothetical assumed rate to maturity ("j" in the calculations below) February 15, 2012 --------------------------- 5.00% 9.00% - ------------------------------------------------------------------------------------------------------- As of February 15, 2012 before withdrawal - ------------------------------------------------------------------------------------------------------- (1) Market adjusted amount(b) $141,389 $121,737 - ------------------------------------------------------------------------------------------------------- (2) Fixed maturity amount(c) $131,104 $131,104 - ------------------------------------------------------------------------------------------------------- (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ------------------------------------------------------------------------------------------------------- On February 15, 2012 after $50,000 withdrawal - ------------------------------------------------------------------------------------------------------- (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ------------------------------------------------------------------------------------------------------- (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ------------------------------------------------------------------------------------------------------- (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ------------------------------------------------------------------------------------------------------- (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ------------------------------------------------------------------------------------------------------- (8) Maturity value(d) $111,099 $101,287 - -------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ where j is either 5% or 9% (1+j)(1,461/365) (1+j)(D/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ________________ = ___________________ (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) x (1+0.07)(1,461/365)
Appendix III: Market value adjustment example C-1 Appendix IV: Enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the enhanced death benefit, if elected. The following illustrates the enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option or the fixed maturity options or the Special 10 year fixed maturity option), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the enhanced death benefit for an annuitant age 45 would be calculated as follows: - -------------------------------------------------------------------------------- End of 6% Roll-Up to contract age 85 Annual Ratchet to age 85 year Account value benefit base(1) benefit base - -------------------------------------------------------------------------------- 1 $105,000 $ 106,000(1) $ 105,000(3) - -------------------------------------------------------------------------------- 2 $115,500 $ 112,360(2) $ 115,500(3) - -------------------------------------------------------------------------------- 3 $129,360 $ 119,102(2) $ 129,360(3) - -------------------------------------------------------------------------------- 4 $103,488 $ 126,248(1) $ 129,360(4) - -------------------------------------------------------------------------------- 5 $113,837 $ 133,823(1) $ 129,360(4) - -------------------------------------------------------------------------------- 6 $127,497 $ 141,852(1) $ 129,360(4) - -------------------------------------------------------------------------------- 7 $127,497 $ 150,363(1) $ 129,360(4) - -------------------------------------------------------------------------------- The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. 6% ROLL-UP TO AGE 85 (1) At the end of contract years 1 and 4 through 7, the 6% Roll-Up to age 85 enhanced death benefit is greater than the current account value. (2) At the end of contract years 2 and 3, the 6% Roll-Up to age 85 enhanced death benefit is equal to the current account value. ANNUAL RATCHET TO AGE 85 (3) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (4) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. GREATER OF 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown is the greater of the amounts shown under the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. D-1 Appendix IV: Enhanced death benefit example Appendix V: Hypothetical Illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85" Guaranteed minimum death benefit, the Protection Plus(SM) benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Plus(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single$100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying Portfolios (as described below), the corresponding net annual rates of return would be (2.73)%, 3.27% for the Accumulator(R) Plus(SM) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges but they do not reflect the charges we deduct from your account value annually for the optional Guaranteed minimum death benefit, Protection Plus(SM) benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return would be lower; however, the values shown in the following tables reflect the following contract charges: the "Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85" Guaranteed minimum death benefit charge, the Protection Plus(SM) benefit charge, and the Guaranteed minimum income benefit charge and any applicable administrative charge and withdrawal charge. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this Prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. Appendix V: Hypothetical Illustrations E-1 Variable deferred annuity Accumulator(R) Plus(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 Guaranteed minimum death benefit Protection Plus Guaranteed minimum income benefit
Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 Guaranteed Minimum Account Value Cash Value Death Benefit ------------------- ------------------ ------------------- Age Contract Year 0% 6% 0% 6% 0% 6% - ------ -------------- --------- --------- -------- --------- --------- --------- 60 1 104,000 104,000 96,000 96,000 100,000 100,000 61 2 99,482 105,700 91,482 97,700 106,000 106,000 62 3 95,023 107,370 88,023 100,370 112,360 112,360 63 4 90,616 109,004 83,616 102,004 119,102 119,102 64 5 86,256 110,596 80,256 104,596 126,248 126,248 65 6 81,935 112,140 76,935 107,140 133,823 133,823 66 7 77,646 113,629 73,646 109,629 141,852 141,852 67 8 73,382 115,054 70,382 112,054 150,363 150,363 68 9 69,137 116,408 69,137 116,408 159,385 159,385 69 10 64,902 117,682 64,902 117,682 168,948 168,948 74 15 43,591 122,491 43,591 122,491 226,090 226,090 79 20 21,217 123,533 21,217 123,533 302,560 302,560 84 25 0 118,702 0 118,702 0 404,893 89 30 0 120,223 0 120,223 0 429,187 94 35 0 125,107 0 125,107 0 429,187 95 36 0 126,170 0 126,170 0 429,187 Lifetime Annual Guaranteed Minimum Income Benefit Total Death Benefit --------------------------------- with Protection Guaranteed Hypothetical Plus Income Income ------------------- ----------------- ---------------- Age 0% 6% 0% 6% 0% 6% - ------ --------- --------- -------- -------- -------- ------- 60 100,000 100,000 N/A N/A N/A N/A 61 108,400 108,400 N/A N/A N/A N/A 62 117,304 117,304 N/A N/A N/A N/A 63 126,742 126,742 N/A N/A N/A N/A 64 136,747 136,747 N/A N/A N/A N/A 65 147,352 147,352 N/A N/A N/A N/A 66 158,593 158,593 N/A N/A N/A N/A 67 170,508 170,508 N/A N/A N/A N/A 68 183,139 183,139 N/A N/A N/A N/A 69 196,527 196,527 N/A N/A N/A N/A 74 276,527 276,527 14,266 14,266 14,266 14,266 79 383,584 383,584 20,393 20,393 20,393 20,393 84 0 493,179 34,821 34,821 34,821 34,821 89 0 517,472 N/A N/A N/A N/A 94 0 517,472 N/A N/A N/A N/A 95 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. E-2 Appendix V: Hypothetical Illustrations Appendix VI: Guaranteed principal benefit example - -------------------------------------------------------------------------------- For purposes of these examples, we assume that there is an initial contribution of $100,000, made to the contract on February 15, 2008. We also assume that no additional contributions, no transfers among options and no withdrawals from the contract are made. For GPB Option 1, the example also assumes that a 10 year fixed maturity option is chosen. The hypothetical gross rates of return with respect to amounts allocated to the variable investment options are 0%, 6% and 10%. The numbers below reflect the deduction of all applicable separate account and contract charges, and also reflect the charge for GPB Option 2. Also, for any given performance of your variable investment options, GPB Option 1 produces higher account values than GPB Option 2 unless investment performance has been significantly positive. The examples should not be considered a representation of past or future expenses. Similarly, the annual rates of return assumed in the example are not an estimate or guarantee of future investment performance. GPB Options 1 and 2 were only available at issue. The dates in the example are provided for illustrative purposes only.
- -------------------------------------------------------------------------------------------------------------- Assuming 100% in variable Assuming 100% Under GPB Under GPB investment in FMO Option 1 Option 2 options - -------------------------------------------------------------------------------------------------------------- Amount allocated to FMO on February 15, 2008 based upon a 4.01% rate to maturity 104,000 70,169 41,600 -- - -------------------------------------------------------------------------------------------------------------- Initial account value allocated to the variable invest- ment options on February 15, 2008 0 33,831 62,400 104,000 - -------------------------------------------------------------------------------------------------------------- Account value in the fixed maturity option on Febru- ary 15, 2018 154,143 104,000 61,657 0 - -------------------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the vari- able investment options on February 15, 2018, assuming a 0% gross rate of return) 154,143 129,651 104,380** 78,854 - -------------------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the vari- able investment options on February 15, 2018, assuming a 6% gross rate of return) 154,143 150,672 140,614** 143,475 - -------------------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the vari- able investment options on February 15, 2018, assuming a 10% gross rate of return) 154,143 172,250 177,914** 209,805 - --------------------------------------------------------------------------------------------------------------
** Since the annuity account value is greater than the alternate benefit under GPB Option 2, GPB Option 2 will not affect the annuity account value. Appendix VI: Guaranteed principal benefit example F-1 Appendix VII: Protection Plus(SM) example - -------------------------------------------------------------------------------- The following illustrates the calculation of a death benefit that includes Protection Plus for an annuitant age 45. The example assumes a contribution of $100,000 and no additional contributions. Where noted, a single withdrawal in the amount shown is also assumed. If you purchased your contract after approximately September 2003, the example shown in the second and third columns apply. For all other contract owners, the example in the last two columns apply. The calculation is as follows: ---------------------------------------------------------------------------- A Initial Contribution ---------------------------------------------------------------------------- B Death Benefit: prior to withdrawal.* ---------------------------------------------------------------------------- Protection Plus Earnings: Death Benefit less net C contributions (prior to the withdrawal in D). B minus A. ---------------------------------------------------------------------------- D Withdrawal ---------------------------------------------------------------------------- Withdrawal % as a % of AV (assuming Death E Benefit = AV) greater of D divided by B ---------------------------------------------------------------------------- Excess of the withdrawal over the Protection Plus F earnings greater of D minus C or zero ---------------------------------------------------------------------------- Net Contributions (adjusted for the withdrawal in D) G A reduced for E or F ---------------------------------------------------------------------------- Death Benefit (adjusted for the withdrawal in D) H B minus D ---------------------------------------------------------------------------- Death Benefit less Net Contributions I H minus G ---------------------------------------------------------------------------- J Protection Plus Factor ---------------------------------------------------------------------------- Protection Plus Benefit K I times J ---------------------------------------------------------------------------- Death Benefit: Including Protection Plus L H plus K ----------------------------------------------------------------------------
$ 3000 $ 6000 withdrawal - withdrawal - No $3000 $6000 Pro rata Pro rata Withdrawal withdrawal withdrawal Treatment Treatment ---------------------------------------------------------------------------- A 100,000 100,000 100,000 100,000 100,000 ---------------------------------------------------------------------------- B 104,000 104,000 104,000 104,000 104,000 ---------------------------------------------------------------------------- C 4,000 4,000 4,000 N/A N/A ---------------------------------------------------------------------------- D 0 3,000 6,000 3,000 6,000 ---------------------------------------------------------------------------- E 0.00% N/A N/A 2.88% 5.77% ---------------------------------------------------------------------------- F 0 0 2,000 N/A N/A ---------------------------------------------------------------------------- G 100,000 100,000 98,000 97,115 94,231 ---------------------------------------------------------------------------- H 104,000 101,000 98,000 101,000 98,000 ---------------------------------------------------------------------------- I 4,000 1,000 0 3,885 3,769 ---------------------------------------------------------------------------- J 40% 40% 40% 40% 40% ---------------------------------------------------------------------------- K 1,600 400 0 1,554 1,508 ---------------------------------------------------------------------------- L 105,600 101,400 98,000 102,554 99,508 ----------------------------------------------------------------------------
* The Death Benefit is the greater of the Account Value or any applicable death benefit G-1 Appendix VII: Protection Plus(SM) example Appendix VIII: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- The following information is a summary of the states where the Accumulator(R) Plus(SM) contract or certain features and/or benefits are either not available as of the date of this Prospectus or vary from the contract's features and benefits as previously described in this Prospectus. Certain features and/or benefits may have been approved in your state after your contract was issued and can not be added. Please contact your financial professional for more information about availability in your state. See also the "Contract Variations" appendix later in this Prospectus for information about the availability of certain features and their charges, if applicable, under your contract. STATES WHERE CERTAIN ACCUMULATOR(R) PLUS(SM) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE OR HAVE CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA See "Contract features and benefits"--"Your right to If you reside in the state of California and you are age cancel within a certain number of days" 60 and older at the time the contract is issued, you may return your vari- able annuity contract within 30 days from the date that you receive it and receive a refund as described below. If you allocate your entire initial contribution to the money market account (and/or guaranteed interest option, if available), the amount of your refund will be equal to your contribution less interest, unless you make a transfer, in which case the amount of your refund will be equal to your account value on the date we receive your request to cancel at our processing office. This amount could be less than your initial contribution. If you allocate any portion of your initial contribution to the variable investment options (other than the money market account) and/or fixed maturity options, your refund will be equal to your account value on the date we receive your request to cancel at our processing office. - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA See "Contract features and benefits" in "Credits" The following information replaces the second bullet to the final set of bullets in this section: o You may annuitize your contract after thirteen months, how- ever, if you elect to receive annuity payments within five years of the contract date, we will recover the credit that applies to any contribution made in that five years. If you start receiving annuity payments after five years from the contract date and within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. See "Transfers of ownership, collateral assignments, The second paragraph in this section is deleted. loans and borrowing" in "More information" - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS See "Contract features and benefits" in "Credits" The following information replaces the second bullet to the final set of bullets in this section: o You may annuitize your contract after thirteen months, how- ever, if you elect to receive annuity payments within five years of the contract date, we will recover the credit that applies to any contribution made in that five years. If you start receiving annuity payments after five years from the contract date and within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or variations of certain features and benefits H-1
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND Fixed maturity options Not Available Guaranteed principal benefit option1 and Guaranteed Not Available principal benefit option 2 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS Automatic investment program Not Available Annual administrative charge The annual administrative charge will not be deducted from amounts allocated to the Guaranteed interest option. See "How you can purchase and contribute to your Additional contributions are contract" in "Contract features and benefits" limited to the first two years after the contract issue date only. See "Disability, terminal illness, or confinement to This section is deleted in its entirety. nursing home" under "Withdrawal charge" in "Charges and expenses" - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA See "Principal Protector(SM)" in "Contract features and Principal Protector(SM) is discontinued if the benefits" and "Beneficiary continuation option" in Beneficiary continuation option is elected. "Payment of death benefit" - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK Greater of the 6% Roll- Up or Annual Ratchet Not Available (you have a choice of the standard death Guaranteed minimum death benefit benefit or the Annual Ratchet to age 85 guaranteed minimum death benefit), as described earlier in this Prospectus. Guaranteed minimum death benefit/guaranteed minimum Not Available income benefit roll-up benefit base reset Guaranteed minimum income benefit no lapse Not Available guarantee Principal Protector(SM) Not Available Protection Plus(SM) Not Available Fixed maturity options Not Available Guaranteed principal benefit option1 and Guaranteed Not Available principal benefit option 2 "Indication of Intent" The "Indication of Intent" approach to first year contributions in connection with the contribution crediting rate is not available. See "Contract features and benefits" in "Credits" The following information is added as the third bullet to the final set of bullets in this section: o Where annuity payments may begin after the first contract year, if you elect to receive annuity payments, we will not recover the credit on any contributions. See "The amount applied to purchase an annuity payout option" in "Accessing your money" later in the Prospectus for more information on the effect of annuitization in New York. See "Insufficient account value" in "Determining your If your account value in the contract's value" variable investment options is insufficient to pay the annual administrative charge, or either enhanced death benefit charge, and you have no account value in the guar- anteed interest option, your contract will terminate without value, and you will lose any applicable benefits. See "Charges and expenses" earlier in this Prospectus. See "The amount applied to purchase an annuity For fixed annuity period certain payout options only, payout option" in "Accessing your money" the amount applied to the annuity benefit is the greater of the cash value or 95% of what the account value would be if no withdrawal charge applied. - ------------------------------------------------------------------------------------------------------------------------------------
H-2 Appendix VIII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK See "Annuity maturity date" in "Accessing your Your contract has a maturity date by which you must (CONTINUED) money" either take a lump sum withdrawal or select an annuity payout option. The maturity date is the contract date that follows the annuitant's 90th birthday. See "Charges and expenses" With regard to the Annual administrative, Annual Ratchet to age 85 death benefit and Guaranteed minimum income benefit charges, respectively, we will deduct the related charge, as follows for each: we will deduct this charge from your value in the variable investment options on a pro rata basis. If the contract is surrendered or annuitized or a death benefit is paid, we will deduct a pro rata portion of the charge for that year. If your account value in the variable investment options is insufficient to pay the applicable charge, and you have no account value in the guaranteed interest option, your contract will terminate without value and you will lose any applicable guaranteed benefits. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------ OREGON Guaranteed minimum death benefit/guaranteed Not Available minimum income benefit roll-up benefit base reset Guaranteed minimum income benefit no lapse guarantee Not Available Fixed maturity options Not Available Guaranteed principal benefit option1 and Guaranteed Not Available principal benefit option 2 See "How you can purchase and contribute to your o Subsequent contributions are not permitted. This is a contract" in "Contract features and benefits" single premium product. o Section 1035 exchanges, rollovers, multiple assignments and/or transfers are permitted provided that all documentation is complete and received with the application. See "Indication of intent" in "Contract features and Since Oregon does not permit additional contributions, benefits" the indication of intent approach to first year contributions is applicable in Oregon only to the extent that all necessary documentation for multiple transfers and/or exchanges is complete and received with the application. See "Lifetime required minimum distribution We will not impose a withdrawal charge on minimum withdrawals" in "Accessing your money" distribution withdrawals even if you are not enrolled in our automatic RMD service except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawals exceed the 10% free withdrawal amount. Such minimum distribution withdrawals must be based solely on your Accumulator(R) Plus(SM) contract's account value. See "Selecting an annuity payout option" in The annuity commencement date may not be earlier than "Accessing your money" eight years from the contract issue date. See "Disability, terminal illness, or confinement to Item (1) is deleted in its entirety. nursing home" under "Withdrawal charge" in "Charges and expenses" See "Transfers of ownership, collateral assignments, The second paragraph in this section is deleted. loans and borrowing" in "More information" - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or variations of certain features and benefits H-3
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ OREGON See "Lifetime required minimum distribution with- We generally will not impose a withdrawal charge on (CONTINUED) drawals" in "Accessing your money" minimum distribution withdrawals even if your are not enrolled in our automatic RMD service except if, when added to a lump sum withdrawal previously taken in the same contract year, the mini- mum distribution withdrawals exceed the 10% free withdrawal amount. In order to avoid a withdrawal charge in connection with minimum distribution withdrawals outside of our automatic RMD service, you must notify us using our request form. Such minimum distribution withdrawals must be based solely on your contract's account value. See "We require that the following types of The following is added: communications be on specific forms we provide for (20) requests for required minimum distributions, other that purpose:" in "Who is AXA Equitable?" than pursuant to our automatic RMD service. - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA Contributions Your contract refers to contributions as premiums. Contribution age limitations The following contribution limits apply: Maximum Issue age Contribution age --------- ---------------- 0-75 77 76 78 77 79 78-80 80 See "Annuity maturity date" in "Accessing your The maturity date by which you must take a lump sum money" withdrawal or select an annuity payout option is as follows: Maximum Issue age Annuitization age --------- ----------------- 0-75 85 76 86 77 87 78-80 88 Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code limits may result in adverse tax consequences. Please consult your tax adviser before taking a loan that exceeds the Internal Revenue Code limits. - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO IRA, Roth IRA, QP and Rollover TSA contracts Not Available Beneficiary continuation option (IRA) Not Available Tax Information -- Special rules for NQ contracts Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico source income of Puerto Rico residents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable portion of amounts distributed from a contract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S. tax paid. Depending on your personal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS See "Annual administrative charge" in "Charges and The annual administrative charge will not be deducted expenses" from amounts allocated to the Guaranteed interest option. - ------------------------------------------------------------------------------------------------------------------------------------
H-4 Appendix VIII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ UTAH See "Transfers of ownership, collateral assignments, The second paragraph in this section is deleted. loans and borrowing" in "More information" - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code limits may result in adverse tax consequences. Please consult your tax adviser before taking a loan that exceeds the Internal Revenue Code limits. - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON Guaranteed interest option (for contracts issued from Not Available approximately December 2004 to December 2006) Investment simplifier -- Fixed-dollar option and Not Available Interest sweep option Fixed maturity options Not Available Guaranteed Principal Benefit Options 1 and 2 Not Available Income Manager(R) payout option Not Available Protection Plus(SM) Not Available See "Guaranteed minimum death benefit" in You have a choice of the standard death benefit, the "Contract features and benefits" Annual Ratchet to age 85 enhanced death benefit, or the Greater of 4% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. See "Annual administrative charge" in "Charges and The annual administrative charge will be deducted from expenses" the value in the variable investment options on a pro rata basis. See "Withdrawal charge" in "Charges and expenses" The 10% free withdrawal amount applies to full surrenders. See "Disability, terminal illness, or confinement to The annuitant has qualified to receive Social Security nursing home" under "Withdrawal charge" in disability benefits as certified by the Social Security "Charges and expenses" Administration or a statement from an independent U.S. licensed physician stating that the annuitant meets the definition of total disability for at least 6 continuous months prior to the notice of claim. Such disability must be recertified every 12 months. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or variations of certain features and benefits H-5 Appendix IX: Contract Variations - -------------------------------------------------------------------------------- This contract described in this Prospectus is no longer sold. You should note that your contract's options, features and charges may vary from what is described in this Prospectus depending on the approximate date on which you purchased your contract. You may not change your contract or its features after issue. This Appendix reflects contract variations that differ from what is described in this Prospectus but may have been in effect at the time your contract was issued. If you purchased your contract during the "Approximate Time Period" below, the noted variation may apply to you. In addition, options and/or features may vary among states in light of applicable regulations or state approvals. Any such state variations are generally not included here but instead included in Appendix VIII earlier in this section. For more information about state variations applicable to you, as well as particular features, charges and options available under your contract based upon when you purchased it, please contact your financial professional and/or refer to your contract.
- ----------------------------------------------------------------------------------------- Approximate Time Period Feature/Benefit - ----------------------------------------------------------------------------------------- April 2002 - February 2003 Guaranteed minimum income benefit Annual Ratchet to age 85 6% Roll-Up to age 85 The Greater of 6% Roll-Up to age 85 of the Annual Ratchet to age 85 - ----------------------------------------------------------------------------------------- April 2002 - September 2003 The guaranteed principal benefits Spousal protection Maximum contributions Guaranteed minimum death benefit maximum issue age Protection Plus April 2002 - September 2003, continued Guaranteed option charges - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- Approximate Time Period Variation - ----------------------------------------------------------------------------------------- April 2002 - February 2003 The fee for this benefit was 0.45% The fee for this benefit was 0.20% The fee for this benefit was 0.35% The fee for this benefit was 0.45% April 2002 - September 2003 GPB 2 -- unavailable GPB 1 known as Principal assurance GPB 1 is available with both systematic and substantially equal withdrawals GPB1 is available with guaranteed minimum income benefit Unavailable -- accordingly, all references in this Prospectus to "Spousal protection" are deleted in their entirety The maximum contributions permitted under all Accumulator series contracts with the same owner or annuitant is $1,500,000. 80 (not including QP contracts) The maximum issue age for this benefit was 79. For issue ages 71-79, the applicable death benefit will be multiplied by 25% In calculating the death benefit, contributions are decreased for withdrawals on a pro rata basis April 2002 - September 2003, continued If the contract is surrendered or annuitized or the a death benefit is paid on a date other than the contract date anniversary, we will not deduct a pro rata portion of the charge for any applicable guaranteed benefit - -----------------------------------------------------------------------------------------
I-1 Appendix IX: Contract Variations - ------------------------------------------------------------------------------------------------------------------------------------ Withdrawals treated as surrenders We will not treat a withdrawal that results in a cash value of less than $500 as a request for a surrender. We will not terminate your contract if you do not make contributions for three contract years. Guaranteed minimum income benefit option Subject to state availability, this option guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or an Income Manager(R) level payment life with a period certain payout option Known as the Living Benefit. Credits First year total Credit Percentage contributions applied to Breakpoints contributions ----------------------------------------- Less than $ 250,000 4% ----------------------------------------- $250,000-$999,999.99 5% ----------------------------------------- $1 million or more 6% Partial withdrawals Your free withdrawal amount is 15% Systematic withdrawals Your systematic withdrawal may not exceed 1.20% (monthly), 3.60% (quarterly) or 15% (annually) of account value Guaranteed optional benefits In calculating any guaranteed optional benefit base, any applicable credit is included - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - July 2004 Principal Protector(SM) benefit Unavailable -- accordingly, all references in this Prospectus to "Principal Protector" are deleted in their entirety. See "Transferring your account value" in The fourth bullet is deleted in its entirety. "Transferring your money among investment options" - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - December 2004 Termination of guaranteed benefits Your guaranteed benefits will not automatically terminate if you change ownership of your NQ contract. Ownership Transfer of NQ If you transfer ownership of your NQ contract, your guaranteed benefit options will not be automatically terminated - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - January 2005 No lapse guarantee Unavailable. - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - October 2005 Roll-Up benefit base reset Unavailable. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix IX: Contract Variations I-2 - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - current Guaranteed interest option - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - July 2003 Guaranteed interest option - ------------------------------------------------------------------------------------------------------------------------------------ March 2003 - September 2003 Annual Ratchet to age 85 6% Roll-Up to age 85 Guaranteed minimum income benefit - ------------------------------------------------------------------------------------------------------------------------------------ September 2003 - January 2004 Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit: o Benefit base crediting rate o Fee table o Effect of withdrawals on your Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit - ------------------------------------------------------------------------------------------------------------------------------------ September 2003 - February 2004 (for the How withdrawals affect your Guaranteed Guaranteed minimum income benefit) and minimum income benefit and Greater of the January 2004 - February 2005 (for the Greater 6% Roll-Up to age 85 or the Annual Ratchet of the 6% Roll-Up to age 85 or the Annual to age 85 enhanced death benefit: Ratchet to age 85 enhanced death benefit:) - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - March 2006 Recovery of credit due to death within one year of contribution Net crediting - ------------------------------------------------------------------------------------------------------------------------------------ September 2003 - present 6% Roll-Up to age 85 enhanced death benefit - ------------------------------------------------------------------------------------------------------------------------------------ January 2004 -present Greater of 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit - ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - current Your lifetime minimum interest rate is either 1.5%, 2.25% or 3.0% (depending on the state and time where your contract was issued). No limitations regarding allocations or transactions into the guaranteed interest account. - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - July 2003 No limitations regarding allocations or transfers into the guaranteed interest account - ------------------------------------------------------------------------------------------------------------------------------------ March 2003 - September 2003 The fee for this benefit was 0.30% The fee for this benefit was 0.45% The fee for this benefit is 0.60% - ------------------------------------------------------------------------------------------------------------------------------------ September 2003 - January 2004 The effective annual interest credited to the applicable benefit base is 5%.* Accordingly, all references in this Prospectus to the "6% Roll-Up benefit base" are deleted in their entirety and replaced with "5% Roll-Up benefit base." - ------------------------------------------------------------------------------------------------------------------------------------ Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit charge: 0.50%.* Withdrawals will reduce each of the benefit bases on a pro rata basis only. - ------------------------------------------------------------------------------------------------------------------------------------ September 2003 - February 2004 (for the In calculating whether your withdrawal will Guaranteed minimum income benefit) and reduce your the Roll-Up benefit base portion of January 2004 - February 2005 (for the Greater your Guaranteed minimum income benefit base of the 6% Roll-Up to age 85 or the Annual on a pro rata or dollar-for-dollar basis, Ratchet to age 85 enhanced death benefit:) withdrawal charges will be included in the withdrawal amount. - ------------------------------------------------------------------------------------------------------------------------------------ April 2002 - March 2006 Not applicable Not applicable - ------------------------------------------------------------------------------------------------------------------------------------ September 2003 - present Unavailable -- accordingly, all references to this feature are deleted in their entirety - ------------------------------------------------------------------------------------------------------------------------------------ January 2004 -present Unavailable -- accordingly, all references to this feature are deleted in their entirety - ------------------------------------------------------------------------------------------------------------------------------------
* Contract owners who elected the Guaranteed minimum income benefit and/or the Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit had a limited opportunity to change to the new versions of these benefits, as they are described in "Contract features and benefits" and "Accessing your money," earlier in this Prospectus. I-3 Appendix IX: Contract Variations Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Name Change 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to obtain an Accumulator(R) Plus(SM) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) Plus(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 - -------------------------------------------------------------------------------- Please send me an Accumulator(R) Plus(SM) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip X1889/Plus '02/'04, ML'02, '04(NY), '06/'06.5 and '07 Series Accumulator(R) Plus(SM) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing or taking any other action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) PLUS(SM)? Accumulator(R) Plus(SM) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers death benefit protection and a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options or the guaranteed interest option ("investment options"). All features and benefits may not be available in all contracts and from all selling broker-dealers. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street Small o EQ/Ariel Appreciation II Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option, which is discussed later in this Prospectus. If you elect the Guaranteed withdrawal benefit for life, your investment options will be limited to the guaranteed interest option and certain permitted variable investment option(s). The permitted variable investment options are described later in this Prospectus. TYPES OF CONTRACTS. We offer the contracts for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). o An annuity that is an investment vehicle for a qualified defined contribution plan ("QP") (Rollover and direct transfer contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $10,000 is required to purchase a contract. We add an amount ("credit") to your contract with each contribution you make. Expenses for this contract may be higher than for a comparable contract without a credit. Over time, the amount of the credit may be more than offset by fees and charges associated with the credit. A registration statement relating to this offering has been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01883/Plus '04 NY Series Contents of this Prospectus - -------------------------------------------------------------------------------- ACCUMULATOR(R) PLUS(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) Plus(SM) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 11 - -------------------------------------------------------------------------------- Example 15 Condensed financial information 18 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 19 - -------------------------------------------------------------------------------- How you can purchase and contribute to your contract 19 Owner and annuitant requirements 22 How you can make your contributions 22 What are your investment options under the contract? 22 Portfolios of the Trusts 23 Allocating your contributions 28 Credits 29 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 30 Annuity purchase factors 30 Guaranteed minimum income benefit option 30 Guaranteed minimum death benefit 33 Guaranteed withdrawal benefit for life ("GWBL") 33 Your right to cancel within a certain number of days 37 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 38 - -------------------------------------------------------------------------------- Your account value and cash value 38 Your contract's value in the variable investment options 38 Your contract's value in the guaranteed interest option 38 Insufficient account value 38 - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG THE INVESTMENT OPTIONS 39 - -------------------------------------------------------------------------------- Transferring your account value 39 Disruptive transfer activity 39 Rebalancing your account value 40 - ---------------------- "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 41 - -------------------------------------------------------------------------------- Withdrawing your account value 41 How withdrawals are taken from your account value 43 How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit 43 How withdrawals affect your GWBL 43 Withdrawals treated as surrenders 44 Loans under Rollover TSA contracts 44 Surrendering your contract to receive its cash value 44 When to expect payments 44 Your annuity payout options 45 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 48 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 48 Charges that the Trusts deduct 50 Group or sponsored arrangements 50 Other distribution arrangements 51 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 52 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit if GWBL is not elected 52 Your beneficiary and payment of benefit if GWBL is elected 54 Beneficiary continuation option 55 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 58 - -------------------------------------------------------------------------------- Overview 58 Buying a contract to fund a retirement arrangement 58 Transfers among variable investment options 58 Taxation of nonqualified annuities 58 Individual retirement arrangements (IRAs) 60 Tax-Sheltered Annuity contracts (TSAs) 69 Federal and state income tax withholding and information reporting 74 Special rules for contracts funding qualified plans 75 Impact of taxes to AXA Equitable 75 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 76 - -------------------------------------------------------------------------------- About Separate Account No. 49 76 About the Trusts 76 About the general account 76 About other methods of payment 77 Dates and prices at which contract events occur 77 About your voting rights 78 About legal proceedings 78 Financial statements 78 Transfers of ownership, collateral assignments, loans and borrowing 78 Distribution of the contracts 79 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 81 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Enhanced death benefit example C-1 IV -- Hypothetical illustrations D-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page 6% Roll-Up to age 85 30 account value 38 administrative charge 48 annual administrative charge 48 Annual Ratchet to age 85 enhanced death benefit 30 annuitant 19 annuitization 45 annuity maturity date 47 annuity payout options 45 annuity purchase factors 30 automatic investment program 77 AXA Allocation Portfolios cover beneficiary if GWBL is not elected 52 beneficiary if GWBL is elected 54 Beneficiary continuation option ("BCO") 55 business day 77 cash value 38 charges for state premium and other applicable taxes 50 contract date 22 contract date anniversary 22 contract year 22 contributions to Roth IRAs 66 regular contributions 66 rollovers and transfers 67 conversion rollover contributions 67 contributions to traditional IRAs 61 regular contributions 61 rollovers and transfers 62 credit 29 disability, terminal illness or confinement to nursing home 49 disruptive transfer activity 39 distribution charge 48 EQAccess 7 ERISA 51 Fixed-dollar option 28 free look 37 free withdrawal amount 49 general account 76 General dollar cost averaging 28 guaranteed interest option 28 Guaranteed minimum death benefit 33 Guaranteed minimum death benefit charge 50 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 30 Guaranteed minimum income benefit 30 Guaranteed minimum income benefit charge 50 GWBL benefit base 34 GWBL benefit base Annual Ratchet charge 50 Guaranteed withdrawal benefit for life ("GWBL") 33 Guaranteed withdrawal benefit for life charge 50 IRA cover IRS 58 Investment simplifier 28 lifetime required minimum distribution withdrawals 42 loan reserve account 44 loans under Rollover TSA 44 market timing 39 Mortality and expense risks charge 48 NQ cover partial withdrawals 41 permitted variable investment options 50 Portfolio cover processing office 7 QP cover Rebalancing 40 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 28 Separate Account No. 49 76 Standard death benefit 30 substantially equal withdrawals 42 Successor owner and annuitant 53 Spousal protection 53 systematic withdrawals 42 TOPS 7 TSA cover traditional IRA cover Trusts 76 unit 38 variable investment options 22 wire transmittals and electronic applications 77 withdrawal charge 49 To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract or supplemental materials. Your financial professional can provide further explanation about your contract or supplemental materials. - -------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - -------------------------------------------------------------------------------- variable investment options Investment Funds account value Annuity Account Value unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guarantee minimum income benefit Guaranteed Income Benefit guaranteed interest option Guaranteed Interest Account Guaranteed withdrawal benefit for life Guaranteed withdrawal benefit - -------------------------------------------------------------------------------- 4 Index of key words and phrases - -------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - -------------------------------------------------------------------------------- GWBL benefit base Guaranteed withdrawal benefit for life benefit base Guaranteed annual withdrawal amount Guaranteed withdrawal benefit for life Annual withdrawal amount Excess withdrawal Guaranteed withdrawal benefit for life Excess withdrawal - -------------------------------------------------------------------------------- Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) Plus(SM) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) Plus(SM) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) Plus(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) Plus(SM) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility to exercise the Guaranteed minimum income benefit. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the variable investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of any transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or will- Who is AXA Equitable? 7 ful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts (employer or plan approval required); (7) requests for withdrawals or surrenders from contracts with the Guaranteed withdrawal benefit for life ("GWBL"); (8) tax withholding elections; (9) election of the Beneficiary continuation option; (10) IRA contribution recharacterizations; (11) Section 1035 exchanges; (12) direct transfers and rollovers; (13) exercise of the Guaranteed minimum income benefit; (14) death claims; (15) change in ownership (NQ only); (16) enrollment in our "automatic required minimum distribution (RMD) service;" (17) Purchase by, or change of ownership to, a nonnatural owner; (18) requests to opt out of or back into the annual ratchet of the Guaranteed withdrawal benefit for life ("GWBL") benefit base; and (19) requests for enrollment in either our Maximum payment plan or Customized payment plan under the Guaranteed withdrawal benefit for life ("GWBL"). WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; and (3) general dollar cost averaging (including the fixed dollar and interest sweep options) TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) dollar cost averaging (including the fixed dollar amount and interest sweep options); (3) substantially equal withdrawals; (4) systematic withdrawals; and (5) the date annuity payments are to begin. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners, both must sign. 8 Who is AXA Equitable? Accumulator(R) Plus(SM) at a glance -- key features - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- Professional investment Accumulator(R) Plus(SM) variable investment options invest in different Portfolios managed by management professional investment advisers. - -------------------------------------------------------------------------------------------------------------------------- Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - -------------------------------------------------------------------------------------------------------------------------- Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among variable investment options inside the contract. ------------------------------------------------------------------------------------------------ If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before purchasing one of these contracts, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities compared with any other investment that you may use in connection with your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - -------------------------------------------------------------------------------------------------------------------------- Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during the annuitant's income benefit life once you elect to annuitize the contract. - -------------------------------------------------------------------------------------------------------------------------- Guaranteed withdrawal The Guaranteed withdrawal benefit for life option ("GWBL") guarantees that you can take benefit for life withdrawals of up to a maximum amount each contract year (your "Guaranteed annual withdrawal amount") beginning at owner age 59-1/2 or later. Withdrawals are taken from your account value and continue during your lifetime even if your account value falls to zero (unless it is caused by a withdrawal that exceeds your Guaranteed annual withdrawal amount). - -------------------------------------------------------------------------------------------------------------------------- Contribution amounts o Initial minimum: $10,000 o Additional minimum: $500 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $50 (IRA contracts) ------------------------------------------------------------------------------------------------ Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million ($500,000 for owners or annuitants who are age 81 and older at contract issue). We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. See "How you can purchase and contribute to your contract" in "Contract features and benefits" later in this Prospectus. - -------------------------------------------------------------------------------------------------------------------------- Credit We allocate your contributions to your account value. We allocate a credit to your account value at the same time that we allocate your contributions. The credit will apply to additional contribution amounts only to the extent that those amounts exceed total withdrawals from the contract. The amount of credit may be up to 5% of each contribution, depending on certain factors. The credit is subject to recovery by us in certain limited circumstances. - -------------------------------------------------------------------------------------------------------------------------- Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required; not available under contracts with GWBL) o Contract surrender o Maximum payment plan (only under contracts with GWBL) o Customized payment plan (only under contracts with GWBL) You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - --------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Plus(SM) at a glance -- key features 9 - ---------------------------------------------------------------------------------------------- Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - ---------------------------------------------------------------------------------------------- Additional features o Guaranteed minimum death benefit options o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually, and annually) o Free transfers o Waiver of withdrawal charge for disability, terminal illness, confinement to a nursing home and certain other withdrawals o Spousal continuation (if GWBL is elected) o Spousal protection (NQ only, if GWBL is not elected) o Successor owner/annuitant (if GWBL is not elected) o Beneficiary continuation option - ---------------------------------------------------------------------------------------------- Fees and charges Please see "Fee table" later in this section for complete details - ---------------------------------------------------------------------------------------------- Annuitant issue ages NQ: 0-80 (if GWBL is not elected) Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-80 QP: 20-70 - ---------------------------------------------------------------------------------------------- Owner and annuitant issue NQ, Rollover IRA, Roth Conversion IRA, Rollover TSA: 56-80 ages (if GWBL is elected) QP: 56-70 - ----------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available at certain ages. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund of your account value within a certain number of days. Please see "Your right to cancel within a certain number of days" later in this Prospectus for additional information. OTHER CONTRACTS We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts, based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. A version of this contract (that includes credits) may be available to eligible employees and financial professionals of AXA Equitable and their spouses with modified optional benefits and/or reduced fees and charges. If you are an employee or financial professional of AXA Equitable, you should contact your human resources representative for more information. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. 10 Accumulator(R) Plus(SM) at a glance -- key features Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay at the time you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes, may also apply. Charges for certain features shown in the fee table are mutually exclusive. - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value at the time you request certain transactions - ------------------------------------------------------------------------------------------------------------------------------------ Maximum withdrawal charge as a percentage of contributions with- drawn (deducted if you surrender your contract, make certain withdrawals, or apply your cash value to certain payout options).(1) 8.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - ------------------------------------------------------------------------------------------------------------------------------------ The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses. - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value on each contract date anniversary - ------------------------------------------------------------------------------------------------------------------------------------ Maximum annual administrative charge(2) If your account value on a contract date anniversary is less than $ 50,000(3) $ 30 If your account value on a contract date anniversary is $50,000 or more $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ Mortality and expense risks 0.90%(4) Administrative 0.35% Distribution 0.25% Total annual expenses 1.50% - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value each year if you elect any of the following optional benefits - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) Standard death benefit 0.00% Annual Ratchet to age 85 0.25% of the Annual Ratchet to age 85 benefit base - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum income benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) 0.65% - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed withdrawal benefit for life benefit charge (calculated as a percentage of the GWBL benefit base. Deducted annually(2) on each contract date anniversary). 0.65% (for the Single life or Joint life option) If your GWBL benefit base ratchets, we reserve the right to increase your charge up to: 0.80% (for the Single life or Joint life option) Please see "Guaranteed withdrawal benefit for life" in "Contract features and benefits" for more information about this feature, including its benefit base and the Annual Ratchet provision, and "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses," both in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------
Fee table 11 - -------------------------------------------------------------------------------- Net loan interest charge -- Rollover TSA contracts only (calcu- lated and deducted daily as a percentage of the outstanding loan amount) 2.00%(5) - --------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio.
- ------------------------------------------------------------------------------------------------------ Portfolio operating expenses expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or other expenses)(6) 0.63% 3.56% - ------------------------------------------------------------------------------------------------------
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------ Manage- ment 12b-1 Other Portfolio Name Fees(7) Fees(8) Expenses(9) - ------------------------------------------------------------------------------------------ AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------ AXA Aggressive Allocation 0.10% 0.25% 0.17% AXA Conservative Allocation 0.10% 0.25% 0.21% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% AXA Moderate Allocation 0.10% 0.25% 0.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - ------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% - ------------------------------------------------------------------------------------------ - -------------------------------------------------------------------------------------------------------- Acquired Fund Fees Total and Annual Net Expenses Expenses Fee Waiv- Annual (Underly- (Before ers and/or Expenses ing Expense Expense (After Portfo- Limita- Reimburse- Expense Portfolio Name lios)(10) tions) ments(11) Limitations) - -------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - -------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - -------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - -------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% - --------------------------------------------------------------------------------------------------------
12 Fee table This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- -------------------------------------------------------------------------- Manage- ment 12b-1 Other Portfolio Name Fees(7) Fees(8) Expenses(9) - -------------------------------------------------------------------------- EQ Advisors Trust: - -------------------------------------------------------------------------- EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% - -------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- Acquired Fund Fees Total and Annual Net Expenses Expenses Fee Waiv- Annual (Underly- (Before ers and/or Expenses ing Expense Expense (After Portfo- Limita- Reimburse- Expense Portfolio Name lios)(10) tions) ments(11) Limitations) - -------------------------------------------------------------------------------------------- EQ Advisors Trust: - -------------------------------------------------------------------------------------------- EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(11) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate -- 1.36% (0.10)% 1.26% - --------------------------------------------------------------------------------------------
Notes: (1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal amount, if applicable. The withdrawal charge percentage we use is Contract determined by the contract year in which you Year make the withdrawal or surrender your contract. 1..........8.00% For each contribution, we consider the contract 2..........8.00% year in which we receive that contribution to 3..........7.00% be "contract year 1") 4..........7.00% 5..........6.00% 6..........5.00% 7..........4.00% 8..........3.00% 9+.........0.00% (2) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. (3) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, if applicable, the charge is $30 for each contract year. (4) These charges compensate us for certain risks we assume and expenses we incur under the contract. They also compensate us for the expense associated with the credit. We expect to make a profit from these charges. Fee table 13 (5) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (6) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (7) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (11) and (12) for any expense limitation agreement information. (8) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. (9) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (11) and (12) for any expense limitation agreement information. (10) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (11) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolio in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: -------------------------------------------------- Portfolio Name -------------------------------------------------- Multimanager Aggressive Equity 0.97% -------------------------------------------------- Multimanager Health Care 1.67% -------------------------------------------------- Multimanager Large Cap Core Equity 1.34% -------------------------------------------------- Multimanager Large Cap Growth 1.29% -------------------------------------------------- Multimanager Large Cap Value 1.26% -------------------------------------------------- Multimanager Mid Cap Growth 1.52% -------------------------------------------------- Multimanager Mid Cap Value 1.53% -------------------------------------------------- Multimanager Small Cap Growth 1.35% -------------------------------------------------- Multimanager Small Cap Value 1.45% -------------------------------------------------- Multimanager Technology 1.67% -------------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% -------------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% -------------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% -------------------------------------------------- EQ/AllianceBernstein Value 0.87% -------------------------------------------------- EQ/Ariel Appreciation II 1.09% -------------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% -------------------------------------------------- EQ/Davis New York Venture 1.25% -------------------------------------------------- EQ/Evergreen Omega 1.12% -------------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% -------------------------------------------------- EQ/GAMCO Small Company Value 1.10% -------------------------------------------------- EQ/International Core PLUS 1.05% -------------------------------------------------- EQ/Large Cap Core PLUS 0.83% -------------------------------------------------- EQ/Large Cap Growth PLUS 0.82% -------------------------------------------------- EQ/Legg Mason Value Equity 0.97% -------------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% -------------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% -------------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% -------------------------------------------------- EQ/Mid Cap Value PLUS 0.81% -------------------------------------------------- EQ/Montag & Caldwell Growth 1.13% -------------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% -------------------------------------------------- EQ/UBS Growth and Income 1.04% -------------------------------------------------- EQ/Van Kampen Comstock 0.99% -------------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% -------------------------------------------------- (12) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and adminis tration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. 14 Fee table EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the Guaranteed minimum income benefit with the Annual Ratchet to age 85 enhanced death benefit) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.007% of contract value. The guaranteed interest option is not covered by the examples. However, the annual administrative charge, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the guaranteed interest option. The example assumes that you invest $10,000 in the contract for the time periods indicated and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above) the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual cost may be higher or lower, based on these assumptions, your cost would be: Fee table 15
- ------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period - ------------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,217.00 $ 1,979.00 $ 2,777.00 $ 4,602.00 AXA Conservative Allocation $ 1,197.00 $ 1,918.00 $ 2,678.00 $ 4,415.00 AXA Conservative-Plus Allocation $ 1,202.00 $ 1,934.00 $ 2,704.00 $ 4,465.00 AXA Moderate Allocation $ 1,206.00 $ 1,947.00 $ 2,725.00 $ 4,504.00 AXA Moderate-Plus Allocation $ 1,211.00 $ 1,959.00 $ 2,746.00 $ 4,543.00 Multimanager Aggressive Equity $ 1,174.00 $ 1,850.00 $ 2,567.00 $ 4,205.00 Multimanager Core Bond $ 1,171.00 $ 1,840.00 $ 2,551.00 $ 4,175.00 Multimanager Health Care $ 1,243.00 $ 2,055.00 $ 2,902.00 $ 4,832.00 Multimanager High Yield $ 1,171.00 $ 1,840.00 $ 2,551.00 $ 4,175.00 Multimanager International Equity $ 1,222.00 $ 1,991.00 $ 2,798.00 $ 4,640.00 Multimanager Large Cap Core Equity $ 1,207.00 $ 1,950.00 $ 2,730.00 $ 4,514.00 Multimanager Large Cap Growth $ 1,210.00 $ 1,956.00 $ 2,741.00 $ 4,533.00 Multimanager Large Cap Value $ 1,204.00 $ 1,940.00 $ 2,715.00 $ 4,484.00 Multimanager Mid Cap Growth $ 1,229.00 $ 2,014.00 $ 2,835.00 $ 4,708.00 Multimanager Mid Cap Value $ 1,228.00 $ 2,011.00 $ 2,829.00 $ 4,698.00 Multimanager Small Cap Growth $ 1,231.00 $ 2,020.00 $ 2,845.00 $ 4,727.00 Multimanager Small Cap Value $ 1,219.00 $ 1,985.00 $ 2,788.00 $ 4,621.00 Multimanager Technology $ 1,243.00 $ 2,055.00 $ 2,902.00 $ 4,832.00 - ------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,153.00 $ 1,789.00 $ 2,466.00 $ 4,011.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,157.00 $ 1,798.00 $ 2,482.00 $ 4,042.00 EQ/AllianceBernstein International $ 1,185.00 $ 1,882.00 $ 2,620.00 $ 4,306.00 EQ/AllianceBernstein Large Cap Growth $ 1,200.00 $ 1,927.00 $ 2,694.00 $ 4,445.00 EQ/AllianceBernstein Quality Bond $ 1,158.00 $ 1,802.00 $ 2,487.00 $ 4,052.00 EQ/AllianceBernstein Small Cap Growth $ 1,183.00 $ 1,876.00 $ 2,609.00 $ 4,286.00 EQ/AllianceBernstein Value $ 1,165.00 $ 1,824.00 $ 2,525.00 $ 4,124.00 EQ/Ariel Appreciation II $ 1,198.00 $ 1,921.00 $ 2,683.00 $ 4,425.00 EQ/AXA Rosenberg Value Long/Short Equity $ 1,449.00 $ 2,643.00 $ 3,833.00 $ 6,444.00 EQ/BlackRock Basic Value Equity $ 1,162.00 $ 1,815.00 $ 2,509.00 $ 4,093.00 EQ/BlackRock International Value $ 1,197.00 $ 1,918.00 $ 2,678.00 $ 4,415.00 EQ/Boston Advisors Equity Income $ 1,185.00 $ 1,882.00 $ 2,620.00 $ 4,306.00 EQ/Calvert Socially Responsible $ 1,184.00 $ 1,879.00 $ 2,615.00 $ 4,296.00 EQ/Capital Guardian Growth $ 1,175.00 $ 1,853.00 $ 2,572.00 $ 4,215.00 EQ/Capital Guardian Research $ 1,171.00 $ 1,840.00 $ 2,551.00 $ 4,175.00 EQ/Caywood-Scholl High Yield Bond $ 1,171.00 $ 1,840.00 $ 2,551.00 $ 4,175.00 EQ/Davis New York Venture $ 1,200.00 $ 1,927.00 $ 2,694.00 $ 4,445.00 EQ/Equity 500 Index $ 1,130.00 $ 1,717.00 $ 2,348.00 $ 3,782.00 EQ/Evergreen International Bond $ 1,183.00 $ 1,876.00 $ 2,609.00 $ 4,286.00 EQ/Evergreen Omega $ 1,186.00 $ 1,886.00 $ 2,625.00 $ 4,316.00 EQ/FI Mid Cap $ 1,176.00 $ 1,857.00 $ 2,578.00 $ 4,225.00 EQ/Franklin Income $ 1,202.00 $ 1,934.00 $ 2,704.00 $ 4,465.00 - ------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period and select a non-life contingent period certain annuity option with less than five years - ------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 1,979.00 $ 2,777.00 $ 4,602.00 AXA Conservative Allocation N/A $ 1,918.00 $ 2,678.00 $ 4,415.00 AXA Conservative-Plus Allocation N/A $ 1,934.00 $ 2,704.00 $ 4,465.00 AXA Moderate Allocation N/A $ 1,947.00 $ 2,725.00 $ 4,504.00 AXA Moderate-Plus Allocation N/A $ 1,959.00 $ 2,746.00 $ 4,543.00 Multimanager Aggressive Equity N/A $ 1,850.00 $ 2,567.00 $ 4,205.00 Multimanager Core Bond N/A $ 1,840.00 $ 2,551.00 $ 4,175.00 Multimanager Health Care N/A $ 2,055.00 $ 2,902.00 $ 4,832.00 Multimanager High Yield N/A $ 1,840.00 $ 2,551.00 $ 4,175.00 Multimanager International Equity N/A $ 1,991.00 $ 2,798.00 $ 4,640.00 Multimanager Large Cap Core Equity N/A $ 1,950.00 $ 2,730.00 $ 4,514.00 Multimanager Large Cap Growth N/A $ 1,956.00 $ 2,741.00 $ 4,533.00 Multimanager Large Cap Value N/A $ 1,940.00 $ 2,715.00 $ 4,484.00 Multimanager Mid Cap Growth N/A $ 2,014.00 $ 2,835.00 $ 4,708.00 Multimanager Mid Cap Value N/A $ 2,011.00 $ 2,829.00 $ 4,698.00 Multimanager Small Cap Growth N/A $ 2,020.00 $ 2,845.00 $ 4,727.00 Multimanager Small Cap Value N/A $ 1,985.00 $ 2,788.00 $ 4,621.00 Multimanager Technology N/A $ 2,055.00 $ 2,902.00 $ 4,832.00 - ------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 1,789.00 $ 2,466.00 $ 4,011.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,798.00 $ 2,482.00 $ 4,042.00 EQ/AllianceBernstein International N/A $ 1,882.00 $ 2,620.00 $ 4,306.00 EQ/AllianceBernstein Large Cap Growth N/A $ 1,927.00 $ 2,694.00 $ 4,445.00 EQ/AllianceBernstein Quality Bond N/A $ 1,802.00 $ 2,487.00 $ 4,052.00 EQ/AllianceBernstein Small Cap Growth N/A $ 1,876.00 $ 2,609.00 $ 4,286.00 EQ/AllianceBernstein Value N/A $ 1,824.00 $ 2,525.00 $ 4,124.00 EQ/Ariel Appreciation II N/A $ 1,921.00 $ 2,683.00 $ 4,425.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,643.00 $ 3,833.00 $ 6,444.00 EQ/BlackRock Basic Value Equity N/A $ 1,815.00 $ 2,509.00 $ 4,093.00 EQ/BlackRock International Value N/A $ 1,918.00 $ 2,678.00 $ 4,415.00 EQ/Boston Advisors Equity Income N/A $ 1,882.00 $ 2,620.00 $ 4,306.00 EQ/Calvert Socially Responsible N/A $ 1,879.00 $ 2,615.00 $ 4,296.00 EQ/Capital Guardian Growth N/A $ 1,853.00 $ 2,572.00 $ 4,215.00 EQ/Capital Guardian Research N/A $ 1,840.00 $ 2,551.00 $ 4,175.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,840.00 $ 2,551.00 $ 4,175.00 EQ/Davis New York Venture N/A $ 1,927.00 $ 2,694.00 $ 4,445.00 EQ/Equity 500 Index N/A $ 1,717.00 $ 2,348.00 $ 3,782.00 EQ/Evergreen International Bond N/A $ 1,876.00 $ 2,609.00 $ 4,286.00 EQ/Evergreen Omega N/A $ 1,886.00 $ 2,625.00 $ 4,316.00 EQ/FI Mid Cap N/A $ 1,857.00 $ 2,578.00 $ 4,225.00 EQ/Franklin Income N/A $ 1,934.00 $ 2,704.00 $ 4,465.00 - ------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------- If you do not surrender your contract at the applicable time period - ------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 417.00 $ 1,279.00 $ 2,177.00 $ 4,602.00 AXA Conservative Allocation $ 397.00 $ 1,218.00 $ 2,078.00 $ 4,415.00 AXA Conservative-Plus Allocation $ 402.00 $ 1,234.00 $ 2,104.00 $ 4,465.00 AXA Moderate Allocation $ 406.00 $ 1,247.00 $ 2,125.00 $ 4,504.00 AXA Moderate-Plus Allocation $ 411.00 $ 1,259.00 $ 2,146.00 $ 4,543.00 Multimanager Aggressive Equity $ 374.00 $ 1,150.00 $ 1,967.00 $ 4,205.00 Multimanager Core Bond $ 371.00 $ 1,140.00 $ 1,951.00 $ 4,175.00 Multimanager Health Care $ 443.00 $ 1,355.00 $ 2,302.00 $ 4,832.00 Multimanager High Yield $ 371.00 $ 1,140.00 $ 1,951.00 $ 4,175.00 Multimanager International Equity $ 422.00 $ 1,291.00 $ 2,198.00 $ 4,640.00 Multimanager Large Cap Core Equity $ 407.00 $ 1,250.00 $ 2,130.00 $ 4,514.00 Multimanager Large Cap Growth $ 410.00 $ 1,256.00 $ 2,141.00 $ 4,533.00 Multimanager Large Cap Value $ 404.00 $ 1,240.00 $ 2,115.00 $ 4,484.00 Multimanager Mid Cap Growth $ 429.00 $ 1,314.00 $ 2,235.00 $ 4,708.00 Multimanager Mid Cap Value $ 428.00 $ 1,311.00 $ 2,229.00 $ 4,698.00 Multimanager Small Cap Growth $ 431.00 $ 1,320.00 $ 2,245.00 $ 4,727.00 Multimanager Small Cap Value $ 419.00 $ 1,285.00 $ 2,188.00 $ 4,621.00 Multimanager Technology $ 443.00 $ 1,355.00 $ 2,302.00 $ 4,832.00 - ------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 353.00 $ 1,089.00 $ 1,866.00 $ 4,011.00 EQ/AllianceBernstein Intermediate Government Securities $ 357.00 $ 1,098.00 $ 1,882.00 $ 4,042.00 EQ/AllianceBernstein International $ 385.00 $ 1,182.00 $ 2,020.00 $ 4,306.00 EQ/AllianceBernstein Large Cap Growth $ 400.00 $ 1,227.00 $ 2,094.00 $ 4,445.00 EQ/AllianceBernstein Quality Bond $ 358.00 $ 1,102.00 $ 1,887.00 $ 4,052.00 EQ/AllianceBernstein Small Cap Growth $ 383.00 $ 1,176.00 $ 2,009.00 $ 4,286.00 EQ/AllianceBernstein Value $ 365.00 $ 1,124.00 $ 1,925.00 $ 4,124.00 EQ/Ariel Appreciation II $ 398.00 $ 1,221.00 $ 2,083.00 $ 4,425.00 EQ/AXA Rosenberg Value Long/Short Equity $ 649.00 $ 1,943.00 $ 3,233.00 $ 6,444.00 EQ/BlackRock Basic Value Equity $ 362.00 $ 1,115.00 $ 1,909.00 $ 4,093.00 EQ/BlackRock International Value $ 397.00 $ 1,218.00 $ 2,078.00 $ 4,415.00 EQ/Boston Advisors Equity Income $ 385.00 $ 1,182.00 $ 2,020.00 $ 4,306.00 EQ/Calvert Socially Responsible $ 384.00 $ 1,179.00 $ 2,015.00 $ 4,296.00 EQ/Capital Guardian Growth $ 375.00 $ 1,153.00 $ 1,972.00 $ 4,215.00 EQ/Capital Guardian Research $ 371.00 $ 1,140.00 $ 1,951.00 $ 4,175.00 EQ/Caywood-Scholl High Yield Bond $ 371.00 $ 1,140.00 $ 1,951.00 $ 4,175.00 EQ/Davis New York Venture $ 400.00 $ 1,227.00 $ 2,094.00 $ 4,445.00 EQ/Equity 500 Index $ 330.00 $ 1,017.00 $ 1,748.00 $ 3,782.00 EQ/Evergreen International Bond $ 383.00 $ 1,176.00 $ 2,009.00 $ 4,286.00 EQ/Evergreen Omega $ 386.00 $ 1,186.00 $ 2,025.00 $ 4,316.00 EQ/FI Mid Cap $ 376.00 $ 1,157.00 $ 1,978.00 $ 4,225.00 EQ/Franklin Income $ 402.00 $ 1,234.00 $ 2,104.00 $ 4,465.00 - -------------------------------------------------------------------------------------------------
16 Fee table
- --------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period - --------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years - --------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value $ 1,205.00 $ 1,943.00 $ 2,720.00 $ 4,494.00 EQ/Franklin Templeton Founding Strategy $ 1,231.00 $ 2,020.00 $ 2,845.00 $ 4,727.00 EQ/GAMCO Mergers and Acquisitions $ 1,206.00 $ 1,947.00 $ 2,725.00 $ 4,504.00 EQ/GAMCO Small Company Value $ 1,184.00 $ 1,879.00 $ 2,615.00 $ 4,296.00 EQ/International Core PLUS $ 1,190.00 $ 1,898.00 $ 2,646.00 $ 4,356.00 EQ/International Growth $ 1,210.00 $ 1,956.00 $ 2,741.00 $ 4,533.00 EQ/JPMorgan Core Bond $ 1,149.00 $ 1,776.00 $ 2,445.00 $ 3,970.00 EQ/JPMorgan Value Opportunities $ 1,168.00 $ 1,834.00 $ 2,541.00 $ 4,155.00 EQ/Large Cap Core PLUS $ 1,172.00 $ 1,844.00 $ 2,557.00 $ 4,185.00 EQ/Large Cap Growth PLUS $ 1,171.00 $ 1,840.00 $ 2,551.00 $ 4,175.00 EQ/Legg Mason Value Equity $ 1,177.00 $ 1,860.00 $ 2,583.00 $ 4,236.00 EQ/Long Term Bond $ 1,146.00 $ 1,766.00 $ 2,429.00 $ 3,939.00 EQ/Lord Abbett Growth and Income $ 1,176.00 $ 1,857.00 $ 2,578.00 $ 4,225.00 EQ/Lord Abbett Large Cap Core $ 1,181.00 $ 1,873.00 $ 2,604.00 $ 4,276.00 EQ/Lord Abbett Mid Cap Value $ 1,180.00 $ 1,869.00 $ 2,599.00 $ 4,266.00 EQ/Marsico Focus $ 1,194.00 $ 1,911.00 $ 2,667.00 $ 4,396.00 EQ/Mid Cap Value PLUS $ 1,176.00 $ 1,857.00 $ 2,578.00 $ 4,225.00 EQ/Money Market $ 1,137.00 $ 1,740.00 $ 2,386.00 $ 3,855.00 EQ/Montag & Caldwell Growth $ 1,186.00 $ 1,886.00 $ 2,625.00 $ 4,316.00 EQ/Mutual Shares $ 1,209.00 $ 1,953.00 $ 2,736.00 $ 4,524.00 EQ/Oppenheimer Global $ 1,248.00 $ 2,068.00 $ 2,922.00 $ 4,869.00 EQ/Oppenheimer Main Street Opportunity $ 1,230.00 $ 2,017.00 $ 2,840.00 $ 4,717.00 EQ/Oppenheimer Main Street Small Cap $ 1,239.00 $ 2,042.00 $ 2,881.00 $ 4,794.00 EQ/PIMCO Real Return $ 1,163.00 $ 1,818.00 $ 2,514.00 $ 4,104.00 EQ/Short Duration Bond $ 1,151.00 $ 1,782.00 $ 2,455.00 $ 3,990.00 EQ/Small Company Index $ 1,131.00 $ 1,721.00 $ 2,353.00 $ 3,792.00 EQ/T. Rowe Price Growth Stock $ 1,189.00 $ 1,895.00 $ 2,641.00 $ 4,346.00 EQ/Templeton Growth $ 1,213.00 $ 1,966.00 $ 2,756.00 $ 4,563.00 EQ/UBS Growth and Income $ 1,187.00 $ 1,889.00 $ 2,631.00 $ 4,326.00 EQ/Van Kampen Comstock $ 1,175.00 $ 1,853.00 $ 2,572.00 $ 4,215.00 EQ/Van Kampen Emerging Markets Equity $ 1,239.00 $ 2,042.00 $ 2,881.00 $ 4,794.00 EQ/Van Kampen Mid Cap Growth $ 1,180.00 $ 1,869.00 $ 2,599.00 $ 4,266.00 EQ/Van Kampen Real Estate $ 1,209.00 $ 1,953.00 $ 2,736.00 $ 4,524.00 - --------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period and select a non-life contingent period certain annuity option with less than five years - --------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years - --------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value N/A $ 1,943.00 $ 2,720.00 $ 4,494.00 EQ/Franklin Templeton Founding Strategy N/A $ 2,020.00 $ 2,845.00 $ 4,727.00 EQ/GAMCO Mergers and Acquisitions N/A $ 1,947.00 $ 2,725.00 $ 4,504.00 EQ/GAMCO Small Company Value N/A $ 1,879.00 $ 2,615.00 $ 4,296.00 EQ/International Core PLUS N/A $ 1,898.00 $ 2,646.00 $ 4,356.00 EQ/International Growth N/A $ 1,956.00 $ 2,741.00 $ 4,533.00 EQ/JPMorgan Core Bond N/A $ 1,776.00 $ 2,445.00 $ 3,970.00 EQ/JPMorgan Value Opportunities N/A $ 1,834.00 $ 2,541.00 $ 4,155.00 EQ/Large Cap Core PLUS N/A $ 1,844.00 $ 2,557.00 $ 4,185.00 EQ/Large Cap Growth PLUS N/A $ 1,840.00 $ 2,551.00 $ 4,175.00 EQ/Legg Mason Value Equity N/A $ 1,860.00 $ 2,583.00 $ 4,236.00 EQ/Long Term Bond N/A $ 1,766.00 $ 2,429.00 $ 3,939.00 EQ/Lord Abbett Growth and Income N/A $ 1,857.00 $ 2,578.00 $ 4,225.00 EQ/Lord Abbett Large Cap Core N/A $ 1,873.00 $ 2,604.00 $ 4,276.00 EQ/Lord Abbett Mid Cap Value N/A $ 1,869.00 $ 2,599.00 $ 4,266.00 EQ/Marsico Focus N/A $ 1,911.00 $ 2,667.00 $ 4,396.00 EQ/Mid Cap Value PLUS N/A $ 1,857.00 $ 2,578.00 $ 4,225.00 EQ/Money Market N/A $ 1,740.00 $ 2,386.00 $ 3,855.00 EQ/Montag & Caldwell Growth N/A $ 1,886.00 $ 2,625.00 $ 4,316.00 EQ/Mutual Shares N/A $ 1,953.00 $ 2,736.00 $ 4,524.00 EQ/Oppenheimer Global N/A $ 2,068.00 $ 2,922.00 $ 4,869.00 EQ/Oppenheimer Main Street Opportunity N/A $ 2,017.00 $ 2,840.00 $ 4,717.00 EQ/Oppenheimer Main Street Small Cap N/A $ 2,042.00 $ 2,881.00 $ 4,794.00 EQ/PIMCO Real Return N/A $ 1,818.00 $ 2,514.00 $ 4,104.00 EQ/Short Duration Bond N/A $ 1,782.00 $ 2,455.00 $ 3,990.00 EQ/Small Company Index N/A $ 1,721.00 $ 2,353.00 $ 3,792.00 EQ/T. Rowe Price Growth Stock N/A $ 1,895.00 $ 2,641.00 $ 4,346.00 EQ/Templeton Growth N/A $ 1,966.00 $ 2,756.00 $ 4,563.00 EQ/UBS Growth and Income N/A $ 1,889.00 $ 2,631.00 $ 4,326.00 EQ/Van Kampen Comstock N/A $ 1,853.00 $ 2,572.00 $ 4,215.00 EQ/Van Kampen Emerging Markets Equity N/A $ 2,042.00 $ 2,881.00 $ 4,794.00 EQ/Van Kampen Mid Cap Growth N/A $ 1,869.00 $ 2,599.00 $ 4,266.00 EQ/Van Kampen Real Estate N/A $ 1,953.00 $ 2,736.00 $ 4,524.00 - --------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------- If you do not surrender your contract at the applicable time period - ---------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value $ 405.00 $ 1,243.00 $ 2,120.00 $ 4,494.00 EQ/Franklin Templeton Founding Strategy $ 431.00 $ 1,320.00 $ 2,245.00 $ 4,727.00 EQ/GAMCO Mergers and Acquisitions $ 406.00 $ 1,247.00 $ 2,125.00 $ 4,504.00 EQ/GAMCO Small Company Value $ 384.00 $ 1,179.00 $ 2,015.00 $ 4,296.00 EQ/International Core PLUS $ 390.00 $ 1,198.00 $ 2,046.00 $ 4,356.00 EQ/International Growth $ 410.00 $ 1,256.00 $ 2,141.00 $ 4,533.00 EQ/JPMorgan Core Bond $ 349.00 $ 1,076.00 $ 1,845.00 $ 3,970.00 EQ/JPMorgan Value Opportunities $ 368.00 $ 1,134.00 $ 1,941.00 $ 4,155.00 EQ/Large Cap Core PLUS $ 372.00 $ 1,144.00 $ 1,957.00 $ 4,185.00 EQ/Large Cap Growth PLUS $ 371.00 $ 1,140.00 $ 1,951.00 $ 4,175.00 EQ/Legg Mason Value Equity $ 377.00 $ 1,160.00 $ 1,983.00 $ 4,236.00 EQ/Long Term Bond $ 346.00 $ 1,066.00 $ 1,829.00 $ 3,939.00 EQ/Lord Abbett Growth and Income $ 376.00 $ 1,157.00 $ 1,978.00 $ 4,225.00 EQ/Lord Abbett Large Cap Core $ 381.00 $ 1,173.00 $ 2,004.00 $ 4,276.00 EQ/Lord Abbett Mid Cap Value $ 380.00 $ 1,169.00 $ 1,999.00 $ 4,266.00 EQ/Marsico Focus $ 394.00 $ 1,211.00 $ 2,067.00 $ 4,396.00 EQ/Mid Cap Value PLUS $ 376.00 $ 1,157.00 $ 1,978.00 $ 4,225.00 EQ/Money Market $ 337.00 $ 1,040.00 $ 1,786.00 $ 3,855.00 EQ/Montag & Caldwell Growth $ 386.00 $ 1,186.00 $ 2,025.00 $ 4,316.00 EQ/Mutual Shares $ 409.00 $ 1,253.00 $ 2,136.00 $ 4,524.00 EQ/Oppenheimer Global $ 448.00 $ 1,368.00 $ 2,322.00 $ 4,869.00 EQ/Oppenheimer Main Street Opportunity $ 430.00 $ 1,317.00 $ 2,240.00 $ 4,717.00 EQ/Oppenheimer Main Street Small Cap $ 439.00 $ 1,342.00 $ 2,281.00 $ 4,794.00 EQ/PIMCO Real Return $ 363.00 $ 1,118.00 $ 1,914.00 $ 4,104.00 EQ/Short Duration Bond $ 351.00 $ 1,082.00 $ 1,855.00 $ 3,990.00 EQ/Small Company Index $ 331.00 $ 1,021.00 $ 1,753.00 $ 3,792.00 EQ/T. Rowe Price Growth Stock $ 389.00 $ 1,195.00 $ 2,041.00 $ 4,346.00 EQ/Templeton Growth $ 413.00 $ 1,266.00 $ 2,156.00 $ 4,563.00 EQ/UBS Growth and Income $ 387.00 $ 1,189.00 $ 2,031.00 $ 4,326.00 EQ/Van Kampen Comstock $ 375.00 $ 1,153.00 $ 1,972.00 $ 4,215.00 EQ/Van Kampen Emerging Markets Equity $ 439.00 $ 1,342.00 $ 2,281.00 $ 4,794.00 EQ/Van Kampen Mid Cap Growth $ 380.00 $ 1,169.00 $ 1,999.00 $ 4,266.00 EQ/Van Kampen Real Estate $ 409.00 $ 1,253.00 $ 2,136.00 $ 4,524.00 - ----------------------------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix IV at the end of this Prospectus. Fee table 17 CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as the end of the periods shown for each of the variable investment options available as of December 31, 2007. 18 Fee table 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT You may purchase a contract by making payments to us that we call "contributions." We require a minimum initial contribution of $10,000 for you to purchase a contract. You may make additional contributions of at least $500 each for NQ, QP and Rollover TSA contracts and $50 each for IRA contracts, subject to limitations noted below. The following table summarizes our rules regarding contributions to your contract. All ages in the table refer to the age of the annuitant named in the contract. If the Guaranteed withdrawal benefit for life is elected, both the owner and the annuitant named in the contract must meet the issue age requirements shown in the table, and contributions are based on the age of the older of the original owner and annuitant. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000. We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We may accept less than the minimum initial contribution under a contract if an aggregate amount of contracts purchased at the same time by an individual (including spouse) meets the minimum. - -------------------------------------------------------------------------------- The "owner" is the person who is the measuring life for GWBL. The "annuitant" is the person who is the measuring life for all other contract benefits. The annuitant is not necessarily the contract owner. - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------- Available Limitations on Contract type for issue ages Minimum contributions Source of contributions contributions+ - -------------------------------------------------------------------------------------------------------------------------------- NQ 0 through 80 o $10,000 (initial) o After-tax money. o No additional contributions o $500 (additional) o Paid to us by check or after attainment of age 81 o $100 monthly and $300 transfer of contract value or, if later, the first quarterly under our auto- in a tax-deferred exchange contract date anniversary. matic investment program under Section 1035 of the (additional). Internal Revenue Code. - -------------------------------------------------------------------------------------------------------------------------------- Rollover IRA 20 through 80 o $10,000 (initial) o Eligible rollover distribu- o No contributions after o $50 (additional) tions from 403(b) plans, attainment of age 81 or, if qualified plans, and gov- later, the first contract date ernmental employer anniversary.* 457(b) plans. o Contributions after age o Rollovers from another 70-1/2 must be net of traditional individual required minimum retirement arrangement. distributions. o Direct custodian-to- o Although we accept regular custodian transfers from IRA contributions (limited to another traditional indi- $5,000) under Rollover IRA vidual retirement contracts, we intend that arrangement. this contract be used prima- o Regular IRA contributions. rily for rollover and direct o Additional catch-up contri- transfer contributions. butions. o Additional catch-up contribu- tions of up to $1,000 per calendar year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - --------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 19
- ------------------------------------------------------------------------------------------------------------------------------------ Available Limitations on Contract type for issue ages Minimum contributions Source of contributions contributions+ - ------------------------------------------------------------------------------------------------------------------------------------ Roth Conversion IRA 20 through 80 o $10,000 (initial) o Rollovers from another o No additional rollover or o $50 (additional) Roth IRA. direct transfer contributions o Rollovers from a "desig- after attainment of age 81 nated Roth contribution or, if later, the first contract account" under a 401(k) date anniversary. plan or 403(b) plan. o Conversion rollovers after a traditional IRA or other age 70-1/2 must be net of eligible retirement plan. required minimum distribu- o Direct transfers from tions for the traditional IRA another Roth IRA. or other eligible retirement o Regular Roth IRA plan, which is the source of contributions. the conversion rollover. o Additional catch-up contri- o You cannot roll over funds butions. from a traditional IRA or other eligible retirement plan if your adjusted gross income is $100,000 or more. o Although we accept regular Roth IRA contributions (lim- ited to $5,000) under the Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contri- butions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calen- dar year for which the contribution is made. - ------------------------------------------------------------------------------------------------------------------------------------ Rollover TSA* 20 through 80 o $10,000 (initial) o With documentation of o Additional contributions o $50 (additional) employer or plan approval, may be made up to attain- and limited to pre-tax ment of age 81 or, if later funds, direct plan-to-plan the first contract date transfers from another anniversary. 403(b) plan or contract o Contributions after age exchanges from another 70-1/2 must be net of any 403(b) contract under the required minimum same plan. distributions. o With documentation of o We do not accept employer- employer or plan approval, remitted contributions. and limited to pre-tax o We do not accept after-tax funds, eligible rollover contributions, including distributions from other designated Roth contribu- 403(b) plans, qualified tions. plans, governmental employer 457(b) plans or traditional IRAs. - ------------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
- ---------------------------------------------------------------------------------------------------------------------------- Available Limitations on Contract type for issue ages Minimum contributions Source of contributions contributions+ - ---------------------------------------------------------------------------------------------------------------------------- QP 20 through 70 o $10,000 (initial) o Only transfer contributions o A separate QP contract must o $50 (additional) from other investments be established for each plan within an existing defined participant. contribution qualified plan o We do not accept regular trust. ongoing payroll contribu- o The plan must be qualified tions or contributions under Section 401(a) of directly from the employer. the Internal Revenue o Only one additional transfer Code. contribution may be made o For 401(k) plans, trans- during a contract year. ferred contributions may o No additional transfer con- not include any after-tax tributions after participant's contributions. attainment of age 71 or, if later, the first contract date anniversary. o Contributions after age 70-1/2 must be net of any required minimum distributions. o We do not accept contribu- tions from defined benefit plans. See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. - ----------------------------------------------------------------------------------------------------------------------------
+ For the Guaranteed withdrawal benefit for life option, additional contributions are not permitted after the later of: (i) the end of the first contract year, and (ii) the date you make your first withdrawal. * Rollover TSA contracts may not be available from all selling broker-dealers. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. Contract features and benefits 21 OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. This contract is not available for purchase by Charitable Remainder Trusts. If the Spousal protection feature is elected, the spouses must be joint owners, one of the spouses must be the annuitant and both must be named as the only primary beneficiaries. If the Spousal continuation feature is available under your contract, for Single life contracts, the surviving spouse must be the sole primary beneficiary for it to apply. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. In general we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your state. For NQ contracts in which the Guaranteed withdrawal benefit for life is elected (with a single owner, Joint life, or a non-natural owner) that are purchased through an exchange that is not taxable under Section 1035 of the Internal Revenue Code, we permit joint annuitants. We also permit joint annuitants in non-exchange sales if you elect the Guaranteed withdrawal benefit for life on a Joint life basis, and the contract is owned by a non-natural owner. In all cases, the joint annuitants must be spouses. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II at the end of this Prospectus for more information on QP contracts. Certain benefits under your contract, as described later in this Prospectus, are based on the age of the owner, if GWBL is elected. If the owner of the contract is not a natural person, these benefits will be based on the age of the annuitant. Under QP contracts and contracts in which GWBL is not elected, all benefits are based on the age of the annuitant. If GWBL is elected, the terms owner and successor owner are intended to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept initial and additional contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose. Additional contributions may also be made under our automatic investment program. These methods of payment, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealer, are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- Your initial contribution must generally be accompanied by an application and any other form we need to process the payments. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain this information. If we are unable to obtain all of the information we require within five business days after we receive an incomplete application or form, we will inform the financial professional submitting the application on your behalf. We will then return the contribution to you unless you specifically direct us to keep your contribution until we receive the required information. The contribution will be applied as of the date we receive the missing information. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment option and the guaranteed interest option. If you elect the Guaranteed withdrawal benefit for life, your investment options will be limited to the guaranteed interest option and the following variable investment options: the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio ("permitted variable investment options"). VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. 22 Contract features and benefits PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features, including the Guaranteed withdrawal benefit for life which restricts allocations to the permitted variable investment options. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable ALLOCATION greater emphasis on current income. - ----------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable ALLOCATION with a greater emphasis on capital appreciation. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital o BlackRock Financial Management, Inc. appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current o Pacific Investment Management Company income and capital appreciation. LLC o Post Advisory Group, LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
- --------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - --------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - --------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - --------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - --------------------------------------------------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - ---------------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY markets using strategies that are designed to limit expo- sure to general equity market risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, o BlackRock Investment Management, LLC EQUITY income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of o BlackRock Investment Management VALUE income, accompanied by growth of capital. International Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to o Boston Advisors, LLC INCOME achieve an above-average and consistent total return. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company RESEARCH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management YIELD BOND - ------------------------------------------------------------------------------------------------------------------------------------ EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. o Davis Selected Advisers, L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that o AllianceBernstein L.P. approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. o Evergreen Investment Management Company, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI MID CAP Seeks to achieve long-term growth of capital. o Fidelity Management & Research Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects o Franklin Advisers, Inc. for capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. o Franklin Advisory Services, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily seeks o AXA Equitable FOUNDING STRATEGY income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. o GAMCO Asset Management Inc. ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. o GAMCO Asset Management Inc. VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 25
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with mod- o JPMorgan Investment Management Inc. erate risk to capital and maintenance of liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. o JPMorgan Investment Management Inc. OPPORTUNITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- o AXA Equitable ondary objective to seek reasonable current income. For o Institutional Capital LLC purposes of this Portfolio, the words "reasonable current o Mellon Capital Management Corporation income" mean moderate income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. o Legg Mason Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o BlackRock Financial Management, Inc. through investment in long-maturity debt obligations. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC INCOME income without excessive fluctuation in market value. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC CORE income with reasonable risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. o Lord, Abbett & Co. LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o The Dreyfus Corporation its assets and maintain liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- o Franklin Mutual Advisers, LLC sionally be short-term, and secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. o OppenheimerFunds, Inc. OPPORTUNITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. SMALL CAP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with o Pacific Investment Management Company, preservation of real capital and prudent investment man- LLC agement. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility o BlackRock Financial Management, Inc. of principal. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o AllianceBernstein L.P. deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ------------------------------------------------------------------------------------------------------------------------------------
26 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and o T. Rowe Price Associates, Inc. STOCK secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. o Templeton Global Advisors Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation o UBS Global Asset Management with income as a secondary consideration. (Americas) Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. o Morgan Stanley Investment Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. o Morgan Stanley Investment Management Inc. MARKETS EQUITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. o Morgan Stanley Investment Management Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- o Morgan Stanley Investment Management Inc. term capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. Contract features and benefits 27 GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges, any withdrawal charges and any optional benefit charges. Your lifetime minimum ranges from 1.00% to 3.00%. The data page for your contract shows the lifetime minimum rate. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75%. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfers from the guaranteed interest option. ALLOCATING YOUR CONTRIBUTIONS You may choose from two ways to allocate your contributions under your contract: self-directed or dollar cost averaging. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options and guaranteed interest option. No more than 25% of any contribution may be allocated to the guaranteed interest option. Allocations must be in whole percentages and you may change your allocations at any time. The total of your allocations into all available investment options must equal 100%. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit's value is low and fewer units if the unit's value is high. Therefore, you may get a lower average cost per unit over the long term. This plan of investing, however, does not guarantee that you will earn a profit or be protected against losses. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. If you elect the Guaranteed withdrawal benefit for life, general dollar cost averaging is not available. INVESTMENT SIMPLIFIER Fixed-dollar option. Under this option, you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. The fixed-dollar option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in 28 Contract features and benefits "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date, your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. Interest sweep option. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ------------------------------------ You may not currently participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Under the Option I rebalancing program, you may participate in any of the dollar cost averaging programs except general dollar cost averaging. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" immediately below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. CREDITS A credit will also be allocated to your account value at the same time that we allocate your contribution. Credits are allocated to the same investment options based on the same percentages used to allocate your contributions. The amount of the credit will be 4%, 4.5% or 5% of each contribution based on the following breakpoints and rules: - ----------------------------------------------------------- Credit percentage First year total contributions* applied to Breakpoints contributions - ----------------------------------------------------------- Less than $500,000 4% - ----------------------------------------------------------- $500,000-$999,999.99 4.5% - ----------------------------------------------------------- $1 million or more 5% - ----------------------------------------------------------- - ---------------------- * First year total contributions means your total contributions made in the first contract year. The percentage of the credit is based on your first year total contributions. This credit percentage will be credited to your initial contribution and each additional contribution made in the first contract year (after adjustment as described below), as well as those in the second and later contract years. The credit will apply to an additional contribution only to the extent that the sum of that contribution and all prior contributions to which no Credit was applied exceeds the total withdrawals made from the contract since the issue date. Although the credit, as adjusted at the end of the first contract year, will be based upon first year total contributions, the following rules affect the percentage with which contributions made in the first contract year are credited during the first contract year: o For your initial contribution we will apply the credit percentage based upon the above table. o For any subsequent contribution that results in a higher applicable credit percentage (based on total contributions to date), we will increase the credit percentage applied to that contribution, as well as any prior or subsequent contributions made in the first contract year, accordingly. In addition to the recovery of any Excess Credit, we will recover all of the credit or a portion of the credit in the following situations: o If you exercise your right to cancel the contract, we will recover the entire credit made to your contract (see "Your right to cancel within a certain number of days" later in this Prospectus)(1) o If you start receiving annuity payments within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. o If the annuitant dies during the one-year period following our receipt of a contribution to which a credit was applied, we will recover the amount of such Credit. See "Guaranteed minimum death benefit" and "Your beneficiary and payment of benefit"; "Successor owner and annuitant"; "Spousal protection"; and "Beneficiary continuation option" in "Payment of death benefit," later in this Prospectus. o If the owner dies during the one-year period following our receipt of a contribution to which a credit was applied in a contract in which - ---------------------- (1) The amount we return to you upon exercise of this right to cancel will not include any credit or the amount of charges deducted prior to cancellation. Contract features and benefits 29 GWBL has been elected, we will recover the amount of such Credit. For Joint life GWBL contracts, we will only recover the credit if the second owner dies within the one-year period following a contribution. We will recover any credit on a pro rata basis from the value in your variable investment options and guaranteed interest option. We do not consider credits to be contributions for purposes of any discussion in this Prospectus. Credits are also not considered to be part of your investment in the contract for tax purposes. We use a portion of the mortality and expense risks charge and withdrawal charge to help recover our cost of providing the credit. See "Charges and expenses" later in this Prospectus. The charge associated with the credit may, over time, exceed the sum of the credit and any related earnings. You should consider this possibility before purchasing the contract. GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit and the death benefits, as described in this section. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 6% ROLL-UP TO AGE 85 (USED FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to this benefit base is: o 6% with respect to the variable investment options (other than EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market and EQ/Short Duration Bond); and o 3% with respect to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market and EQ/Short Duration Bond, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up on the contract date anniversary following the annuitant's 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: o your initial contribution to the contract and any additional contributions, or o your highest account value on any contract date anniversary up to the contract date anniversary following the annuitant's 85th birthday, if GWBL is not elected (following the owner's or older spouse's (for Joint life contracts) 85th birthday if GWBL is elected), plus any contributions made since the most recent ratchet, less o a deduction that reflects any withdrawals you make (the amount of the deduction is described under "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus). GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6% Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. The benefit base is reduced by any applicable withdrawal charge remaining when the option is exercised. For more information, see "Withdrawal charge" in "Charges and expenses" later in this Prospectus. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed under "Guaranteed minimum income benefit option" below and annuity payout options are discussed under "Your annuity payout options" in "Accessing your money" later in this Prospectus. Your contract specifies different guaranteed annuity purchase factors for the Guaranteed minimum income benefit and the annuity payout options. We may provide more favorable current annuity purchase factors for the annuity payout options. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in certain instances. GUARANTEED MINIMUM INCOME BENEFIT OPTION The Guaranteed minimum income benefit is available if the annuitant is age 20 through 75 at the time the contract is issued. There is an 30 Contract features and benefits additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. This feature is not available if you elect the Guaranteed withdrawal benefit for life. For IRA, QP and Rollover TSA contracts, owners over age 60 at contract issue should consider the impact of the minimum distributions required by tax law in relation to the withdrawal limitations under the Guaranteed minimum income benefit. See "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. If the owner and annuitant are different in an NQ contract, there may be circumstances where the benefit may not be exercisable after an owner's death. If you elect the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the annuitant's age as follows: - ------------------------------------------- Level payments - ------------------------------------------- Period certain years ---------------------- Annuitant's age at exercise IRAs NQ - ------------------------------------------- 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - ------------------------------------------- We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit, should be regarded as a safety net only. It provides income protection if you elect an income payout while the annuitant is alive. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base less, any applicable withdrawal charge remaining, at guaranteed annuity purchase factors, or (ii) the income provided by applying your account value at our then current annuity purchase factors. For Rollover TSA contracts only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. Before you elect the Guaranteed minimum income benefit, you should consider the fact that it provides a form of insurance and is based on conservative actuarial factors. The guaranteed annuity purchase factors we use to determine your payout annuity benefit under the Guaranteed minimum income benefit are more conservative than the guaranteed annuity purchase factors we use for our standard payout annuity options. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the Guaranteed minimum income benefit payout annuity will be smaller than each periodic payment under our standard payout annuity options. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the Guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male annuitant age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option or the loan reserve account under Rollover TSA contracts. - --------------------------------------------------- Guaranteed minimum Contract date income benefit -- annual anniversary at exercise income payable for life - --------------------------------------------------- 10 $11,891 15 $18,597 - --------------------------------------------------- EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed mini- Contract features and benefits 31 mum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us along with all required information within 30 days following your contract date anniversary in order to exercise this benefit. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payment contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death, or if later, the end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income benefit during your life and the annuitant's life, as follows: o If the annuitant was at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If the annuitant was at least age 45 and no older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after the annuitant is age 60. o If the annuitant was at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's 85th birthday; (ii) if the annuitant was age 75 when the contract was issued, the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's attainment of age 85; (iii) for Accumulator(R) Plus(SM) QP contracts, the Plan participant can exercise the Guaranteed minimum income benefit only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) Plus(SM) QP contract into an Accumulator(R) Rollover IRA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for the Plan participant to be eligible to exercise; (iv) for Accumulator(R) Plus(SM) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Plus(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (v) a successor owner/annuitant may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original annuitant could have exercised the benefit. In addition, the successor owner/annuitant must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The successor owner/annuitant's age on the date of the annuitant's death replaces the annuitant's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules. If you elect Spousal Protection and the spouse who is the annuitant dies, the above rules apply if the contract is continued by the surviving spouse as the successor owner annuitant; and (vi) if you are the owner but not the annuitant and you die prior to exercise, then the following applies: o A successor owner who is not the annuitant may not be able to exercise the guaranteed minimum income benefit without causing a tax problem. You should consider naming the annuitant as successor owner, or if you do not name a successor owner, as the sole primary beneficiary. You should carefully review your successor owner and/or beneficiary designations at least one year prior to the first contract date anniversary on which you could exercise the benefit. o If the successor owner is the annuitant, the guaranteed minimum income benefit continues only if the benefit could be exercised under the rules described above on a contract date anniversary that is within one year following the owner's death. This would be the only opportunity for the successor owner to exercise. If the guaranteed minimum income benefit cannot be exercised within this timeframe, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. o If you designate your surviving spouse as successor owner, the guaranteed minimum income benefit continues and your surviving spouse may exercise the benefit according to the rules described above even if your spouse is not the annuitant and even if the benefit is exercised more than one year after your death. If your surviving spouse dies prior to exercise, the rule described in the previous bullet applies. o A successor owner or beneficiary that is a trust or other non- natural person may not exercise the benefit; in this case, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. 32 Contract features and benefits See "When an NQ contract owner dies before the annuitant" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT Your contract provides a standard death benefit. If you do not elect the Annual Ratchet to age 85 enhanced death benefit described below, the death benefit is equal to your account value as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions (adjusted for any withdrawals and any withdrawal charges, and any taxes that apply). The standard death benefit is the only death benefit available for annuitant ages 76 through 80 at issue (or owner ages 76 through 80 at issue, if GWBL is elected). Once your contract is issued, you may not change or voluntarily terminate your death benefit. If you elect the Annual Ratchet to age 85 enhanced death benefit, the death benefit is equal to your account value as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment, OR your Annual Ratchet to age 85 enhanced death benefit on the date of the annuitant's death (adjusted for any subsequent withdrawals, withdrawal charges and taxes that apply) whichever provides the higher amount. If you elect GWBL, the death benefit is payable upon the owner's death or the second to die of the owner and successor owner (or upon the annuitant's death or the second to die of the joint annuitants under a contract with non-natural owners). If you elect the Spousal protection option, the guaranteed minimum death benefit is based on the age of the older spouse, who may or may not be the annuitant, for the life of the contract. See "Spousal protection" in "Payment of death benefit" later in this Prospectus for more information. If you elect the Annual Ratchet to age 85 enhanced death benefit and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, the Annual Ratchet to age 85 enhanced death benefit will be replaced with the standard death benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the annuitant dies during the one-year period following our receipt of a contribution, the account value used to calculate the applicable guaranteed minimum death benefit will not reflect any Credits applied in the one-year period prior to death. ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT APPLICABLE FOR AGES 0 THROUGH 75 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 70 AT ISSUE OF QP CONTRACTS. The Annual Ratchet to age 85 enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Once you have elected the Annual Ratchet to age 85 enhanced death benefit, you may not change it. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. See Appendix III later in this Prospectus for an example of how we calculate the Annual Ratchet to age 85 enhanced minimum death benefit. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL") For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL") guarantees that you can take withdrawals up to a maximum amount per year (your "Guaranteed annual withdrawal amount"). GWBL is only available at issue. This benefit is not available at issue ages younger than 56. GWBL is not available if you have elected the Guaranteed minimum income benefit or Spousal protection. You may elect one of our automated payment plans or you may take partial withdrawals. All withdrawals reduce your account value and Guaranteed minimum death benefit. See "Accessing your money" later in this Prospectus. Your investment options will be limited to the guaranteed interest option and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this Prospectus. Although you may make withdrawals from your contract prior to reaching age 59-1/2, such a withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount and therefore significantly reduce or eliminate the value of the GWBL. Please see "Effect of Excess withdrawals" below. You may buy this benefit on a single life ("Single life") or a joint life ("Joint life") basis. Under a Joint life contract, lifetime withdrawals are guaranteed for the life of both the owner and successor owner. For Joint life contracts, a successor owner may be named at contract issue only. The successor owner must be the owner's spouse. If you and the successor owner are no longer married, you may either: (i) drop the original successor owner or (ii) replace the original successor owner with your new spouse. This can only be done before the later of age 59-1/2 or when the first withdrawal is made from the contract. If the successor owner is dropped before the later of age 59-1/2 or when the first withdrawal is made from the contract, the Applicable percentage will be based on the owner's life on a Single life basis. After the later of age 59-1/2 or when the first withdrawal is made, the successor owner can be dropped but cannot be replaced. If the successor owner is dropped after the later of age 59-1/2 or when the first withdrawal is made, the Applicable percentage will continue to be based on the Joint life tier described later in this Prospectus. For NQ contracts, you have the option to designate the successor owner as a joint owner. For Joint life contracts owned by a non-natural owner, a joint annuitant may be named at contract issue only. The annuitant and joint annuitant must be spouses. If the annuitant and joint annuitant are no longer married, you may either: (i) drop the joint annuitant or (ii) Contract features and benefits 33 replace the original joint annuitant with the annuitant's new spouse. This can only be done before the later of age 59-1/2 or when the first withdrawal is made. If the joint annuitant is dropped before the later of age 59-1/2 or when the first withdrawal is made from the contract, the Applicable percentage will be based on the annuitant's life on a Single life basis. After the later of age 59-1/2 or when the first withdrawal is made, the joint annuitant may be dropped but cannot be replaced. If the joint annuitant is dropped after the later of age 59-1/2 or when the first withdrawal is made, the Applicable percentage will continue to be based on the Joint life tier described later in this Prospectus. Joint life QP and TSA contracts are not permitted. Loans are not available under TSA contracts. This benefit is not available under an Inherited IRA contract. See "Owner and Annuitant requirements" earlier in this Prospectus. The charge for the GWBL benefit will be deducted from your account value on each contract date anniversary. Please see "Guaranteed withdrawal benefit for life charge" later in this Prospectus for a description of the charge. You should not purchase this benefit if: o You plan to take withdrawals prior to age 59-1/2 or in excess of your Guaranteed annual withdrawal amount because those withdrawals may significantly reduce or eliminate the value of the benefit (see "Effect of Excess withdrawals" below in this section); o You are not interested in taking withdrawals prior to the contract's maturity date; o You are using the contract to fund a Rollover TSA or QP contract where withdrawal restrictions will apply; or o You plan to take withdrawals prior to age 59-1/2, as the taxable amount of the withdrawal will be includible in income and subject to an additional 10% federal income tax penalty, as discussed later in this Prospectus. The Federal Defense of Marriage Act precludes same-sex married couples, domestic partners, and civil union partners from being considered married under federal law. Such individuals, therefore, are not entitled to the favorable tax treatment accorded spouses under federal tax law. As a result, mandatory distributions from the contract must be made after the death of the first individual. Accordingly, the GWBL will have little or no value to the surviving same-gender spouse or partner. You should consult with your tax adviser for more information on this subject. For traditional IRAs and TSA and QP contracts, you may take your lifetime required minimum distributions ("RMDs") without losing the value of the GWBL benefit, provided you comply with the conditions described under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, this benefit may have limited usefulness for you and you should consider whether it is appropriate. Please consult your tax adviser. GWBL BENEFIT BASE At issue, your GWBL benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL benefit base increases by any subsequent contributions. o Your GWBL benefit base may be increased on each contract date anniversary, as described below under "Annual ratchet" and "7% deferral bonus." o Your GWBL benefit base may be increased by the 200% Initial GWBL benefit base guarantee, as described below. o Your GWBL benefit base is not reduced by withdrawals except any withdrawal made prior to age 59-1/2 and those withdrawals that cause total withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess withdrawals" below in this section. GUARANTEED ANNUAL WITHDRAWAL AMOUNT Your initial Guaranteed annual withdrawal amount is equal to a percentage of the GWBL benefit base. The initial applicable percentage ("Applicable percentage") is based on the owner's age at the time of the first withdrawal made at or after age 59-1/2. For Joint life contracts, the initial Applicable percentage is based on the age of the younger owner or successor owner, at the time of the first withdrawal made at or after age 59-1/2. If your GWBL benefit base ratchets, as described below in this section under "Annual ratchet," on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. The Applicable percentages are as follows: - ---------------------------------------------------- Age Applicable percentage* - ---------------------------------------------------- Single life Joint life - ---------------------------------------------------- 59-1/2-75 5.0% 4.5% 76-85 6.0% 5.5% 86 and older 7.0% 6.5% - ---------------------------------------------------- * Prior to age 59-1/2, the Applicable percentage is 0%. Under a Joint life contract, if the owner or successor owner dies prior to the first withdrawal being taken from the contract at or after age 59-1/2, the survivor may notify us to change the status of the contract to a Single life contract, and the Applicable percentage will be based on the survivor's life on a Single life basis. If the owner or successor owner dies after the first withdrawal is taken from the contract at or after age 59-1/2, the Applicable percentage will continue to be on a Joint life basis. We will recalculate the Guaranteed annual withdrawal amount on each contract date anniversary and as of the date of any subsequent contribution or Excess withdrawal, as described below under "Effect of Excess withdrawals" and "Subsequent contributions." The withdrawal amount is guaranteed never to decrease as long as there are no Excess withdrawals. Your Guaranteed annual withdrawals are not cumulative. If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. The withdrawal charge, if applicable, is waived for withdrawals up to the Guaranteed annual withdrawal amount, but all withdrawals are 34 Contract features and benefits counted toward your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. EFFECT OF EXCESS WITHDRAWALS An Excess withdrawal is caused when you withdraw any amount before age 59-1/2 or more than your Guaranteed annual withdrawal amount in any contract year. For any withdrawal made prior to age 59-1/2 and any withdrawal that causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, the entire amount of that withdrawal and each subsequent withdrawal in that contract year are considered Excess withdrawals. An Excess withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount. If you make an Excess withdrawal, we will recalculate your GWBL benefit base and the Guaranteed annual withdrawal amount, as follows: o The GWBL benefit base is reset as of the date of the Excess withdrawal to equal the lesser of: (i) the GWBL benefit base immediately prior to the Excess withdrawal and (ii) the account value immediately following the Excess withdrawal. o The Guaranteed annual withdrawal amount is recalculated to equal the Applicable percentage multiplied by the reset GWBL benefit base. You should not purchase this contract if you plan to take withdrawals in excess of your Guaranteed annual withdrawal amount as such withdrawals may significantly reduce or eliminate the value of the GWBL benefit. If your account value is less than your GWBL benefit base (due, for example, to negative market performance), an Excess withdrawal, even one that is only slightly more than your Guaranteed annual withdrawal amount, can significantly reduce your GWBL benefit base and the Guaranteed annual withdrawal amount. For example, assume your GWBL benefit base is $100,000 and your account value is $80,000 when you decide to begin taking withdrawals at age 65. Your Guaranteed annual withdrawal amount is equal to $5,000 (5.0% of $100,000). You take an initial withdrawal of $8,000. Since your GWBL benefit base is immediately reset to equal the lesser of your GWBL benefit base prior to the Excess withdrawal ($100,000) and your account value immediately following the Excess withdrawal ($80,000 minus $8,000), your GWBL benefit base is now $72,000. In addition, your Guaranteed annual withdrawal amount is reduced to $3,600 (5.0% of $72,000), instead of the original $5,000. See "How withdrawals affect your GWBL" later in this Prospectus. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds the greater of (i) the Guaranteed annual withdrawal amount or (ii) the 10% free withdrawal amount. A withdrawal charge would not be applied in the example above since the $8,000 withdrawal (equal to 10% of the contract's account value as of the beginning of the contract year) falls within the 10% free withdrawal amount. Under the example above, additional withdrawals during the same contract year could result in a further reduction of the GWBL benefit base and the Guaranteed annual withdrawal amount, as well as an application of withdrawal charges, if applicable. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. You should note that an Excess withdrawal that reduces your account value to zero terminates the contract, including all benefits, without value. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA, QP or TSA and participate in our Automatic RMD service, an automatic withdrawal under that program will not cause an Excess withdrawal, even if it exceeds your Guaranteed annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. Loans are not available under Rollover TSA contracts if GWBL is elected. ANNUAL RATCHET Your GWBL benefit base is recalculated on each contract date anniversary to equal the greater of: (i) the account value and (ii) the most recent GWBL benefit base. If your account value is greater, we will ratchet up your GWBL benefit base to equal your account value. If your GWBL benefit base ratchets on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. Your Guaranteed annual withdrawal amount will also be increased, if applicable, to equal your Applicable percentage times your new GWBL benefit base. If your GWBL benefit base ratchets, we may increase the charge for the benefit. Once we increase the charge, it is increased for the life of the contract. We will permit you to opt out of the ratchet if the charge increases. If you choose to opt out, your charge will stay the same but your GWBL benefit base will no longer ratchet. Upon request, we will permit you to accept a GWBL benefit base ratchet with the charge increase on a subsequent contract date anniversary. For a description of the charge increase, see "Guaranteed withdrawal benefit for life benefit charge" later in this Prospectus. 7% DEFERRAL BONUS At no additional charge, in each contract year in which you have not taken a withdrawal, we will increase your GWBL benefit base by an amount equal to 7% of your total contributions. This 7% deferral bonus is applicable for the life of the contract, subject to certain restrictions. We will apply the 7% deferral bonus to your GWBL benefit base on each contract date anniversary until you make a withdrawal from your contract. In a contract year following an Annual Ratchet (described above), the deferral bonus will be applied to your GWBL benefit base on each contract date anniversary until you make a withdrawal. However, no deferral bonus is applied on a contract date anniversary on which an Annual Ratchet occurs. Once you make a withdrawal, we will not apply the deferral bonus in future years unless you meet one of the exceptions that would allow you to continue to receive the deferral bonus. Those exceptions are described as follows: o You are eligible to receive the 7% deferral bonus for any of your first ten contract years that you have not taken a withdrawal, even if you had taken a withdrawal in a prior year. For example, if you take your first withdrawal in the second contract year, you are still eligible to Contract features and benefits 35 receive the deferral bonus in contract years three through ten. The deferral bonus is not applied in the contract year in which a withdrawal was made. o You are eligible to receive the 7% deferral bonus to your GWBL Benefit Base on a contract date anniversary during the ten years following an Annual Ratchet, as long as no withdrawal is made in the same contract year. If a withdrawal is made during this ten-year period, no deferral bonus is applied in the contract year in which the withdrawal was made. If the Annual Ratchet occurs on any contract date anniversary, for the next and subsequent contract years, the deferral bonus will be 7% of the most recent ratcheted GWBL benefit base, plus any subsequent contributions. If the GWBL benefit base is reduced due to an Excess withdrawal, the 7% deferral bonus will be calculated using the reset GWBL benefit base, plus any applicable contributions. The 7% deferral bonus generally excludes contributions made in the prior 12 months. In the first contract year, the deferral bonus is determined using all contributions received in the first 90 days of the contract year. On any contract date anniversary on which you are eligible for a 7% deferral bonus, we will calculate the applicable bonus amount. If, when added to the current GWBL benefit base, the amount is greater than your account value, that amount will become your new GWBL benefit base but, as this adjustment is the result of the 7% deferral bonus rather than the Annual Ratchet, a new ten-year period, as described above, is not started by this adjustment to the GWBL benefit base. If that amount is less than or equal to your account value, your GWBL benefit base will be ratcheted to equal your account value (if higher), and the 7% deferral bonus will not apply. If you opt out of the Annual Ratchet (as discussed immediately above), the 7% deferral bonus will still apply. MATURITY DATE. The last deferral bonus will be applicable on the contract's maturity date. See "Annuity maturity date" under "Accessing your money" later in this Prospectus. 200% INITIAL GWBL BENEFIT BASE GUARANTEE If you have not taken a withdrawal from the contract before the later of (i) the tenth contract date anniversary, or (ii) the contract date anniversary following the owner's (or younger joint life's) attained age 70, the GWBL Benefit base will be increased to equal 200% of contributions made to the contract during the first 90 days, plus 100% of any subsequent contributions received after the first 90 days. There will be no increase if your GWBL benefit base already exceeds this initial GWBL Benefit base guarantee. This is the only time that this special increase to the GWBL Benefit base is available. However, you will continue to be eligible for the 7% deferral bonuses following this one-time increase. SUBSEQUENT CONTRIBUTIONS Subsequent contributions are not permitted after the later of: (i) the end of the first contract year and (ii) the date the first withdrawal is taken. Anytime you make an additional contribution, your GWBL benefit base will be increased by the amount of the contribution. Your Guaranteed annual withdrawal amount will be equal to the Applicable percentage of the increased GWBL benefit base. GUARANTEED MINIMUM DEATH BENEFIT There are two guaranteed minimum death benefits available if you elect the GWBL option: (i) the Standard death benefit, which is available at no additional charge for owner issue ages 56-80, and (ii) the Annual Ratchet to Age 85 death benefit, which is available for an additional charge for owner issue ages 56-75. For Joint life contracts, both spouses must meet the issue age requirements. See "Guaranteed minimum death benefit" earlier in this Prospectus for more information. EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO If your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no further payments or benefits. If an Excess withdrawal results in a withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. However, if your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, please note the following: o Your contract terminates and you will receive a supplementary life annuity contract setting forth your continuing benefits. The owner of the contract will be the owner and annuitant. The successor owner, if applicable, will be the joint annuitant. If the owner is non-natural, the annuitant and joint annuitant, if applicable, will be the same as under your contract. o No subsequent contributions will be permitted. o If you were taking withdrawals through the "Maximum payment plan," we will continue the scheduled withdrawal payments on the same basis. o If you were taking withdrawals through the "Customized payment plan" or in unscheduled partial withdrawals, we will pay the balance of the Guaranteed annual withdrawal amount for that contract year in a lump sum. Payment of the Guaranteed annual withdrawal amount will begin on the next contract date anniversary. o Payments will continue at the same frequency for Single or Joint life contracts, as applicable, or annually if automatic payments were not being made. o Any guaranteed minimum death benefit remaining under the original contract will be carried over to the supplementary life annuity contract. The death benefit will no longer grow and will be reduced on a dollar-for-dollar basis as payments are made. If there is any remaining death benefit upon the death of the owner and successor owner, if applicable, we will pay it to the beneficiary. o The charge for the Guaranteed withdrawal benefit for life benefit and the Annual Ratchet to age 85 death benefit will no longer apply. 36 Contract features and benefits o If at the time of your death the Guaranteed annual withdrawal amount was being paid to you as a supplementary life annuity contract, your beneficiary may not elect the Beneficiary continuation option. OTHER IMPORTANT CONSIDERATIONS o This benefit is not appropriate if you do not intend to take withdrawals prior to annuitization. o Amounts withdrawn in excess of your Guaranteed annual withdrawal amount, including any withdrawal made before age 59-1/2, may be subject to a withdrawal charge, if applicable, as described in "Charges and expenses" later in this Prospectus. In addition, all withdrawals count toward your free withdrawal amount for that contract year. Excess withdrawals can significantly reduce or completely eliminate the value of the GWBL. See "Effect of Excess withdrawals" above in this section and "How withdrawals affect your GWBL" later in this Prospectus. o Withdrawals are not considered as annuity payments for tax purposes, and may be subject to an additional 10% Federal income tax penalty before age 59-1/2. See "Tax information" in your Prospectus. o All withdrawals reduce your account value and Guaranteed minimum death benefit. See "How withdrawals are taken from your account value" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. o The GWBL benefit terminates if the contract is continued under the beneficiary continuation option or under the Spousal continuation feature if the spouse is not the successor owner. o If you surrender your contract to receive its cash value and your cash value is greater than your Guaranteed annual withdrawal amount, all benefits under the contract will terminate, including the GWBL benefit. o If you transfer ownership of this contract, you terminate the GWBL benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. o Withdrawals are available under other annuity contracts we offer and this contract without purchasing a withdrawal benefit. o For IRA, QP and TSA contracts, if you have to take a required minimum distribution ('`RMD") and it is your first withdrawal under the contract, the RMD will be considered your "first withdrawal" for the purposes of establishing your GWBL Applicable percentage. o If you elect GWBL on a Joint life basis and subsequently get divorced, your divorce will not automatically terminate the contract. For both Joint life and Single life contracts, it is possible that the terms of your divorce decree could significantly reduce or completely eliminate the value of this benefit. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If for any reason you are not satisfied with your contract, you may return it to us for a refund. We will refund the full amount of your contribution. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. Under certain circumstances this "free look" period may be longer. For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. Please note that you will forfeit the credit by exercising this right of cancellation. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. If you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office or your financial professional can provide you with the cancellation instructions. In addition to the cancellation right described above, you have the right to surrender your contract, rather than cancel it. Please see "Surrendering your contract to receive its cash value," later in this Prospectus. Surrendering your contract may yield results different than canceling your contract, including a greater potential for taxable income. In some cases, your cash value upon surrender may be greater than your contributions to the contract. Please see "Tax information," later in this Prospectus for possible consequences of cancelling your contract. Contract features and benefits 37 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total value of the values you have in: (i) the variable investment options; (ii) the guaranteed interest account; and (iii) the loan reserve account (applies for Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value less: (i) the total amount or a pro rata portion of the annual administrative charge as well as any optional benefit charges; (ii) any applicable withdrawal charge; and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense risks; (ii) administrative, and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions plus the credit; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect transfer into, or decreased to reflect transfer out of a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, if applicable, when we deduct the enhanced death benefit, guaranteed minimum income benefit, and/or Guaranteed withdrawal benefit for life charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest account at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. INSUFFICIENT ACCOUNT VALUE If your account value in the variable investment options is insufficient to pay the annual administrative charge or any applicable charges for the guaranteed benefits, and you have no account value in the guaranteed interest option, your contract will terminate without value and you will lose any applicable benefits. See "charges and expenses" earlier in this Prospectus GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. If you elect the Guaranteed withdrawal benefit for life and your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary life annuity contract, even if your GWBL benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, the benefit will still have value. See "Contract features and benefits" earlier in this Prospectus. 38 Determining your contract's value 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the variable investment options, subject to the following: o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the annuity account value being allocated to the guaranteed interest option, based on the annuity account value as of the previous business day. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option and interest sweep option dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or, (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the Investment options in the prior contract year; or, (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. Transferring your money among investment options 39 We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We offer rebalancing, which you can use to automatically reallocate your account value among your investment options. We currently offer two options: "Option I" and "Option II." Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers between the guaranteed interest option and the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into or out of the guaranteed interest option to initiate the rebalancing program will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. You may not elect Option I if you are participating in general dollar cost averaging. You may not elect Option II if you are participating in any dollar cost averaging program. If you elect a benefit that limits your variable investment options, those limitations will also apply to the rebalancing programs. 40 Transferring your money among investment options 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. If you withdraw more than 90% of your contract's current cash value, we will treat it as a request to surrender your contract for its cash value. See "Surrendering your contract to receive its cash value" below. For the potential tax consequences of withdrawals, see "Tax information" later in this Prospectus. Please see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" and "How withdrawals affect your GWBL," below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate.
- -------------------------------------------------------------------------------- Method of withdrawal - -------------------------------------------------------------------------------- Automatic Pre-age Lifetime payment 59-1/2 required plans substan- minimum (GWBL System- tially distribu- Contract only) Partial atic equal tion - -------------------------------------------------------------------------------- NQ Yes Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Con- version IRA Yes Yes Yes Yes No - -------------------------------------------------------------------------------- Rollover TSA* Yes Yes Yes No Yes - -------------------------------------------------------------------------------- QP** Yes Yes No No Yes - --------------------------------------------------------------------------------
* Employer or plan approval required for all transactions. Your ability to take with drawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. ** For QP contracts, all payments are made to the trust, as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. AUTOMATIC PAYMENT PLANS (For contracts with GWBL only) You may take automatic withdrawals under either the Maximum payment plan or the Customized payment plan, as described below. Under either plan, you may take withdrawals on a monthly, quarterly or annual basis. You may change the payment frequency of your withdrawals at any time, and the change will become effective on the next contract date anniversary. You may elect either the Maximum payment plan or the Customized payment plan at any time after you become eligible to receive Guaranteed annual withdrawals. You must wait at least 28 days from contract issue before automatic payments begin. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will increase following any Annual Ratchet, 7% deferral bonus or by the one-time 200% Initial GWBL Benefit base guarantee. If you elect the Maximum payment plan and start monthly or quarterly payments after the beginning of a contract year, the payments you take that year will be less than your Guaranteed annual withdrawal amount. If you take a partial withdrawal while the Maximum payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will not be increased following any Annual Ratchet, 7% deferral bonus or by the one-time 200% Initial GWBL Benefit base guarantee. You must elect to change the scheduled payment amount. It is important to note that if you elect the Customized payment plan and start monthly or quarterly withdrawals after the beginning of a contract year, you could select scheduled payment amounts that would cause an Excess withdrawal. If your selected scheduled payment would cause an Excess withdrawal, we will notify you. As discussed earlier in this Prospectus, Excess withdrawals may significantly reduce the value of the Guaranteed withdrawal benefit for life benefit. If you take a partial withdrawal while the Customized payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Partial withdrawals will be subject to a withdrawal charge if they exceed the 10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. Any request for a partial withdrawal will terminate your participation in either the Maximum payment plan or Customized payment plan, if applicable. Accessing your money 41 SYSTEMATIC WITHDRAWALS (All contracts except QP) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of your account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 10% free withdrawal amount. This option is not available if you have elected the Guaranteed withdrawal benefit for life. SUBSTANTIALLY EQUAL WITHDRAWALS (All contracts except QP contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals that we calculate for you are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). The substantially equal withdrawal option is not available if you have elected the Guaranteed withdrawal benefit for life. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA and Rollover TSA and QP contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made 42 Accessing your money annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- We do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our automatic RMD service except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 10% free withdrawal amount. Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH GWBL. Generally, if you elect our Automatic RMD service, any lifetime required minimum distribution payment we make to you under our Automatic RMD service will not be treated as an Excess withdrawal. If you elect either the Maximum payment plan or the Customized payment plan AND our Automatic RMD service, we will make an extra payment, if necessary, on December 1st that will equal your lifetime required minimum distribution less all payments made through November 30 and any scheduled December payment. The combined automatic plan payments and lifetime required minimum distribution payment will not be treated as Excess withdrawals, if applicable. However, if you take any partial withdrawals in addition to your lifetime required minimum distribution and automatic payment plan payments, your applicable automatic payment plan will be terminated. The partial withdrawal may cause an Excess withdrawal and may be subject to a withdrawal charge. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. Further, your GWBL benefit base and Guaranteed annual withdrawal amount may be reduced. See "Effect of Excess Withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you elect our Automatic RMD service and elect to take your Guaranteed annual withdrawal amount in partial withdrawals without electing one of our available automatic payment plans, we will make a payment, if necessary, on December 1st that will equal your required minimum distribution less all withdrawals made through November 30th. If prior to December 1st you make a partial withdrawal that exceeds your Guaranteed annual withdrawal amount, but not your RMD amount, that partial withdrawal will be treated as an Excess withdrawal, as well as any subsequent partial withdrawals made during the same contract year. However, if by December 1st your withdrawals have not exceeded your RMD amount, the RMD payment we make to you will not be treated as an Excess withdrawal. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT In general, withdrawals (including RMDs) will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000-$16,000). For purposes of calculating the adjustment to your guaranteed benefits, the amount of the withdrawal will include the amount of any applicable withdrawal charge. Using the first example above, the $12,000 withdrawal would include the withdrawal amount paid to you and the amount of any applicable withdrawal charge deducted from your account value. For more information on the calculation of the charge, see "Withdrawal charge" later in the Prospectus. With respect to the Guaranteed minimum income benefit, withdrawals will reduce the the benefit's 6% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6% or less of the 6% Roll-Up benefit base on the most recent contract date anniversary. Additional contributions made during the contract year do not affect the amount of the withdrawals that can be taken on a dollar-for-dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6% of the benefit base on the most recent anniversary, that entire withdrawal and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar- for-dollar basis means that your 6% Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for the benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. HOW WITHDRAWALS AFFECT YOUR GWBL Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes cumulative withdrawals in a contract year to exceed the Guaranteed annual withdrawal amount. As the Guaranteed annual withdrawal amount before age 59-1/2 is zero, any withdrawal you make before that age will exceed the Guaranteed annual withdrawal amount, and will be considered an Excess withdrawal. Excess withdrawals can significantly reduce your GWBL benefit base and Guaranteed annual withdrawal amount. For more information, see "Effect of Excess withdrawals" and "Other important considerations" under "Guaranteed withdrawal benefit for life ("GWBL") " in "Contract features and benefits" earlier in this Prospectus. For purposes of calculating your GWBL, the amount of the excess withdrawal will include the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information on calculation of the charge, see "Withdrawal charge" in "Charges and expenses" later in this Prospectus. Accessing your money 43 WITHDRAWALS TREATED AS SURRENDERS If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. In addition, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is an Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to an Excess withdrawal. In other words, if you take an Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Guaranteed withdrawal benefit for life " in "Contract features and benefits," earlier in this Prospectus for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." If you elect the GWBL option, loans are not permitted. You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subjected to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see "Tax information" later in this Prospectus, for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of the loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan, including any accrued and unpaid loan interest, will be deducted from the death benefit amounts). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the loan reserve account. Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. Loan repayments are not considered contributions and therefore are not eligible for additional credits. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE If you do not elect GWBL, you may surrender your contract to receive its cash value at any time while the annuitant is living and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. If you elect GWBL, you may surrender your contract to receive its cash value at any time while an owner is living and before you begin to receive annuity payments. All benefits under the contract will terminate as of the date we receive the required information, including the Guaranteed withdrawal benefit for life (if applicable), if your cash value is greater than your Guaranteed annual withdrawal amount remaining that year. If your cash value is not greater than your Guaranteed annual withdrawal amount remaining that year, then you will receive a supplementary life annuity contract. For more information, please see "Effect of your account value falling to zero" under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" and "Annuity benefit" under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the 44 Accessing your money transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal charge) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of which sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Plus(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) Plus(SM) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Plus(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Plus(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments which can be either level or increasing, and others enable you to receive variable annuity payments. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the owner's and annuitant's ages at contract issue. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect the Guaranteed withdrawal benefit for life and choose to annuitize your contract, the Guaranteed withdrawal benefit for life will terminate without value even if your GWBL benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under GWBL. See "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus for further information. - --------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - --------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - --------------------------------------------------------------------------- Income Manager(R) payout Life annuity with period certain options (available for annuitants Period certain annuity age 83 or less at contract issue) - --------------------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity payout option is available on a single life basis. The life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide you with details. Accessing your money 45 FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager(R) payout option without life contingencies unless withdrawal charges are no longer in effect under your Accumulator(R) Plus(SM). For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply your account value of your Accumulator(R) Plus(SM) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) Plus(SM). For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income benefit option, different payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any withdrawal charges. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. Regardless of the form of annuity chosen, the amount applied to the annuity benefit is the greater of the cash value or 95% of what the account value would be if no withdrawal charge applied. The withdrawal charge applicable under your Accumulator(R) Plus(SM) is imposed if you select a non-life contingent period certain payout annuity. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For the Income Manager(R) payout life contingent options, no withdrawal charge is imposed under the Accumulator(R) Plus(SM). If the withdrawal charge that otherwise would have been applied to your account value under your Accumulator(R) Plus(SM) is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager(R) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin from the Accumulator(R) Plus(SM) contract. The date annuity payments begin may not be earlier than five years from the contract date. Except with respect to Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. If you start receiving annuity payments within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. Your financial professional can provide you with additional information about your annuity payment options. In no event will you ever receive payments under a fixed option or an initial payment under a variable option of less than the minimum amounts guaranteed by the contract. 46 Accessing your money If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender if an Income Manager(R) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date based on the annuitant's age by which you must either take a lump sum payment or select an annuity payout option. The maturity date is generally the contract date anniversary that follows the annuitant's 90th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elect the Guaranteed withdrawal benefit for life and your contract is annuitized at maturity, we will offer an annuity payout option that guarantees you will receive payments for life that are at least equal to what you would have received under the Guaranteed withdrawal benefit for life. You will not be able to take withdrawals in addition to the payments under this annuity payout option. You will still be able to surrender the contract at any time for the remaining account value. As described in "Contract features and benefits" under "Guaranteed withdrawal benefit for life ("GWBL")" earlier in this Prospectus, these payments will have the potential to increase with favorable investment performance. Any remaining Guaranteed minimum death benefit value will be transferred to the annuity payout contract as your "minimum death benefit." If the Annual Ratchet to age 85 enhanced death benefit had been elected, its value as of the date the annuity payout contract is issued will become your minimum death benefit. The minimum death benefit will be reduced pro rata by each payment. If you die while there is any minimum death benefit remaining, it will be paid to your beneficiary. Accessing your money 47 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o On each contract date anniversary, a charge for each optional benefit that you elect. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits, and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 0.90% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the Guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. A portion of this charge also compensates us for the contract credit. For a discussion of the credit, see "Credits" in "Contract features and benefits" earlier in this Prospectus. We expect to make a profit from this charge. Administrative charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.35% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. HOW CERTAIN CHARGES ARE DEDUCTED With regard to the annual administrative, Annual Ratchet to age 85 enhanced death benefit and Guaranteed minimum income benefit charges, respectively, we will deduct the related charge, as follows for each: we will deduct this charge from your value in the variable investment options on a pro rata basis. If the contract is surrendered or annuitized or a death benefit is paid, on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value in the variable investment options is insufficient to pay the applicable charge, and you have no account value in the guaranteed interest option, your contract will terminate without value and you will lose any applicable guaranteed benefits. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct 48 Charges and expenses the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. For more information, see "How certain charges are deducted" earlier in this section. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceed the 10% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or apply your cash value to a non life contingent annuity payout option. A portion of this charge also compensates us for the contract credit. For a discussion of the credit, see "Credits" in "Contracts features and benefits" earlier in this Prospectus. We expect to make a profit from this charge. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options--The amount applied to purchase an annuity payout option" in "Accessing your money" earlier in the Prospectus. The withdrawal charge equals a percentage of the contributions withdrawn. We do not consider credits to be contributions. Therefore, there is no withdrawal charge associated with a credit. The percentage of the withdrawal charge that applies to each contribution depends on how long each contribution has been invested in the contract. We determine the withdrawal charge separately for each contribution according to the following table: - -------------------------------------------------------------------------- Contract year - -------------------------------------------------------------------------- 1 2 3 4 5 6 7 8 9+ - -------------------------------------------------------------------------- Percentage of contribution 8% 8% 7% 7% 6% 5% 4% 3% 0% - -------------------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1" and the withdrawal charge is reduced or expires on each applicable contract date anniversary. Amounts withdrawn up to the free withdrawal amount are not considered withdrawals of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and the withdrawal charge from your account value. Any amount deducted to pay withdrawal charges is also subject to the same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each variable investment option. The withdrawal charge helps cover our sales expenses. The withdrawal charge does not apply in the circumstances described below. 10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10% of your account value without paying a withdrawal charge. The 10% free withdrawal amount is determined using your account value at the beginning of each contract year. In the first contract year, the 10% free withdrawal amount is determined using all contributions received in the first 90 days of the contract year. Additional contributions during the contract year do not increase your 10% free withdrawal amount. The 10% free withdrawal amount does not apply if you surrender your contract except where required by law. CERTAIN WITHDRAWALS. If you elect the Guaranteed withdrawal benefit for life, we will waive any withdrawal charge for any withdrawal during the contract year up to the Guaranteed annual withdrawal amount, even if such withdrawals exceed the free withdrawal amount. However, each withdrawal reduces the free withdrawal amount for that contract year by the amount of the withdrawal. Also, a withdrawal charge does not apply to a withdrawal that exceeds the Guaranteed annual withdrawal amount as long as it does not exceed the free withdrawal amount. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds both the free withdrawal amount and the Guaranteed annual withdrawal amount. DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal charge also does not apply if: (i) The annuitant, if GWBL is not elected, or the owner (or older spouse under Joint life, if applicable), if GWBL is elected, has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or (ii) We receive proof satisfactory to us (including certification by a licensed physician) that the annuitant's life expectancy, if GWBL is not elected, or the owner's life expectancy (or older spouse under Joint life, if applicable), if GWBL is elected, is six months or less; or (iii) The annuitant, if GWBL is not elected, or the owner (or older spouse under Joint life, if applicable), if GWBL is elected, has been confined to a nursing home for more than 90 days as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: -- its main function is to provide skilled, intermediate, or custodial nursing care; -- it provides continuous room and board to three or more persons; -- it is supervised by a registered nurse or licensed practical nurse; -- it keeps daily medical records of each patient; -- it controls and records all medications dispensed; and -- its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions as described in (i), (ii) or (iii) above existed at the time a contribution was remitted or if the condition that began within 12 months of the period following remittance. Charges and expenses 49 GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. For more information, see "How certain charges are deducted" earlier in this section. STANDARD DEATH BENEFIT. There is no additional charge for the standard death benefit. GUARANTEED MINIMUM INCOME BENEFIT CHARGE If you elect the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option or the contract date anniversary after the annuitant reaches age 85, whichever occurs first. The charge is equal to 0.65% of the applicable benefit base in effect on the contract date anniversary. For more information, see "How certain charges are deducted" earlier in this section. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE CHARGE If you elect the Guaranteed withdrawal benefit for life ("GWBL"), we deduct a charge annually as a percentage of your GWBL benefit base on each contract date anniversary. If you elect the Single Life or Joint Life options, the charge is equal to 0.65%. We will deduct this charge from your value in the permitted variable investment options on a pro rata basis. If the contract is surrendered, annuitized, or a death benefit is paid on the date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value in the permitted variable investment options is insufficient to pay this charge, and you have no account value in the guaranteed interest option, your contract will terminate without value and you will lose any applicable guaranteed benefits. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. GWBL BENEFIT BASE ANNUAL RATCHET CHARGE If your GWBL benefit base ratchets, we reserve the right to raise the charge at the time of an Annual Ratchet. The maximum charge is 0.80%. The increased charge, if any will apply as of the contract date anniversary on which your GWBL benefit base ratchets and on all contract date anniversaries thereafter. We will permit you to opt out of the ratchet if the charge increases. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY ANNUITIZATION PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity annuitization payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of either 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to 12b-1 fees. If permitted under the terms of our exemptive order regarding Accumulator(R) Plus(SM) bonus feature, we may also change the crediting percentage that applies to contributions. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. 50 Charges and expenses We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. Charges and expenses 51 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT IF GWBL IS NOT ELECTED You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value or, if greater, the applicable Guaranteed minimum death benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the annuitant's death, adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit is made. The account value used to determine the death benefit will first be reduced by the amount of any Credits applied in the one-year period prior to the annuitant's death. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. EFFECT OF THE ANNUITANT'S DEATH If the annuitant dies before the annuity payments begin, we will pay the death benefit to your beneficiary. Generally, the death of the annuitant terminates the contract. However, a surviving spouse who is the sole primary beneficiary of the deceased owner/annuitant can choose to be treated as the successor owner/annuitant and continue the contract. The Successor owner/ annuitant feature is only available under NQ and individually-owned IRA contracts. For NQ and all types of IRA contracts, a beneficiary may be able to have limited ownership as discussed under "Beneficiary continuation option" below. WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT Under certain conditions the owner changes after the original owner's death for purposes of receiving required distributions from the contract. When you are not the annuitant under an NQ contract and you die before annuity payments begin, unless you specify otherwise, the beneficiary named to receive the death benefit upon the annuitant's death will become the successor owner. If you do not want this beneficiary to be the successor owner, you should name a specific successor owner. You may name a successor owner at any time during your life by sending satisfactory notice to our processing office. If the contract is jointly owned and the first owner to die is not the annuitant, the surviving owner becomes the sole contract owner. This person will be considered the successor owner for purposes of the distribution rules described in this section. The surviving owner automatically takes the place of any other beneficiary designation. You should carefully consider the following if you have elected the Guaranteed minimum income benefit and you are the owner, but not the annuitant. Because the payments under the Guaranteed minimum income benefit are based on the life of the annuitant, and the federal tax law required distributions described below are based on the life of the successor owner, a successor owner who is not also the annuitant may not be able to exercise the Guaranteed minimum income benefit, if you die before annuity payments begin. Therefore, one year before you become eligible to exercise the Guaranteed minimum income benefit, you should consider the effect of your beneficiary designations on potential payments after your death. For more information, see "Exercise rules" under "Guaranteed minimum income benefit option" in "Contracts features and benefits" earlier in this Prospectus. Unless the surviving spouse of the owner who has died (or in the case of a joint ownership situation, the surviving spouse of the first owner to die) is the successor owner for this purpose, the entire interest in the contract must be distributed under the following rules: o The cash value of the contract must be fully paid to the successor owner (new owner) within five years after your death (the "5-year rule"), or in a joint ownership situation, the death of the first owner to die. 52 Payment of death benefit o The successor owner may instead elect to receive the cash value as a life annuity (or payments for a period certain of not longer than the successor owner's life expectancy). Payments must begin within one year after the non-annuitant owner's death. Unless this alternative is elected, we will pay any cash five years after your death (or the death of the first owner to die). o A successor owner should consider naming a new beneficiary. If the surviving spouse is the successor owner or joint owner, the spouse may elect to continue the contract. No distributions are required as long as the surviving spouse and annuitant are living. An eligible successor owner, including a surviving joint owner after the first owner dies, may elect the beneficiary continuation option for NQ contracts discussed later under "Beneficiary continuation option" below. HOW DEATH BENEFIT PAYMENT IS MADE We will pay the death benefit to the beneficiary in the form of the annuity payout option you have chosen. If you have not chosen an annuity payout option as of the time of the annuitant's death, the beneficiary will receive the death benefit in a single sum. Payment of the death benefit in a lump sum terminates all rights and any applicable guarantees under the contract, including the Guaranteed minimum income benefit and Guaranteed withdrawal benefit for life. Subject to any exceptions in the contract, our rules and any applicable requirements under federal income tax rules, the beneficiary may elect to apply the death benefit to one or more annuity payout options we offer at the time. See "Your annuity payout options" in "Accessing your money" earlier in this Prospectus. Please note that any annuity payout option chosen may not extend beyond the life expectancy of the beneficiary. SUCCESSOR OWNER AND ANNUITANT. If you are both the contract owner and the annuitant, and your spouse is the sole primary beneficiary or the joint owner, then your spouse may elect to receive the death benefit or continue the contract as successor owner/annuitant. The successor owner/annuitant must be 85 or younger as of the date of the non-surviving spouse's death. The determination of spousal status is made under applicable state law; however, in the event of a conflict between federal and state law, we follow federal rules. If your surviving spouse decides to continue the contract, then as of the date we receive satisfactory proof of your death, any required instructions and information, and forms necessary to effect the Successor owner/annuitant feature, we will increase the account value to equal your elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than your account value, and adjusted for any subsequent withdrawals. If any contributions are made during the one-year period prior to your death, the account value will first be reduced by any Credits applied to any such contributions. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. Thereafter, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. These additional contributions will be considered to be withdrawn only after all other amounts have been withdrawn. We will determine whether your applicable Guaranteed minimum death benefit option will continue as follows: o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 84 or younger at death, the Guaranteed minimum death benefit continues based upon the option that was elected by the original owner/annuitant and will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 85 or older at death, we will reinstate the Guaranteed minimum death benefit that was elected by the original owner/annuitant. The benefit will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 76 or over on the date of the original owner/annuitant's death, the Guaranteed minimum death benefit will no longer grow, and we will no longer charge for the benefit. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For information on the operation of the successor owner/annuitant feature with the Guaranteed minimum income benefit, see "Exercise of Guaranteed minimum income benefit" under "Guaranteed minimum income benefit option" in "Contract features and benefits," earlier in this Prospectus. SPOUSAL PROTECTION. Spousal protection is available for NQ contracts only. This feature permits spouses who are joint contract owners to increase the account value to equal the guaranteed minimum death benefit, if higher, upon the death of either spouse. This account value "step up" occurs even if the surviving spouse was the named annuitant. If you and your spouse jointly own the contract and one of you is the named annuitant, you may elect the Spousal protection option at the time you purchase your contract at no additional charge. Both spouses must be between the ages of 20 and 70 at the time the contract is issued and must each be named the primary beneficiary in the event of the other's death. The annuitant's age is generally used for the purpose of determining contract benefits. However, for the Annual Ratchet to age 85 Payment of death benefit 53 enhanced death benefit, the benefit is based on the older spouse's age. The older spouse may or may not be the annuitant. If the annuitant dies prior to annuitization, the surviving spouse may elect to receive the death benefit, or, if eligible, continue the contract as the sole owner/annuitant by electing the successor owner/ annuitant option. If the non-annuitant spouse dies prior to annuitization, the surviving spouse continues the contract automatically as the sole owner/annuitant. In either case, the contract would continue, as follows: o As of the date we receive due proof of the spouse's death, the account value will be reset to equal the Guaranteed minimum death benefit as of the date of the non-surviving spouse's death, if higher. If the annuitant spouse dies, the account value will first be reduced by any Credits applied in the one-year period prior to the death of either spouse. o The Guaranteed minimum death benefit continues to be based on the older spouse's age for the life of the contract, even if the younger spouse is originally or becomes the sole owner/annuitant. o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the successor owner/annuitant, if applicable. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If the annuitant dies first, withdrawal charges will no longer apply to any contributions made prior to the annuitant's death. If the non-annuitant spouse dies first, the withdrawal charge schedule remains in effect with regard to all contributions. We will not allow Spousal protection to be added after contract issue. If there is a change in owner or primary beneficiary, the Spousal protection benefit will be terminated. If you divorce, but do not change the owner or primary beneficiary, Spousal protection continues. YOUR BENEFICIARY AND PAYMENT OF BENEFIT IF GWBL IS ELECTED You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under Joint life contracts, the surviving spouse is considered the beneficiary, and will take the place of any other beneficiary. Under a contract with a non-natural owner that has joint annuitants, the surviving annuitant is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value or, if greater, the applicable Guaranteed minimum death benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) as of the date we receive satisfactory proof of the owner's (or the second to die of the owner and successor owner's, if applicable) death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the owner's (or the second to die of the owner and successor owner's, if applicable) death adjusted for any subsequent withdrawals. - -------------------------------------------------------------------------------- Under contracts with GWBL, the terms Owner and Successor Owner are intended to be references to Annuitant and Joint Annuitant, respectively if the contract has a non-natural owner. - -------------------------------------------------------------------------------- Subject to applicable laws and regulations, you may impose restrictions on the timing and manner of the payment of the death benefit to your beneficiary. For example, your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period and (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law. In general, if the annuitant dies, the owner (or successor owner, if applicable and the owner is also deceased) will become the annuitant, and the death benefit is not payable. If the contract had joint annuitants, it will become a single annuitant contract. EFFECT OF THE OWNER'S DEATH In general, if the owner dies while the contract is in force, the contract terminates and the applicable death benefit is paid. For Joint Life contracts with GWBL, the death benefit is paid to the beneficiary at the death of the second to die of the owner and successor owner, as applicable. There are various circumstances, however, in which the contract can be continued by a successor owner or under a Beneficiary continuation option. For individually owned Joint life contracts, the successor owner becomes the sole owner upon the death of the owner. If you are the sole owner and your spouse is the sole primary beneficiary, your surviving spouse can continue the contract as a successor owner, under "Spousal continuation" or under our Beneficiary continuation option, as discussed below. Upon the death of the owner, for single owner contracts or, in the case of Joint life contracts, upon the death of the second of the owner or successor owner to die, if the beneficiary is not the surviving spouse, 54 Payment of death benefit federal income tax rules generally require payments of amounts under the contract to be made within five years of an owner's death (the "5-year rule"). In certain cases, an individual beneficiary may opt to receive payments over his/her life (or over a period not in excess of his/her life expectancy) if payments commence within one year of the owner's death. Any such election must be made in accordance with our rules at the time of death. If the beneficiary of a contract with one owner continues the contract under the 5-year rule, in general, all guaranteed benefits and their charges will end. For more information on non-spousal joint owner contract continuation, see the section immediately below. NON-SPOUSAL JOINT LIFE CONTRACT CONTINUATION This section applies only with regard to Joint life contracts in which the successor owner has joint ownership rights and the owner and successor owner have divorced, but the successor owner has been neither dropped nor replaced or the contract has not been split, as described in the contract. Upon the death of either the owner or the successor owner, the survivor becomes the surviving owner. The cash value of the contract must be paid to the surviving owner within five years. The surviving owner may instead elect to receive a life annuity, provided payments begin within one year of the deceased owner's or successor owner's death. If the life annuity is elected, the contract and all benefits terminate. If the surviving owner dies within five years of the owner or successor owner (as applicable), and the contract has continued in force, the guaranteed minimum death benefit will be paid to the beneficiary. If the successor owner did not have joint ownership rights as discussed in this Prospectus, then in the case of the death of the successor owner where the contract was not split after a divorce, the contract continues as is with the sole owner. However, if the owner dies first, then the cash value must be distributed to the successor owner as described above. SPOUSAL CONTINUATION If you are the contract owner under a Single life contract and your spouse is the sole primary beneficiary, your spouse may elect to continue the contract as successor owner upon your death. Spousal beneficiaries who are not also the Joint life must be 85 or younger as of the date of the deceased spouse's death in order to continue the contract under Spousal continuation. If you own a Joint life contract and your spouse survives you, the contract will automatically continue upon your death. For Single life contracts, the spouse beneficiary may elect to receive the death benefit or continue the contract, as follows: o As of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary, we will increase the account value to equal your Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. o Withdrawal charges will no longer apply to contributions made before your death. No additional contributions will be permitted. o The Guaranteed minimum death benefit will continue, as follows: o if you elected the Standard death benefit it will continue o if you elected the Annual Ratchet to age 85 death benefit, and your spouse is age 75 or younger as of the date of your death and you were 84 or younger at death, the death benefit and charge will continue based on your spouse's age. If you were age 85 or older at death, we will reinstate the Annual Ratchet to age 85 death benefit. The benefit base which had previously been frozen at age 85 will now continue to grow until the contract date anniversary following the date your surviving spouse reaches age 85. If your spouse is 76 or older as of the date of your death, we will discontinue the death benefit and charge; however, we will freeze the benefit base as of the date of your death (reduced pro rata for any subsequent withdrawals), and pay it upon your spouse's death. o The Guaranteed withdrawal benefit for life and its charge will terminate. For Joint life contracts: o No death benefit is payable until the death of the surviving spouse. Your guaranteed minimum death benefit (and charge, if applicable) continues. o if you elected the Annual Ratchet to age 85 death benefit, the benefit base will continue to ratchet until the contract date anniversary following the surviving spouse's age 85. o Withdrawal charges will continue to apply to all contributions made both prior and subsequent to the deceased spouse's death. The right to make additional contributions under the contract is not affected by your death. o The Guaranteed withdrawal benefit for life and its charge will remain in effect. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. If you divorce, Spousal continuation does not apply. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts. Payment of death benefit 55 Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. For Joint life contracts, the Beneficiary continuation option is only available after the death of the second owner. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit, if such death benefit is greater than such account value, adjusted for any subsequent withdrawals. If you die during the one-year period following our receipt of a contribution, the account value will first be reduced by any Credits applied to such contribution. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs')," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life or the Annual Ratchet to age 85 enhanced death benefit, under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a portion of the account value and no withdrawal charges, if any, will apply. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as the Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. If the owner and annuitant are different and the owner dies before the annuitant, for purposes of this discussion, "beneficiary" refers to the successor owner. For a discussion of successor owner, see "When an NQ contract owner dies before the annuitant" earlier in this section. This feature must be elected within 9 months following the date of your death and before any inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts (regardless of whether the owner and the annuitant are the same person): o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. 56 Payment of death benefit o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life or the Annual Ratchet to age 85 enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If you are both the owner and annuitant under a contract in which GWBL is not elected, or if the deceased is the owner under a contract in which GWBL is elected: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the annuity account value to equal the applicable death benefit if such death benefit is greater than such account value, adjusted for any subsequent withdrawals. If you die during the one-year period following our receipt of a contribution, the account value will first be reduced by any Credits applied to such contribution. o No withdrawal charges, if any, will apply to any withdrawals by the beneficiary. If the owner and annuitant under a contract in which GWBL is not elected are not the same person: o If the beneficiary continuation option is elected, the beneficiary automatically becomes the new annuitant of the contract, replacing the existing annuitant. o The annuity account value will not be reset to the death benefit amount. o The contract's withdrawal charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments; the contract's free corridor amount will continue to apply to withdrawals but does not apply to surrenders. o We do not impose a withdrawal charge on scheduled payments except if, when added to any withdrawals previously taken in the same contract year, including for this purpose a contract surrender, the total amount of withdrawals and scheduled payments exceed the free corridor amount. See the "Withdrawal charges" in "Charges and expenses" earlier in this Prospectus. If a contract in which GWBL is not elected is jointly owned: o The surviving owner supersedes any other named beneficiary and may elect the beneficiary continuation option. o If the deceased joint owner was also the annuitant, see "If you are both the owner and annuitant under a contract in which GWBL is not elected, or if the deceased is the owner under a contract in which GWBL is elected" earlier in this section. o If the deceased joint owner was not the annuitant, see "If the owner and annuitant under a contract in which GWBL is not elected are not the same person" earlier in this section. Payment of death benefit 57 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Plus(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted based on these options. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Plus'(SM) extra credit on each contribution, choice of death benefits, the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit, guaranteed interest option, selection of variable investment options and its choices of pay-out options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, the guaranteed minimum income benefit and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG VARIABLE INVESTMENT OPTIONS You can make transfers among variable investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the 58 Tax information same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. TAXATION OF LIFETIME WITHDRAWALS IF YOU ELECT GUARANTEED WITHDRAWAL BENEFIT FOR LIFE We treat Guaranteed annual withdrawal amounts and other withdrawals as non-annuity payments for income tax purposes. These withdrawals are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. It reduces the investment in the contract. ANNUITY PAYMENTS Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus, as well as GMIB and other annuitization payments that are based on life or life expectancy, are considered annuity payments for tax purposes. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annutize" nonqualified deferred annuity contracts. Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your "investment in the contract." Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. CONTRACTS PURCHASED THROUGH EXCHANGES You may purchase your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that is the source of the funds you are using to purchase the NQ contract is another nonqualified deferred annuity contract or life insurance or endowment contract. o the owner and the annuitant are the same under the source contract and the Accumulator(R) Plus(SM) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must be the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carries over to the Accumulator(R) Plus(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between the carriers, and provision of cost basis information may be required to process this type of exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. The IRS has not specifically addressed the tax treatment of the Spousal protection benefit. Please consult with your tax adviser before electing this feature. Beneficiary continuation option We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for NQ contracts. See the discussion "Beneficiary continuation option for NQ contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2;" o scheduled payments, any additional withdrawals under "Withdrawal Option 2," or contract surrenders under "Withdrawal Tax information 59 Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the Withdrawal Option selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling specifically does not address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or any withdrawal that might be taken). Before electing the beneficiary continuation option feature, the individuals you designate as beneficiary or successor owner should discuss with their tax advisers the consequences of such elections. The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Account 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Account 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Account 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Account 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets funding the account for the benefit of the IRA owner. The assets typically can include mutual funds and/or individual stocks and/or securities in a custodial account, and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral, regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may purchase the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We currently do not offer traditional IRA contracts for use as employer-funded SEP IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS requires you to have before you purchase an IRA. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project 60 Tax information growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). We have not applied for an opinion letter from the IRS to approve the respective forms of the Accumulator(R) Plus(SM) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. We have received IRS opinion letters approving the respective forms of a similar traditional IRA and Roth IRA endorsement for use as a traditional and Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) traditional and Roth IRA contracts. Your right to cancel within a certain number of days You can cancel either type of Accumulator(R) Plus(SM) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel within a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation would have an unfavorable tax impact. Traditional individual retirement annuities (traditional IRAs) Contributions to traditional IRAs. Individuals may make three different types of contributions to a traditional IRA: o regular contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). Regular contributions to traditional IRAs Limits on contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 anytime during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make an additional "catch up contributions" of up to $1,000 to your traditional IRA. Special rules for spouses. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. Deductibility of contributions. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored-tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions." That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits to deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined Tax information 61 independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted -------------------- x regular = deductible divided by $10,000 contribution contribution for the year limit Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000 ($53,000, after cost of living indexing adjustment for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution, and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. Nondeductible regular contributions. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. When you can make regular contributions. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. Rollover and transfer contributions to traditional IRAs Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. Rollovers from "eligible retirement plans" other than traditional IRAs Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to 62 Tax information send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Rollovers from traditional IRAs to traditional IRAs You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVER AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. Excess contributions Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contri bution amount for the applicable taxable year); or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. Recharacterizations Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. Tax information 63 Withdrawals, payments and transfers of funds out of traditional IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Taxation of payments. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, a 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. Required minimum distributions BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts. If you take annual withdrawal instead of annuitizing, please consult your tax adviser concerning applicability of these complex rules to your situation. Lifetime required minimum distributions. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. When you have to take the first lifetime required minimum distribution. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1-April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year--the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. How you can calculate required minimum distributions. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional 64 Tax information IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. Do you have to pick the same method to calculate your required minimum distributions for all of your traditional IRAs and other retirement plans? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. Will we pay you the annual amount every year from your traditional IRA based on the method you choose? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. What if you take more than you need to for any year? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. What if you take less than you need to for any year? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. What are the required minimum distribution payments after you die? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. Individual beneficiary. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. Spousal beneficiary. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. Non-individual beneficiary. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity con- Tax information 65 tract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. Spousal continuation If the contract is continued under Spousal continuation, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. Successor owner and annuitant If your spouse is the sole primary beneficiary and elects to become the successor owner and annuitant, no death benefit is payable until your surviving spouse's death. The RMD rules are applied as if your surviving spouse is the contract owner. Payments to a beneficiary after your death IRA death benefits are taxed the same as IRA distributions. Borrowing and loans are prohibited transactions You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. Early distribution penalty tax A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special fed eral income tax definition); or o used to pay medical insurance premiums for unemployed indi viduals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special fed eral income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies using an IRS-approved distribution method. To meet this last exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" above. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under this option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. Roth individual retirement annuities (Roth IRAs) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Plus(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. Contributions to Roth IRAs Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eli gible retirement plans ("conversion" rollover contributions); or o tax-free rollover contributions from other Roth individual retire ment arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. Regular contributions to Roth IRAs Limits on regular contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most 66 Tax information you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion under "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But you cannot make contributions, regardless of your age, for any year that modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000; (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000; (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. When you can make contributions. Same as traditional IRAs. Deductibility of contributions. Roth IRA contributions are not tax deductible. Rollovers and direct transfers What is the difference between rollover and direct transfer transactions? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only use rollover transactions between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two- year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Conversion rollover contributions to Roth IRAs In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting--a pro rata portion of the distribution is tax free. Even if Tax information 67 you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. How to recharacterize. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. Distributions from Roth IRAs Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. 68 Tax information Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contribu tions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. Required minimum distributions during life Lifetime required minimum distributions do not apply. Required minimum distributions at death Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the Required Beginning Date. Payments to a beneficiary after your death Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. Borrowing and loans are prohibited transactions Same as traditional IRA. Excess contributions Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. Early distribution penalty tax Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) General The following information reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" Tax information 69 or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) PLUS(SM) TSA CONTRACT Because the Accumulator(R) Plus(SM) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Plus(SM) TSA contract are extremely limited as described below. Accumulator(R) Plus(SM) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the 403(b) annuity contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Plus(SM) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Plus(SM) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Plus(SM) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Plus(SM) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded 70 Tax information through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) Plus(SM) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its Tax information 71 designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Plus(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Plus(SM) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" in this Prospectus, as well as GMIB and other annuitization payments that are based on the annuitant's life or life expectancy, are considered annuity payments for tax purposes. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. 72 Tax information TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Plus(SM) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance.. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Plus(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Plus(SM) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan Tax information 73 must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribu tion from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. Federal income tax withholding on periodic annuity payments Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. 74 Tax information Federal income tax withholding on non-periodic annuity payments (withdrawals) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. Mandatory withholding from TSA and qualified plan distributions Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. Tax information 75 8. More information - -------------------------------------------------------------------------------- ABOUT SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of the Separate Account's operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Account invests solely in class IB/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from the Separate Account, or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in the prospectuses for each Trust, which generally accompany this Prospectus, or in their respective SAIs which are available upon request. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, guaranteed interest option and fixed maturity options as well as our general obligations. Credits allocated to your account value are funded from our general account. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is not registered as an investment company under the Investment Company Act of 1940. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. 76 More information ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept initial and subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information provided through certain broker-dealers with which we have established electronic facilities. In any such cases, you must sign our Acknowledgement of Receipt form. Where we require a signed application, the above procedures do not apply and no financial transactions will be permitted until we receive the signed application and have issued the contract. Where we issue a contract based on information provided through electronic facilities, we require an Acknowledgement of Receipt form, and financial transactions are only permitted if you request them in writing, sign the request and have it signature guaranteed, until we receive the signed Acknowledgement of Receipt form. After your contract has been issued, additional contributions may be transmitted by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. After your contract has been issued, additional contributions may be transmitted by wire. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, QP contracts or Rollover TSA contracts. The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. For contracts with GWBL, AIP will be automatically terminated after the later of: (i) the end of the first contract year, or (ii) the date the first withdrawal is taken. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. More information 77 CONTRIBUTIONS, CREDITS, AND TRANSFERS o Contributions and credits allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions and credits allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions and credits allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in the prospectus for each Trust or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustees or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. One result of proportional voting is that a small number of contract owners may control the outcome of a vote. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or the distribution of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive written notification of any change at our processing office. Loans are not available under your NQ contract. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. For NQ contracts only, subject to regulatory approval, if you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, or Guaranteed withdrawal benefit for life ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. However, the Benefit (other than the Guaranteed withdrawal benefit for life) will not terminate if the ownership of the contract is transferred to: (i) a family member (as defined in the contract); (ii) a trust created for the benefit of a family member or members; (iii) a trust qualified under section 78 More information 501(c) of the Internal Revenue Code; or (iv) a successor by operation of law, such as an executor or guardian. The Guaranteed withdrawal benefit for life will not terminate if the ownership of the contract is transferred from a non-natural owner to an individual but the contract will continue to be based on the annuitant's life. The Guaranteed withdrawal benefit for life will also not terminate if you transfer your individually-owned contract to a trust held for your (or your and your immediate family's) benefit; the Guaranteed withdrawal benefit for life will continue to be based on your life. If you were not the annuitant under the individually-owned contract in which the Guaranteed withdrawal benefit for life is elected, you will become the annuitant under the new contract. Please speak with your financial professional for further information. For NQ contracts, if there is a change in owner, the Guaranteed withdrawal benefit for life will be terminated. However, if ownership is changed from a non-natural owner to an individual, the Guaranteed withdrawal benefit for life will not terminate and the benefit will continue to be determined by the annuitant. You cannot assign or transfer ownership of a Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available (except for Rollover TSA contracts for which employer or plan approval is required) and you cannot assign Rollover IRA, Roth Conversion IRA and QP contracts as security for a loan or other obligation. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract (employer or plan approval required) to another similar arrangement under federal income tax rules. In the case of such a transfer, we will impose a withdrawal charge, if one applies. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 0.60% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 7.50% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker- dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset- More information 79 based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. 80 More information 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Guaranteed Interest Account with Market Value Adjustment (the "Registration Statement"). This Prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Guaranteed Interest Account with Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a web site that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to The AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa- equitable.com. Incorporation of certain documents by reference 81 Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account No. 49 with the same daily asset charges of 1.50%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007
- ------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------ 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.19 $ 14.52 $ 12.51 $ 11.75 $ 10.67 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 23,792 22,907 13,134 5,787 212 - ------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.86 $ 11.39 $ 10.87 $ 10.77 $ 10.31 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 9,705 7,544 5,980 2,987 213 - ------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.51 $ 12.04 $ 11.24 $ 11.05 $ 10.41 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 20,000 19,344 14,424 6,175 444 - ------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.22 $ 12.63 $ 11.62 $ 11.26 $ 10.51 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 85,730 84,073 66,161 30,895 2,029 - ------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.58 $ 13.91 $ 12.34 $ 11.74 $ 10.67 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 111,034 104,098 66,976 23,331 995 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.02 $ 13.76 $ 12.62 $ 12.28 $ 10.93 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 18,987 21,038 18,381 10,684 698 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.81 $ 10.27 $ 10.11 $ 10.14 $ 10.10 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,139 3,263 2,914 2,082 216 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.81 $ 18.00 $ 14.80 $ 13.03 $ 11.19 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 12,039 10,530 7,171 2,946 147 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.75 $ 12.25 $ 12.51 $ 11.05 $ 10.35 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,186 3,308 2,395 987 80 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.03 $ 10.71 $ 10.47 $ 10.42 $ 10.20 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 6,434 6,212 5,266 2,713 207 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.37 $ 14.25 $ 13.27 $ 12.08 $ 10.76 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 5,401 5,108 3,772 2,272 157 - ------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.27 $ 15.18 $ 12.69 $ 12.22 $ 10.94 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 29,046 19,714 14,454 7,621 544 - ------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.04 $ 11.34 $ 10.36 -- -- - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 643 565 149 -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.17 $ 10.98 $ 10.99 $ 10.37 $ 10.16 - ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 3,083 3,527 2,846 958 32 - ------------------------------------------------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- ---------------------------------------------------------------------------------------------- For the years ending December 31, - ---------------------------------------------------------------------------------------------- 2007 2006 - ---------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ---------------------------------------------------------------------------------------------- Unit value $ 14.32 $ 14.37 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,153 10,040 - ---------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ---------------------------------------------------------------------------------------------- Unit value $ 19.51 $ 17.98 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,808 10,173 - ---------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ---------------------------------------------------------------------------------------------- Unit value $ 6.84 $ 6.70 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,418 10,601 - ---------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ---------------------------------------------------------------------------------------------- Unit value $ 13.13 $ 11.89 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 748 778 - ---------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ---------------------------------------------------------------------------------------------- Unit value $ 12.32 $ 11.86 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,097 2,829 - ---------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ---------------------------------------------------------------------------------------------- Unit value $ 13.53 $ 13.51 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 11,133 4,660 - ---------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ---------------------------------------------------------------------------------------------- Unit value $ 11.18 $ 11.05 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,432 2,907 - ---------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ---------------------------------------------------------------------------------------------- Unit value $ 11.08 $ 10.84 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,531 815 - ---------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ---------------------------------------------------------------------------------------------- Unit value $ 14.09 $ 13.63 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 16,275 16,937 - ---------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ---------------------------------------------------------------------------------------------- Unit value $ 10.69 $ 9.93 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,771 2,213 - ---------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ---------------------------------------------------------------------------------------------- Unit value $ 13.20 $ 12.04 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,342 2,163 - ---------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ---------------------------------------------------------------------------------------------- Unit value $ 15.87 $ 14.92 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 11,622 11,897 - ---------------------------------------------------------------------------------------------- EQ/Franklin Income - ---------------------------------------------------------------------------------------------- Unit value $ 10.48 $ 10.42 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,720 2,190 - ---------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ---------------------------------------------------------------------------------------------- Unit value $ 9.73 $ 10.82 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 511 327 - ---------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ---------------------------------------------------------------------------------------------- Unit value $ 9.51 -- - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,859 -- - ---------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ---------------------------------------------------------------------------------------------- Unit value $ 11.81 $ 11.60 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,544 2,148 - ---------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ---------------------------------------------------------------------------------------------- Unit value $ 28.78 $ 26.74 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,742 2,995 - ---------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------------------------------------------------------------------- 2005 2004 2003 - ---------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ---------------------------------------------------------------------------------------------- Unit value $ 12.06 $ 11.90 $ 10.92 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 8,863 6,079 371 - ---------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ---------------------------------------------------------------------------------------------- Unit value $ 14.52 $ 13.30 $ 11.10 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,184 2,381 55 - ---------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ---------------------------------------------------------------------------------------------- Unit value $ 5.86 $ 5.61 -- - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,594 538 -- - ---------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ---------------------------------------------------------------------------------------------- Unit value $ 11.47 $ 10.71 $ 10.49 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 570 333 6 - ---------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ---------------------------------------------------------------------------------------------- Unit value $ 11.21 $ 10.82 $ 10.41 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,697 464 83 - ---------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ---------------------------------------------------------------------------------------------- Unit value $ 12.24 $ 11.72 $ 10.72 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,062 2,784 143 - ---------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ---------------------------------------------------------------------------------------------- Unit value $ 10.39 -- -- - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,183 -- -- - ---------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ---------------------------------------------------------------------------------------------- Unit value -- -- -- - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - ---------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ---------------------------------------------------------------------------------------------- Unit value $ 12.02 $ 11.69 $ 10.77 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 14,502 8,691 620 - ---------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ---------------------------------------------------------------------------------------------- Unit value $ 9.75 -- -- - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 228 -- -- - ---------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ---------------------------------------------------------------------------------------------- Unit value $ 11.54 $ 11.27 $ 10.69 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,383 1,795 120 - ---------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ---------------------------------------------------------------------------------------------- Unit value $ 13.58 $ 12.96 $ 11.34 - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,581 5,395 415 - ---------------------------------------------------------------------------------------------- EQ/Franklin Income - ---------------------------------------------------------------------------------------------- Unit value -- -- -- - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - ---------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ---------------------------------------------------------------------------------------------- Unit value -- -- -- - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - ---------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ---------------------------------------------------------------------------------------------- Unit value -- -- -- - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - ---------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ---------------------------------------------------------------------------------------------- Unit value $ 10.49 -- -- - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 749 -- -- - ---------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ---------------------------------------------------------------------------------------------- Unit value $ 22.84 $ 22.23 -- - ---------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,015 190 -- - ----------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- ------------------------------------------------------------------------------------------------------- For the years ending December 31, - ------------------------------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------- Unit value $ 19.24 $ 16.95 $ 14.43 $ 12.51 $ 11.18 - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,196 7,597 5,867 3,446 181 - ------------------------------------------------------------------------------------------------------- EQ/International Growth - ------------------------------------------------------------------------------------------------------- Unit value $ 16.27 $ 14.22 $ 11.49 -- -- - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,647 1,341 371 -- -- - ------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------- Unit value $ 10.96 $ 10.80 $ 10.53 $ 10.46 $ 10.20 - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 18,138 17,343 13,723 6,436 460 - ------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------- Unit value $ 14.15 $ 14.55 $ 12.27 $ 11.98 $ 10.97 - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,712 1,785 1,359 815 68 - ------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------- Unit value $ 13.94 $ 13.63 $ 12.25 $ 11.60 $ 10.57 - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,258 1,278 1,164 742 69 - ------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------- Unit value $ 14.75 $ 12.95 $ 12.20 $ 11.36 $ 10.24 - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,292 2,120 1,605 800 49 - ------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------- Unit value $ 10.37 $ 11.19 $ 10.64 -- -- - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,207 3,427 614 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------- Unit value $ 10.60 $ 10.02 $ 9.99 -- -- - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,861 2,606 1,556 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------- Unit value $ 12.46 $ 12.22 $ 10.59 -- -- - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,178 2,458 807 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------- Unit value $ 12.77 $ 11.71 $ 10.55 -- -- - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,237 1,013 534 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------- Unit value $ 12.22 $ 12.33 $ 11.14 -- -- - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,635 4,143 2,560 -- -- - ------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------- Unit value $ 15.19 $ 13.52 $ 12.56 $ 11.51 $ 10.58 - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 21,594 22,005 14,932 7,104 642 - ------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------- Unit value $ 15.10 $ 15.58 $ 14.06 $ 12.83 $ 11.05 - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,736 10,619 8,875 4,167 314 - ------------------------------------------------------------------------------------------------------- EQ/Money Market - ------------------------------------------------------------------------------------------------------- Unit value $ 10.62 $ 10.29 $ 10.00 $ 9.89 $ 9.97 - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,650 9,565 6,802 5,781 1,312 - ------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------- Unit value $ 5.77 $ 4.85 $ 4.56 $ 4.39 -- - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,353 2,170 1,829 144 -- - ------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------- Unit value $ 10.72 $ 10.70 -- -- -- - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,106 1,152 -- -- -- - ------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------- Unit value $ 11.54 $ 11.09 -- -- -- - ------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 979 270 -- -- -- - -------------------------------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- --------------------------------------------------------------------------------------------- For the years ending December 31, - --------------------------------------------------------------------------------------------- 2007 2006 - --------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - --------------------------------------------------------------------------------------------- Unit value $ 11.13 $ 10.93 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 516 144 - --------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - --------------------------------------------------------------------------------------------- Unit value $ 10.73 $ 11.09 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 681 155 - --------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - --------------------------------------------------------------------------------------------- Unit value $ 10.78 $ 9.81 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,876 8,347 - --------------------------------------------------------------------------------------------- EQ/Short Duration Bond - --------------------------------------------------------------------------------------------- Unit value $ 10.59 $ 10.21 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,196 979 - --------------------------------------------------------------------------------------------- EQ/Small Company Index - --------------------------------------------------------------------------------------------- Unit value $ 14.31 $ 14.80 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,443 5,853 - --------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - --------------------------------------------------------------------------------------------- Unit value $ 16.95 $ 16.05 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,969 1,017 - --------------------------------------------------------------------------------------------- EQ/Templeton Growth - --------------------------------------------------------------------------------------------- Unit value $ 10.81 $ 10.75 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,461 1,003 - --------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - --------------------------------------------------------------------------------------------- Unit value $ 6.15 $ 6.17 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,065 4,330 - --------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - --------------------------------------------------------------------------------------------- Unit value $ 11.42 $ 11.89 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,774 3,972 - --------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - --------------------------------------------------------------------------------------------- Unit value $ 34.57 $ 24.71 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10,658 10,717 - --------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - --------------------------------------------------------------------------------------------- Unit value $ 16.04 $ 13.30 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,601 2,056 - --------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - --------------------------------------------------------------------------------------------- Unit value $ 8.28 -- - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 15,751 -- - --------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - --------------------------------------------------------------------------------------------- Unit value $ 14.26 $ 13.00 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,381 1,606 - --------------------------------------------------------------------------------------------- Multimanager Core Bond - --------------------------------------------------------------------------------------------- Unit value $ 11.16 $ 10.66 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 8,539 8,806 - --------------------------------------------------------------------------------------------- Multimanager Health Care - --------------------------------------------------------------------------------------------- Unit value $ 13.70 $ 12.76 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,087 5,093 - --------------------------------------------------------------------------------------------- Multimanager High Yield - --------------------------------------------------------------------------------------------- Unit value $ 12.66 $ 12.46 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 12,794 13,219 - --------------------------------------------------------------------------------------------- Multimanager International Equity - --------------------------------------------------------------------------------------------- Unit value $ 20.28 $ 18.32 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,567 6,780 - --------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------- For the years ending December 31, - --------------------------------------------------------------------------------------------- 2005 2004 2003 - --------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - --------------------------------------------------------------------------------------------- Unit value -- -- -- - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - --------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - --------------------------------------------------------------------------------------------- Unit value -- -- -- - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - --------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - --------------------------------------------------------------------------------------------- Unit value $ 9.92 -- -- - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,644 -- -- - --------------------------------------------------------------------------------------------- EQ/Short Duration Bond - --------------------------------------------------------------------------------------------- Unit value $ 9.97 -- -- - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 400 -- -- - --------------------------------------------------------------------------------------------- EQ/Small Company Index - --------------------------------------------------------------------------------------------- Unit value $ 12.76 $ 12.43 $ 10.72 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,236 2,712 208 - --------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - --------------------------------------------------------------------------------------------- Unit value $ 16.98 $ 16.58 -- - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 847 92 -- - --------------------------------------------------------------------------------------------- EQ/Templeton Growth - --------------------------------------------------------------------------------------------- Unit value -- -- -- - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - --------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - --------------------------------------------------------------------------------------------- Unit value $ 5.49 $ 5.11 -- - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,805 140 -- - --------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - --------------------------------------------------------------------------------------------- Unit value $ 10.42 -- -- - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,952 -- -- - --------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - --------------------------------------------------------------------------------------------- Unit value $ 18.31 $ 14.00 $ 11.49 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,390 2,669 209 - --------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - --------------------------------------------------------------------------------------------- Unit value $ 12.36 -- -- - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 845 -- -- - --------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - --------------------------------------------------------------------------------------------- Unit value -- -- -- - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- - --------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - --------------------------------------------------------------------------------------------- Unit value $ 12.55 $ 11.78 $ 10.67 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,049 658 70 - --------------------------------------------------------------------------------------------- Multimanager Core Bond - --------------------------------------------------------------------------------------------- Unit value $ 10.43 $ 10.41 $ 10.17 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7,189 4,559 446 - --------------------------------------------------------------------------------------------- Multimanager Health Care - --------------------------------------------------------------------------------------------- Unit value $ 12.32 $ 11.70 $ 10.59 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,781 2,001 124 - --------------------------------------------------------------------------------------------- Multimanager High Yield - --------------------------------------------------------------------------------------------- Unit value $ 11.51 $ 11.34 $ 10.59 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 11,372 6,690 712 - --------------------------------------------------------------------------------------------- Multimanager International Equity - --------------------------------------------------------------------------------------------- Unit value $ 14.84 $ 13.05 $ 11.24 - --------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,388 2,692 191 - ---------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007 (CONTINUED)
- -------------------------------------------------------------------------------------------- For the years ending December 31, - -------------------------------------------------------------------------------------------- 2007 2006 - -------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - -------------------------------------------------------------------------------------------- Unit value $ 13.91 $ 13.45 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,897 1,702 - -------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - -------------------------------------------------------------------------------------------- Unit value $ 12.57 $ 11.47 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,887 3,872 - -------------------------------------------------------------------------------------------- Multimanager Large Cap Value - -------------------------------------------------------------------------------------------- Unit value $ 15.80 $ 15.48 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,644 6,667 - -------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - -------------------------------------------------------------------------------------------- Unit value $ 14.73 $ 13.36 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,518 4,590 - -------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - -------------------------------------------------------------------------------------------- Unit value $ 14.70 $ 14.91 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,244 4,683 - -------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - -------------------------------------------------------------------------------------------- Unit value $ 8.87 $ 8.69 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6,997 5,187 - -------------------------------------------------------------------------------------------- Multimanager Small Cap Value - -------------------------------------------------------------------------------------------- Unit value $ 13.21 $ 14.88 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,631 11,213 - -------------------------------------------------------------------------------------------- Multimanager Technology - -------------------------------------------------------------------------------------------- Unit value $ 14.38 $ 12.35 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5,318 4,306 - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- For the years ending December 31, - -------------------------------------------------------------------------------------------- 2005 2004 2003 - -------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - -------------------------------------------------------------------------------------------- Unit value $ 12.02 $ 11.43 $ 10.58 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1,464 886 108 - -------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - -------------------------------------------------------------------------------------------- Unit value $ 11.64 $ 10.99 $ 10.46 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,154 1,909 136 - -------------------------------------------------------------------------------------------- Multimanager Large Cap Value - -------------------------------------------------------------------------------------------- Unit value $ 13.17 $ 12.48 $ 11.07 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4,853 2,322 116 - -------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - -------------------------------------------------------------------------------------------- Unit value $ 12.38 $ 11.59 $ 10.53 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,750 2,441 274 - -------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - -------------------------------------------------------------------------------------------- Unit value $ 13.19 $ 12.48 $ 11.00 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,833 2,655 288 - -------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - -------------------------------------------------------------------------------------------- Unit value $ 8.00 $ 7.56 -- - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2,774 91 -- - -------------------------------------------------------------------------------------------- Multimanager Small Cap Value - -------------------------------------------------------------------------------------------- Unit value $ 13.01 $ 12.61 $ 10.94 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 9,487 5,755 337 - -------------------------------------------------------------------------------------------- Multimanager Technology - -------------------------------------------------------------------------------------------- Unit value $ 11.69 $ 10.66 $ 10.31 - -------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3,246 1,826 104 - --------------------------------------------------------------------------------------------
A-5 Appendix I: Condensed financial information Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- Trustees who are considering the purchase of an Accumulator(R) Plus(SM) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this Prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) Plus(SM) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) Plus(SM) QP contract to fund a plan for the contract's features and benefits other than tax deferral, after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. We will not accept defined benefit plans. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or other contributions directly from the employer. For 401(k) plans under defined contribution plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge may apply. For defined contribution plans, we will only accept transfers from another defined contribution plan or a change of investment vehicles in the plan. AXA Equitable will not perform or provide any plan recordkeeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant/employee takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for participants after age 70-1/2, trustees should consider: o whether required minimum distributions under QP contracts would cause withdrawals in excess of 6% of the Guaranteed minimum income benefit Roll-Up benefit base; and o that provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed from the contract. Finally, because the method of purchasing the QP contract, including the large initial contribution and the features of the QP contract may appeal more to plan participants/employees who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants/employees who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisers whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. Appendix II: Purchase considerations for QP contracts B-1 Appendix III: Annual Ratchet to age 85 enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the Annual Ratchet to age 85 enhanced death benefit. The following illustrates the Annual Ratchet to age 85 enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options or the Special 10 year fixed maturity option), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the Annual Ratchet to age 85 enhanced death benefit for an annuitant age 45 would be calculated as follows: - -------------------------------------------------------------------------------- Annual Ratchet to age 85 End of Contract Year Account Value enhanced benefit base - -------------------------------------------------------------------------------- 1 109,200 109,200(1) - -------------------------------------------------------------------------------- 2 120,120 120,120(1) - -------------------------------------------------------------------------------- 3 134,534 134,534(1) - -------------------------------------------------------------------------------- 4 107,628 134,534(2) - -------------------------------------------------------------------------------- 5 118,390 134,534(2) - -------------------------------------------------------------------------------- 6 132,597 134,534(2) - -------------------------------------------------------------------------------- 7 132,597 134,534(2) - -------------------------------------------------------------------------------- The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. ANNUAL RATCHET TO AGE 85 (1) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (2) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. C-1 Appendix III: Annual Ratchet to age 85 enhanced death benefit example Appendix IV: Hypothetical Illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85" guaranteed minimum death benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Plus(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single$100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying Portfolios (as described below), the corresponding net annual rates of return would be (2.73)%, 3.27% for the Accumulator(R) Plus(SM) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges but they do not reflect the charges we deduct from your account value annually for the optional Guaranteed minimum death benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return would be lower; however, the values shown in the following tables reflect all contract charges. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this Prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. Appendix IV: Hypothetical Illustrations D-1 Variable deferred annuity Accumulator(R) Plus(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Annual Ratchet to age 85 Guaranteed minimum death benefit Guaranteed minimum income benefit
Annual Ratchet to age 85 Guaranteed Minimum Death Benefit ------------------- Account Value Cash Value ------------------- ------------------ Age Contract Year 0% 6% 0% 6% 0% 6% - ----- -------------- --------- --------- -------- --------- --------- --------- 60 1 104,000 104,000 96,000 96,000 100,000 100,000 61 2 100,221 106,443 92,221 98,443 100,221 106,443 62 3 96,504 108,921 89,504 101,921 100,221 108,921 63 4 92,845 111,430 85,845 104,430 100,221 111,430 64 5 89,239 113,968 83,239 107,968 100,221 113,968 65 6 85,683 116,534 80,683 111,534 100,221 116,534 66 7 82,171 119,124 78,171 115,124 100,221 119,124 67 8 78,700 121,738 75,700 118,738 100,221 121,738 68 9 75,265 124,372 75,265 124,372 100,221 124,372 69 10 71,861 127,023 71,861 127,023 100,221 127,023 74 15 55,154 140,416 55,154 140,416 100,221 140,416 79 20 38,410 153,608 38,410 153,608 100,221 153,608 84 25 20,955 165,775 20,955 165,775 100,221 165,775 89 30 14,421 189,296 14,421 189,296 100,221 167,986 94 35 11,229 220,095 11,229 220,095 100,221 167,986 95 36 10,642 226,872 10,642 226,872 100,221 167,986 Lifetime Annual Guaranteed Minimum Income Benefit ---------------------------------- Guaranteed Hypothetical Total Death Benefit Income Income ------------------- ----------------- ---------------- Age 0% 6% 0% 6% 0% 6% - ----- --------- --------- -------- -------- -------- ------- 60 100,000 100,000 N/A N/A N/A N/A 61 100,221 106,443 N/A N/A N/A N/A 62 100,221 108,921 N/A N/A N/A N/A 63 100,221 111,430 N/A N/A N/A N/A 64 100,221 113,968 N/A N/A N/A N/A 65 100,221 116,534 N/A N/A N/A N/A 66 100,221 119,124 N/A N/A N/A N/A 67 100,221 121,738 N/A N/A N/A N/A 68 100,221 124,372 N/A N/A N/A N/A 69 100,221 127,023 N/A N/A N/A N/A 74 100,221 140,416 14,266 14,266 14,266 14,266 79 100,221 153,608 20,393 20,393 20,393 20,393 84 100,221 165,775 34,821 34,821 34,821 34,821 89 100,221 167,986 N/A N/A N/A N/A 94 100,221 167,986 N/A N/A N/A N/A 95 100,221 167,986 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. D-2 Appendix IV: Hypothetical Illustrations Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Name Change 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to obtain an Accumulator(R) Plus(SM) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) Plus P.O. Box 1547 Secaucus, NJ 07096-1547 ................................................................................. Please send me an Accumulator(R) Plus(SM) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip X1889/Plus '02/'04, ML'02, '04(NY), '06/'06.5 and '07 Series Accumulator(R) Plus(SM) A combination variable and fixed deferred annuity contract Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing or taking any other action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. PROSPECTUS DATED MAY 1, 2008 - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) PLUS(SM)? Accumulator(R) Plus(SM) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers death benefit protection and a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option or fixed maturity options ("investment options"). This contract may not currently be available in all states. Certain features and benefits described in this Prospectus may vary in your state; all features and benefits may not be available in all contracts, in all states or from all selling broker-dealers. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits.
- -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street Small o EQ/Ariel Appreciation II Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - --------------------------------------------------------------------------------
* The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option and the fixed maturity options, which are discussed later in this Prospectus. If you elect the Guaranteed withdrawal benefit for life or a Principal guarantee benefit, your investment options will be limited to the guaranteed interest option and certain permitted variable investment option(s). The permitted variable investment options are described later in this Prospectus. TYPES OF CONTRACTS. We offer the contracts for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). o An annuity that is an investment vehicle for a qualified defined contribution plan ("QP") (Rollover and direct transfer contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $10,000 is required to purchase a contract. We add an amount ("credit") to your contract with each contribution you make. Expenses for this contract may be higher than for a comparable contract without a credit. Over time, the amount of the credit may be more than offset by fees and charges associated with the credit. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, N.J. 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01915/Plus '06/'06.5 Series Contents of this Prospectus - -------------------------------------------------------------------------------- ACCUMULATOR(R) PLUS(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) Plus(SM) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 11 - -------------------------------------------------------------------------------- Example 15 Condensed financial information 18 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 19 - -------------------------------------------------------------------------------- How you can purchase and contribute to your contract 19 Owner and annuitant requirements 22 How you can make your contributions 22 What are your investment options under the contract? 22 Portfolios of the Trusts 23 Allocating your contributions 29 Credits 30 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 31 Annuity purchase factors 33 Guaranteed minimum income benefit option 33 Guaranteed minimum death benefit 35 Guaranteed withdrawal benefit for life ("GWBL") 37 Principal guarantee benefits 40 Your right to cancel within a certain number of days 41 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 43 - -------------------------------------------------------------------------------- Your account value and cash value 43 Your contract's value in the variable investment options 43 Your contract's value in the guaranteed interest option 43 Your contract's value in the fixed maturity options 43 Insufficient account value 43 - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG THE INVESTMENT OPTIONS 45 - -------------------------------------------------------------------------------- Transferring your account value 45 Disruptive transfer activity 45 Rebalancing your account value 46 - ---------------------- "We," "our," and "us" refer to AXA Equitable. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 47 - -------------------------------------------------------------------------------- Withdrawing your account value 47 How withdrawals are taken from your account value 49 How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits 49 How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit 50 Withdrawals treated as surrenders 50 Loans under Rollover TSA contracts 50 Surrendering your contract to receive its cash value 51 When to expect payments 51 Your annuity payout options 51 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 54 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 54 Charges that the Trusts deduct 57 Group or sponsored arrangements 57 Other distribution arrangements 58 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 59 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 59 Beneficiary continuation option 61 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 63 - -------------------------------------------------------------------------------- Overview 63 Buying a contract to fund a retirement arrangement 63 Transfers among variable investment options 63 Taxation of nonqualified annuities 63 Individual retirement arrangements (IRAs) 65 Tax-sheltered annuity contracts (TSAs) 74 Federal and state income tax withholding and information reporting 79 Special rules for contracts funding qualified plans 80 Impact of taxes to AXA Equitable 80 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 81 - -------------------------------------------------------------------------------- About Separate Account No. 49 81 About the Trusts 81 About our fixed maturity options 81 About the general account 82 About other methods of payment 83 Dates and prices at which contract events occur 83 About your voting rights 84 About legal proceedings 84 Financial statements 84 Transfers of ownership, collateral assignments, loans and borrowing 84 About Custodial IRAs 85 Distribution of the contracts 85 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 87 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Enhanced death benefit example D-1 V -- Hypothetical illustrations E-1 VI -- Earnings enhancement benefit example F-1 VII -- State contract availability and/or variations of certain features and benefits G-1 VIII -- Contract variations H-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page 6% Roll-Up to age 85 31 account value 43 administrative charge 54 annual administrative charge 54 Annual Ratchet 39 Annual Ratchet to age 85 enhanced death benefit 32 annuitant 19 annuitization 51 annuity maturity date 53 annuity payout options 51 annuity purchase factors 33 automatic annual reset program 32 automatic customized reset program 32 automatic investment program 83 AXA Allocation portfolios cover beneficiary 59 Beneficiary continuation option ("BCO") 61 business day 83 cash value 43 charges for state premium and other applicable taxes 57 contract date 22 contract date anniversary 22 contract year 22 Contributions to Roth IRAs 71 regular contributions 71 rollovers and transfers 72 conversion contributions 72 contributions to traditional IRAs 66 regular contributions 66 rollovers and transfers 67 credit 30 disability, terminal illness or confinement to nursing home 55 disruptive transfer activity 45 distribution charge 54 Earnings enhancement benefit 57 Earnings enhancement benefit charge 57 EQAccess 7 ERISA 58 Fixed-dollar option 30 fixed maturity options 28 free look 41 free withdrawal amount 55 general account 82 General dollar cost averaging 29 guaranteed interest option 28 Guaranteed minimum death benefit 35 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 31 Guaranteed minimum death benefit/Guaranteed minimum income roll-up benefit base reset option 32 Guaranteed minimum income benefit 33 Guaranteed minimum income benefit charge 56 Guaranteed minimum income benefit "no lapse guarantee" 34 Guaranteed withdrawal benefit for life ("GWBL") 37 Guaranteed withdrawal benefit for life charge 57 GWBL benefit base 38 IRA cover IRS 63 Investment simplifier 30 lifetime required minimum distribution withdrawals 48 loan reserve account 50 loans under Rollover TSA 50 market adjusted amount 28 market value adjustment 28 market timing 45 maturity dates 28 maturity value 28 Mortality and expense risks charge 54 NQ cover one-time reset option 32 partial withdrawals 47 permitted variable investment options 22 Portfolio cover Principal guarantee benefits 40 processing office 7 QP cover rate to maturity 28 Rebalancing 46 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 29 Separate Account No. 49 81 Standard death benefit 31 substantially equal withdrawals 48 Spousal continuation 60 systematic withdrawals 47 TOPS 7 TSA cover traditional IRA cover Trusts 81 unit 43 variable investment options 22 wire transmittals and electronic applications 83 withdrawal charge 55 To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract or supplemental materials. Your financial professional can provide further explanation about your contract or supplemental materials. 4 Index of key words and phrases - -------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - -------------------------------------------------------------------------------- fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guaranteed minimum income benefit Guaranteed Income Benefit guaranteed interest option Guaranteed Interest Account Guaranteed withdrawal benefit for life Guaranteed withdrawal benefit GWBL benefit base Guaranteed withdrawal benefit for life benefit base Guaranteed annual withdrawal amount Guaranteed withdrawal benefit for life Annual withdrawal amount Excess withdrawal Guaranteed withdrawal benefit for life Excess withdrawal - -------------------------------------------------------------------------------- Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) Plus(SM) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) Plus(SM) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) Plus(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) Plus(SM) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility for GWBL deferral bonuses and eligibility to exercise the Guaranteed minimum income benefit and/or the Roll-Up benefit base reset option. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options; o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the variable investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of your transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any Who is AXA Equitable? 7 act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial profes sional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts (employer or plan approval required) and contracts with the Guaranteed withdrawal benefit for life ("GWBL"); (7) tax withholding elections; (8) election of the beneficiary continuation option; (9) IRA contribution recharacterizations; (10) Section 1035 exchanges; (11) direct transfers and rollovers; (12) exercise of the Guaranteed minimum income benefit; (13) requests to reset your Roll-Up benefit base (for contracts that have both the Guaranteed minimum income benefit and the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit); (14) requests to opt out of or back into the annual ratchet of the Guaranteed withdrawal benefit for life ("GWBL") benefit base; (15) death claims; (16) change in ownership (NQ only, if available under your contract); (17) purchase by, or change of ownership to, a nonnatural owner; (18) requests for enrollment in either our Maximum payment plan or Customized payment plan under the Guaranteed withdrawal benefit for life ("GWBL"); and (19) requests to reset the guaranteed minimum value for contracts with a Principal guarantee benefit. WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; and (3) general dollar cost averaging (including the fixed dollar and interest sweep options). TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) dollar cost averaging (including the fixed dollar amount and interest sweep options); (3) substantially equal withdrawals; (4) systematic withdrawals; and (5) the date annuity payments are to begin. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION AT LEAST 30 CALENDAR DAYS PRIOR TO YOUR CONTRACT DATE ANNIVERSARY: (1) automatic annual reset program; and (2) automatic customized reset program. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners both must sign. 8 Who is AXA Equitable? Accumulator(R) Plus(SM) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------ Professional investment Accumulator(R) Plus(SM) variable investment options invest in different Portfolios managed by management professional investment advisers. - ------------------------------------------------------------------------------------------------------------------------------------ Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. ---------------------------------------------------------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - ------------------------------------------------------------------------------------------------------------------------------------ Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among variable investment options inside the contract. ---------------------------------------------------------------------------------------------------------- If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before purchasing one of these contracts, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities compared with any other investment that you may use in connection with your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during your life once income benefit you elect to annuitize the contract. - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed withdrawal The Guaranteed withdrawal benefit for life option ("GWBL") guarantees that you can take benefit for life withdrawals up to a maximum amount each contract year (your "Guaranteed annual withdrawal amount") beginning at age 45 or later. Withdrawals are taken from your account value and continue during your lifetime even if your account value falls to zero (unless it is caused by a withdrawal that exceeds your Guaranteed annual withdrawal amount). - ------------------------------------------------------------------------------------------------------------------------------------ Contribution amounts o Initial minimum: $10,000 o Additional minimum: $500 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $50 (IRA contracts) ---------------------------------------------------------------------------------------------------------- Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million under all Accumulator(R) series contracts with the same owner or annuitant. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. See "How you can purchase and contribute to your contract" in "Contract features and benefits" later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------ Credit We allocate your contributions to your account value. We allocate a credit to your account value at the same time that we allocate your contributions. The credit will apply to additional contribution amounts only to the extent that those amounts exceed total withdrawals from the contract. The amount of credit may be up to 5% of each contribution, depending on certain factors. The credit is subject to recovery by us in certain limited circumstances. - ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Plus(SM) at a glance-- key features 9 - -------------------------------------------------------------------------------- Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender o Maximum payment plan (only under contracts with GWBL) o Customized payment plan (only under contracts with GWBL) You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - -------------------------------------------------------------------------------- Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - -------------------------------------------------------------------------------- Additional features o Guaranteed minimum death benefit options o Principal guarantee benefits o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually, and annually) o Free transfers o Waiver of withdrawal charge for disability, terminal illness, confinement to a nursing home and certain other withdrawals o Earnings enhancement benefit, an optional death benefit available under certain contracts o Spousal continuation o Beneficiary continuation option o Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset - -------------------------------------------------------------------------------- Fees and charges Please see "Fee table" later in this section for complete details. - -------------------------------------------------------------------------------- Owner and annuitant issue NQ: 0-80 ages Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-80 QP: 20-70 - -------------------------------------------------------------------------------- The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available in your state or at certain ages. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund within a certain number of days. Please see "Your right to cancel within a certain number of days" later in this Prospectus for additional information. OTHER CONTRACTS We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts, based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. 10 Accumulator(R) Plus(SM) at a glance -- key features Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay at the time you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply. - -------------------------------------------------------------------------------- Charges we deduct from your account value at the time you request certain transactions - -------------------------------------------------------------------------------- Maximum withdrawal charge as a percentage of contributions with- drawn (deducted if you surrender your contract, make certain withdrawals, or apply your cash value to certain payout options).(1) 8.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - -------------------------------------------------------------------------------- The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses. - -------------------------------------------------------------------------------- Charges we deduct from your account value on each contract date anniversary - -------------------------------------------------------------------------------- Maximum annual administrative charge(2) If your account value on a contract date anniversary is less than $50,000(3) $ 30 If your account value on a contract date anniversary is $50,000 or more $ 0 - -------------------------------------------------------------------------------- Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - -------------------------------------------------------------------------------- SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks 0.95%(4) Administrative 0.35% Distribution 0.25% ----- Total Separate account annual expenses 1.55% - -------------------------------------------------------------------------------- Charges we deduct from your account value each year if you elect any of the following optional benefits - -------------------------------------------------------------------------------- Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) Standard death benefit and GWBL Standard death benefit 0.00% Annual Ratchet to age 85 0.25% Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85* (for new business and certain in-force contracts) 0.60% (for certain other in-force contracts) 0.65% GWBL Enhanced death benefit 0.30% * Please see Appendix VIII later in this Prospectus for more information. - -------------------------------------------------------------------------------- Principal guarantee benefits charge (calculated as a percentage of the account value. Deducted annually(2) on each contract date anni- versary for which the benefit is in effect.) 100% Principal guarantee benefit 0.50% 125% Principal guarantee benefit 0.75% - -------------------------------------------------------------------------------- Guaranteed minimum income benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) 0.65% - -------------------------------------------------------------------------------- Fee table 11
- ------------------------------------------------------------------------------------------------------------------------------------ Earnings enhancement benefit charge (calculated as a percent age of the account value. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) 0.35% - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed withdrawal benefit for life benefit charge (calcu- 0.60% for the Single Life option lated as a percentage of the GWBL benefit base. Deducted annually(2) 0.75% for the Joint Life option on each contract date anniversary.) If your GWBL benefit base ratchets, we reserve the right to increase 0.75% for the Single Life option your charge up to: 0.90% for the Joint Life option Please see "Guaranteed withdrawal benefit for life " in "Contract features and benefits" for more information about this feature, including its benefit base and the Annual Ratchet provision, and "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses," both later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------ Net loan interest charge -- Rollover TSA contracts only (calculated and deducted daily as a percentage of the outstanding loan amount) 2.00%(5) - ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------ Portfolio operating expenses expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or other expenses)(6) 0.63% 3.56%
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- --------------------------------------------------------------------------------------------- Manage- ment 12b-1 Other Portfolio Name Fees(7) Fees(8) Expenses(9) - --------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - --------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.10% 0.25% 0.17% AXA Conservative Allocation 0.10% 0.25% 0.21% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% AXA Moderate Allocation 0.10% 0.25% 0.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - --------------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% - --------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- Total Acquired Annual Fund Fees Expenses Fee Waiv- Net Annual and (Before ers and/or Expenses Expenses Expense Expense (After (Underlying Limita- Reimburse- Expense Portfolio Name Portfolios)(10) tions) ments(11) Limitations) - -------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - -------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - -------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - -------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% - --------------------------------------------------------------------------------------------------------------------
12 Fee table This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- -------------------------------------------------------------------------------- Manage- ment 12b-1 Other Portfolio Name Fees(7) Fees(8) Expenses(9) - -------------------------------------------------------------------------------- EQ Advisors Trust: - -------------------------------------------------------------------------------- EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- Total Acquired Annual Fund Fees Expenses Fee Waiv- Net Annual and (Before ers and/or Expenses Expenses Expense Expense (After (Underlying Limita- Reimburse- Expense Portfolio Name Portfolios)(10) tions) ments(11) Limitations) - -------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - -------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(12) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate -- 1.36% (0.10)% 1.26% - --------------------------------------------------------------------------------------------------------------------
Notes: (1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal amount, if applicable. Fee table 13
The withdrawal charge percentage we use is determined by the contract year Contract in which you make the withdrawal or surrender your contract. For each Year contribution, we consider the contract year in which we receive that 1 8.00% contribution to be "contract year 1") 2 8.00% 3 7.00% 4 7.00% 5 6.00% 6 5.00% 7 4.00% 8 3.00% 9+ 0.00%
(2) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. (3) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, if applicable, the charge is $30 for each contract year. (4) These charges compensate us for certain risks we assume and expenses we incur under the contract. They also compensate us for the expense associated with the credit. We expect to make a profit from these charges. (5) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (6) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (7) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (11) and 12 for any expense limitation agreement infor mation. (8) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. (9) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (11) and (12) for any expense limitation agreement information. (10) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (11) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below:
--------------------------------------------- Portfolio Name --------------------------------------------- Multimanager Aggressive Equity 0.97% Multimanager Health Care 1.67% Multimanager Large Cap Core Equity 1.34% Multimanager Large Cap Growth 1.29% Multimanager Large Cap Value 1.26% Multimanager Mid Cap Growth 1.52% Multimanager Mid Cap Value 1.53% Multimanager Small Cap Growth 1.35% Multimanager Small Cap Value 1.45% Multimanager Technology 1.67% EQ/AllianceBernstein Common Stock 0.84% EQ/AllianceBernstein Large Cap Growth 1.03% EQ/AllianceBernstein Small Cap Growth 1.11% EQ/AllianceBernstein Value 0.87% EQ/Ariel Appreciation II 1.09% EQ/BlackRock Basic Value Equity 0.92% EQ/Davis New York Venture 1.25% EQ/Evergreen Omega 1.12% EQ/GAMCO Mergers and Acquisitions 1.33% EQ/GAMCO Small Company Value 1.10% EQ/International Core PLUS 1.05% EQ/Large Cap Core PLUS 0.83% EQ/Large Cap Growth PLUS 0.82% EQ/Legg Mason Value Equity 0.97% EQ/Lord Abbett Growth and Income 0.98% EQ/Lord Abbett Large Cap Core 0.99% ---------------------------------------------
14 Fee table
--------------------------------------------- Portfolio Name --------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% EQ/Mid Cap Value PLUS 0.81% EQ/Montag & Caldwell Growth 1.13% EQ/T. Rowe Price Growth Stock 0.87% EQ/UBS Growth and Income 1.04% EQ/Van Kampen Comstock 0.99% EQ/Van Kampen Mid Cap Growth 1.04% ---------------------------------------------
(12) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and administration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the enhanced death benefit that provides for the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 and the Earnings enhancement benefit with either the Guaranteed minimum income benefit (with the annual reset feature) or the 125% Principal guarantee benefit) would pay in the situations illustrated. Each value in the expense example was calculated with the Guaranteed minimum income benefit except for the AXA Moderate Allocation portfolio. The AXA Moderate Allocation portfolio is calculated with either the Guaranteed minimum income benefit or the 125% Principal guarantee benefit depending on which benefit yielded the higher expenses. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.007% of contract value. The fixed maturity options and guaranteed interest option are not covered by the example. However, the annual administrative charge, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options and guaranteed interest option. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated, and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual cost may be higher or lower, based on these assumptions, your cost would be: Fee table 15
- ---------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the appli- cable time period - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ---------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,303.00 $ 2,237.00 $ 3,207.00 $ 5,459.00 AXA Conservative Allocation $ 1,283.00 $ 2,176.00 $ 3,110.00 $ 5,284.00 AXA Conservative-Plus Allocation $ 1,288.00 $ 2,192.00 $ 3,136.00 $ 5,331.00 AXA Moderate Allocation $ 1,305.00 $ 2,230.00 $ 3,175.00 $ 5,367.00 AXA Moderate-Plus Allocation $ 1,297.00 $ 2,218.00 $ 3,177.00 $ 5,404.00 Multimanager Aggressive Equity $ 1,260.00 $ 2,109.00 $ 3,002.00 $ 5,087.00 Multimanager Core Bond $ 1,256.00 $ 2,100.00 $ 2,987.00 $ 5,059.00 Multimanager Health Care $ 1,329.00 $ 2,312.00 $ 3,328.00 $ 5,674.00 Multimanager High Yield $ 1,256.00 $ 2,100.00 $ 2,987.00 $ 5,059.00 Multimanager International Equity $ 1,308.00 $ 2,249.00 $ 3,227.00 $ 5,495.00 Multimanager Large Cap Core Equity $ 1,293.00 $ 2,208.00 $ 3,161.00 $ 5,377.00 Multimanager Large Cap Growth $ 1,296.00 $ 2,214.00 $ 3,171.00 $ 5,395.00 Multimanager Large Cap Value $ 1,290.00 $ 2,199.00 $ 3,146.00 $ 5,349.00 Multimanager Mid Cap Growth $ 1,315.00 $ 2,271.00 $ 3,263.00 $ 5,558.00 Multimanager Mid Cap Value $ 1,314.00 $ 2,268.00 $ 3,258.00 $ 5,549.00 Multimanager Small Cap Growth $ 1,317.00 $ 2,278.00 $ 3,273.00 $ 5,576.00 Multimanager Small Cap Value $ 1,305.00 $ 2,243.00 $ 3,217.00 $ 5,477.00 Multimanager Technology $ 1,329.00 $ 2,312.00 $ 3,328.00 $ 5,674.00 - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,239.00 $ 2,049.00 $ 2,904.00 $ 4,906.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,242.00 $ 2,058.00 $ 2,919.00 $ 4,935.00 EQ/AllianceBernstein International $ 1,271.00 $ 2,141.00 $ 3,054.00 $ 5,182.00 EQ/AllianceBernstein Large Cap Growth $ 1,286.00 $ 2,186.00 $ 3,126.00 $ 5,312.00 EQ/AllianceBernstein Quality Bond $ 1,243.00 $ 2,062.00 $ 2,925.00 $ 4,944.00 EQ/AllianceBernstein Small Cap Growth $ 1,268.00 $ 2,135.00 $ 3,043.00 $ 5,163.00 EQ/AllianceBernstein Value $ 1,251.00 $ 2,084.00 $ 2,961.00 $ 5,011.00 EQ/Ariel Appreciation II $ 1,284.00 $ 2,180.00 $ 3,115.00 $ 5,294.00 EQ/AXA Rosenberg Value Long/Short Equity $ 1,535.00 $ 2,892.00 $ 4,234.00 $ 7,179.00 EQ/BlackRock Basic Value Equity $ 1,248.00 $ 2,074.00 $ 2,945.00 $ 4,983.00 EQ/BlackRock International Value $ 1,283.00 $ 2,176.00 $ 3,110.00 $ 5,284.00 EQ/Boston Advisors Equity Income $ 1,271.00 $ 2,141.00 $ 3,054.00 $ 5,182.00 EQ/Calvert Socially Responsible $ 1,269.00 $ 2,138.00 $ 3,049.00 $ 5,172.00 EQ/Capital Guardian Growth $ 1,261.00 $ 2,113.00 $ 3,007.00 $ 5,097.00 EQ/Capital Guardian Research $ 1,256.00 $ 2,100.00 $ 2,987.00 $ 5,059.00 EQ/Caywood-Scholl High Yield Bond $ 1,256.00 $ 2,100.00 $ 2,987.00 $ 5,059.00 EQ/Davis New York Venture $ 1,286.00 $ 2,186.00 $ 3,126.00 $ 5,312.00 EQ/Equity 500 Index $ 1,215.00 $ 1,979.00 $ 2,789.00 $ 4,691.00 EQ/Evergreen International Bond $ 1,268.00 $ 2,135.00 $ 3,043.00 $ 5,163.00 EQ/Evergreen Omega $ 1,272.00 $ 2,145.00 $ 3,059.00 $ 5,191.00 - ---------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period and select a non-life contin- gent period certain annuity option with less than five years - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ---------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 2,237.00 $ 3,207.00 $ 5,459.00 AXA Conservative Allocation N/A $ 2,176.00 $ 3,110.00 $ 5,284.00 AXA Conservative-Plus Allocation N/A $ 2,192.00 $ 3,136.00 $ 5,331.00 AXA Moderate Allocation N/A $ 2,230.00 $ 3,175.00 $ 5,367.00 AXA Moderate-Plus Allocation N/A $ 2,218.00 $ 3,177.00 $ 5,404.00 Multimanager Aggressive Equity N/A $ 2,109.00 $ 3,002.00 $ 5,087.00 Multimanager Core Bond N/A $ 2,100.00 $ 2,987.00 $ 5,059.00 Multimanager Health Care N/A $ 2,312.00 $ 3,328.00 $ 5,674.00 Multimanager High Yield N/A $ 2,100.00 $ 2,987.00 $ 5,059.00 Multimanager International Equity N/A $ 2,249.00 $ 3,227.00 $ 5,495.00 Multimanager Large Cap Core Equity N/A $ 2,208.00 $ 3,161.00 $ 5,377.00 Multimanager Large Cap Growth N/A $ 2,214.00 $ 3,171.00 $ 5,395.00 Multimanager Large Cap Value N/A $ 2,199.00 $ 3,146.00 $ 5,349.00 Multimanager Mid Cap Growth N/A $ 2,271.00 $ 3,263.00 $ 5,558.00 Multimanager Mid Cap Value N/A $ 2,268.00 $ 3,258.00 $ 5,549.00 Multimanager Small Cap Growth N/A $ 2,278.00 $ 3,273.00 $ 5,576.00 Multimanager Small Cap Value N/A $ 2,243.00 $ 3,217.00 $ 5,477.00 Multimanager Technology N/A $ 2,312.00 $ 3,328.00 $ 5,674.00 - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 2,049.00 $ 2,904.00 $ 4,906.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 2,058.00 $ 2,919.00 $ 4,935.00 EQ/AllianceBernstein International N/A $ 2,141.00 $ 3,054.00 $ 5,182.00 EQ/AllianceBernstein Large Cap Growth N/A $ 2,186.00 $ 3,126.00 $ 5,312.00 EQ/AllianceBernstein Quality Bond N/A $ 2,062.00 $ 2,925.00 $ 4,944.00 EQ/AllianceBernstein Small Cap Growth N/A $ 2,135.00 $ 3,043.00 $ 5,163.00 EQ/AllianceBernstein Value N/A $ 2,084.00 $ 2,961.00 $ 5,011.00 EQ/Ariel Appreciation II N/A $ 2,180.00 $ 3,115.00 $ 5,294.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,892.00 $ 4,234.00 $ 7,179.00 EQ/BlackRock Basic Value Equity N/A $ 2,074.00 $ 2,945.00 $ 4,983.00 EQ/BlackRock International Value N/A $ 2,176.00 $ 3,110.00 $ 5,284.00 EQ/Boston Advisors Equity Income N/A $ 2,141.00 $ 3,054.00 $ 5,182.00 EQ/Calvert Socially Responsible N/A $ 2,138.00 $ 3,049.00 $ 5,172.00 EQ/Capital Guardian Growth N/A $ 2,113.00 $ 3,007.00 $ 5,097.00 EQ/Capital Guardian Research N/A $ 2,100.00 $ 2,987.00 $ 5,059.00 EQ/Caywood-Scholl High Yield Bond N/A $ 2,100.00 $ 2,987.00 $ 5,059.00 EQ/Davis New York Venture N/A $ 2,186.00 $ 3,126.00 $ 5,312.00 EQ/Equity 500 Index N/A $ 1,979.00 $ 2,789.00 $ 4,691.00 EQ/Evergreen International Bond N/A $ 2,135.00 $ 3,043.00 $ 5,163.00 EQ/Evergreen Omega N/A $ 2,145.00 $ 3,059.00 $ 5,191.00 - ---------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ---------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 503.00 $ 1,537.00 $ 2,607.00 $ 5,459.00 AXA Conservative Allocation $ 483.00 $ 1,476.00 $ 2,510.00 $ 5,284.00 AXA Conservative-Plus Allocation $ 488.00 $ 1,492.00 $ 2,536.00 $ 5,331.00 AXA Moderate Allocation $ 505.00 $ 1,530.00 $ 2,575.00 $ 5,367.00 AXA Moderate-Plus Allocation $ 497.00 $ 1,518.00 $ 2,577.00 $ 5,404.00 Multimanager Aggressive Equity $ 460.00 $ 1,409.00 $ 2,402.00 $ 5,087.00 Multimanager Core Bond $ 456.00 $ 1,400.00 $ 2,387.00 $ 5,059.00 Multimanager Health Care $ 529.00 $ 1,612.00 $ 2,728.00 $ 5,674.00 Multimanager High Yield $ 456.00 $ 1,400.00 $ 2,387.00 $ 5,059.00 Multimanager International Equity $ 508.00 $ 1,549.00 $ 2,627.00 $ 5,495.00 Multimanager Large Cap Core Equity $ 493.00 $ 1,508.00 $ 2,561.00 $ 5,377.00 Multimanager Large Cap Growth $ 496.00 $ 1,514.00 $ 2,571.00 $ 5,395.00 Multimanager Large Cap Value $ 490.00 $ 1,499.00 $ 2,546.00 $ 5,349.00 Multimanager Mid Cap Growth $ 515.00 $ 1,571.00 $ 2,663.00 $ 5,558.00 Multimanager Mid Cap Value $ 514.00 $ 1,568.00 $ 2,658.00 $ 5,549.00 Multimanager Small Cap Growth $ 517.00 $ 1,578.00 $ 2,673.00 $ 5,576.00 Multimanager Small Cap Value $ 505.00 $ 1,543.00 $ 2,617.00 $ 5,477.00 Multimanager Technology $ 529.00 $ 1,612.00 $ 2,728.00 $ 5,674.00 - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 439.00 $ 1,349.00 $ 2,304.00 $ 4,906.00 EQ/AllianceBernstein Intermediate Government Securities $ 442.00 $ 1,358.00 $ 2,319.00 $ 4,935.00 EQ/AllianceBernstein International $ 471.00 $ 1,441.00 $ 2,454.00 $ 5,182.00 EQ/AllianceBernstein Large Cap Growth $ 486.00 $ 1,486.00 $ 2,526.00 $ 5,312.00 EQ/AllianceBernstein Quality Bond $ 443.00 $ 1,362.00 $ 2,325.00 $ 4,944.00 EQ/AllianceBernstein Small Cap Growth $ 468.00 $ 1,435.00 $ 2,443.00 $ 5,163.00 EQ/AllianceBernstein Value $ 451.00 $ 1,384.00 $ 2,361.00 $ 5,011.00 EQ/Ariel Appreciation II $ 484.00 $ 1,480.00 $ 2,515.00 $ 5,294.00 EQ/AXA Rosenberg Value Long/Short Equity $ 735.00 $ 2,192.00 $ 3,634.00 $ 7,179.00 EQ/BlackRock Basic Value Equity $ 448.00 $ 1,374.00 $ 2,345.00 $ 4,983.00 EQ/BlackRock International Value $ 483.00 $ 1,476.00 $ 2,510.00 $ 5,284.00 EQ/Boston Advisors Equity Income $ 471.00 $ 1,441.00 $ 2,454.00 $ 5,182.00 EQ/Calvert Socially Responsible $ 469.00 $ 1,438.00 $ 2,449.00 $ 5,172.00 EQ/Capital Guardian Growth $ 461.00 $ 1,413.00 $ 2,407.00 $ 5,097.00 EQ/Capital Guardian Research $ 456.00 $ 1,400.00 $ 2,387.00 $ 5,059.00 EQ/Caywood-Scholl High Yield Bond $ 456.00 $ 1,400.00 $ 2,387.00 $ 5,059.00 EQ/Davis New York Venture $ 486.00 $ 1,486.00 $ 2,526.00 $ 5,312.00 EQ/Equity 500 Index $ 415.00 $ 1,279.00 $ 2,189.00 $ 4,691.00 EQ/Evergreen International Bond $ 468.00 $ 1,435.00 $ 2,443.00 $ 5,163.00 EQ/Evergreen Omega $ 472.00 $ 1,445.00 $ 2,459.00 $ 5,191.00 - 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16 Fee table
- ---------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the appli- cable time period - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap $ 1,262.00 $ 2,116.00 $ 3,012.00 $ 5,106.00 EQ/Franklin Income $ 1,288.00 $ 2,192.00 $ 3,136.00 $ 5,331.00 EQ/Franklin Small Cap Value $ 1,291.00 $ 2,202.00 $ 3,151.00 $ 5,358.00 EQ/Franklin Templeton Founding Strategy $ 1,317.00 $ 2,278.00 $ 3,273.00 $ 5,576.00 EQ/GAMCO Mergers and Acquisitions $ 1,292.00 $ 2,205.00 $ 3,156.00 $ 5,367.00 EQ/GAMCO Small Company Value $ 1,269.00 $ 2,138.00 $ 3,049.00 $ 5,172.00 EQ/International Core PLUS $ 1,276.00 $ 2,157.00 $ 3,079.00 $ 5,229.00 EQ/International Growth $ 1,296.00 $ 2,214.00 $ 3,171.00 $ 5,395.00 EQ/JPMorgan Core Bond $ 1,235.00 $ 2,036.00 $ 2,883.00 $ 4,867.00 EQ/JPMorgan Value Opportunities $ 1,254.00 $ 2,094.00 $ 2,976.00 $ 5,040.00 EQ/Large Cap Core PLUS $ 1,257.00 $ 2,103.00 $ 2,992.00 $ 5,068.00 EQ/Large Cap Growth PLUS $ 1,256.00 $ 2,100.00 $ 2,987.00 $ 5,059.00 EQ/Legg Mason Value Equity $ 1,263.00 $ 2,119.00 $ 3,018.00 $ 5,116.00 EQ/Long Term Bond $ 1,232.00 $ 2,027.00 $ 2,867.00 $ 4,838.00 EQ/Lord Abbett Growth and Income $ 1,262.00 $ 2,116.00 $ 3,012.00 $ 5,106.00 EQ/Lord Abbett Large Cap Core $ 1,267.00 $ 2,132.00 $ 3,038.00 $ 5,154.00 EQ/Lord Abbett Mid Cap Value $ 1,266.00 $ 2,129.00 $ 3,033.00 $ 5,144.00 EQ/Marsico Focus $ 1,280.00 $ 2,170.00 $ 3,100.00 $ 5,266.00 EQ/Mid Cap Value PLUS $ 1,262.00 $ 2,116.00 $ 3,012.00 $ 5,106.00 EQ/Money Market $ 1,223.00 $ 2,001.00 $ 2,825.00 $ 4,760.00 EQ/Montag & Caldwell Growth $ 1,272.00 $ 2,145.00 $ 3,059.00 $ 5,191.00 EQ/Mutual Shares $ 1,295.00 $ 2,211.00 $ 3,166.00 $ 5,386.00 EQ/Oppenheimer Global $ 1,334.00 $ 2,325.00 $ 3,348.00 $ 5,709.00 EQ/Oppenheimer Main Street Opportunity $ 1,316.00 $ 2,275.00 $ 3,268.00 $ 5,567.00 EQ/Oppenheimer Main Street Small Cap $ 1,325.00 $ 2,300.00 $ 3,308.00 $ 5,638.00 EQ/PIMCO Real Return $ 1,249.00 $ 2,078.00 $ 2,950.00 $ 4,992.00 EQ/Short Duration Bond $ 1,237.00 $ 2,043.00 $ 2,893.00 $ 4,886.00 EQ/Small Company Index $ 1,216.00 $ 1,982.00 $ 2,794.00 $ 4,700.00 EQ/T. Rowe Price Growth Stock $ 1,275.00 $ 2,154.00 $ 3,074.00 $ 5,219.00 EQ/Templeton Growth $ 1,299.00 $ 2,224.00 $ 3,187.00 $ 5,422.00 EQ/UBS Growth and Income $ 1,273.00 $ 2,148.00 $ 3,064.00 $ 5,201.00 EQ/Van Kampen Comstock $ 1,261.00 $ 2,113.00 $ 3,007.00 $ 5,097.00 EQ/Van Kampen Emerging Markets Equity $ 1,325.00 $ 2,300.00 $ 3,308.00 $ 5,638.00 EQ/Van Kampen Mid Cap Growth $ 1,266.00 $ 2,129.00 $ 3,033.00 $ 5,144.00 EQ/Van Kampen Real Estate $ 1,295.00 $ 2,211.00 $ 3,166.00 $ 5,386.00 - ---------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period and select a non-life contin- gent period certain annuity option with less than five years - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap N/A $ 2,116.00 $ 3,012.00 $ 5,106.00 EQ/Franklin Income N/A $ 2,192.00 $ 3,136.00 $ 5,331.00 EQ/Franklin Small Cap Value N/A $ 2,202.00 $ 3,151.00 $ 5,358.00 EQ/Franklin Templeton Founding Strategy N/A $ 2,278.00 $ 3,273.00 $ 5,576.00 EQ/GAMCO Mergers and Acquisitions N/A $ 2,205.00 $ 3,156.00 $ 5,367.00 EQ/GAMCO Small Company Value N/A $ 2,138.00 $ 3,049.00 $ 5,172.00 EQ/International Core PLUS N/A $ 2,157.00 $ 3,079.00 $ 5,229.00 EQ/International Growth N/A $ 2,214.00 $ 3,171.00 $ 5,395.00 EQ/JPMorgan Core Bond N/A $ 2,036.00 $ 2,883.00 $ 4,867.00 EQ/JPMorgan Value Opportunities N/A $ 2,094.00 $ 2,976.00 $ 5,040.00 EQ/Large Cap Core PLUS N/A $ 2,103.00 $ 2,992.00 $ 5,068.00 EQ/Large Cap Growth PLUS N/A $ 2,100.00 $ 2,987.00 $ 5,059.00 EQ/Legg Mason Value Equity N/A $ 2,119.00 $ 3,018.00 $ 5,116.00 EQ/Long Term Bond N/A $ 2,027.00 $ 2,867.00 $ 4,838.00 EQ/Lord Abbett Growth and Income N/A $ 2,116.00 $ 3,012.00 $ 5,106.00 EQ/Lord Abbett Large Cap Core N/A $ 2,132.00 $ 3,038.00 $ 5,154.00 EQ/Lord Abbett Mid Cap Value N/A $ 2,129.00 $ 3,033.00 $ 5,144.00 EQ/Marsico Focus N/A $ 2,170.00 $ 3,100.00 $ 5,266.00 EQ/Mid Cap Value PLUS N/A $ 2,116.00 $ 3,012.00 $ 5,106.00 EQ/Money Market N/A $ 2,001.00 $ 2,825.00 $ 4,760.00 EQ/Montag & Caldwell Growth N/A $ 2,145.00 $ 3,059.00 $ 5,191.00 EQ/Mutual Shares N/A $ 2,211.00 $ 3,166.00 $ 5,386.00 EQ/Oppenheimer Global N/A $ 2,325.00 $ 3,348.00 $ 5,709.00 EQ/Oppenheimer Main Street Opportunity N/A $ 2,275.00 $ 3,268.00 $ 5,567.00 EQ/Oppenheimer Main Street Small Cap N/A $ 2,300.00 $ 3,308.00 $ 5,638.00 EQ/PIMCO Real Return N/A $ 2,078.00 $ 2,950.00 $ 4,992.00 EQ/Short Duration Bond N/A $ 2,043.00 $ 2,893.00 $ 4,886.00 EQ/Small Company Index N/A $ 1,982.00 $ 2,794.00 $ 4,700.00 EQ/T. Rowe Price Growth Stock N/A $ 2,154.00 $ 3,074.00 $ 5,219.00 EQ/Templeton Growth N/A $ 2,224.00 $ 3,187.00 $ 5,422.00 EQ/UBS Growth and Income N/A $ 2,148.00 $ 3,064.00 $ 5,201.00 EQ/Van Kampen Comstock N/A $ 2,113.00 $ 3,007.00 $ 5,097.00 EQ/Van Kampen Emerging Markets Equity N/A $ 2,300.00 $ 3,308.00 $ 5,638.00 EQ/Van Kampen Mid Cap Growth N/A $ 2,129.00 $ 3,033.00 $ 5,144.00 EQ/Van Kampen Real Estate N/A $ 2,211.00 $ 3,166.00 $ 5,386.00 - ---------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap $ 462.00 $ 1,416.00 $ 2,412.00 $ 5,106.00 EQ/Franklin Income $ 488.00 $ 1,492.00 $ 2,536.00 $ 5,331.00 EQ/Franklin Small Cap Value $ 491.00 $ 1,502.00 $ 2,551.00 $ 5,358.00 EQ/Franklin Templeton Founding Strategy $ 517.00 $ 1,578.00 $ 2,673.00 $ 5,576.00 EQ/GAMCO Mergers and Acquisitions $ 492.00 $ 1,505.00 $ 2,556.00 $ 5,367.00 EQ/GAMCO Small Company Value $ 469.00 $ 1,438.00 $ 2,449.00 $ 5,172.00 EQ/International Core PLUS $ 476.00 $ 1,457.00 $ 2,479.00 $ 5,229.00 EQ/International Growth $ 496.00 $ 1,514.00 $ 2,571.00 $ 5,395.00 EQ/JPMorgan Core Bond $ 435.00 $ 1,336.00 $ 2,283.00 $ 4,867.00 EQ/JPMorgan Value Opportunities $ 454.00 $ 1,394.00 $ 2,376.00 $ 5,040.00 EQ/Large Cap Core PLUS $ 457.00 $ 1,403.00 $ 2,392.00 $ 5,068.00 EQ/Large Cap Growth PLUS $ 456.00 $ 1,400.00 $ 2,387.00 $ 5,059.00 EQ/Legg Mason Value Equity $ 463.00 $ 1,419.00 $ 2,418.00 $ 5,116.00 EQ/Long Term Bond $ 432.00 $ 1,327.00 $ 2,267.00 $ 4,838.00 EQ/Lord Abbett Growth and Income $ 462.00 $ 1,416.00 $ 2,412.00 $ 5,106.00 EQ/Lord Abbett Large Cap Core $ 467.00 $ 1,432.00 $ 2,438.00 $ 5,154.00 EQ/Lord Abbett Mid Cap Value $ 466.00 $ 1,429.00 $ 2,433.00 $ 5,144.00 EQ/Marsico Focus $ 480.00 $ 1,470.00 $ 2,500.00 $ 5,266.00 EQ/Mid Cap Value PLUS $ 462.00 $ 1,416.00 $ 2,412.00 $ 5,106.00 EQ/Money Market $ 423.00 $ 1,301.00 $ 2,225.00 $ 4,760.00 EQ/Montag & Caldwell Growth $ 472.00 $ 1,445.00 $ 2,459.00 $ 5,191.00 EQ/Mutual Shares $ 495.00 $ 1,511.00 $ 2,566.00 $ 5,386.00 EQ/Oppenheimer Global $ 534.00 $ 1,625.00 $ 2,748.00 $ 5,709.00 EQ/Oppenheimer Main Street Opportunity $ 516.00 $ 1,575.00 $ 2,668.00 $ 5,567.00 EQ/Oppenheimer Main Street Small Cap $ 525.00 $ 1,600.00 $ 2,708.00 $ 5,638.00 EQ/PIMCO Real Return $ 449.00 $ 1,378.00 $ 2,350.00 $ 4,992.00 EQ/Short Duration Bond $ 437.00 $ 1,343.00 $ 2,293.00 $ 4,886.00 EQ/Small Company Index $ 416.00 $ 1,282.00 $ 2,194.00 $ 4,700.00 EQ/T. Rowe Price Growth Stock $ 475.00 $ 1,454.00 $ 2,474.00 $ 5,219.00 EQ/Templeton Growth $ 499.00 $ 1,524.00 $ 2,587.00 $ 5,422.00 EQ/UBS Growth and Income $ 473.00 $ 1,448.00 $ 2,464.00 $ 5,201.00 EQ/Van Kampen Comstock $ 461.00 $ 1,413.00 $ 2,407.00 $ 5,097.00 EQ/Van Kampen Emerging Markets Equity $ 525.00 $ 1,600.00 $ 2,708.00 $ 5,638.00 EQ/Van Kampen Mid Cap Growth $ 466.00 $ 1,429.00 $ 2,433.00 $ 5,144.00 EQ/Van Kampen Real Estate $ 495.00 $ 1,511.00 $ 2,566.00 $ 5,386.00 - ----------------------------------------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix V at the end of this Prospectus. Fee table 17 CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as the end of the periods shown for each of the variable investment options available as of December 31, 2007. 18 Fee table 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT You may purchase a contract by making payments to us that we call "contributions." We require a minimum initial contribution of $10,000 for you to purchase a contract. You may make additional contributions of at least $500 each for NQ, QP and Rollover TSA contracts and $50 each for IRA contracts, subject to limitations noted below. The following table summarizes our rules regarding contributions to your contract. Both the owner and the annuitant named in the contract must meet the issue age requirements shown in the table, and contributions are based on the age of the older of the original owner and annuitant. Additional contributions may not be permitted in your state. Please see Appendix VII later in this Prospectus to see if additional contributions are permitted in your state. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000. We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We may accept less than the minimum initial contribution under a contract if an aggregate amount of contracts purchased at the same time by an individual (including spouse) meets the minimum. - -------------------------------------------------------------------------------- The "owner" is the person who is the named owner in the contract and, if an individual, is the measuring life for determining contract benefits. The "annuitant" is the person who is the measuring life for determining the contract's maturity date. The annuitant is not necessarily the contract owner. Where the owner of a contract is non-natural, the annuitant is the measuring life for determining contract benefits. - --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions - ---------------------------------------------------------------------------------------- NQ 0 through 80 o $10,000 (initial) o $500 (additional) o $100 monthly and $300 quarterly under our automatic investment program (additional) - ---------------------------------------------------------------------------------------- Rollover IRA 20 through 80 o $10,000 (initial) o $50 (additional) - ---------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------- Limitations on Contract type Source of contributions contributions+ - ---------------------------------------------------------------------------------------- NQ o After-tax money. o No additional contributions after attainment of age 81 or, if later, o Paid to us by check or transfer the first contract date of contract value in a tax- anniversary.* deferred exchange under Section 1035 of the Internal Revenue Code. - ---------------------------------------------------------------------------------------- Rollover IRA o Eligible rollover distributions o No contributions after attain- from 403(b) plans, qualified ment of age 81 or, if later, the plans, and governmental first contract date anniversary.* employer 457(b) plans. o Contributions after age 70-1/2 o Rollovers from another tradi- must be net of required mini- tional individual retirement mum distributions. arrangement. o Although we accept regular IRA o Direct custodian-to-custodian contributions (limited to $5,000) transfers from another tradi- under Rollover IRA contracts, we tional individual retirement intend that this contract be used arrangement. primarily for rollover and direct transfer contributions. o Regular IRA contributions. o Additional catch-up contribu- o Additional catch-up contribu- tions of up to $1,000 per tions. calendar year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the con- tribution is made. - ----------------------------------------------------------------------------------------
Contract features and benefits 19
- -------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions - -------------------------------------------------------------------------------- Roth Conversion IRA 20 through 80 o $10,000 (initial) o $50 (additional) - -------------------------------------------------------------------------------- Rollover TSA** 20 through 80 o $10,000 (initial) o $500 (additional) - -------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------- Limitations on Contract type Source of contributions contributions+ - ---------------------------------------------------------------------------------------------- Roth Conversion IRA o Rollovers from another Roth o No additional rollover or direct IRA. transfer contributions after attainment of age 81 or, if later, o Rollovers from a "designated the first contract date Roth contribution account" anniversary.* under a 401(k) plan or 403(b) plan. o Conversion rollovers after age 70-1/2 must be net of required o Conversion rollovers from a minimum distributions for the traditional IRA or other traditional IRA or other eligible eligible retirement plan. retirement plan which is the source of the conversion o Direct transfers from another rollover. Roth IRA. o You cannot roll over funds from o Regular Roth IRA contribu- a traditional IRA or other eligible tions. retirement plan if your adjusted gross income is $100,000 or more. o Additional catch-up contribu- tions. o Although we accept regular Roth IRA contributions (limited to $5,000) under the Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contribu- tions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribution is made. - ---------------------------------------------------------------------------------------------- Rollover TSA** o With documentation of o Additional rollover or direct employer or plan approval, and transfer contributions may be limited to pre-tax funds, direct made up to attainment of age plan-to-plan transfers from 81 or, if later, the first contract another 403(b) plan or con- date anniversary.* tract exchanges from another 403(b) contract under the o Contributions after age 70-1/2 same plan. must be net of any required minimum distributions. o With documentation of employer or plan approval, and o We do not accept employer- limited to pre-tax funds, eli- remitted contributions. gible rollover distributions from other 403(b) plans, quali- o We do not accept after-tax con- fied plans, governmental tributions, including designated employer 457(b) plans or tra- Roth contributions. ditional IRAs. - ----------------------------------------------------------------------------------------------
20 Contract features and benefits
- -------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions - -------------------------------------------------------------------------------- QP 20 through 70 o $10,000 (initial) o $500 (additional) - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- Limitations on Contract type Source of contributions contributions+ - --------------------------------------------------------------------------------------- QP o Only transfer contributions o A separate QP contract must be from other investments within established for each plan an existing defined contribu- participant. tion qualified plan trust. o We do not accept regular ongo- o The plan must be qualified ing payroll contributions or under Section 401(a) of the contributions directly from the Internal Revenue Code. employer. o For 401(k) plans, transferred o Only one additional transfer contributions may not include contribution may be made dur- any after-tax contributions, ing a contract year. including designated Roth contributions. o No additional transfer contribu- tions after participant's attainment of age 71 or, if later, the first contract date anniversary. o Contributions after age 70-1/2 must be net of any required minimum distributions. o We do not accept contributions from defined benefit plans. - ---------------------------------------------------------------------------------------
See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. + Additional contributions may not be permitted under certain conditions in your state. Please see Appendix VII later in the Prospectus to see if additional contributions are permitted in your state. If you are participating in a Principal guarantee benefit, contributions will only be permitted for the first six months after the contract is issued and no further contributions will be permitted for the life of the contract. For the Guaranteed withdrawal benefit for life option, additional contributions are not permitted after the later of: (i) the end of the first contract year, and (ii) the date you make your first withdrawal. * Please see Appendix VII later in this Prospectus for state variations. ** May not be available from all Selling broker-dealers. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. Contract features and benefits 21 OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. For the Spousal continuation feature to apply, the spouses must either be joint owners, or, for Single life contracts, the surviving spouse must be the sole primary beneficiary. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. This contract is not available for purchase by Charitable Remainder Trusts. In general we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your state. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II at the end of this Prospectus for more information on QP contracts. Certain benefits under your contract, as described later in this Prospectus, are based on the age of the owner. If the owner of the contract is not a natural person, these benefits will be based on the age of the annuitant. If the contract is jointly owned and GWBL has not been elected, benefits are based on the age of the older joint owner. In this Prospectus, when we use the term "owner," we intend this to be a reference to the annuitant if the contract has a non-natural owner. If GWBL is elected, the terms "owner" and "successor owner" are intended to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. We do not permit joint annuitants unless you elect the Guaranteed withdrawal benefit for life on a Joint life basis and the contract is owned by a non-natural owner. Under QP contracts, all benefits are based on the age of the annuitant. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept initial and additional contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose. Additional contributions may also be made under our automatic investment program. These methods of payment, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealer, are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- Your initial contribution must generally be accompanied by an application and any other form we need to process the payments. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain that information. If we are unable to obtain all of the information we require within five business days after we receive an incomplete application or form, we will inform the financial professional submitting the application on your behalf. We will then return the contribution to you unless you specifically direct us to keep your contribution until we receive the required information. The contribution will be applied as of the date we receive the missing information. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option and the fixed maturity options. If you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit, your investment options will be limited to the guaranteed interest option and the following variable investment options: the AXA Allocation portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio ("permitted variable investment options"). If you elect the 125% Principal guarantee benefit, your investment options will be limited to the guaranteed interest option and the AXA Moderate Allocation Portfolio. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. 22 Contract features and benefits PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risk associated with certain guaranteed features, including those optional benefits that restrict allocations to the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable ALLOCATION greater emphasis on current income. - ------------------------------------------------------------------------------------------------------------------------------------ AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable ALLOCATION with a greater emphasis on capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER AGGRESSIVE Long-term growth of capital. o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER CORE BOND To seek a balance of high current income and capital o BlackRock Financial Management, Inc. appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER HEALTH CARE Long-term growth of capital. o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER HIGH YIELD High total return through a combination of current o Pacific Investment Management Company income and capital appreciation. LLC o Post Advisory Group, LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER INTERNATIONAL Long-term growth of capital. o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
- ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY markets using strategies that are designed to limit expo- sure to general equity market risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, o BlackRock Investment Management, LLC EQUITY income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of o BlackRock Investment Management VALUE income, accompanied by growth of capital. International Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to o Boston Advisors, LLC INCOME achieve an above-average and consistent total return. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company RESEARCH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management YIELD BOND - ------------------------------------------------------------------------------------------------------------------------------------ EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. o Davis Selected Advisers, L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that o AllianceBernstein L.P. approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. o Evergreen Investment Management Company, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI MID CAP Seeks to achieve long-term growth of capital. o Fidelity Management & Research Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects o Franklin Advisers, Inc. for capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. o Franklin Advisory Services, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily seeks o AXA Equitable FOUNDING STRATEGY income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. o GAMCO Asset Management Inc. ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. o GAMCO Asset Management Inc. VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 25
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with mod- o JPMorgan Investment Management Inc. erate risk to capital and maintenance of liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. o JPMorgan Investment Management Inc. OPPORTUNITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- o AXA Equitable ondary objective to seek reasonable current income. For o Institutional Capital LLC purposes of this Portfolio, the words "reasonable current o Mellon Capital Management Corporation income" mean moderate income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. o Legg Mason Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o BlackRock Financial Management, Inc. through investment in long-maturity debt obligations. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC INCOME income without excessive fluctuation in market value. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC CORE income with reasonable risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. o Lord, Abbett & Co. LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o The Dreyfus Corporation its assets and maintain liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- o Franklin Mutual Advisers, LLC sionally be short-term, and secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. o OppenheimerFunds, Inc. OPPORTUNITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. SMALL CAP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with o Pacific Investment Management Company, preservation of real capital and prudent investment man- LLC agement. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility of o BlackRock Financial Management, Inc. principal. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o AllianceBernstein L.P. deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ------------------------------------------------------------------------------------------------------------------------------------
26 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and o T. Rowe Price Associates, Inc. STOCK secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. o Templeton Global Advisors Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation o UBS Global Asset Management with income as a secondary consideration. (Americas) Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. o Morgan Stanley Investment Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. o Morgan Stanley Investment Management MARKETS EQUITY Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. o Morgan Stanley Investment Management GROWTH Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- o Morgan Stanley Investment Management term capital appreciation. Inc. - ------------------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks, and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. Contract features and benefits 27 GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges, any withdrawal charges and any optional benefit charges. See Appendix VII later in this Prospectus for state variations. Depending on the state where your contract is issued, your lifetime minimum ranges from 1.00% to 3.00%. The data page for your contract shows the lifetime minimum rate. Check with your financial professional as to which rate applies in your state. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75% or 3.00%, depending on your lifetime minimum rate. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfers from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers, even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional or see Appendix VII later in this Prospectus to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options generally range from one to ten years to maturity. - -------------------------------------------------------------------------------- On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for owner and annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you apply for an Accumulator(R) Plus(SM) contract, a 60-day rate lock-in will apply from the date the application is signed. Any contributions received and designated for a fixed maturity option during this period will receive the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever is greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from any of the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value (there may be a withdrawal charge). If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008, the next available maturity date was February 15, 2015. If no fixed maturity options are available, we will transfer your maturity value to the EQ/Money Market option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract, or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market 28 Contract features and benefits value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options (adjusted to reflect a similar maturity date), and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ALLOCATING YOUR CONTRIBUTIONS You may choose between self-directed and dollar cost averaging to allocate your contributions under your contract. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, guaranteed interest option (subject to restrictions in certain states - see Appendix VII later in this Prospectus for state variations) and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. No more than 25% of any contribution may be allocated to the guaranteed interest option. The total of your allocations into all available investment options must equal 100%. If an owner or an annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit's value is low and fewer units if the unit's value is high. Therefore, you may get a lower average cost per unit over the long term. This plan of investing, however, does not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options or guaranteed interest option. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. If you are participating in a Principal guarantee benefit, the general dollar cost averaging program is not available. If you elect the Guaranteed withdrawal benefit for life, general dollar cost averaging is not available. Contract features and benefits 29 INVESTMENT SIMPLIFIER FIXED-DOLLAR OPTION. Under this option, you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. The fixed-dollar option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date, your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. INTEREST SWEEP OPTION. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Under the Option I rebalancing program, you may participate in any of the dollar cost averaging programs except general dollar cost averaging. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. Not all dollar cost averaging programs are available in all states. See Appendix VII later in this Prospectus for more information on state availability. CREDITS A credit will also be allocated to your account value at the same time that we allocate your contribution. Credits are allocated to the same investment options based on the same percentages used to allocate your contributions. The credit amounts attributable to your contributions are not included for purposes of calculating any of the guaranteed benefits. The amount of the credit will be 4%, 4.5% or 5% of each contribution based on the following breakpoints and rules:
- ------------------------------------------------------------------ Credit percentage First year total contributions applied to Breakpoints contributions - ------------------------------------------------------------------ Less than $500,000 4% $500,000-$999,999.99 4.5% $1 million or more 5% - ------------------------------------------------------------------
The percentage of the credit is based on your total first year contributions. If you purchase a Principal guarantee benefit, you may not make additional contributions after the first six months. This credit percentage will be credited to your initial contribution and each additional contribution made in the first contract year (after adjustment as described below), as well as those in the second and later contract years. The credit will apply to additional contributions only to the extent that the sum of that contribution and prior contributions to which no credit was applied exceeds the total withdrawals made from the contract since the issue date. Although the credit, as adjusted at the end of the first contract year, will be based upon first year total contributions, the following rules affect the percentage with which contributions made in the first contract year are credited during the first contract year: o Indication of intent: If you indicate in the application at the time you purchase your contract an intention to make additional contributions to meet one of the breakpoints (the "Expected First Year Contribution Amount") and your initial contribution is at least 50% of the Expected First Year Contribution Amount, your credit percentage will be as follows: o For any contributions resulting in total contributions to date less than or equal to your Expected First Year Contribution Amount, the credit percentage will be the percentage that applies to the Expected First Year Contribution Amount based on the table above. o For any subsequent contribution that results in your total contributions to date exceeding your Expected First Year Contribution 30 Contract features and benefits Amount, such that the credit percentage should have been higher, we will increase the credit percentage applied to that contribution, as well as any prior or subsequent contributions made in the first contract year, accordingly. o If at the end of the first contract year your total contributions were lower than your Expected First Year Contribution Amount such that the credit applied should have been lower, we will recover any Excess Credit. The Excess Credit is equal to the difference between the credit that was actually applied based on your Expected First Year Contribution Amount (as applicable) and the credit that should have been applied based on first year total contributions. o The "Indication of intent" approach to first year contributions is not available in all states. Please see Appendix VII later in this Prospectus for information on state availability. o No indication of intent: o For your initial contribution (if available in your state) we will apply the credit percentage based upon the above table. o For any subsequent contribution that results in a higher appli cable credit percentage (based on total contributions to date), we will increase the credit percentage applied to that contribution, as well as any prior or subsequent contributions made in the first contract year, accordingly. In addition to the recovery of any Excess Credit, we will recover all of the credit or a portion of the credit in the following situations: o If you exercise your right to cancel the contract, we will recover the entire credit made to your contract (see "Your right to cancel within a certain number of days" later in this Prospectus). o If you start receiving annuity payments within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. Please see Appendix VII later in this Prospectus for information on state variations. o If the owner (or older joint owner, if applicable) dies during the one-year period following our receipt of a contribution to which a credit was applied, we will recover the amount of such Credit. For Joint life GWBL contracts, we will only recover the credit if the second owner dies within the one-year period following a contribution. We will recover any credit on a pro rata basis from the value in your variable investment options and guaranteed interest option. If there is insufficient value or no value in the variable investment options and guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options in order of the earliest maturing date(s). A market value adjustment may apply to withdrawals from the fixed maturity options. We do not consider credits to be contributions for purposes of any discussion in this Prospectus. Credits are also not considered to be part of your investment in the contract for tax purposes. We use a portion of the mortality and expense risks charge and withdrawal charge to help recover our cost of providing the credit. See "Charges and expenses" later in this Prospectus. The charge associated with the credit may, over time, exceed the sum of the credit and any related earnings. You should consider this possibility before purchasing the contract. GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit and the death benefits, as described in this section. The benefit base for the Guaranteed minimum income benefit and any enhanced death benefit will be calculated as described below in this section whether these options are elected individually or in combination. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 6% ROLL-UP TO AGE 85 (USED FOR THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to this benefit base is: o 6% with respect to the variable investment options (other than EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market and EQ/Short Duration Bond) the effective annual rate may be 4% in some states. Please see Appendix VII later in this Prospectus to see what applies in your state; and Contract features and benefits 31 o 3% with respect to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market and EQ/Short Duration Bond, the fixed maturity options, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up on the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday. For contracts with non-natural owners, the benefit base stops rolling up on the contract date anniversary following the annuitant's 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: o your initial contribution to the contract and any additional contributions, or o your highest account value on any contract date anniversary up to the contract date anniversary following the annuitant's 85th birthday, plus any contributions made since the most recent Annual Ratchet, less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of the deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. For contracts with non-natural owners, the last contract date anniversary a ratchet could occur is based on the annuitant's age. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6% Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. For the Guaranteed minimum income benefit, the benefit base is reduced by any applicable withdrawal charge remaining when the option is exercised. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. In Washington a different roll-up rate applies to the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. See Appendix VII later in this Prospectus. GUARANTEED MINIMUM DEATH BENEFIT/GUARANTEED MINIMUM INCOME BENEFIT ROLL-UP BENEFIT BASE RESET. If both the Guaranteed minimum income benefit AND the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit (the "Greater of enhanced death benefit") are elected, you may reset the Roll-Up benefit base for these guaranteed benefits to equal the account value on any contract date anniversary until the contract date anniversary following age 75, if your contract has an annual reset. If your contract has a five year reset, you may reset the Roll-Up benefit base for these guaranteed benefits to equal the account value on any 5th or later contract date anniversary until the contract date anniversary following age 75. The reset amount would equal the account value as of the contract date anniversary on which you reset your Roll-Up benefit base. The 6% Roll-Up continues to age 85 on any reset benefit base. We will send you a notice in each year that the Roll-Up benefit base is eligible to be reset, and you will have 30 days from your contract date anniversary to reset your Roll-Up benefit base. If your contract is eligible for an annual reset and your request to reset your Roll-Up benefit base is received at our processing office more than 30 days after your contract date anniversary, your Roll-Up benefit base will reset on the next contract date anniversary on which you are eligible for a reset. If your contract is eligible for an annual reset, you may choose one of the three available reset methods: one-time reset option, automatic annual reset program or automatic customized reset program. - -------------------------------------------------------------------------------- ONE-TIME RESET OPTION - resets your Roll-Up benefit base on a single contract date anniversary. AUTOMATIC ANNUAL RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary you are eligible for a reset. AUTOMATIC CUSTOMIZED RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary, if eligible, for the period you designate. - -------------------------------------------------------------------------------- If you wish to cancel your elected reset program, your request must be received by our processing office at least 30 days prior to your contract date anniversary to terminate your reset program for such contract date anniversary. Cancellation requests received after this window will be applied the following year. A reset cannot be cancelled after it has occurred. For more information, see "How to reach us" earlier in this Prospectus. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset until the next contract date anniversary or for five years, depending upon the reset period available under your contract. Please see Appendix VIII later in this Prospectus for more information on the reset feature available under your contract. If after your death your spouse continues the contract and your contract has an annual reset, the benefit base will be eligible to be reset on each contract date anniversary, if applicable. However if your contract has a five year reset, the benefit base will be eligible to be reset either five years from the contract date or from the last reset date, if applicable. The last age at which the benefit base is eligible to be reset is the contract date anniversary following owner (or older joint owner, if applicable) age 75. For contracts with non-natural owners, reset eligibility is based on the annuitant's age. It is important to note that once you have reset your Roll-Up benefit base, a new waiting period to exercise the Guaranteed minimum income benefit will apply from the date of reset; you may not exercise until the tenth contract date anniversary following the reset, or, if later, the earliest date you would have been permitted to exercise without regard to the reset. See "Exercise rules" under "Guaranteed minimum income benefit option" below for more information. Please note that 32 Contract features and benefits in almost all cases, resetting your Roll-Up benefit base will lengthen the exercise waiting period. Also, even when there is no additional charge when you reset your Roll-Up benefit base, the total dollar amount charged on future contract date anniversaries may increase as a result of the reset since the charges may be applied to a higher benefit base than would have been otherwise applied. See "Charges and expenses" in the Prospectus. If you are a traditional IRA, TSA or QP contract owner, before you reset your Roll-Up benefit base, please consider the effect of the 10-year exercise waiting period on your requirement to take lifetime required minimum distributions with respect to this contract. If you must begin taking lifetime required minimum distributions during the 10-year waiting period, you may want to consider taking the annual lifetime required minimum distribution calculated for this contract from another traditional IRA, TSA or QP contract that you maintain. If you withdraw the lifetime required minimum distribution from this contract, and the required minimum distribution is more than 6% of the reset benefit base, the withdrawal would cause a pro-rata reduction in the benefit base. Alternatively, resetting the benefit base to a larger amount would make it less likely that the required minimum distributions would exceed the 6% threshold. See "Lifetime required minimum distribution withdrawals" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money." Also, see "Required minimum distributions" under "Individual retirement arrangements (IRAs)" and "Tax-sheltered annuity contracts (TSAs)" in "Tax information" and Appendix II - -- "Purchase considerations for QP Contracts," later in this Prospectus. The Roll-Up benefit base for both the "Greater of" enhanced death benefit and the Guaranteed minimum income benefit are reset simultaneously when you request a Roll-Up benefit base reset. You cannot elect a Roll-Up benefit base reset for one benefit and not the other. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed under "Guaranteed minimum income benefit option" below and annuity payout options are discussed under "Your annuity payout options" in "Accessing your money" later in this Prospectus. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the owner's (and any joint owner's) age and sex in certain instances. Your contract may specify different guaranteed annuity purchase factors for the Guaranteed minimum income benefit and the annuity payout options. We may provide more favorable current annuity purchase factors for the annuity payout options. GUARANTEED MINIMUM INCOME BENEFIT OPTION The Guaranteed minimum income benefit is available if the owner is age 20 through 75 at the time the contract is issued. If the contract is jointly owned, the Guaranteed minimum income benefit will be calculated on the basis of the older owner's age. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. This feature is not available if you elect a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. If the owner was older than age 60 at the time an IRA, QP or Rollover TSA contract was issued, the Guaranteed minimum income benefit may not be an appropriate feature because the minimum distributions required by tax law generally must begin before the Guaranteed minimum income benefit can be exercised. If you elect the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the owner's age as follows:
- ------------------------------------------ Level payments - ------------------------------------------ Period certain years ------------------- Owner's age at exercise IRAs NQ - ------------------------------------------ 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - ------------------------------------------
We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit, should be regarded as a safety net only. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base less, any applicable withdrawal charge remaining, to guaranteed annuity purchase factors, or (ii) the income provided by applying your account value to our then current annuity purchase factors. For Rollover TSA Contract features and benefits 33 only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. Before you elect the Guaranteed minimum income benefit, you should consider the fact that it provides a form of insurance and is based on conservative actuarial factors. For certain contracts, the guaranteed annuity purchase factors we use to determine your payout annuity benefit under the Guaranteed minimum income benefit are more conservative than the guaranteed annuity purchase factors we use for our standard payout annuity options. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the Guaranteed minimum income benefit payout annuity will be smaller than each periodic payment under our standard payout annuity options. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. GUARANTEED MINIMUM INCOME BENEFIT "NO LAPSE GUARANTEE". In general, if your account value falls to zero (except as discussed below, if your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days), the Guaranteed minimum income benefit will be exercised automatically, based on the owner's (or older joint owner's, if applicable) current age and benefit base, as follows: o You will be issued a supplementary contract based on a single life with a maximum 10 year period certain. Payments will be made annually starting one year from the date the account value fell to zero. o You will have 30 days from when we notify you to change the payout option and/or the payment frequency. Please note that we will not automatically exercise the Guaranteed minimum income benefit, as described above, if you have a TSA contract and withdrawal restrictions apply. The no lapse guarantee will terminate under the following circumstances: o If your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year); o If your aggregate withdrawals during any contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days); o Upon owner (or older joint owner, if applicable) reaching age 85. Please note that if you participate in our Automatic RMD service, an automatic withdrawal under that program will not cause the no lapse guarantee to terminate even if a withdrawal causes your total contract year withdrawals to exceed 6% of your Roll-Up benefit base. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the Guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male owner age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options or the loan reserve account under Rollover TSA contracts. - --------------------------------------------------------------- Guaranteed minimum Guaranteed mini- income benefit -- mum income benefit annual income pay- -- annual income able for life (for payable for life (for contracts with the contracts with the Contract date five year Roll-Up annual Roll-Up ben- anniversary at benefit base reset efit base reset exercise feature) feature) - --------------------------------------------------------------- 10 $11,891 $10,065 15 $18,597 $15,266 - --------------------------------------------------------------- EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us along with all required information within 30 days following your contract date anniversary in order to exercise this benefit. Upon exercise of the Guaranteed minimum income benefit, the owner will become the annuitant, and the contract will be annuitized on the basis of the owner's life. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payment contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death, or if later, the end of the period certain (where the payout option chosen includes a period certain). 34 Contract features and benefits EXERCISE RULES. Eligibility to exercise the Guaranteed minimum income benefit is based on the owner's (or older joint owner's, if applicable) age, as follows: o If you were at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If you were at least age 45 and no older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after age 60. o If you were at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your 85th birthday; (ii) if you were age 75 when the contract was issued or the Roll-Up benefit base was reset, the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your attainment of age 85; (iii) for Accumulator(R) Plus(SM) QP contracts, the Plan participant can exercise the Guaranteed minimum income benefit only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) Plus(SM) QP contract into an Accumulator(R) Plus(SM) Rollover IRA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for the Plan participant to be eligible to exercise, However, if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, a rollover into an IRA will not be effected and payments will be made directly to the trustee; (iv) for Accumulator(R) Plus(SM) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Plus(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (v) if you reset the Roll-Up benefit base (as described earlier in this section), your new exercise date will be the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the waiting period; (vi) a spouse beneficiary or younger spouse joint owner under Spousal continuation may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original owner could have exercised the benefit. In addition, the spouse beneficiary or younger spouse joint owner must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The spouse beneficiary or younger spouse joint owner's age on the date of the owner's death replaces the owner's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules. (vii) if the contract is jointly owned, you can elect to have the Guaranteed minimum income benefit paid either: (a) as a joint life benefit or (b) as a single life benefit paid on the basis of the older owner's age; and (viii) if the contract is owned by a trust or other non-natural person, eligibility to elect or exercise the Guaranteed minimum income benefit is based on the annuitant's age, rather than the owner's. See "Effect of the owner's death" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. Your contract provides a standard death benefit. If you do not elect one of the enhanced death benefits described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions adjusted for any withdrawals (and associated withdrawal charges). The standard death benefit is the only death benefit available for owners (or older joint owners, if applicable) ages 76 to 80 at issue. Once your contract is issued, you may not change or voluntarily terminate your death benefit. If you elect one of the enhanced death benefits (not including the GWBL Enhanced death benefit), the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, information and forms necessary to effect payment, or your elected enhanced death benefit on the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals (and associated with- Contract features and benefits 35 drawal charges) whichever provides the higher amount. See "Payment of death benefit" later in this Prospectus for more information. Any of the enhanced death benefits or the standard death benefit can be elected by themselves or with the Guaranteed minimum income benefit. If you elect one of the enhanced death benefit options described below and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, any enhanced death benefit elected will be replaced with the standard death benefit. For contracts with non-natural owners, the death benefit will be payable upon the death of the annuitant. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the owner (or older joint owner, if applicable) dies during the one-year period following our receipt of a contribution, the account value used to calculate the applicable guaranteed minimum death benefit will not reflect any Credits applied in the one-year period prior to death. For Joint life GWBL contracts, we will only recover the credit if the second owner dies within the one-year period following a contribution. OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR OWNER (OR OLDER JOINT OWNER, IF APPLICABLE) AGES 0 THROUGH 75 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 70 AT ISSUE OF QP CONTRACTS. FOR CONTRACTS WITH NON-NATURAL OWNERS, THE AVAILABLE DEATH BENEFITS ARE BASED ON THE ANNUITANT'S AGE. Subject to state availability (please see Appendix VII later in this Prospectus for state availability of these benefits), you may elect one of the following enhanced death benefits: o Annual Ratchet to age 85. o The Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85. Each enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Once you have made your enhanced death benefit election, you may not change it. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. See Appendix IV later in this Prospectus for an example of how we calculate an enhanced minimum death benefit. EARNINGS ENHANCEMENT BENEFIT Subject to state and contract availability (please see Appendix VII later in this Prospectus for state availability of these benefits), if you are purchasing a contract, under which the Earnings enhancement benefit is available, you may elect the Earnings enhancement benefit at the time you purchase your contract. The Earnings enhancement benefit provides an additional death benefit as described below. See the appropriate part of "Tax information" later in this Prospectus for the potential tax consequences of electing to purchase the Earnings enhancement benefit in an NQ, IRA or Rollover TSA contract. Once you purchase the Earnings enhancement benefit, you may not voluntarily terminate the feature. If you elect the Guaranteed withdrawal benefit for life, the Earnings enhancement benefit is not available. If you elect the Earnings enhancement benefit described below and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the owner (or older joint owner, if applicable) is 70 or younger when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is 70 or younger when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 40% of: the greater of: o the account value or o any applicable death benefit decreased by: o total net contributions For purposes of calculating your Earnings enhancement benefit, the following applies: (i) "Net contributions" are the total contributions made (or if applicable, the total amount that would otherwise have been paid as a death benefit had the spouse beneficiary or younger spouse joint owner not continued the contract plus any subsequent contributions) adjusted for each withdrawal that exceeds your Earnings enhancement benefit earnings. "Net contributions" are reduced by the amount of that excess. Earnings enhancement benefit earnings are equal to (a) minus (b) where (a) is the greater of the account value and the death benefit immediately prior to the withdrawal, and (b) is the net contributions as adjusted by any prior withdrawals (credit amounts are not included in "net contributions"); and (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable Guaranteed minimum death benefit as of the date of death. For purposes of calculating your Earnings enhancement benefit, if any contributions are made in the one-year period prior to death of the owner (or older joint owner, if applicable), the account value will not include any Credits applied in the one-year period prior to death. If the owner (or older joint owner, if applicable) is age 71 through 75 when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is between the ages of 71 and 75 when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 25% of: the greater of: o the account value or o any applicable death benefit 36 Contract features and benefits decreased by: o total net contributions. The value of the Earnings enhancement benefit is frozen on the first contract date anniversary after the owner (or older joint owner, if applicable) turns age 80, except that the benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce the benefit by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If the benefit is $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and the benefit after the withdrawal would be $24,000 ($40,000-$16,000). For contracts with non-natural owners, your eligibility to elect the Earnings enhancement benefit will be calculated based on the annuitant's age. For an example of how the Earnings enhancement death benefit is calculated, please see Appendix VI. For contracts continued under Spousal continuation upon the death of the spouse (or older spouse, in the case of jointly owned contracts), the account value will be increased by the value of the Earnings enhancement death benefit as of the date we receive due proof of death. The benefit will then be based on the age of the surviving spouse as of the date of the deceased spouse's death for the remainder of the contract. If the surviving spouse is age 76 or older, the benefit will terminate and the charge will no longer be in effect. The spouse may also take the death benefit (increased by the Earnings enhancement benefit) in a lump sum. See "Spousal continuation" in "Payment of death benefit" later in this Prospectus for more information. The Earnings enhancement benefit must be elected when the contract is first issued; neither the owner nor the successor owner can add it subsequently. Ask your financial professional or see Appendix VII later in this Prospectus to see if this feature is available in your state. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL") For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL") guarantees that you can take withdrawals up to a maximum amount per year (your "Guaranteed annual withdrawal amount"). GWBL is only available at issue. This benefit is not available at issue ages younger than 45. GWBL is not available if you have elected the Guaranteed minimum income benefit, the Earnings enhancement benefit or one of our Principal guarantee benefits, described later in this Prospectus. You may elect one of our automated payment plans or you may take partial withdrawals. All withdrawals reduce your account value and Guaranteed minimum death benefit. See "Accessing your money" later in this Prospectus. Your investment options will be limited to the guaranteed interest option and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. You may buy this benefit on a single life ("Single life") or a joint life ("Joint life") basis. Under a Joint life contract, lifetime withdrawals are guaranteed for the life of both the owner and successor owner (or annuitant and joint annuitant, as applicable). For Joint life contracts, a successor owner may be named at contract issue only. The successor owner must be the owner's spouse. If you and the successor owner are no longer married, you may either: (i) drop the original successor owner or (ii) replace the original successor owner with your new spouse. This can only be done before the first withdrawal is made from the contract. After the first withdrawal, the successor owner can be dropped but cannot be replaced. If the successor owner is dropped after withdrawals begin, the charge will continue based on a Joint life basis. For NQ contracts, you have the option to designate the successor owner as a joint owner. For Joint life contracts owned by a non-natural owner, a joint annuitant may be named at contract issue only. The annuitant and joint annuitant must be spouses. If the annuitant and joint annuitant are no longer married, you may either: (i) drop the joint annuitant or (ii) replace the original joint annuitant with the annuitant's new spouse. This can only be done before the first withdrawal. After the first withdrawal, the joint annuitant may be dropped but cannot be replaced. If the joint annuitant is dropped after withdrawals begin, the charge continues based on a Joint life basis. Joint annuitants are not permitted under any other contracts. Joint life QP and TSA contracts are not permitted. The cost of the GWBL benefit will be deducted from your account value on each contract date anniversary. Please see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus for a description of the charge. You should not purchase this benefit if: o You plan to take withdrawals in excess of your Guaranteed annual withdrawal amount because those withdrawals may significantly reduce or eliminate the value of the benefit (see "Effect of Excess withdrawals" below in this section); o You are not interested in taking withdrawals prior to the contract's maturity date; o You are using the contract to fund a Rollover TSA or QP contract where withdrawal restrictions will apply; or o You plan to use it for withdrawals prior to age 59-1/2, as the taxable amount of the withdrawal will be includible in income and subject to an additional 10% federal income tax penalty, as discussed later in this Prospectus. The Federal Defense of Marriage Act precludes same-sex married couples, domestic partners, and civil union partners from being considered married under federal law. Such individuals, therefore, are not entitled to the favorable tax treatment accorded spouses under federal tax law. As a result, mandatory distributions from the contract must be made after the death of the first individual. Accordingly, the GWBL will have little or no value to the surviving same-gender spouse or partner. You should consult with your tax adviser for more information on this subject. For traditional IRAs, TSA and QP contracts, you may take your lifetime required minimum distributions ("RMDs") without losing the value of Contract features and benefits 37 the GWBL benefit, provided you comply with the conditions described under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, this benefit may have limited usefulness for you and you should consider whether it is appropriate. Please consult your tax adviser. GWBL BENEFIT BASE At issue, your GWBL benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL benefit base increases by any subsequent contributions. o Your GWBL benefit base may be increased on each contract date anniversary, as described below under "Annual ratchet" and "5% deferral bonus." o Your GWBL benefit base is not reduced by withdrawals except those withdrawals that cause total withdrawal in contract year to exceed your Guaranteed annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess withdrawals" below in this section. GUARANTEED ANNUAL WITHDRAWAL AMOUNT Your initial Guaranteed annual withdrawal amount is equal to a percentage of the GWBL benefit base. The initial applicable percentage ("Applicable percentage") is based on the owner's age at the time of the first withdrawal. For Joint life contracts, the initial Applicable percentage is based on the age of the owner or successor owner, whoever is younger at the time of the first withdrawal. For contracts held by non-natural owners, the initial Applicable percentage is based on the annuitant's age or on the younger annuitant's age, if applicable, at the time of the first withdrawal. If your GWBL benefit base ratchets, as described below in this section under "Annual ratchet," on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. The Applicable percentages are as follows: - --------------------------------------- Age Applicable percentage - --------------------------------------- 45-64 4.0% 65-74 5.0% 75-84 6.0% 85 and older 7.0% - ---------------------------------------
We will recalculate the Guaranteed annual withdrawal amount on each contract date anniversary and as of the date of any subsequent contribution or Excess withdrawal, as described below under "Effect of Excess withdrawals" and "Subsequent contributions." The withdrawal amount is guaranteed never to decrease as long as there are no Excess withdrawals. Your Guaranteed annual withdrawals are not cumulative. If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. The withdrawal charge, if applicable, is waived for withdrawals up to the Guaranteed annual withdrawal amount, but all withdrawals are counted toward your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. EFFECT OF EXCESS WITHDRAWALS An Excess withdrawal is caused when you withdraw more than your Guaranteed annual withdrawal amount in any contract year. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, the entire amount of that withdrawal and each subsequent withdrawal in that contract year are considered Excess withdrawals. An Excess withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount. If you make an Excess withdrawal, we will recalculate your GWBL benefit base and the Guaranteed annual withdrawal amount, as follows: o The GWBL benefit base is reset as of the date of the Excess with drawal to equal the lesser of: (i) the GWBL benefit base immediately prior to the Excess withdrawal and (ii) the account value immediately following the Excess withdrawal. o The Guaranteed annual withdrawal amount is recalculated to equal the Applicable percentage multiplied by the reset GWBL benefit base. You should not purchase this contract if you plan to take withdrawals in excess of your Guaranteed annual withdrawal amount as such withdrawals may significantly reduce or eliminate the value of the GWBL benefit. If your account value is less than your GWBL benefit base (due, for example, to negative market performance), an Excess withdrawal, even one that is only slightly more than your Guaranteed annual withdrawal amount, can significantly reduce your GWBL benefit base and the Guaranteed annual withdrawal amount. For example, assume your GWBL benefit base is $100,000 and your account value is $80,000 when you decide to begin taking withdrawals at age 65. Your Guaranteed annual withdrawal amount is equal to $5,000 (5.0% of $100,000). You take an initial withdrawal of $8,000. Since your GWBL benefit base is immediately reset to equal the lesser of your GWBL benefit base prior to the Excess withdrawal ($100,000) and your account value immediately following the Excess withdrawal ($80,000 minus $8,000), your GWBL benefit base is now $72,000. In addition, your Guaranteed annual withdrawal amount is reduced to $3,600 (5.0% of $72,000), instead of the original $5,000. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds the greater of (i) the Guaranteed annual withdrawal amount or (ii) the 10% free withdrawal amount. A withdrawal charge would not be applied in the example above since the $8,000 withdrawal (equal to 10% of the contract's account value as of the beginning of the contract year) falls within the 10% free withdrawal amount. Under the example above, additional withdrawals during the same contract year could result in a further reduction of the GWBL benefit base and the Guaranteed annual withdrawal amount, as well as an application of withdrawal charges, if applicable. See `Withdrawal charge" in "Charges and expenses" later in this Prospectus. 38 Contract features and benefits You should note that an Excess withdrawal that reduces your account value to zero terminates the contract, including all benefits, without value. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA, QP or TSA and participate in our Automatic RMD service, an automatic withdrawal under that program will not cause an Excess withdrawal, even if it exceeds your Guaranteed annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. Loans are not available under Rollover TSA contracts if GWBL is elected. ANNUAL RATCHET Your GWBL benefit base is recalculated on each contract date anniversary to equal the greater of: (i) the account value and (ii) the most recent GWBL benefit base. If your account value is greater, we will ratchet up your GWBL benefit base to equal your account value. If your GWBL benefit base ratchets on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. Your Guaranteed annual withdrawal will also be increased, if applicable, to equal your Applicable percentage times your new GWBL benefit base. If your GWBL benefit base ratchets, we may increase the charge for the benefit. Once we increase the charge, it is increased for the life of the contract. We will permit you to opt out of the ratchet if the charge increases. If you choose to opt out, your charge will stay the same but your GWBL benefit base will no longer ratchet. Upon request, we will permit you to accept a GWBL benefit base ratchet with the charge increase on a subsequent contract date anniversary. For a description of the charge increase, see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus. 5% DEFERRAL BONUS At no additional charge, during the first ten contract years, in each year you have not taken a withdrawal, we will increase your GWBL benefit base by an amount equal to 5% of your total contributions. If the Annual Ratchet (as discussed immediately above) occurs on any contract date anniversary, for the next and subsequent contract years, the bonus will be 5% of the most recent ratcheted GWBL benefit base plus any subsequent contributions. If the GWBL benefit base is reduced due to an Excess withdrawal, the 5% deferral bonus will be calculated using the reset GWBL benefit base plus any applicable contributions. The deferral bonus generally excludes contributions made in the prior 12 months. In the first contract year, the deferral bonus is determined using all contributions received in the first 90 days of the contract year. On any contract date anniversary on which you are eligible for a bonus, we will calculate the applicable bonus amount. If, when added to the current GWBL benefit base, the amount is greater than your account value, that amount will become your new GWBL benefit base. If that amount is less than or equal to your account value, your GWBL benefit base will be ratcheted to equal your account value, and the 5% deferral bonus will not apply. If you opt out of the Annual Ratchet (as discussed immediately above), the 5% deferral bonus will still apply. SUBSEQUENT CONTRIBUTIONS Subsequent contributions are not permitted after the later of: (i) the end of the first contract year and (ii) the date the first withdrawal is taken. Anytime you make an additional contribution, your GWBL benefit base will be increased by the amount of the contribution. Your Guaranteed annual withdrawal amount will be equal to the Applicable percentage of the increased GWBL benefit base. GWBL GUARANTEED MINIMUM DEATH BENEFIT There are two guaranteed minimum death benefits available if you elect the GWBL option: (i) the GWBL Standard death benefit, which is available at no additional charge for owner issue ages 45-80, and (ii) the GWBL Enhanced death benefit, which is available for an additional charge for owner issue ages 45-75. Please see Appendix VII later in this Prospectus to see if these guaranteed death benefits are available in your state. The GWBL Standard death benefit is equal to the GWBL Standard death benefit base. The GWBL Standard death benefit base is equal to your initial contribution and any additional contributions less a deduction that reflects any withdrawals you make (see "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus). The GWBL Enhanced death benefit is equal to the GWBL Enhanced death benefit base. Your initial GWBL Enhanced death benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL Enhanced death benefit base increases by any subse quent contribution; o Your GWBL Enhanced death benefit base increases to equal your account value if your GWBL benefit base is ratcheted, as described above in this section; o Your GWBL Enhanced death benefit base increases by any 5% deferral bonus, as described above in this section; o Your GWBL Enhanced death benefit base decreases by an amount which reflects any withdrawals you make. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit " in "Accessing your money" later in this Prospectus. The death benefit is equal to your account value (adjusted for any pro rata optional benefit charges) as of the date we receive satisfactory proof of death, any required instructions for method of payment, information and forms necessary to effect payment or the applicable GWBL Guaranteed minimum death benefit on the date of the owner's death (adjusted for any subsequent withdrawals and associated withdrawal charges), whichever provides a higher amount. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO If your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no further payments or Contract features and benefits 39 benefits. If an Excess withdrawal results in a withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. However, if your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, please note the following: o Your Accumulator(R) Plus(SM) contract terminates and you will receive a supplementary life annuity contract setting forth your continuing benefits. The owner of the Accumulator(R) Plus(SM) contract will be the owner and annuitant. The successor owner, if applicable, will be the joint annuitant. If the owner is non-natural, the annuitant and joint annuitant, if applicable, will be the same as under your Accumulator(R) Plus(SM) contract. o No subsequent contributions will be permitted. o If you were taking withdrawals through the "Maximum payment plan," we will continue the scheduled withdrawal payments on the same basis. o If you were taking withdrawals through the "Customized payment plan" or in unscheduled partial withdrawals, we will pay the balance of the Guaranteed annual withdrawal amount for that contract year in a lump sum. Payment of the Guaranteed annual withdrawal amount will begin on the next contract date anniversary. o Payments will continue at the same frequency for Single or Joint life contracts, as applicable, or annually if automatic payments were not being made. o Any guaranteed minimum death benefit remaining under the original contract will be carried over to the supplementary life annuity contract. The death benefit will no longer grow and will be reduced on a dollar for dollar basis as payments are made. If there is any remaining death benefit upon the death of the owner and successor owner, if applicable, we will pay it to the beneficiary. o The charge for the Guaranteed withdrawal benefit for life and the GWBL Enhanced death benefit will no longer apply. o If at the time of your death the Guaranteed annual withdrawal amount was being paid to you as a supplementary life annuity contract, your beneficiary may not elect the Beneficiary continuation option. OTHER IMPORTANT CONSIDERATIONS o This benefit is not appropriate if you do not intend to take withdrawals prior to annuitization. o Amounts withdrawn in excess of your Guaranteed annual withdrawal amount may be subject to a withdrawal charge, if applicable, as described in "Charges and expenses" later in the Prospectus. In addition, all withdrawals count toward your free withdrawal amount for that contract year. Excess withdrawals can significantly reduce or completely eliminate the value of the GWBL and GWBL Enhanced death benefit. See "Effect of Excess withdrawals" above in this section and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o Withdrawals are not considered as annuity payments for tax purposes, and may be subject to an additional 10% Federal income tax penalty if they are taken before age 59-1/2. See "Tax information" later in this Prospectus. o All withdrawals reduce your account value and Guaranteed minimum death benefit. See "How withdrawals are taken from your account value" and "How withdrawals affect your Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. o The GWBL benefit terminates if the contract is continued under the beneficiary continuation option or under the Spousal continuation feature if the spouse is not the successor owner. o If you surrender your contract to receive its cash value and your cash value is greater than your Guaranteed annual withdrawal amount, all benefits under the contract will terminate, including the GWBL benefit. o If you transfer ownership of this contract, you terminate the GWBL benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information" later in this Prospectus for more information. o Withdrawals are available under other annuity contracts we offer and this contract without purchasing a withdrawal benefit. o For IRA, QP and TSA contracts, if you have to take a required minimum distribution ('`RMD") and it is your first withdrawal under the contract, the RMD will be considered your "first withdrawal" for the purposes of establishing your GWBL Applicable percentage. o If you elect GWBL on a Joint life basis and subsequently get divorced, your divorce will not automatically terminate the contract. For both Joint life and Single life contracts, it is possible that the terms of your divorce decree could significantly reduce or completely eliminate the value of this benefit. PRINCIPAL GUARANTEE BENEFITS We offer two 10-year Principal guarantee benefits at an additional charge: the 100% Principal guarantee benefit and the 125% Principal guarantee benefit. You may only elect one Principal guarantee benefit ("PGB"). 100% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 100% Principal guarantee benefit is equal to your initial contribution and additional permitted contributions, adjusted for withdrawals. The guaranteed amount does not include any credits allocated to your contract. Under the 100% Principal guarantee benefit, your investment options are limited to the guaranteed interest option and the permitted variable investment options. 40 Contract features and benefits 125% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 125% Principal guarantee benefit is equal to 125% of your initial contribution and additional permitted contributions, adjusted for withdrawals. The guaranteed amount does not include any credits allocated to your contract. Under the 125% Principal guarantee benefit, your investment options are limited to the guaranteed interest option and the AXA Moderate Allocation Portfolio. Under both Principal guarantee benefits, if, on the 10th contract date anniversary (or later if you've exercised a reset as explained below) ("benefit maturity date"), your account value is less than the guaranteed amount, we will increase your account value to equal the applicable guaranteed amount. Any such additional amounts added to your account value will be allocated pursuant to the allocation instructions for additional contributions we have on file. After the benefit maturity date, the guarantee will terminate. You have the option to reset (within 30 days following each applicable contract date anniversary) the guaranteed amount to the account value or 125% of the account value, as applicable, as of your fifth and later contract date anniversaries. If you exercise this option, you are eligible for another reset on each fifth and later contract date anniversary after the last reset up to the contract date anniversary following an owner's 80th birthday. If you elect to reset the guaranteed amount, your benefit maturity date will be extended to be the 10th contract date anniversary after the anniversary on which you reset the guaranteed amount. This extension applies each time you reset the guaranteed amount. If you elect either PGB, you may not elect the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, the systematic withdrawals option or the substantially equal withdrawals option. If you purchase a PGB, you may not make additional contributions to your contract after six months from the contract issue date. If you are planning to take required minimum distributions from this contract, this benefit may not be appropriate. See "Tax information" later in this Prospectus. If you elect a PGB and change ownership of the contract, your PGB will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Once you purchase a PGB, you may not voluntarily terminate this benefit. Your PGB will terminate if the contract terminates before the benefit maturity date, as defined below. If you die before the benefit maturity date and the contract continues, we will continue the PGB only if the contract can continue through the benefit maturity date. If the contract cannot so continue, we will terminate your PGB and the charge. See "Non-spousal joint contract continuation" in "Payment of death benefit" later in this Prospectus. The PGB will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a charge for the Principal guarantee benefits (see "Charges and expenses" later in this Prospectus). You should note that the purchase of a PGB is not appropriate if you want to make additional contributions to your contract beyond the first six months after your contract is issued. The purchase of a PGB is also not appropriate if you plan on terminating your contract before the benefit maturity date. The purchase of a PGB may not be appropriate if you plan on taking withdrawals from your contract before the benefit maturity date. Withdrawals from your contract before the benefit maturity date reduce the guaranteed amount under a PGB on a pro rata basis. You should also note that if you intend to allocate a large percentage of your contributions to the guaranteed interest option, the purchase of a PGB may not be appropriate because of the guarantees already provided by this option at no additional charge. Please note that loans (applicable to TSA contracts only) are not permitted under either PGB. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law requires, this "free look" period may be longer. Other state variations may apply. Please contact your financial professional and/or see Appendix VII to find out what applies in your state. Generally, your refund will equal your account value (less loan reserve account under Rollover TSA contracts) under the contract on the day we receive notification to cancel the contract and will reflect (i) any investment gain or loss in the variable investment options (less the daily charges we deduct), (ii) any guaranteed interest in the guaranteed interest option, and (iii) any positive or negative market value adjustments in the fixed maturity options through the date we receive your contract. Some states require that we refund the full amount of your contribution (not reflecting (i), (ii) or (iii) above). For any IRA contracts returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. Please note that you will forfeit the credit by exercising this right of cancellation. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. If you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office or your financial professional can provide you with the cancellation instructions. In addition to the cancellation right described above, you have the right to surrender your contract rather than cancel it. Please see "Surrendering your contract to receive its cash value," later in this Prospectus. Surrendering your contract may yield results different than canceling your contract, including a greater potential for taxable Contract features and benefits 41 income. In some cases, your cash value upon surrender may be greater than your contributions to the contract. Please see "Tax information," later in this Prospectus. 42 Contract features and benefits 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total value of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; and (iv) the loan reserve account (applies for Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value less: (i) the total amount or a pro rata portion of the annual administrative charge as well as any optional benefit charges; (ii) any applicable withdrawal charge; and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense risks; (ii) administrative, and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions plus the credit; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect transfer into, or decreased to reflect transfer out of a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, when we deduct the enhanced death benefit, Guaranteed minimum income benefit, Principal guarantee benefits, Guaranteed withdrawal benefit for life and/or Earnings enhancement benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest option at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. ---------------------------------- If you apply for this contract by electronic means, please see Appendix VII for additional information. INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all your rights under your contract and any applicable guaranteed benefits, except as discussed below. See Appendix VII later in this Prospectus for any state variations with regard to terminating your contract. GUARANTEED MINIMUM INCOME BENEFIT NO LAPSE GUARANTEE. In certain circumstances, even if your account value falls to zero, your Guaranteed minimum income benefit will still have value. Please see "Contract features and benefits" earlier in this Prospectus for information on this feature. PRINCIPAL GUARANTEE BENEFITS. If you take no withdrawals, and your account value is insufficient to pay charges, we will not terminate your contract if you are participating in a PGB. Your contract will remain in force and we will pay your guaranteed amount at the benefit maturity date. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. If you elect the Guaranteed withdrawal benefit for life and your account value falls to zero due to Determining your contract's value 43 an Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary life annuity contract, even if your GWBL benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges the benefit will still have value. See "Contract features and benefits" earlier in this Prospectus. 44 Determining your contract's value 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the variable investment options, subject to the following: o You may not transfer to a fixed maturity option that has a rate to maturity of 3%. o If an owner or annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the account value being allocated to the guaranteed interest option, based on the account value as of the previous business day. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option and interest sweep option dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or, (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the Investment options in the prior contract year; or, (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. Transferring your money among investment options 45 We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We currently offer two rebalancing programs that you can use to automatically reallocate your account value among your investment options. Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers from the guaranteed interest option to the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into or out of the guaranteed interest option to initiate the rebalancing program will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. You may not elect Option II if you are participating in any dollar cost averaging program. You may not elect Option I if you are participating in general dollar cost averaging. If you elect a benefit that limits your variable investment options, those limitations will also apply to the rebalancing programs. 46 Transferring your money among investment options 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. Please see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate.
- -------------------------------------------------------------------------------- Method of withdrawal ----------------------------------------------------------------- Automatic payment Pre-age Lifetime plans 59-1/2 sub- required (GWBL stantially minimum Contract only) Partial Systematic equal distribution - -------------------------------------------------------------------------------- NQ Yes Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Conver- sion IRA Yes Yes Yes Yes No - -------------------------------------------------------------------------------- Rollover TSA* Yes Yes Yes No Yes - -------------------------------------------------------------------------------- QP** Yes Yes No No Yes - --------------------------------------------------------------------------------
* Employer or plan approval required for all transactions. Your ability to take withdrawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. ** All payments are made to the trust as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. AUTOMATIC PAYMENT PLANS (For contracts with GWBL only) You may take automatic withdrawals under either the Maximum payment plan or the Customized payment plan, as described below. Under either plan, you may take withdrawals on a monthly, quarterly or annual basis. You may change the payment frequency of your withdrawals at any time, and the change will become effective on the next contract date anniversary. You may elect either the Maximum payment plan or the Customized payment plan at any time. You must wait at least 28 days from contract issue before automatic payments begin. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will increase following any Annual Ratchet or 5% deferral bonus. If you elect the Maximum payment plan and start monthly or quarterly payments after the beginning of a contract year, the payments you take that year will be less than your Guaranteed annual withdrawal amount. If you take a partial withdrawal while the Maximum payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will not be increased following any Annual Ratchet or 5% deferral bonus. You must elect to change the scheduled payment amount. It is important to note that if you elect the Customized payment plan and start monthly or quarterly withdrawals after the beginning of a contract year, you could select scheduled payment amounts that would cause an Excess withdrawal. If your selected scheduled payment would cause an Excess withdrawal, we will notify you. As discussed earlier in the Prospectus, Excess withdrawals may significantly reduce the value of the Guaranteed withdrawal benefit for life benefit. See "Effect of Excess withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you take a partial withdrawal while the Customized payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Partial withdrawals will be subject to a withdrawal charge if they exceed the 10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. Any request for a partial withdrawal will terminate your participation in either the Maximum payment plan or Customized payment plan, if applicable. SYSTEMATIC WITHDRAWALS (All contracts except QP) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) Accessing your money 47 You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of your account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 10% free withdrawal amount. Systematic withdrawals are not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. SUBSTANTIALLY EQUAL WITHDRAWALS (All contracts except QP contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals that we calculate for you are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). The substantially equal withdrawal program is not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA and Rollover TSA and QP contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Cur- 48 Accessing your money rently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- We do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our automatic RMD service except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 10% free withdrawal amount. Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH GWBL. Generally, if you elect our Automatic RMD service, any lifetime required minimum distribution payment we make to you under our Automatic RMD service will not be treated as an Excess withdrawal. If you elect either the Maximum payment plan or the Customized payment plan AND our Automatic RMD service, we will make an extra payment, if necessary, on December 1st that will equal your lifetime required minimum distribution less all payments made through November 30 and any scheduled December payment. The combined automatic plan payments and lifetime required minimum distribution payment will not be treated as Excess withdrawals, if applicable. However, if you take any partial withdrawals in addition to your lifetime required minimum distribution and automatic payment plan payments, your applicable automatic payment plan will be terminated. The partial withdrawals may cause an Excess withdrawal and may be subject to a withdrawal charge. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. Further, your GWBL benefit base and Guaranteed annual withdrawal amount may be reduced. See "Effect of Excess Withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you elect our Automatic RMD service and elect to take your Guaranteed annual withdrawal amount in partial withdrawals without electing one of our available automatic payment plans, we will make a payment, if necessary, on December 1st that will equal your required minimum distribution less all withdrawals made through November 30th. If prior to December 1st you make a partial withdrawal that exceeds your Guaranteed annual withdrawal amount, but not your RMD amount, that partial withdrawal will be treated as an Excess withdrawal, as well as any subsequent partial withdrawals made during the same contract year. However, if by December 1st your withdrawals have not exceeded your RMD amount, the RMD payment we make to you will not be treated as an Excess withdrawal. FOR CONTRACTS WITH THE GUARANTEED MINIMUM INCOME BENEFIT. The no lapse guarantee will not be terminated if a required minimum distribution payment using our automatic RMD service causes your cumulative withdrawals in the contract year to exceed 6% of the Roll- Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received within the first 90 days). Owners of tax-qualified contracts (IRA, TSA and QP) generally should not reset the Roll-Up benefit base if lifetime required minimum distributions must begin before the end of the new exercise waiting period. See "Guaranteed minimum death benefit/Guaranteed minimum income benefit Roll-Up benefit base reset." in "Contract features and benefits" earlier in this Prospectus. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options and the guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment will apply to withdrawals from the fixed maturity options. HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND PRINCIPAL GUARANTEE BENEFITS In general, withdrawals (including RMDs) will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000-$16,000). For purposes of calculating the adjustment to your guaranteed benefits, the amount of the withdrawal will include the amount of any applicable withdrawal charge. Using the example above, the $12,000 withdrawal would include the withdrawal amount paid to you and the amount of any applicable withdrawal charge deducted from your account value. For more information on the calculation of the charge, see "Withdrawal charge" later in the Prospectus. With respect to the Guaranteed minimum income benefit and the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' 6% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6% or less of the 6% Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. For this purpose, in the first contract year, all contributions received in the first 90 days after contract issue will be considered to have been received on the first day of the contract year. In subsequent contract years, additional contributions made during the contract year do not affect the amount of the withdrawals that can be taken on a dollar-for-dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6% of Accessing your money 49 the benefit base on the most recent anniversary, that entire withdrawal (including RMDs) and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6% Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for each Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. HOW WITHDRAWALS AFFECT YOUR GWBL AND GWBL GUARANTEED MINIMUM DEATH BENEFIT Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes cumulative withdrawals in a contract year to exceed the Guaranteed annual withdrawal amount. Withdrawals that exceed the Guaranteed annual withdrawal amount, however, can significantly reduce your benefit base and GWBL Guaranteed annual withdrawal amount. For more information, see "Effect of Excess withdrawals" and "Other important considerations" under "Our Guaranteed withdrawal benefit for life ("GWBL") " in "Contract features and benefits" earlier in this Prospectus. Your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a dollar-for-dollar basis up to the Guaranteed annual withdrawal amount. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, however, your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a pro rata basis. If the reduced GWBL Enhanced death benefit base is greater than your account value (after the Excess withdrawal), we will further reduce your GWBL Enhanced death benefit base to equal your account value. For purposes of calculating your GWBL and GWBL Guaranteed minimum death benefit amount, the amount of the Excess withdrawal will include the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information on calculation of the charge, see "Withdrawal charge" later in the Prospectus. WITHDRAWALS TREATED AS SURRENDERS If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. In addition, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. The rules in the preceding sentence do not apply if the Guaranteed minimum income benefit no lapse guarantee is in effect on your contract. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is an Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to an Excess withdrawal. In other words, if you take an Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Guaranteed withdrawal benefit for life" in "Contract features and benefits," earlier in this Prospectus, for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." If you elect the GWBL option or a PGB, loans are not permitted. You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subjected to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see Appendix VII later in this Prospectus for any state restrictions you may be subject to if you take a loan from a Rollover TSA contract. Also, see "Tax information" later in this Prospectus, for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of the loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan, including any accrued but unpaid loan interest, will be deducted from the death benefit amounts). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the "loan reserve account." Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment may apply. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a 50 Accessing your money maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. Loan repayments are not considered contributions and therefore are not eligible for additional credits. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while an owner is living (or for contracts with non-natural owners while the annuitant is living) and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of the date we receive the required information, including the Guaranteed withdrawal benefit for life (if applicable), if your cash value is greater than your Guaranteed annual withdrawal amount remaining that year. If your cash value is not greater than your Guaranteed annual withdrawal amount remaining that year, then you will receive a supplementary life annuity contract. For more information, please see "Effect of your account value falling to zero" in "Contract features and benefits" earlier in this Prospectus. Also, if the Guaranteed minimum income benefit no lapse guarantee is in effect, the benefit will terminate without value if your cash value plus any other withdrawals taken in the contract year exceed 6% of the Roll- Up benefit base (as of the beginning of the contract year). For more information, please see "Insufficient account value" in "Determining your contract value" and "the Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal charge) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option and fixed maturity options (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery or wire transfer service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Plus(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) Plus(SM) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Plus(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Plus(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments which can be either level or increasing, and others enable you to receive variable annuity payments. Please see Appendix VII later in this Prospectus for variations that may apply to your state. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the owner's and annuitant's ages at contract issue. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect the Guaranteed withdrawal benefit for life and choose to annuitize your contract, the Guaranteed withdrawal benefit for life will terminate without value even if your GWBL benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under GWBL. See "Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus for further information. Accessing your money 51 - --------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - --------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - --------------------------------------------------------------- Income Manager(R) payout options Life annuity with period (available for owners and annu- certain itants age 83 or less at contract Period certain annuity issue) - --------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide you with details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisers Trust . The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager(R) payout option without life contingencies unless withdrawal charges are no longer in effect under your Accumulator(R) Plus(SM). For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply your account value of your Accumulator(R) Plus(SM) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) Plus(SM). For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income option, different payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of 52 Accessing your money your purchase as it relates to any withdrawal charges. If amounts in a fixed maturity option are used to purchase any annuity payout option prior to the maturity date, a market value adjustment will apply. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. The withdrawal charge applicable under your Accumulator(R) Plus(SM) is imposed if you select a non-life contingent period certain payout annuity. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For the Income Manager(R) payout life contingent options, no withdrawal charge is imposed under the Accumulator(R) Plus(SM). If the withdrawal charge that otherwise would have been applied to your account value under your Accumulator(R) Plus(SM) is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager(R) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin from the Accumulator(R) Plus(SM) contract. Generally, the date annuity payments begin may not be earlier than five years (in a limited number of jurisdictions this requirement may be more or less than 5 years) from the contract date. Please see Appendix VII later in this Prospectus for information on state variations. Except with respect to Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. If you start receiving annuity payments within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. Please see Appendix VII later in this Prospectus for information on state variations. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments, or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is based on the age of the original annuitant at contract issue and cannot be changed even if you name a new annuitant. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elect the Guaranteed withdrawal benefit for life and your contract is annuitized at maturity, we will offer an annuity payout option that guarantees you will receive payments for life that are at least equal to what you would have received under the Guaranteed withdrawal benefit for life. You will not be able to take withdrawals in addition to the payments under this annuity payout option. You will still be able to surrender the contract at any time for the remaining account value. As described in "Contract features and benefits" under "Guaranteed withdrawal benefit for life," these payments will have the potential to increase with favorable investment performance. Any remaining Guaranteed minimum death benefit value will be transferred to the annuity payout contract as your "minimum death benefit." If the enhanced death benefit had been elected, its value as of the date the annuity payout contract is issued will become your minimum death benefit, and it will continue to ratchet annually if your account value is greater than your minimum death benefit base. The minimum death benefit will be reduced dollar-for-dollar by each payment. If you die while there is any minimum death benefit remaining, it will be paid to your beneficiary. Please see Appendix VII later in this Prospectus for variations that may apply in your state. Accessing your money 53 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o On each contract date anniversary --a charge for each optional benefit that you elect: a death benefit (other than the Standard and GWBL Standard death benefit); the Guaranteed minimum income benefit; the Guaranteed withdrawal benefit for life; and the Earnings enhancement benefit. o On any contract date anniversary on which you are participating in a PGB -- a charge for a PGB. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits, and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 0.95% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the Guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. A portion of this charge also compensates us for the contract credit. For a discussion of the credit, see "Credits" in "Contract features and benefits" earlier in this Prospectus. We expect to make a profit from this charge. Administrative charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.35% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if available) in the order of the earliest 54 Charges and expenses maturity date(s) first. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceed the 10% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or apply your cash value to a non life contingent annuity payout option. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options -- The amount applied to purchase an annuity payout option" in "Accessing your money" earlier in the Prospectus. A portion of this charge also compensates us for the contract credit. For a discussion of the credit, see "Credits" in "Contracts features and benefits" earlier in this Prospectus. We expect to make a profit from this charge. The withdrawal charge equals a percentage of the contributions withdrawn. We do not consider credits to be contributions. Therefore, there is no withdrawal charge associated with a credit. The percentage of the withdrawal charge that applies to each contribution depends on how long each contribution has been invested in the contract. We determine the withdrawal charge separately for each contribution according to the following table: - -------------------------------------------------------------------------------- Contract year - -------------------------------------------------------------------------------- 1 2 3 4 5 6 7 8 9+ - -------------------------------------------------------------------------------- Percentage of contribution 8% 8% 7% 7% 6% 5% 4% 3% 0% - -------------------------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1" and the withdrawal charge is reduced or expires on each applicable contract date anniversary. Amounts withdrawn up to the free withdrawal amount are not considered withdrawals of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and the withdrawal charge from your account value. Any amount deducted to pay withdrawal charges is also subject to the same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each variable investment option. The withdrawal charge helps cover our sales expenses. For purposes of calculating reductions in your guaranteed benefits and associated benefit bases, the withdrawal amount includes both the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information, see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier in the Prospectus. The withdrawal charge does not apply in the circumstances described below. 10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10% of your account value without paying a withdrawal charge. The 10% free withdrawal amount is determined using your account value at the beginning of each contract year. In the first contract year, the 10% free withdrawal amount is determined using all contributions received in the first 90 days of the contract year. Additional contributions during the contract year do not increase your 10% free withdrawal amount. The 10% free withdrawal amount does not apply if you surrender your contract except where required by law. CERTAIN WITHDRAWALS. If you elected the Guaranteed minimum income benefit and/or the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6% of the beginning of contract year 6% Roll-Up to age 85 benefit base, even if such withdrawals exceed the free withdrawal amount. Also, a withdrawal charge does not apply to a withdrawal that exceeds 6% of the beginning of contract year 6% Roll-Up to age 85 benefit base as long as it does not exceed the free withdrawal amount. If your withdrawal exceeds the amount described above, this waiver is not applicable to that withdrawal, or to any subsequent withdrawal for the life of the contract. If you elect the Guaranteed withdrawal benefit for life, we will waive any withdrawal charge for any withdrawals during the contract year up to the Guaranteed annual withdrawal amount, even if such withdrawals exceed the free withdrawal amount. However, each withdrawal reduces the free withdrawal amount for that contract year by the amount of the withdrawal. Also, a withdrawal charge does not apply to a withdrawal that exceeds the Guaranteed annual withdrawal amount as long as it does not exceed the free withdrawal amount. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds both the free withdrawal amount and the Guaranteed annual withdrawal amount. DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal charge also does not apply if: (i) An owner (or older joint owner, if applicable) has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or (ii) We receive proof satisfactory to us (including certification by a licensed physician) that an owner's (or older joint owner's, if applicable) life expectancy is six months or less; or (iii) An owner (or older joint owner, if applicable) has been con- Charges and expenses 55 fined to a nursing home for more than 90 days (or such other period, as required in your state) as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: -- its main function is to provide skilled, intermediate, or custodial nursing care; -- it provides continuous room and board to three or more persons; -- it is supervised by a registered nurse or licensed practical nurse; -- it keeps daily medical records of each patient; -- it controls and records all medications dispensed; and -- its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions as described in (i), (ii) or (iii) above existed at the time a contribution was remitted or if the condition that began within 12 months of the period following remittance. Some states may not permit us to waive the withdrawal charge in the above circumstances, or may limit the circumstances for which the withdrawal charge may be waived. Your financial professional can provide more information or you may contact our processing office. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to either 0.65% or 0.60% of the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 benefit base, depending upon when and where you purchased your contract. Please see Appendix VIII later in this Prospectus for more information on the Guaranteed minimum death benefit charge applicable to your contract. GWBL ENHANCED DEATH BENEFIT. This death benefit is only available if you elect the GWBL option. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary. The charge is equal to 0.30% of the GWBL Enhanced death benefit base. We will deduct this charge from your value in the variable investment options (or, if applicable, the permitted variable investment options) and the guaranteed interest option on a pro rata basis (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are still insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if applicable) in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. STANDARD DEATH BENEFIT AND GWBL STANDARD DEATH BENEFIT. There is no additional charge for these standard death benefits. PRINCIPAL GUARANTEE BENEFITS CHARGE If you purchase a PGB, we deduct a charge annually from your account value on each contract date anniversary on which you are participating in a PGB. The charge is equal 0.50% of the account value for the 100% Principal guarantee benefit and 0.75% of the account value for the 125% Principal guarantee benefit. We will continue to deduct the charge until your benefit maturity date. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. GUARANTEED MINIMUM INCOME BENEFIT CHARGE If you elect the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option or the contract date anniversary after the owner (or older joint owner, if applicable) reaches age 85, whichever occurs first. The charge is equal to 0.65% of the applicable benefit base in effect on the contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are still insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. 56 Charges and expenses If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. EARNINGS ENHANCEMENT BENEFIT CHARGE If you elect the Earnings enhancement benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.35% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE BENEFIT CHARGE If you elect the Guaranteed withdrawal benefit for life ("GWBL"), we deduct a charge annually as a percentage of your GWBL benefit base on each contract date anniversary. If you elect the Single Life option, the charge is equal to 0.60%. If you elect the Joint Life option, the charge is equal to 0.75%. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option on a pro rata basis. (See Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state.) If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. GWBL BENEFIT BASE ANNUAL RATCHET CHARGE. If your GWBL benefit base ratchets, we reserve the right to raise the charge at the time of an Annual Ratchet. The maximum charge for the GWBL Single Life option is 0.75%. The maximum charge for the Joint Life option is 0.90%. The increased charge, if any, will apply as of the contract date anniversary on which your GWBL benefit base ratchets and on all contract date anniversaries thereafter. We will permit you to opt out of the ratchet if the charge increases. For Joint life contracts, if the successor owner or joint annuitant is dropped before you take your first withdrawal, we will adjust the charge at that time to reflect a Single life. If the successor owner or joint annuitant is dropped after withdrawals begin, the charge will continue based on a Joint life basis. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios").The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to the 12b-1 fee. If permitted under the terms of our exemptive order regarding Accumulator(R) Plus(SM) bonus feature, we may also change the crediting percentage that applies to contributions. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrange- Charges and expenses 57 ment must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. 58 Charges and expenses 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. In either case, the death benefit is increased by any amount applicable under the Earnings enhancement benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) and any amount applicable under the Earnings enhancement benefit, as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The account value used to determine the death benefit and the Earnings enhancement benefit will first be reduced by the amount of any Credits applied in the one-year period prior to the owner's (or older joint owner's, if applicable) death. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. In general, if the annuitant dies, the owner (or older joint owner, if applicable) will become the annuitant, and the death benefit is not payable. EFFECT OF THE OWNER'S DEATH In general, if the owner dies while the contract is in force, the contract terminates and the applicable death benefit is paid. If the contract is jointly owned, the death benefit is payable upon the death of the older owner. If the contract has a non-natural owner, the death benefit is payable upon the death of the annuitant. For Joint life contracts with GWBL, the death benefit is paid to the beneficiary at the death of the second to die of the owner and successor owner, or the annuitant and joint annuitant, as applicable. There are various circumstances, however, in which the contract can be continued by a successor owner or under a Beneficiary continuation option ("BCO"). For contracts with spouses who are joint owners, the surviving spouse will automatically be able to continue the contract under the "Spousal continuation" feature or under our Beneficiary continuation option, as discussed below. For contracts with non-spousal joint owners, the joint owner will be able to continue the contract as a successor owner subject to the limitations discussed below under "Non-spousal joint owner contract continuation." If you are the sole owner and your spouse is the sole primary beneficiary, your surviving spouse can continue the contract as a successor owner as discussed below, under "Spousal continuation" or under our Beneficiary continuation option, as discussed below. If the beneficiary is not the surviving spouse or if the surviving joint owner is not the surviving spouse, federal income tax rules generally require payments of amounts under the contract to be made within five years of an owner's death (the "5-year rule"). In certain cases, an individual beneficiary or non-spousal surviving joint owner may opt to receive payments over his/her life (or over a period not in excess of his/her life expectancy) if payments commence within one year of the owner's death. Any such election must be made in accordance with our rules at the time of death. If the beneficiary of a contract with one owner or a younger non-spousal joint owner continues the contract under the 5-year rule, in general, all guaranteed benefits and their charges will end. If a PGB election is in effect upon your death with a benefit maturity date of less than five years from the date of death, it will remain in effect. For more information on non-spousal joint owner contract continuation, see the section immediately below. NON-SPOUSAL JOINT OWNER CONTRACT CONTINUATION Upon the death of either owner, the surviving joint owner becomes the sole owner. Payment of death benefit 59 Any death benefit (if the older owner dies first) or cash value (if the younger owner dies first) must be fully paid to the surviving joint owner within five years. The surviving owner may instead elect to receive a life annuity, provided payments begin within one year of the deceased owner's death. If the life annuity is elected, the contract and all benefits terminate. If the older owner dies first, we will increase the account value to equal the Guaranteed minimum death benefit, if higher, and by the value of the Earnings enhancement benefit. The surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If any contributions are made during the one-year period prior to the owner's death, the account value will first be reduced by any Credits applied to any such contributions. If the contract continues, the Guaranteed minimum death benefit and charge and the Guaranteed minimum income benefit and charge will then be discontinued. Withdrawal charges will no longer apply, and no additional contributions will be permitted. If the younger owner dies first, the surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the death benefit is not payable, and the Guaranteed minimum death benefit and the Earnings enhancement benefit, if applicable, will continue without change. If the Guaranteed minimum income benefit cannot be exercised within the period required by federal tax laws, the benefit and charge will terminate as of the date we receive proof of death. Withdrawal charges will continue to apply and no additional contributions will be permitted. Upon the death of either owner, if the surviving owner elects the 5-year rule and a PGB was in effect upon the owner's death with a maturity date of more than five years from the date of death, we will terminate the benefit and the charge. SPOUSAL CONTINUATION If you are the contract owner and your spouse is the sole primary beneficiary or you jointly own the contract with your spouse, your spouse may elect to continue the contract as successor owner upon your death. Spousal beneficiaries (who are not also joint owners) must be 85 or younger as of the date of the deceased spouse's death in order to continue the contract under Spousal continuation. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. The younger spouse joint owner (for NQ contracts only) or the spouse beneficiary (under a Single owner contract), may elect to receive the death benefit or continue the contract, as follows: o As of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary, we will increase the account value to equal the elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit , and adjusted for any subsequent withdrawals. If any contributions are made during the one-year period prior to the owner's death, the account value will first be reduced by any Credits applied to any such contributions. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. o In general, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. o The applicable Guaranteed minimum death benefit option may continue as follows: o If the surviving spouse is age 75 or younger on the date of your death, and you were age 84 or younger at death, the Guaranteed minimum death benefit you elected continues and will continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. o If the surviving spouse is age 75 or younger on the date of your death, and you were age 85 or older at death, we will reinstate the Guaranteed minimum death benefit you elected. The benefit base (which had previously been frozen at age 85) will now continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. o If the surviving spouse is age 76 or over on the date of your death, the Guaranteed minimum death benefit and charge will be discontinued. o If the Guaranteed minimum death benefit continues, the Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset, if applicable, will be based on the surviving spouse's age at the time of your death. The next available reset will be based on the contract issue date or last reset, as applicable. o For single owner contracts with the GWBL Enhanced death benefit, we will discontinue the benefit and charge. However, we will freeze the GWBL Enhanced death benefit base as of the date of your death (less subsequent withdrawals), and pay it upon your spouse's death. o The Earnings enhancement benefit will be based on the surviving spouse's age at the date of the deceased spouse's death for the remainder of the life of the contract. If the benefit had been previously frozen because the older spouse had attained age 80, it will be reinstated if the surviving spouse is age 75 or younger. The benefit is then frozen on the contract date anniversary after the surviving spouse reaches age 80. If the surviving spouse is age 76 or older, the benefit and charge will be discontinued. o If elected, PGB continues and is based on the same benefit maturity date and guaranteed amount that was guaranteed. o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the surviving spouse's age at the date of the deceased spouse's death. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. 60 Payment of death benefit o If you elect the Guaranteed withdrawal benefit for life on a Joint life basis, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. Withdrawal charges will continue to apply to all contributions made prior to the deceased spouse's death. No additional contributions will be permitted. If you elect the Guaranteed withdrawal benefit for life on a Single life basis, the benefit and charge will terminate. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For jointly owned NQ contracts, if the younger spouse dies first no death benefit is paid, and the contract continues as follows: o The Guaranteed minimum death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit continue to be based on the older spouse's age for the life of the contract. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. o If a PGB had been elected, the benefit continues and is based on the same benefit maturity date and guaranteed amount. o If you elect the Guaranteed withdrawal benefit for life, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. o The withdrawal charge schedule remains in effect. If you divorce, Spousal continuation does not apply. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state availability. Please speak with your financial professional or see Appendix VII later in this Prospectus for further information. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. For Joint life contracts with GWBL, BCO is only available after the death of the second owner. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit feature, adjusted for any subsequent withdrawals. The account value, however, will first be reduced by any Credits applied in the one-year period prior to the owner's death. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o The beneficiary replaces the deceased owner as annuitant. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a portion of the account value and no withdrawal charges, if any, will apply. Payment of death benefit 61 o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. For purposes of this discussion, "beneficiary" refers to the successor owner. This feature must be elected within 9 months following the date of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts: o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If the deceased is the owner or older joint owner: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the Beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value plus any amount applicable under the Earnings enhancement benefit, adjusted for any subsequent withdrawals. The account value, however, will first be reduced by any Credits applied in the one-year period prior to the owner's death. o No withdrawal charges will apply to any withdrawals by the beneficiary. If the deceased is the younger non-spousal joint owner: o The annuity account value will not be reset to the death benefit amount. o The contract's withdrawal charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments; the contract's free withdrawal amount will continue to apply to withdrawals but does not apply to surrenders. o We do not impose a withdrawal charge on scheduled payments except if, when added to any withdrawals previously taken in the same contract year, including for this purpose a contract surrender, the total amount of withdrawals and scheduled payments exceed the free withdrawal amount. See the "Withdrawal charges" in "Charges and expenses" earlier in this Prospectus. 62 Payment of death benefit 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Plus(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Plus(SM) extra credit on each contribution, choice of death benefits, the Guaranteed withdrawal benefit for life benefit, the Guaranteed minimum income benefit, guaranteed interest option, fixed maturity options, selection of variable investment options and its choices of payout options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG VARIABLE INVESTMENT OPTIONS You can make transfers among variable investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. Tax information 63 TAXATION OF LIFETIME WITHDRAWALS IF YOU ELECT GUARANTEED WITHDRAWAL BENEFIT FOR LIFE We treat Guaranteed annual withdrawals and other withdrawals as non-annuity payments for income tax purposes. These withdrawals are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. It reduces the investment in the contract. ANNUITY PAYMENTS Guaranteed annual withdrawals that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus, as well as GMIB and other annuitization payments that are based on life or life expectancy, are considered annuity payments for tax purposes. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your unrecovered investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. EARNINGS ENHANCEMENT BENEFIT In order to enhance the amount of the death benefit to be paid at the owner's death, you may purchase an Earnings enhancement benefit rider for your NQ contract. Although we regard this benefit as an investment protection feature which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Earnings enhancement benefit rider is not part of the contract. In such a case, the charges for the Earnings enhancement benefit rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable, and for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, Equitable would take all reasonable steps to attempt to avoid this result which could include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES You may purchase your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that is the source of the funds you are using to purchase the NQ contract is another nonqualified deferred annuity contract or life insurance or endowment contract. o the owner and the annuitant are the same under the source contract and the Accumulator(R) Plus(SM) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must be the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carries over to the Accumulator(R) Plus(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between the carriers, and provision of cost basis information may be required to process this type of exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. Beneficiary continuation option We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for a prior similar version of the NQ contract. See the 64 Tax information discussion "Beneficiary continuation option for NQ contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2;" o scheduled payments, any additional withdrawals under "Withdrawal Option 2," or contract surrenders under "Withdrawal Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the Withdrawal Option selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling specifically does not address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or any withdrawal that might be taken). The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before 59-1/2. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Account 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Account 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Account 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Account 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets funding the account for the benefit of the IRA owner. The assets typically can include mutual funds and/or individual stocks and/or securities in a custodial account, and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral, regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may purchase the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We currently do not offer traditional IRA contracts for use as employer-funded SEP-IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS requires you to have before you purchase an IRA. The first section covers some of the Tax information 65 special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). AXA Equitable has applied for opinion letters from the IRS to approve the respective forms of the Accumulator(R) Plus(SM) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. It is not clear if and when any such approval may be received. We have in the past received IRS opinion letters approving the respective forms of similar traditional IRA and Roth IRA endorsements for use as a traditional and Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) Plus(SM) traditional and Roth IRA contracts. Your right to cancel within a certain number of days You can cancel either type of Accumulator(R) Plus(SM) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel within a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation would have an unfavorable tax impact. Traditional individual retirement annuities (traditional IRAs) Contributions to traditional IRAs. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). Regular contributions to traditional IRAs Limits on contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch up contributions" of up to $1,000 to your traditional IRA. Special rules for spouses. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. Deductibility of contributions. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored-tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions." That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits on deductible contributions. 66 Tax information If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted ----------------------- x regular = deductible divided by $10,000 contribution contribution for the year limit Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000 ($53,000 after cost of living adjustments for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution, and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. Nondeductible regular contributions. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. When you can make regular contributions. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. Rollover and transfer contributions to traditional IRAs Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. Rollovers from "eligible retirement plans" other than traditional IRAs Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you Tax information 67 roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Rollovers from traditional IRAs to traditional IRAs You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. Excess contributions Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contribution amount for the applicable taxable year); or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; 68 Tax information (2) the excess contribution was due to incorrect information that the (2) plan provided; and (3) you took no tax deduction for the excess contribution. Recharacterizations Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. Withdrawals, payments and transfers of funds out of traditional IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Taxation of payments. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. Required minimum distributions BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts. If you take annual withdrawal instead of annuitizing, please consult your tax adviser concerning applicability of these complex rules to your situation. Lifetime required minimum distributions. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. When you have to take the first lifetime required minimum distribution. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year--the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. How you can calculate required minimum distributions. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary Tax information 69 and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. Do you have to pick the same method to calculate your required minimum distributions for all of your traditional IRAs and other retirement plans? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. Will we pay you the annual amount every year from your traditional IRA based on the method you choose? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. What if you take more than you need to for any year? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. What if you take less than you need to for any year? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. What are the required minimum distribution payments after you die? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. Individual beneficiary. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. Spousal beneficiary. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. Non-individual beneficiary. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year 70 Tax information rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. Spousal continuation If the contract is continued under Spousal continuation, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. Payments to a beneficiary after your death IRA death benefits are taxed the same as IRA distributions. Borrowing and loans are prohibited transactions You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. Early distribution penalty tax A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special federal income tax definition); or o used to pay medical insurance premiums for unemployed individuals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special federal income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies using an IRS-approved distribution method. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. To meet the substantially equal periodic payment exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" above. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under this option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from or any additional contributions or transfers you make to your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. Roth individual retirement annuities (Roth IRAs) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Plus(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. Contributions to Roth IRAs Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eligible retirement plans ("conversion rollover" contributions); or o tax-free rollover contributions from other Roth individual retirement arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. Regular contributions to Roth IRAs Limits on regular contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. If you are married and file a joint income tax Tax information 71 return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion under "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. When you can make contributions. Same as traditional IRAs. Deductibility of contributions. Roth IRA contributions are not tax deductible. Rollovers and direct transfers What is the difference between rollover and direct transfer transactions? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make rollovers between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Conversion rollover contributions to Roth IRAs In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA--whether or not it is the traditional IRA you are converting--a pro rata portion of the distribution is tax free. Even if you are under age 591/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. 72 Tax information The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. How to recharacterize. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. Distributions from Roth IRAs Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and Tax information 73 o return of excess contributions or amounts recharacterized to a traditional IRA. Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contribu tions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. Required minimum distributions during life Lifetime required minimum distributions do not apply. Required minimum distributions at death Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the Required Beginning Date. Payments to a beneficiary after your death Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. Borrowing and loans are prohibited transactions Same as traditional IRA. Excess contributions Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. Early distribution penalty tax Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity 74 Tax information contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) PLUS(SM) TSA CONTRACT Because the Accumulator(R) Plus(SM) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Plus(SM) TSA contract are extremely limited as described below. Accumulator(R) Plus(SM) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the 403(b) annuity contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Plus(SM) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Plus(SM) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Plus(SM) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded Tax information 75 through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) Plus(SM) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its 76 Tax information designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Plus(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Plus(SM) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" in this Prospectus, as well as GMIB and other annuitization payments that are based on the annuitant's life or life expectancy, are considered annuity payments for tax purposes. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. Tax information 77 TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Plus(SM) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Plus(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Plus(SM) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan 78 Tax information must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribution from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. Tax information 79 A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includible in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA contract. If a non-periodic distribution from a qualified plan or TSA contract is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSA contracts are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA contract or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. 80 Tax information 8. More information - -------------------------------------------------------------------------------- ABOUT SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of the Separate Account's operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Account invests solely in class IB/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from the Separate Account, or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in the prospectuses for each Trust, which generally accompany this Prospectus, or in their respective SAIs which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below:
- ---------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - ---------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 - ----------------------------------------------------------
More information 81
- ---------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - ---------------------------------------------------------- 2013 3.00%* $ 86.25 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - ----------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw any of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMOs maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. Any withdrawal charges that are deducted from a fixed maturity option will result in a market value adjustment calculated in the same way. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined by using a widely-published Index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and fixed maturity options, as well as our general obligations. Credits allocated to your account value are funded from our general account. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is 82 More information not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept initial and subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information provided through certain broker-dealers with which we have established electronic facilities. In any such cases, you must sign our Acknowledgement of Receipt form. Where we require a signed application, the above procedures do not apply and no financial transactions will be permitted until we receive the signed application and have issued the contract. Where we issue a contract based on information provided through electronic facilities, we require an Acknowledgement of Receipt form, and financial transactions are only permitted if you request them in writing, sign the request and have it signature guaranteed, until we receive the signed Acknowledgement of Receipt form. After your contract has been issued, additional contributions may be transmitted by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. After your contract has been issued, additional contributions may be transmitted by wire. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts. Please see Appendix VII later in this Prospectus to see if the automatic investment program is available in your state. The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. For contracts with GWBL, AIP will be automatically terminated after the later of: (i) the end of the first contract year, or (ii) the date the first withdrawal is taken. For contracts with PGB, AIP will be automatically terminated at the end of the first six months. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. More information 83 o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS, CREDITS, AND TRANSFERS o Contributions and credits allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions and credits allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions and credits allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in the prospectus for each Trust or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustees or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or the distribution of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive written notification of any change at our processing office. 84 More information You cannot assign your NQ contract as collateral or security for a loan. Loans are also not available under your NQ contract. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. For NQ contracts only, subject to regulatory approval, if you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, the Earnings enhancement benefit, a PGB and/or the Guaranteed withdrawal benefit for life ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. However, the Benefit will not terminate if the ownership of the contract is transferred from a non-natural owner to an individual but the contract will continue to be based on the annuitant's life. Please speak with your financial professional for further information. See Appendix VII later in this Prospectus for any state variations with regard to terminating any benefits under your contract. You cannot assign or transfer ownership of a Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available (except for Rollover TSA contracts, subject to plan or employer approval) and you cannot assign Rollover IRA, Roth Conversion IRA and QP contracts as security for a loan or other obligation. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract to another similar arrangement under federal income tax rules. In the case of such a transfer, we will impose a withdrawal charge, if one applies. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 0.60% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 6.75% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker- dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset- More information 85 based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) Plus(SM) on a company and\or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and\or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. 86 More information 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This Prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa- equitable.com. Incorporation of certain documents by reference 87 Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account No. 49 with the same daily asset charges of 1.55%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AT THE DAILY ASSET CHARGE OF 1.55% AFTER DECEMBER 31, 2007
- -------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------------------------- 2007 2006 2005 2004 2003 - -------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.68 $ 13.09 $ 11.28 $ 10.60 -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 31,080 6,793 342 120 -- - -------------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.30 $ 10.85 $ 10.36 $ 10.27 -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,087 1,202 501 286 -- - -------------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.73 $ 11.29 $ 10.55 $ 10.38 -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 7,023 2,537 671 279 -- - -------------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 49.91 $ 47.71 $ 43.93 $ 42.57 $ 39.77 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 9,394 3,387 762 659 461 - -------------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.16 $ 12.57 $ 11.15 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 85,777 22,340 2,035 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 255.59 $ 250.91 $ 230.23 $ 224.21 $ 199.56 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 392 361 370 430 484 - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.30 $ 18.35 $ 18.07 $ 18.13 $ 18.07 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 813 747 873 1,061 1,357 - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.79 $ 17.99 $ 14.79 $ 13.03 $ 11.20 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 5,611 1,983 1,000 1,008 1,052 - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.72 $ 6.88 $ 7.03 $ 6.21 $ 5.82 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 7,920 7,569 9.117 10,421 11,828 - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.41 $ 15.95 $ 15.60 $ 15.54 $ 15.21 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,355 630 455 480 519 - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 20.47 $ 17.82 $ 16.60 $ 15.12 $ 13.48 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,301 1,922 1,979 2,313 2,809 - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.56 $ 17.62 $ 14.75 $ 14.21 $ 12.72 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 9,126 5,695 5,091 5,823 6,106 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.03 $ 11.34 $ 10.36 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 507 100 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.14 $ 10.96 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 773 255 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------- 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 33.91 $ 39.47 -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 279 110 -- - -------------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 135.53 $ 206.51 $ 235.03 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 521 499 204 - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.97 $ 16.81 $ 15.83 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,226 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.42 $ 9.51 $ 12.60 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 135 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 4.80 $ 7.08 $ 9.46 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 13,521 14,217 6,200 - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.92 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 474 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.71 $ 14.14 $ 16.56 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,037 2,971 1,248 - -------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.04 $ 11.80 $ 11.63 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,520 4,851 1,119 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - --------------------------------------------------------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AT THE DAILY ASSET CHARGE OF 1.55% AFTER DECEMBER 31, 2007 (CONTINUED)
- -------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------------------------- 2007 2006 2005 2004 2003 - -------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 23.62 $ 23.71 $ 19.92 $ 19.65 $ 18.05 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,381 1,301 1,147 1,430 1,339 - -------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 24.36 $ 22.46 $ 18.15 $ 16.63 $ 13.89 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,881 3,580 3,145 3,356 3,673 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.81 $ 6.67 $ 5.84 $ 5.59 -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,391 1,207 536 306 -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.83 $ 8.91 $ 8.60 $ 8.03 $ 7.87 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 349 147 65 88 101 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.35 $ 12.86 $ 12.16 $ 11.75 -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,136 2,540 2,470 2,815 -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.88 $ 12.87 $ 11.67 $ 11.18 $ 10.23 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 7,563 4,914 5,540 6,418 6,957 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.17 $ 11.04 $ 10.38 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,451 382 65 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.07 $ 10.84 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,797 665 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 30.17 $ 29.20 $ 15.77 $ 25.07 $ 23.10 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,204 3,534 3,726 4,345 4,750 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.68 $ 9.92 $ 9.74 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,997 457 9 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.62 $ 8.78 $ 8.42 $ 8.23 $ 7,80 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,089 319 349 400 500 - -------------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.50 $ 12.70 $ 11.56 $ 11.04 $ 9.67 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,060 4,317 4,297 4,997 5,343 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.47 $ 10.42 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,851 1,076 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.73 $ 10.82 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 936 153 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.50 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 13,483 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.80 $ 11.59 $ 10.49 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,416 425 11 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 28.50 $ 26.49 $ 22.64 $ 22.05 -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,211 519 111 63 -- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------- 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.98 $ 17.04 $ 16.40 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,334 1,071 299 - -------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.02 $ 13.42 $ 17.37 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,227 4,268 2,110 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.25 $ 8.63 -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 79 19 -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.91 $ 10.66 $ 11.05 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 7,543 2,052 628 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.36 $ 24.03 $ 27.79 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 5,020 4,534 1,524 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.74 $ 7.67 $ 9.39 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 378 182 47 - -------------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.84 $ 8.52 $ 9.99 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 5,392 4,418 609 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - --------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AT THE DAILY ASSET CHARGE OF 1.55% AFTER DECEMBER 31, 2007 (CONTINUED)
- -------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------------------------- 2007 2006 2005 2004 2003 - -------------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.22 $ 14.30 $ 12.18 $ 10.56 $ 9.44 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,598 2,904 2,599 2,863 2,832 - -------------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.25 $ 14.20 $ 11.48 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,865 310 5 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.28 $ 14.07 $ 13.73 $ 13.65 $ 13.32 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 8,678 7,950 8,015 8,979 10,672 - -------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.32 $ 15.76 $ 13.30 $ 12.99 $ 11.90 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,721 4,048 4,589 5,234 6,009 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.64 $ 10.41 $ 9.36 $ 8.87 $ 8.08 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,557 4,130 4,965 5,788 6,613 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.84 $ 14.80 $ 13.94 $ 12.99 $ 11.72 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,698 2,090 2,422 2,867 3,344 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.36 $ 11.19 $ 10.64 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,312 738 113 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.58 $ 10.01 $ 9.99 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,048 567 30 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.44 $ 12.21 $ 10.58 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,062 501 58 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.75 $ 11.70 $ 10.55 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 497 138 45 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.20 $ 12.32 $ 11.13 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,108 531 120 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.25 $ 16.26 $ 15.11 $ 13.86 $ 12.74 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 5,863 2,666 1,390 1,251 1,338 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.67 $ 17.21 $ 15.54 $ 14.18 $ 12.22 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,624 3,215 3,279 3,574 3,783 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 28.78 $ 27.92 $ 27.14 $ 26.87 $ 27.08 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,506 2,933 1,954 2,306 3,186 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.74 $ 4.83 $ 4.54 $ 4.38 -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,806 155 14 6 -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.71 $ 10.70 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,519 623 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.54 $ 11.09 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,565 227 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------- 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.23 $ 8.65 $ 11.10 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,786 2,530 1,050 - -------------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.09 $ 12.13 $ 11.41 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 12,695 8,943 1,427 - -------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.53 $ 11.97 $ 13.04 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,939 6,123 1,419 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.73 $ 8.66 $ 10.47 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 7,231 7,160 2,262 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.20 $ 14.23 $ 21.92 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,796 4,345 2,112 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.87 $ 11.33 -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 701 89 -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.32 $ 11.09 $ 10.84 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,067 3,015 198 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 27.35 $ 27.44 $ 26.91 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,967 4,110 826 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - --------------------------------------------------------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AT THE DAILY ASSET CHARGE OF 1.55% AFTER DECEMBER 31, 2007 (CONTINUED)
- -------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------------------------- 2007 2006 2005 2004 2003 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.12 $ 10.92 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 683 158 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.73 $ 11.09 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,020 186 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.76 $ 9.81 $ 9.92 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,625 1,202 300 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.57 $ 10.20 $ 9.97 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 603 205 25 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.27 $ 16.83 $ 14.52 $ 14.15 $ 12.21 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,196 1,231 854 1,001 1,152 - -------------------------------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.79 $ 15.90 16.83 $ 16.44 -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,146 71 15 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.80 $ 10.75 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,998 531 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.12 $ 6.15 $ 5.47 $ 5.10 -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,796 424 102 6 -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.41 $ 11.88 $ 10.41 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,990 900 131 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 25.86 $ 18.50 $ 13.71 $ 10.48 $ 8.61 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 5,992 2,602 1,632 1,515 1,462 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.02 $ 13.29 $ 12.36 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,291 361 40 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.28 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4,762 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 62.68 $ 57.17 $ 55.24 $ 51.85 $ 46.99 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 180 171 172 181 211 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.91 $ 11.39 $ 11.14 $ 11.13 $ 10.88 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,253 1,474 1,199 1,470 1,625 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.83 $ 11.96 $ 11.56 $ 10.98 $ 9.94 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,640 696 453 565 375 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 31.67 $ 31.19 $ 28.82 $ 28.41 $ 26.55 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,103 1,654 1,626 1,924 2,218 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.56 $ 16.77 $ 13.59 $ 11.96 $ 10.30 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,753 1,168 480 411 323 - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------- 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.50 $ 10.92 $ 10.87 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 974 825 270 - -------------------------------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.61 $ 6.06 $ 6.49 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,464 1,482 881 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Real Estate - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 34.70 $ 49.56 $ 67.28 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 241 249 106 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.65 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,594 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.88 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 264 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 22.00 $ 23.03 $ 23.23 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,906 1,632 432 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.79 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 108 -- -- - --------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AT THE DAILY ASSET CHARGE OF 1.55% AFTER DECEMBER 31, 2007 (CONTINUED)
- -------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------------------------- 2007 2006 2005 2004 2003 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.62 $ 12.21 $ 10.92 $ 10.39 $ 9.62 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 750 346 269 397 296 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.45 $ 9.54 $ 9.68 $ 9.15 $ 8.71 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,621 999 613 930 759 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.50 $ 14.21 $ 12.10 $ 11.47 $ 10.18 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,431 1,285 919 809 635 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.92 $ 10.82 $ 10.03 $ 9.40 $ 8.54 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,398 884 663 773 720 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.58 $ 13.78 $ 12.20 $ 11.54 $ 10.18 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,394 838 550 720 545 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.83 $ 8.65 $ 7.97 $ 7.53 -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,924 627 195 11 -- - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.14 $ 19.31 $ 16.89 $ 16.39 $ 14.22 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,209 2,465 2,629 3,013 3,182 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.21 $ 10.49 $ 9.93 $ 9.07 $ 8.77 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,629 2,459 2,792 3,478 278 - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------- 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.63 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 201 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.77 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 424 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.89 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 503 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.19 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 427 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.35 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 364 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.51 $ 12.39 $ 10.69 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,460 2,447 588 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.65 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 386 -- -- - --------------------------------------------------------------------------------------------------------------------------------
A-5 Appendix I: Condensed financial information Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- Trustees who are considering the purchase of an Accumulator(R) Plus(SM) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this Prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) Plus(SM) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) Plus(SM) QP contract to fund a plan for the contract's features and benefits other than tax deferral after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. We will not accept defined benefit plans. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or other contributions from the employer. For 401(k) plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge and/or market value adjustment may apply. AXA Equitable will not perform or provide any plan recordkeeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for participants after age 70-1/2, trustees should consider: o whether required minimum distributions under QP contracts would cause withdrawals in excess of 6-% of the Guaranteed minimum income benefit Roll-Up benefit base; o that provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed; and o that if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, the payments will be made to the trustee. Finally, because the method of purchasing the QP contract, including the large initial contribution and the features of the QP contract may appeal more to plan participants who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisors whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. Appendix II: Purchase considerations for QP contracts B-1 Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00%("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a).
- ------------------------------------------------------------------------------------------------------ Hypothetical assumed rate to maturity("j" in the calculations below) February 15, 2012 ------------------------- 5.00% 9.00% - ------------------------------------------------------------------------------------------------------ As of February 15, 2012 before withdrawal - ------------------------------------------------------------------------------------------------------ (1) Market adjusted amount(b) $141,389 $121,737 - ------------------------------------------------------------------------------------------------------ (2) Fixed maturity amount(c) $131,104 $131,104 - ------------------------------------------------------------------------------------------------------ (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ------------------------------------------------------------------------------------------------------ On February 15, 2012 after $50,000 withdrawal - ------------------------------------------------------------------------------------------------------ (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ------------------------------------------------------------------------------------------------------ (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ------------------------------------------------------------------------------------------------------ (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ------------------------------------------------------------------------------------------------------ (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ------------------------------------------------------------------------------------------------------ (8) Maturity value(d) $111,099 $101,287 - ------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes:
(a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 -------------- = ---------------- where j is either 5% or 9% (1+j)(1,461/365) (1+j)(D/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 -------------- = ---------------------- (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) x (1+0.07)(1,461/365)
C-1 Appendix III: Market value adjustment example Appendix IV: Enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the enhanced death benefit. The following illustrates the enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option or the fixed maturity options) , no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the enhanced death benefit for an owner age 45 would be calculated as follows:
- --------------------------------------------------------------------------------------------------------------- End of Contract 6% Roll-Up to age 85 Annual Ratchet to age 85 GWBL Enhanced Year Account Value benefit base benefit base death benefit base - --------------------------------------------------------------------------------------------------------------- 1 $109,200 $ 106,000(3) $ 109,200(1) $ 109,200(5) - --------------------------------------------------------------------------------------------------------------- 2 $120,120 $ 112,360(3) $ 120,120(1) $ 120,120(5) - --------------------------------------------------------------------------------------------------------------- 3 $134,534 $ 119,102(3) $ 134,534(1) $ 134,534(5) - --------------------------------------------------------------------------------------------------------------- 4 $107,628 $ 126,248(3) $ 134,534(3) $ 141,261(6) - --------------------------------------------------------------------------------------------------------------- 5 $118,390 $ 133,823(3) $ 134,534(2) $ 147,988(6) - --------------------------------------------------------------------------------------------------------------- 6 $132,597 $ 141,852(4) $ 134,534(2) $ 154,715(6) - --------------------------------------------------------------------------------------------------------------- 7 $132,597 $ 150,363(4) $ 134,534(2) $ 161,441(6) - ---------------------------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. ANNUAL RATCHET TO AGE 85 (1) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (2) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is equal to or higher than the current account value. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown would be the greater of the amounts shown under the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. (3) At the end of contract years 1 through 5, the enhanced death benefit will be based on the Annual Ratchet to age 85. (4) At the end of contract years 6 and 7, the enhanced death benefit will be based on the 6% Roll-Up to age 85. GWBL ENHANCED DEATH BENEFIT This example assumes no withdrawals. The GWBL Enhanced death benefit is a guaranteed minimum death benefit that is only available if you elect the Guaranteed withdrawal benefit for life. If you plan to take withdrawals during any of the first seven contract years, this illustration is of limited usefulness to you. (5) At the end of contract years 1 through 3, the GWBL Enhanced death benefit is equal to the current account value. (6) At the end of contract years 4 through 7, the GWBL Enhanced death benefit is greater than the current account value. Appendix IV: Enhanced death benefit example D-1 Appendix V: Hypothetical Illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85" enhanced death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Plus(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single$100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying portfolios (as described below), the corresponding net annual rates of return would be (2.78)%, 3.22% for the Accumulator(R) Plus(SM) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges but they do not reflect the charges we deduct from your account value annually for the enhanced death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return shown would be lower; however, the values shown in the following tables reflect the following contract charges: the "Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85" enhanced death benefit charge, Earnings enhancement benefit charge, the Guaranteed minimum income benefit charge, and any applicable administrative charge and withdrawal charge. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this Prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. E-1 Appendix V: Hypothetical Illustrations Variable deferred annuity Accumulator(R) Plus(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 Guaranteed minimum death benefit Earnings enhancement benefit Guaranteed minimum income benefit
Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 Guaranteed Minimum Account Value Cash Value Death Benefit ------------------- ------------------ ------------------- Age Contract Year 0% 6% 0% 6% 0% 6% - ----- -------------- --------- --------- -------- --------- --------- --------- 60 1 104,000 104,000 96,000 96,000 100,000 100,000 61 2 99,377 105,595 91,377 97,595 106,000 106,000 62 3 94,815 107,153 87,815 100,153 112,360 112,360 63 4 90,309 108,668 83,309 101,668 119,102 119,102 64 5 85,850 110,133 79,850 104,133 126,248 126,248 65 6 81,431 111,542 76,431 106,542 133,823 133,823 66 7 77,046 112,887 73,046 108,887 141,852 141,852 67 8 72,687 114,159 69,687 111,159 150,363 150,363 68 9 68,347 115,351 68,347 115,351 159,385 159,385 69 10 64,018 116,452 64,018 116,452 168,948 168,948 74 15 42,200 120,226 42,200 120,226 226,090 226,090 79 20 19,313 119,887 19,313 119,887 302,560 302,560 84 25 0 113,227 0 113,227 0 404,893 89 30 0 112,472 0 112,472 0 429,187 94 35 0 114,725 0 114,725 0 429,187 95 36 0 115,215 0 115,215 0 429,187 - -------------------------------------------------------------------------------- Lifetime Annual Guaranteed Minimum Income Benefit Total Death Benefit ---------------------------------- with the Earnings Guaranteed Hypothetical enhancement benefit Income Income ------------------- ----------------- ---------------- Age 0% 6% 0% 6% 0% 6% - ----- --------- --------- -------- -------- -------- ------- 60 100,000 100,000 N/A N/A N/A N/A 61 108,400 108,400 N/A N/A N/A N/A 62 117,304 117,304 N/A N/A N/A N/A 63 126,742 126,742 N/A N/A N/A N/A 64 136,747 136,747 N/A N/A N/A N/A 65 147,352 147,352 N/A N/A N/A N/A 66 158,593 158,593 N/A N/A N/A N/A 67 170,508 170,508 N/A N/A N/A N/A 68 183,139 183,139 N/A N/A N/A N/A 69 196,527 196,527 N/A N/A N/A N/A 74 276,527 276,527 13,520 13,520 13,520 13,520 79 383,584 383,584 20,272 20,272 20,272 20,272 84 0 493,179 0 32,391 0 32,391 89 0 517,472 N/A N/A N/A N/A 94 0 517,472 N/A N/A N/A N/A 95 0 517,472 N/A N/A N/A N/A - ------------------------------------------------------------
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. Appendix V: Hypothetical Illustrations E-2 Appendix VI: Earnings enhancement benefit example - -------------------------------------------------------------------------------- The following illustrates the calculation of a death benefit that includes the Earnings enhancement benefit for an owner age 45. The example assumes a contribution of $100,000 and no additional contributions. Where noted, a single withdrawal in the amount shown is also assumed. The calculation is as follows:
- ------------------------------------------------------------------------------------------------------------------- No withdrawal $3000 withdrawal $6000 withdrawal - ------------------------------------------------------------------------------------------------------------------- A Initial contribution 100,000 100,000 100,000 - ------------------------------------------------------------------------------------------------------------------- B Death benefit: prior to withdrawal.* 104,000 104,000 104,000 - ------------------------------------------------------------------------------------------------------------------- Earnings enhancement benefit earnings: death benefit less net contributions (prior to the withdrawal in C D). 4,000 4,000 4,000 B minus A. - ------------------------------------------------------------------------------------------------------------------- D Withdrawal 0 3,000 6,000 - ------------------------------------------------------------------------------------------------------------------- Excess of the withdrawal over the Earnings E enhancement benefit earnings 0 0 2,000 greater of D minus C or zero - ------------------------------------------------------------------------------------------------------------------- Net contributions (adjusted for the withdrawal in D) F A minus E 100,000 100,000 98,000 - ------------------------------------------------------------------------------------------------------------------- Death benefit (adjusted for the withdrawal in D) G B minus D 104,000 101,000 98,000 - ------------------------------------------------------------------------------------------------------------------- Death benefit less net contributions H G minus F 4,000 1,000 0 - ------------------------------------------------------------------------------------------------------------------- I Earnings enhancement benefit factor 40% 40% 40% - ------------------------------------------------------------------------------------------------------------------- Earnings enhancement benefit J H times I 1,600 400 0 - ------------------------------------------------------------------------------------------------------------------- Death benefit: including Earnings enhancement benefit K G plus J 105,600 101,400 98,000 - -------------------------------------------------------------------------------------------------------------------
* The death benefit is the greater of the account value or any applicable death benefit. F-1 Appendix VI: Earnings enhancement benefit example Appendix VII: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- The following information is a summary of the states where the Accumulator(R) Plus(SM) contract or certain features and/or benefits are either not available as of the date of this Prospectus or vary from the contract's features and benefits as previously described in this Prospectus. STATES WHERE CERTAIN ACCUMULATOR(R) PLUS(SM) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- CALIFORNIA See "Contract features and benefits"--"Your right to can- cel within a certain number of days" - -------------------------------------------------------------------------------- FLORIDA See "Contract features and benefits" in "Credits" - -------------------------------------------------------------------------------- OREGON See "We require that the following types of communica- tions be on specific forms we provide for that purpose:" in "Who is AXA Equitable?" QP contracts Fixed maturity options Automatic investment program See "How you can purchase and contribute to your con- tract" in "Contract features and benefits" - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- CALIFORNIA If you reside in the state of California and you are age 60 and older at the time the contract is issued, you may return your variable annuity contract within 30 days from the date that you receive it and receive a refund as described below. If you allocate your entire initial contribution to the EQ/Money Market option (and/or guaranteed interest option, if available), the amount of your refund will be equal to your contribution less interest, unless you make a trans- fer, in which case the amount of your refund will be equal to your account value on the date we receive your request to cancel at our processing office. This amount could be less than your initial contribution. If the Principal guarantee ben- efit or Guaranteed withdrawal benefit for life is elected, the investment allocation during the 30 day free look period is limited to the guaranteed interest option. If you allocate any portion of your initial contribution to the variable invest- ment options (other than the EQ/Money Market option) and/or fixed maturity options, your refund will be equal to your account value on the date we receive your request to cancel at our processing office. - -------------------------------------------------------------------------------- FLORIDA The following information replaces the second bullet to the final set of bullets in this section: o You may annuitize your contract after thirteen months, however, if you elect to receive annuity payments within five years of the contract date, we will recover the credit that applies to any contribution made in that five years. If you start receiving annuity payments after five years from the contract date and within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. - -------------------------------------------------------------------------------- OREGON The following is added: (20) requests for required minimum distributions, other than pursuant to our automatic RMD service. Not Available Not Available Not Available Additional contributions are limited to the first year after the contract issue date only. - --------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-1
- -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- OREGON See "Guaranteed minimum death benefit/Guaranteed (CONTINUED) minimum income benefit roll-up benefit base reset" in "Contract features and benefits" See "Lifetime required minimum distribution withdrawals" under "Withdrawing your account value" in "Accessing your money" - -------------------------------------------------------------------------------- See "Selecting an annuity payout option" under "Your annuity payout options" in "Accessing your money" See "Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85" under "Guaranteed minimum death benefit charge" in "Charges and expenses" See "Disability, terminal illness, or confinement to nursing home" under "Withdrawal charge" in "Charges and expenses" - -------------------------------------------------------------------------------- PENNSYLVANIA Contributions See "Disability, terminal illness, or confinement to nursing home" under "Withdrawal charge" in "Charges and expenses" Required disclosure for Pennsylvania customers - -------------------------------------------------------------------------------- PUERTO RICO IRA, Roth IRA, Inherited IRA, QP and Rollover TSA contracts Beneficiary continuation option (IRA) Tax Information -- Special rules for NQ contracts - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- OREGON The Roll-Up benefit base is eligible for reset beginning on (CONTINUED) the fifth contract date anniversary and on each fifth or later contract date anniversary after a reset. The following replaces the third paragraph: We generally will not impose a withdrawal charge on mini- mum distribution withdrawals even if you are not enrolled in our automatic RMD service except if, when added to a lump sum withdrawal previously taken in the same contract year, the minimum distribution withdrawals exceed the 10% free withdrawal amount. In order to avoid a withdrawal charge in connection with minimum distribution withdraw- als outside of our automatic RMD service, you must notify us using our request form. Such minimum distribution with- drawals must be based solely on your contract's account value. - -------------------------------------------------------------------------------- An annuity commencement date earlier than eight years from the Accumulator(R) Plus(SM) contract issue date may not be elected. The charge is equal to 0.60% of the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 benefit base. Item (i) under this section is deleted in its entirety - -------------------------------------------------------------------------------- PENNSYLVANIA Your contract refers to contributions as premiums. Item (iii) under this section is deleted in its entirety Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. - -------------------------------------------------------------------------------- PUERTO RICO Not Available Not Available Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico source income of Puerto Rico resi- dents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable portion of amounts distributed from a con- tract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S. tax paid. Depending on your per- sonal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. - --------------------------------------------------------------------------------
G-2 Appendix VII: State contract availability and/or variations of certain features and benefits
- -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- TEXAS See "Charges that AXA Equitable deducts" under "Annual administrative charge" in "Charges and expenses" - -------------------------------------------------------------------------------- WASHINGTON Guaranteed interest option Investment simplifier -- Fixed-dollar option and Interest sweep option Fixed maturity options Income Manager(R) payout option Earnings enhancement benefit "Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit" See "Guaranteed minimum death benefit charge" in "Fee table" and in "Charges and expenses" See "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" in "Contract features and benefits" See "Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset" in "Contract features and benefits" See "Guaranteed minimum death benefit" in "Contract features and benefits" - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- TEXAS We will deduct the annual administrative charge, on a pro rata basis, only from your value in the variable investment options. We will not deduct this charge from your value in the guaranteed interest option. - -------------------------------------------------------------------------------- WASHINGTON Not available Not available Not available Not available Not available All references to this feature are deleted in their entirety. You have the choice of the following guaranteed minimum death benefits: the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85; the Annual Ratchet to age 85; the Standard death benefit; the GWBL Enhanced death benefit; or the GWBL Standard death benefit. The charge for the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 is 0.60% o If you elect the 6% Guaranteed minimum income benefit with the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, the variable investment options (other than those variable investment options that roll up to 3%) will roll up at an annual rate of 6% for the Guaranteed minimum income benefit base and 4% for the 4% Roll-Up to age 85 benefit base. o If you elect the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, with- out the Guaranteed minimum income benefit, the variable investment options (other than those variable investment options that roll up to 3%) will roll up at an annual rate of 4% for the 4% Roll-Up to age 85 benefit base. Your "Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit" benefit base will reset only if your account value is greater than your Guaranteed minimum income benefit roll-up benefit base. You have a choice of the standard death benefit, the Annual Ratchet to age 85 enhanced death benefit, or the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. - --------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-3
- -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- WASHINGTON See "How withdrawals affect your Guaranteed minimum (CONTINUED) income benefit, Guaranteed minimum death benefit and Principal guarantee benefit" in "Accessing your money" See "Annual administrative charge" in "Charges and expenses" See "10% free withdrawal amount" under "Withdrawal charge" in "Charges and expenses" See "Certain withdrawals" under "Withdrawal charge" in "Charges and expenses" See "Withdrawal charge" in "Charges and expenses" under "Disability, terminal illness, or confinement to nursing home" - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- WASHINGTON The first sentence of the third paragraph is replaced with (CONTINUED) the following: With respect to the Guaranteed minimum income benefit and the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' Roll-Up to age 85 benefit base on a dollar-for- dollar basis, as long as the sum of the withdrawals in a contract year is 6% or less of each benefit's Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. With respect to the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, if elected without the Guaranteed minimum income benefit, withdrawals (including any applicable with- drawal charges) will reduce the 4% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6% or less of the 4% Roll-Up to age 85 benefit base on the contract issue date or the most recent contract date anniversary, if later. The second paragraph of this section is replaced with the following: The annual administrative charge will be deducted from the value in the variable investment options on a pro rata basis. If the contract is surrendered or annuitized or a death ben- efit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of that charge for the year. The 10% free withdrawal amount applies to full surrenders. If you elect the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit without a Guar- anteed minimum income benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6% of the beginning of contract year 4% Roll-Up to age 85 benefit base, even if such withdrawals exceed the free with- drawal amount. The owner (or older joint owner, if applicable) has qualified to receive Social Security disability benefits as certified by the Social Security Administration or a statement from an independent U.S. licensed physician stating that the owner (or older joint owner, if applicable) meets the definition of total disability for at least 6 continuous months prior to the notice of claim. Such disability must be re-certified every 12 months. - --------------------------------------------------------------------------------
G-4 Appendix VII: State contract availability and/or variations of certain features and benefits Appendix VIII: Contract variations - -------------------------------------------------------------------------------- You should note that your contract's options, features and charges may vary from what is described in this Prospectus depending on the approximate date on which you purchased your contract. You may not change your contract or its features after issue. This Appendix reflects contract variations that differ from what is described in this Prospectus but may have been in effect at the time your contract was issued. If you purchased your contract during the "Approximate Time Period" below, the noted variation may apply to you. In addition, options and/or features may vary among states in light of applicable regulations or state approvals. Any such state variations are generally not included here but instead included in Appendix VII earlier in this section. For more information about state variations applicable to you, as well as particular features, charges and options available under your contract based upon when you purchased it, please contact your financial professional and/or refer to your contract.
- ------------------------------------------------------------------------------------------------------------------------------- Approximate Time Period Feature/Benefit Variation - ------------------------------------------------------------------------------------------------------------------------------- July 10, 2006 - January 15, 2007 Greater of 6% Roll-Up to age 85 or Annual The fee for this benefit is 0.60%. Ratchet to age 85 enhanced death benefit Guaranteed minimum death benefit/ The Roll-Up benefit base is eligible for reset Guaranteed minimum income benefit roll-up beginning on the fifth contract date anniversary benefit base reset and on each fifth or later contract date anniversary after a reset. - ------------------------------------------------------------------------------------------------------------------------------- January 16, 2007 - present Greater of 6% Roll-Up to age 85 or Annual The fee for this benefit is 0.65%.* Ratchet to age 85 enhanced death benefit Guaranteed minimum death benefit/ The Roll-Up benefit base is eligible for reset Guaranteed minimum income benefit roll-up annually.* benefit base reset - -------------------------------------------------------------------------------------------------------------------------------
* This charge and feature are not available to contracts issued in Oregon. Appendix VIII: Contract variations H-1 Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Name Change 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to obtain an Accumulator(R) Plus(SM) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) Plus(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 - -------------------------------------------------------------------------------- Please send me an Accumulator(R) Plus(SM) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip X1889/Plus '02/'04, ML, '04 (NY), '06/'06.5 and '07 Series Accumulator(R) Plus(SM) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing or taking any other action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) PLUS(SM)? Accumulator(R) Plus(SM) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers death benefit protection and a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option or fixed maturity options ("investment options"). This contract may not currently be available in all states. Certain features and benefits described in this Prospectus may vary in your state; all features and benefits may not be available in all contracts, in all states or from all selling broker-dealers. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street o EQ/Ariel Appreciation II Small Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option and the fixed maturity options and the account for special money market dollar cost averaging, which are discussed later in this Prospectus. If you elect a Principal guarantee benefit, the Guaranteed withdrawal benefit for life, or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to 85 enhanced death benefit, your investment options will be limited to the guaranteed interest option, the account for special money market dollar cost averaging and certain permitted variable investment option(s). The permitted variable investment options are described later in this Prospectus. TYPES OF CONTRACTS. We offer the contracts for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA or Roth IRA. We offer one version of the traditional IRA: "Rollover IRA." We also offer one version of the Roth IRA: "Roth Conversion IRA." o An annuity that is an investment vehicle for qualified defined contribution plans and certain qualified defined benefit plans ("QP"), (Rollover and direct transfer contributions only.) o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required.) A contribution of at least $10,000 is required to purchase a contract. We add an amount ("credit") to your contract with each contribution you make. Expenses for this contract may be higher than for a comparable contract without a credit. Over time, the amount of the credit may be more than offset by fees and charges associated with the credit. A registration statement relating to this offering has been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, N.J. 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01910/Plus '07 Series Contents of this Prospectus - -------------------------------------------------------------------- ACCUMULATOR(R) PLUS(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) Plus(SM) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 11 - -------------------------------------------------------------------------------- Example 15 Condensed financial information 18 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 19 - -------------------------------------------------------------------------------- How you can purchase and contribute to your contract 19 Owner and annuitant requirements 23 How you can make your contributions 23 What are your investment options under the contract? 23 Portfolios of the Trusts 25 Allocating your contributions 31 Credits 33 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 34 Annuity purchase factors 36 Guaranteed minimum income benefit 36 Guaranteed minimum death benefit 38 Guaranteed withdrawal benefit for life ("GWBL") 40 Principal guarantee benefits 44 Your right to cancel within a certain number of days 44 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 46 - -------------------------------------------------------------------------------- Your account value and cash value 46 Your contract's value in the variable investment options 46 Your contract's value in the guaranteed interest option 46 Your contract's value in the fixed maturity options 46 Insufficient account value 46 - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG THE INVESTMENT OPTIONS 48 - -------------------------------------------------------------------------------- Transferring your account value 48 Disruptive transfer activity 48 Rebalancing your account value 49 - ---------------------- "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 51 - -------------------------------------------------------------------------------- Withdrawing your account value 51 How withdrawals are taken from your account value 53 How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits 53 How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit 54 Withdrawals treated as surrenders 54 Loans under Rollover TSA contracts 54 Surrendering your contract to receive its cash value 55 When to expect payments 55 Your annuity payout options 55 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 58 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 58 Charges that the Trusts deduct 62 Group or sponsored arrangements 62 Other distribution arrangements 62 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 63 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 63 Beneficiary continuation option 65 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 68 - -------------------------------------------------------------------------------- Overview 68 Buying a contract to fund a retirement arrangement 68 Transfers among variable investment options 68 Taxation of nonqualified annuities 68 Individual retirement arrangements (IRAs) 70 Tax-sheltered annuity contracts (TSAs) 80 Federal and state income tax withholding and information reporting 84 Special rules for contracts funding qualified plans 85 Impact of taxes to AXA Equitable 85 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 86 - -------------------------------------------------------------------------------- About Separate Account No. 49 86 About the Trusts 86 About our fixed maturity options 86 About the general account 87 About other methods of payment 88 Dates and prices at which contract events occur 88 About your voting rights 89 About legal proceedings 89 Financial statements 89 Transfers of ownership, collateral assignments, loans and borrowing 89 About Custodial IRAs 90 Distribution of the contracts 90 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 92 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Enhanced death benefit example D-1 V -- Hypothetical illustrations E-1 VI -- Earnings enhancement benefit example F-1 VII -- State contract availability and/or variations of certain features and benefits G-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page 3% Roll-Up to age 85 35 6% Roll-Up to age 85 35 6-1/2% Roll-Up to age 85 35 account value 46 administrative charge 58 annual administrative charge 58 Annual Ratchet 42 Annual Ratchet to age 85 enhanced death benefit 34 annuitant 19 annuitization 55 annuity maturity date 57 annuity payout options 55 annuity purchase factors 36 automatic annual reset program 35 automatic customized reset program 35 automatic investment program 88 AXA Allocation portfolios cover beneficiary 63 Beneficiary continuation option ("BCO") 65 benefit base 41 business day 88 cash value 46 charges for state premium and other applicable taxes 61 contract date 23 contract date anniversary 23 contract year 23 Contributions to Roth IRAs 76 regular contributions 77 rollovers and transfers 77 conversion contributions 78 contributions to traditional IRAs 71 regular contributions 71 rollovers and transfers 72 credit 33 disability, terminal illness or confinement to nursing home 59 disruptive transfer activity 48 distribution charge 58 Earnings Enhancement benefit 61 Earnings Enhancement benefit charge 61 EQAccess 7 ERISA 62 Fixed-dollar option 32 fixed maturity options 30 free look 45 free withdrawal amount 59 general account 87 General dollar cost averaging 32 guaranteed interest option 30 Guaranteed minimum death benefit 38 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 34 Guaranteed minimum income benefit and the Roll-Up benefit base reset option 35 Guaranteed minimum income benefit 36 Guaranteed minimum income benefit "no lapse guarantee" 37 Guaranteed minimum income benefit charge 61 Guaranteed withdrawal benefit for life ("GWBL") 40 Guaranteed withdrawal benefit for life charge 61 GWBL benefit base 41 IRA cover IRS 68 Investment simplifier 32 lifetime required minimum distribution withdrawals 52 loan reserve account 54 loans under Rollover TSA 54 market adjusted amount 30 market value adjustment 30 market timing 48 maturity dates 30 maturity value 30 Mortality and expense risks charge 58 NQ cover one-time reset option 35 partial withdrawals 51 participant 23 permitted variable investment options 23 Portfolio cover Principal guarantee benefits 44 processing office 7 QP cover rate to maturity 30 Rebalancing 49 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 31 Separate Account No. 49 86 Special money market dollar cost averaging 31 Standard death benefit 34 substantially equal withdrawals 52 Spousal continuation 64 systematic withdrawals 52 TOPS 7 TSA cover traditional IRA cover Trusts 86 unit 46 variable investment options 24 wire transmittals and electronic applications 88 withdrawal charge 59 4 Index of key words and phrases To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract or supplemental materials. Your financial professional can provide further explanation about your contract or supplemental materials.
- ------------------------------------------------------------------------------------------------ Prospectus Contract or Supplemental Materials - ------------------------------------------------------------------------------------------------ fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guarantee minimum income benefit Guaranteed Income Benefit guaranteed interest option Guaranteed Interest Account Guaranteed withdrawal benefit for life Guaranteed withdrawal benefit GWBL benefit base Guaranteed withdrawal benefit for life benefit base Guaranteed annual withdrawal amount Guaranteed withdrawal benefit for life Annual withdrawal amount Excess withdrawal Guaranteed withdrawal benefit for life Excess withdrawal - ------------------------------------------------------------------------------------------------
Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) Plus(SM) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) Plus(SM) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) Plus(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) Plus(SM) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility for GWBL deferral bonuses and eligibility to exercise the Guaranteed minimum income benefit and/or the Roll-Up benefit base reset option. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options; o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the variable investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of your transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Who is AXA Equitable? 7 Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts (employer or plan approval required) and contracts with the Guaranteed withdrawal benefit for life ("GWBL"); (7) tax withholding elections; (8) election of the beneficiary continuation option; (9) IRA contribution recharacterizations; (10) Section 1035 exchanges; (11) direct transfers and rollovers; (12) exercise of the Guaranteed minimum income benefit; (13) requests to reset your Roll-Up benefit base by electing one of the following: one-time reset option, automatic annual reset program or automatic customized reset program; (14) requests to opt out of or back into the annual ratchet of the Guaranteed withdrawal benefit for life ("GWBL") benefit base; (15) death claims; (16) change in ownership (NQ only, if available under your contract); (17) requests for enrollment in either our Maximum payment plan or Customized payment plan under the Guaranteed withdrawal benefit for life ("GWBL"); (18) purchase by, or change of ownership to, a non natural owner; (19) requests to reset the guaranteed minimum value for contracts with a Principal guarantee benefit; and (20) requests to collaterally assign your NQ contract. WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; (3) general dollar cost averaging (including the fixed dollar and interest sweep options) and special money market dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) dollar cost averaging (including the fixed dollar amount and interest sweep options); and special money market dollar cost averaging; (3) substantially equal withdrawals; (4) systematic withdrawals; and (5) the date annuity payments are to begin. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION AT LEAST 30 CALENDAR DAYS PRIOR TO YOUR CONTRACT DATE ANNIVERSARY: (1) automatic annual reset program; and (2) automatic customized reset program. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners both must sign. 8 Who is AXA Equitable? Accumulator(R) Plus(SM) at a glance -- key features - -------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------------ Professional investment Accumulator(R) Plus(SM) variable investment options invest in different Portfolios managed by management professional investment advisers. - ------------------------------------------------------------------------------------------------------------------------------------ Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. - ------------------------------------------------------------------------------------------------------------------------------------ If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - ------------------------------------------------------------------------------------------------------------------------------------ Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among variable investment options inside the contract. - ------------------------------------------------------------------------------------------------------------------------------------ If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before purchasing one of these contracts, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities compared with any other investment that you may use in connection with your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during your life once you elect income benefit to annuitize the contract. - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed withdrawal The Guaranteed withdrawal benefit for life option ("GWBL") guarantees that you can take benefit for life withdrawals up to a maximum amount each contract year (your "Guaranteed annual withdrawal amount") beginning at age 45 or later. Withdrawals are taken from your account value and continue during your lifetime even if your account value falls to zero (unless it is caused by a withdrawal that exceeds your Guaranteed annual withdrawal amount). - ------------------------------------------------------------------------------------------------------------------------------------ Contribution amounts o Initial minimum: $10,000 o Additional minimum: $500 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ, Rollover IRA and Roth conversion IRA contracts) $50 (IRA contracts) - ------------------------------------------------------------------------------------------------------------------------------------ Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million under all Accumulator(R) series with the same owner or annuitant. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We currently impose that limitation except in certain circumstances, which are identified in "How you can purchase and contribute to your contract" in "Contract features and benefits" later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------ Credit We allocate your contributions to your account value. We allocate a credit to your account value at the same time that we allocate your contributions. The credit will apply to additional contribution amounts only to the extent that those amounts exceed total withdrawals from the contract. The amount of credit may be up to 5% of each contribution, depending on certain factors. The credit is subject to recovery by us in certain limited circumstances. - ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Plus(SM) at a glance -- key features 9 - ------------------------------------------------------------------------------------------------------------------------------------ Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender o Maximum payment plan (only under contracts with GWBL) o Customized payment plan (only under contracts with GWBL) You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ------------------------------------------------------------------------------------------------------------------------------------ Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - ------------------------------------------------------------------------------------------------------------------------------------ Additional features o Guaranteed minimum death benefit options o Principal guarantee benefits o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually, and annually) o Free transfers o Waiver of withdrawal charge for disability, terminal illness, confinement to a nursing home and certain other withdrawals o Earnings enhancement benefit, an optional death benefit available under certain contracts o Spousal continuation o Beneficiary continuation option o Roll-Up benefit base reset - ------------------------------------------------------------------------------------------------------------------------------------ Fees and charges Please see "Fee table" later in this section for complete details. - ------------------------------------------------------------------------------------------------------------------------------------ Owner and annuitant issue NQ: 0-80 ages Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-80 QP (Defined Contribution and Defined Benefit): 20-70 - ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available in your state or at certain ages. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund within a certain number of days. Please see "Your right to cancel within a certain number of days" later in this Prospectus for additional information. OTHER CONTRACTS We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts, based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. 10 Accumulator(R) Plus(SM) at a glance -- key features Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay at the time you surrender the contract or if you make certain withdrawals or apply your cash value to certain payout options or if you purchase a Variable Immediate Annuity. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply. - ------------------------------------------------------------------------------------------------ Charges we deduct from your account value at the time you request certain transactions - ------------------------------------------------------------------------------------------------ Maximum withdrawal charge as a percentage of contributions with- drawn(1) (deducted if you surrender your contract, make certain withdrawals, or apply your cash value to certain payout options). 8.00% Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - ------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses. - ------------------------------------------------------------------------------------------------ Charges we deduct from your account value on each contract date anniversary - ------------------------------------------------------------------------------------------------ Maximum annual administrative charge(2) If your account value on a contract date anniversary is less than $ 50,000(3) $ 30 If your account value on a contract date anniversary is $50,000 or more $ 0 - ------------------------------------------------------------------------------------------------ Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------ SEPARATE ACCOUNT ANNUAL EXPENSES: Mortality and expense risks 0.95%(4) Administrative 0.35% Distribution 0.25% -------- Total Separate account annual expenses 1.55% - ------------------------------------------------------------------------------------------------ Charges we deduct from your account value each year if you elect any of the following optional benefits - ------------------------------------------------------------------------------------------------ Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) Standard death benefit and GWBL Standard death benefit 0.00% Annual Ratchet to age 85 0.25% Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 0.80%(5) If you elect to reset this benefit base, if applicable, we reserve the right to increase your charge up to: 0.95% Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 0.65%(5) If you elect to reset this benefit base, if applicable, we reserve the right to increase your charge up to: 0.80% Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 0.65% GWBL Enhanced death benefit 0.30% - ------------------------------------------------------------------------------------------------ Principal guarantee benefits charge (calculated as a percentage of the account value. Deducted annually(2) on each contract date anni- versary for which the benefit is in effect.) - ------------------------------------------------------------------------------------------------
Fee table 11 - ----------------------------------------------------------------------------------------------------------------- 100% Principal guarantee benefit 0.50% 125% Principal guarantee benefit 0.75% - ----------------------------------------------------------------------------------------------------------------- Guaranteed minimum income benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) If you elect the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base 0.80%(5) If you elect to reset this benefit base, we reserve the right to increase your charge up to: 1.10% If you elect the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base 0.65%(5) If you elect to reset this Roll-Up benefit base, we reserve the right to increase your charge up to: 0.95% - ----------------------------------------------------------------------------------------------------------------- Earnings enhancement benefit charge (calculated as a percent- age of the account value. Deducted annually(2) on each contract date anniversary for which the benefit is in effect.) 0.35% - ----------------------------------------------------------------------------------------------------------------- Guaranteed withdrawal benefit for life benefit charge (calcu- 0.60% for the Single Life option lated as a percentage of the GWBL benefit base. Deducted annually(2) 0.75% for the Joint Life option on each contract date anniversary.) If your GWBL benefit base ratchets, we reserve the right to increase your charge up to: 0.75% for the Single Life option 0.90% for the Joint Life option Please see "Guaranteed withdrawal benefit for life " in "Contract features and benefits" for more information about this feature, including its benefit base and the Annual Ratchet provision, and "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses," both later in this Prospectus. - ----------------------------------------------------------------------------------------------------------------- Net loan interest charge -- Rollover TSA contracts only (calcu- lated and deducted daily as a percentage of the outstanding loan amount) 2.00%(6) - -----------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio. - ----------------------------------------------------------------------------------------------------------------- Portfolio operating expenses expressed as an annual percentage of daily net assets - ----------------------------------------------------------------------------------------------------------------- Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or other expenses)(7) 0.63% 3.56%
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets. - ------------------------------------------------------------------------------------------------------------------------------------ Acquired Total Fund Fees Annual Net and Expenses Fee Waiv- Annual Expenses (Before ers and/or Expenses Manage- (Under- Expense Expense After ment 12b-1 Other lying Port- Limita- Reimburse- Expense Portfolio Name Fees(8) Fees(9) Expenses(10) folios)(11) tions) ments(12) Limitations - ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation 0.10% 0.25% 0.17% 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.10% 0.25% 0.21% 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.10% 0.25% 0.17% 0.82% 1.34% (0.17)% 1.17% - ------------------------------------------------------------------------------------------------------------------------------------
12 Fee table
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets. - ------------------------------------------------------------------------------------------------------------------------------------ Manage- ment 12b-1 Other Portfolio Name Fees(8) Fees(9) Expenses(10) - ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Acquired Total Fund Fees Annual Net and Expenses Fee Waiv- Annual Expenses (Before ers and/or Expenses (Under- Expense Expense After lying Port- Limita- Reimburse- Expense Portfolio Name folios)(11) tions) ments(12) Limitations - ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(13) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% - ------------------------------------------------------------------------------------------------------------------------------------
Fee table 13
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets. - ------------------------------------------------------------------------------------------------------------------------------------ Acquired Total Fund Fees Annual Net and Expenses Fee Waiv- Annual Expenses (Before ers and/or Expenses Manage- (Under- Expense Expense After ment 12b-1 Other lying Port- Limita- Reimburse- Expense Portfolio Name Fees(8) Fees(9) Expenses(10) folios)(11) tions) ments(12) Limitations - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% -- 1.15% 0.00% 1.15% EQ/Mutual Shares 0.90% 0.25% 0.21% -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.95% 0.25% 0.51% 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return 0.55% 0.25% 0.14% -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond 0.43% 0.25% 0.15% -- 0.83% 0.00% 0.83% EQ/Small Company Index 0.25% 0.25% 0.14% -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% -- 1.18% (0.03)% 1.15% EQ/Templeton Growth 0.95% 0.25% 0.20% -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% -- 1.36% (0.10)% 1.26% - ------------------------------------------------------------------------------------------------------------------------------------
Notes: (1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal amount, if applicable. The withdrawal charge percentage we use is determined by the contract year in which you make the withdrawal or surrender your contract. For each contribution, we consider the contract year in which we receive that contribution to be "contract year 1") Contract Year 1 .............................. 8.00% 2 .............................. 8.00% 3 .............................. 7.00% 4 .............................. 7.00% 5 .............................. 6.00% 6 .............................. 5.00% 7 .............................. 4.00% 8 .............................. 3.00% 9+ ............................. 0.00% (2) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. (3) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, if applicable, the charge is $30 for each contract year. (4) These charges compensate us for certain risks we assume and expenses we incur under the contract. They also compensate us for the expense associated with the credit. We expect to make a profit from these charges. (5) We reserve the right to increase this charge if you elect to reset your Roll-Up benefit base on any contract date anniversary. See both "Guaranteed minimum death benefit charge" and "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. (6) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (7) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (8) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (12) and (13) for any expense limitation agreement information. (9) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. (10) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (12) and (13) for any expense limitation agreement information. (11) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (12) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the Prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: 14 Fee table - -------------------------------------------------------------------------------- Portfolio Name - -------------------------------------------------------------------------------- Multimanager Aggressive Equity 0.97% - -------------------------------------------------------------------------------- Multimanager Health Care 1.67% - -------------------------------------------------------------------------------- Multimanager Large Cap Core Equity 1.34% - -------------------------------------------------------------------------------- Multimanager Large Cap Growth 1.29% - -------------------------------------------------------------------------------- Multimanager Large Cap Value 1.26% - -------------------------------------------------------------------------------- Multimanager Mid Cap Growth 1.52% - -------------------------------------------------------------------------------- Multimanager Mid Cap Value 1.53% - -------------------------------------------------------------------------------- Multimanager Small Cap Growth 1.35% - -------------------------------------------------------------------------------- Multimanager Small Cap Value 1.45% - -------------------------------------------------------------------------------- Multimanager Technology 1.67% - -------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% - -------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% - -------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% - -------------------------------------------------------------------------------- EQ/AllianceBernstein Value 0.87% - -------------------------------------------------------------------------------- EQ/Ariel Appreciation II 1.09% - -------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% - -------------------------------------------------------------------------------- EQ/Davis New York Venture 1.25% - -------------------------------------------------------------------------------- EQ/Evergreen Omega 1.12% - -------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% - -------------------------------------------------------------------------------- EQ/GAMCO Small Company Value 1.10% - -------------------------------------------------------------------------------- EQ/International Core PLUS 1.05% - -------------------------------------------------------------------------------- EQ/Large Cap Core PLUS 0.83% - -------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS 0.82% - -------------------------------------------------------------------------------- EQ/Legg Mason Value Equity 0.97% - -------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% - -------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% - -------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% - -------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS 0.81% - -------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth 1.13% - -------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% - -------------------------------------------------------------------------------- EQ/UBS Growth and Income 1.04% - -------------------------------------------------------------------------------- EQ/Van Kampen Comstock 0.99% - -------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% - -------------------------------------------------------------------------------- (13) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and administration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the enhanced death benefit that provides for the Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 and the Earnings enhancement benefit with the Guaranteed minimum income benefit) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.007% of contract value. The fixed maturity options, guaranteed interest option and the account for special money market dollar cost averaging are not covered by the example. However, the annual administrative charge, the withdrawal charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options, guaranteed interest option and the special money market dollar cost averaging program. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated, and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual cost may be higher or lower, based on these assumptions, your cost would be: Fee table 15
- ---------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the appli- cable time period - ---------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ---------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,336.00 $ 2,339.00 $ 3,388.00 $ 5,874.00 AXA Conservative Allocation $ 1,315.00 $ 2,279.00 $ 3,292.00 $ 5,703.00 AXA Conservative-Plus Allocation $ 1,321.00 $ 2,295.00 $ 3,317.00 $ 5,749.00 AXA Moderate Allocation $ 1,325.00 $ 2,308.00 $ 3,337.00 $ 5,785.00 AXA Moderate-Plus Allocation $ 1,329.00 $ 2,321.00 $ 3,358.00 $ 5,821.00 Multimanager Aggressive Equity $ 1,292.00 $ 2,213.00 $ 3,184.00 $ 5,510.00 Multimanager Core Bond $ 1,289.00 $ 2,203.00 $ 3,169.00 $ 5,482.00 Multimanager Health Care $ 1,362.00 $ 2,415.00 $ 3,508.00 $ 6,085.00 Multimanager High Yield $ 1,289.00 $ 2,203.00 $ 3,169.00 $ 5,482.00 Multimanager International Equity $ 1,340.00 $ 2,352.00 $ 3,408.00 $ 5,910.00 Multimanager Large Cap Core Equity $ 1,326.00 $ 2,311.00 $ 3,342.00 $ 5,794.00 Multimanager Large Cap Growth $ 1,328.00 $ 2,317.00 $ 3,352.00 $ 5,812.00 Multimanager Large Cap Value $ 1,323.00 $ 2,302.00 $ 3,327.00 $ 5,767.00 Multimanager Mid Cap Growth $ 1,348.00 $ 2,374.00 $ 3,443.00 $ 5,972.00 Multimanager Mid Cap Value $ 1,347.00 $ 2,371.00 $ 3,438.00 $ 5,963.00 Multimanager Small Cap Growth $ 1,350.00 $ 2,380.00 $ 3,453.00 $ 5,989.00 Multimanager Small Cap Value $ 1,338.00 $ 2,346.00 $ 3,398.00 $ 5,892.00 Multimanager Technology $ 1,362.00 $ 2,415.00 $ 3,508.00 $ 6,085.00 - ---------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,271.00 $ 2,152.00 $ 3,086.00 $ 5,332.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,275.00 $ 2,162.00 $ 3,102.00 $ 5,360.00 EQ/AllianceBernstein International $ 1,303.00 $ 2,245.00 $ 3,236.00 $ 5,603.00 EQ/AllianceBernstein Large Cap Growth $ 1,318.00 $ 2,289.00 $ 3,307.00 $ 5,731.00 EQ/AllianceBernstein Quality Bond $ 1,276.00 $ 2,165.00 $ 3,107.00 $ 5,370.00 EQ/AllianceBernstein Small Cap Growth $ 1,301.00 $ 2,238.00 $ 3,225.00 $ 5,584.00 EQ/AllianceBernstein Value $ 1,283.00 $ 2,187.00 $ 3,143.00 $ 5,436.00 EQ/Ariel Appreciation II $ 1,316.00 $ 2,283.00 $ 3,297.00 $ 5,712.00 EQ/AXA Rosenberg Value Long/Short Equity $ 1,567.00 $ 2,993.00 $ 4,407.00 $ 7,558.00 EQ/BlackRock Basic Value Equity $ 1,280.00 $ 2,178.00 $ 3,128.00 $ 5,408.00 EQ/BlackRock International Value $ 1,315.00 $ 2,279.00 $ 3,292.00 $ 5,703.00 EQ/Boston Advisors Equity Income $ 1,303.00 $ 2,245.00 $ 3,236.00 $ 5,603.00 EQ/Calvert Socially Responsible $ 1,302.00 $ 2,241.00 $ 3,230.00 $ 5,594.00 EQ/Capital Guardian Growth $ 1,293.00 $ 2,216.00 $ 3,189.00 $ 5,520.00 EQ/Capital Guardian Research $ 1,289.00 $ 2,203.00 $ 3,169.00 $ 5,482.00 EQ/Caywood-Scholl High Yield Bond $ 1,289.00 $ 2,203.00 $ 3,169.00 $ 5,482.00 EQ/Davis New York Venture $ 1,318.00 $ 2,289.00 $ 3,307.00 $ 5,731.00 EQ/Equity 500 Index $ 1,247.00 $ 2,082.00 $ 2,972.00 $ 5,121.00 EQ/Evergreen International Bond $ 1,301.00 $ 2,238.00 $ 3,225.00 $ 5,584.00 EQ/Evergreen Omega $ 1,304.00 $ 2,248.00 $ 3,241.00 $ 5,612.00 - ---------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- If you annuitize at the end of the If you do not surrender applicable time period and select a non-life contin- your contract at the end of gent period certain annuity option with less than five the years applicable time period - --------------------------------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years 1 year 3 years - --------------------------------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - --------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 2,339.00 $ 3,388.00 $ 5,874.00 $ 536.00 $ 1,639.00 AXA Conservative Allocation N/A $ 2,279.00 $ 3,292.00 $ 5,703.00 $ 515.00 $ 1,579.00 AXA Conservative-Plus Allocation N/A $ 2,295.00 $ 3,317.00 $ 5,749.00 $ 521.00 $ 1,595.00 AXA Moderate Allocation N/A $ 2,308.00 $ 3,337.00 $ 5,785.00 $ 525.00 $ 1,608.00 AXA Moderate-Plus Allocation N/A $ 2,321.00 $ 3,358.00 $ 5,821.00 $ 529.00 $ 1,621.00 Multimanager Aggressive Equity N/A $ 2,213.00 $ 3,184.00 $ 5,510.00 $ 492.00 $ 1,513.00 Multimanager Core Bond N/A $ 2,203.00 $ 3,169.00 $ 5,482.00 $ 489.00 $ 1,503.00 Multimanager Health Care N/A $ 2,415.00 $ 3,508.00 $ 6,085.00 $ 562.00 $ 1,715.00 Multimanager High Yield N/A $ 2,203.00 $ 3,169.00 $ 5,482.00 $ 489.00 $ 1,503.00 Multimanager International Equity N/A $ 2,352.00 $ 3,408.00 $ 5,910.00 $ 540.00 $ 1,652.00 Multimanager Large Cap Core Equity N/A $ 2,311.00 $ 3,342.00 $ 5,794.00 $ 526.00 $ 1,611.00 Multimanager Large Cap Growth N/A $ 2,317.00 $ 3,352.00 $ 5,812.00 $ 528.00 $ 1,617.00 Multimanager Large Cap Value N/A $ 2,302.00 $ 3,327.00 $ 5,767.00 $ 523.00 $ 1,602.00 Multimanager Mid Cap Growth N/A $ 2,374.00 $ 3,443.00 $ 5,972.00 $ 548.00 $ 1,674.00 Multimanager Mid Cap Value N/A $ 2,371.00 $ 3,438.00 $ 5,963.00 $ 547.00 $ 1,671.00 Multimanager Small Cap Growth N/A $ 2,380.00 $ 3,453.00 $ 5,989.00 $ 550.00 $ 1,680.00 Multimanager Small Cap Value N/A $ 2,346.00 $ 3,398.00 $ 5,892.00 $ 538.00 $ 1,646.00 Multimanager Technology N/A $ 2,415.00 $ 3,508.00 $ 6,085.00 $ 562.00 $ 1,715.00 - --------------------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 2,152.00 $ 3,086.00 $ 5,332.00 $ 471.00 $ 1,452.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 2,162.00 $ 3,102.00 $ 5,360.00 $ 475.00 $ 1,462.00 EQ/AllianceBernstein International N/A $ 2,245.00 $ 3,236.00 $ 5,603.00 $ 503.00 $ 1,545.00 EQ/AllianceBernstein Large Cap Growth N/A $ 2,289.00 $ 3,307.00 $ 5,731.00 $ 518.00 $ 1,589.00 EQ/AllianceBernstein Quality Bond N/A $ 2,165.00 $ 3,107.00 $ 5,370.00 $ 476.00 $ 1,465.00 EQ/AllianceBernstein Small Cap Growth N/A $ 2,238.00 $ 3,225.00 $ 5,584.00 $ 501.00 $ 1,538.00 EQ/AllianceBernstein Value N/A $ 2,187.00 $ 3,143.00 $ 5,436.00 $ 483.00 $ 1,487.00 EQ/Ariel Appreciation II N/A $ 2,283.00 $ 3,297.00 $ 5,712.00 $ 516.00 $ 1,583.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,993.00 $ 4,407.00 $ 7,558.00 $ 767.00 $ 2,293.00 EQ/BlackRock Basic Value Equity N/A $ 2,178.00 $ 3,128.00 $ 5,408.00 $ 480.00 $ 1,478.00 EQ/BlackRock International Value N/A $ 2,279.00 $ 3,292.00 $ 5,703.00 $ 515.00 $ 1,579.00 EQ/Boston Advisors Equity Income N/A $ 2,245.00 $ 3,236.00 $ 5,603.00 $ 503.00 $ 1,545.00 EQ/Calvert Socially Responsible N/A $ 2,241.00 $ 3,230.00 $ 5,594.00 $ 502.00 $ 1,541.00 EQ/Capital Guardian Growth N/A $ 2,216.00 $ 3,189.00 $ 5,520.00 $ 493.00 $ 1,516.00 EQ/Capital Guardian Research N/A $ 2,203.00 $ 3,169.00 $ 5,482.00 $ 489.00 $ 1,503.00 EQ/Caywood-Scholl High Yield Bond N/A $ 2,203.00 $ 3,169.00 $ 5,482.00 $ 489.00 $ 1,503.00 EQ/Davis New York Venture N/A $ 2,289.00 $ 3,307.00 $ 5,731.00 $ 518.00 $ 1,589.00 EQ/Equity 500 Index N/A $ 2,082.00 $ 2,972.00 $ 5,121.00 $ 447.00 $ 1,382.00 EQ/Evergreen International Bond N/A $ 2,238.00 $ 3,225.00 $ 5,584.00 $ 501.00 $ 1,538.00 EQ/Evergreen Omega N/A $ 2,248.00 $ 3,241.00 $ 5,612.00 $ 504.00 $ 1,548.00 - --------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- If you do not surrender your contract at applicable time period - -------------------------------------------------------------------------------- Portfolio Name 5 years 10 years - -------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - -------------------------------------------------------------------------------- AXA Aggressive Allocation $ 2,788.00 $ 5,874.00 AXA Conservative Allocation $ 2,692.00 $ 5,703.00 AXA Conservative-Plus Allocation $ 2,717.00 $ 5,749.00 AXA Moderate Allocation $ 2,737.00 $ 5,785.00 AXA Moderate-Plus Allocation $ 2,758.00 $ 5,821.00 Multimanager Aggressive Equity $ 2,584.00 $ 5,510.00 Multimanager Core Bond $ 2,569.00 $ 5,482.00 Multimanager Health Care $ 2,908.00 $ 6,085.00 Multimanager High Yield $ 2,569.00 $ 5,482.00 Multimanager International Equity $ 2,808.00 $ 5,910.00 Multimanager Large Cap Core Equity $ 2,742.00 $ 5,794.00 Multimanager Large Cap Growth $ 2,752.00 $ 5,812.00 Multimanager Large Cap Value $ 2,727.00 $ 5,767.00 Multimanager Mid Cap Growth $ 2,843.00 $ 5,972.00 Multimanager Mid Cap Value $ 2,838.00 $ 5,963.00 Multimanager Small Cap Growth $ 2,853.00 $ 5,989.00 Multimanager Small Cap Value $ 2,798.00 $ 5,892.00 Multimanager Technology $ 2,908.00 $ 6,085.00 - -------------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 2,486.00 $ 5,332.00 EQ/AllianceBernstein Intermediate Government Securities $ 2,502.00 $ 5,360.00 EQ/AllianceBernstein International $ 2,636.00 $ 5,603.00 EQ/AllianceBernstein Large Cap Growth $ 2,707.00 $ 5,731.00 EQ/AllianceBernstein Quality Bond $ 2,507.00 $ 5,370.00 EQ/AllianceBernstein Small Cap Growth $ 2,625.00 $ 5,584.00 EQ/AllianceBernstein Value $ 2,543.00 $ 5,436.00 EQ/Ariel Appreciation II $ 2,697.00 $ 5,712.00 EQ/AXA Rosenberg Value Long/Short Equity $ 3,807.00 $ 7,558.00 EQ/BlackRock Basic Value Equity $ 2,528.00 $ 5,408.00 EQ/BlackRock International Value $ 2,692.00 $ 5,703.00 EQ/Boston Advisors Equity Income $ 2,636.00 $ 5,603.00 EQ/Calvert Socially Responsible $ 2,630.00 $ 5,594.00 EQ/Capital Guardian Growth $ 2,589.00 $ 5,520.00 EQ/Capital Guardian Research $ 2,569.00 $ 5,482.00 EQ/Caywood-Scholl High Yield Bond $ 2,569.00 $ 5,482.00 EQ/Davis New York Venture $ 2,707.00 $ 5,731.00 EQ/Equity 500 Index $ 2,372.00 $ 5,121.00 EQ/Evergreen International Bond $ 2,625.00 $ 5,584.00 EQ/Evergreen Omega $ 2,641.00 $ 5,612.00 - --------------------------------------------------------------------------------
16 Fee table
- ------------------------------------------------------------------------------------------------------ If you surrender your contract at the end of the appli- cable time period - ------------------------------------------------------------------------------------------------------ Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap $ 1,294.00 $ 2,219.00 $ 3,195.00 $ 5,529.00 EQ/Franklin Income $ 1,321.00 $ 2,295.00 $ 3,317.00 $ 5,749.00 EQ/Franklin Small Cap Value $ 1,324.00 $ 2,305.00 $ 3,332.00 $ 5,776.00 EQ/Franklin Templeton Founding Strategy $ 1,350.00 $ 2,380.00 $ 3,453.00 $ 5,989.00 EQ/GAMCO Mergers and Acquisitions $ 1,325.00 $ 2,308.00 $ 3,337.00 $ 5,785.00 EQ/GAMCO Small Company Value $ 1,302.00 $ 2,241.00 $ 3,230.00 $ 5,594.00 EQ/International Core PLUS $ 1,309.00 $ 2,260.00 $ 3,261.00 $ 5,649.00 EQ/International Growth $ 1,328.00 $ 2,317.00 $ 3,352.00 $ 5,812.00 EQ/JPMorgan Core Bond $ 1,267.00 $ 2,139.00 $ 3,066.00 $ 5,294.00 EQ/JPMorgan Value Opportunities $ 1,287.00 $ 2,197.00 $ 3,159.00 $ 5,464.00 EQ/Large Cap Core PLUS $ 1,290.00 $ 2,206.00 $ 3,174.00 $ 5,492.00 EQ/Large Cap Growth PLUS $ 1,289.00 $ 2,203.00 $ 3,169.00 $ 5,482.00 EQ/Legg Mason Value Equity $ 1,295.00 $ 2,222.00 $ 3,200.00 $ 5,538.00 EQ/Long Term Bond $ 1,264.00 $ 2,130.00 $ 3,050.00 $ 5,265.00 EQ/Lord Abbett Growth and Income $ 1,294.00 $ 2,219.00 $ 3,195.00 $ 5,529.00 EQ/Lord Abbett Large Cap Core $ 1,300.00 $ 2,235.00 $ 3,220.00 $ 5,575.00 EQ/Lord Abbett Mid Cap Value $ 1,299.00 $ 2,232.00 $ 3,215.00 $ 5,566.00 EQ/Marsico Focus $ 1,313.00 $ 2,273.00 $ 3,281.00 $ 5,685.00 EQ/Mid Cap Value PLUS $ 1,294.00 $ 2,219.00 $ 3,195.00 $ 5,529.00 EQ/Money Market $ 1,255.00 $ 2,104.00 $ 3,009.00 $ 5,189.00 EQ/Montag & Caldwell Growth $ 1,304.00 $ 2,248.00 $ 3,241.00 $ 5,612.00 EQ/Mutual Shares $ 1,327.00 $ 2,314.00 $ 3,347.00 $ 5,803.00 EQ/Oppenheimer Global $ 1,366.00 $ 2,428.00 $ 3,528.00 $ 6,120.00 EQ/Oppenheimer Main Street Opportunity $ 1,349.00 $ 2,377.00 $ 3,448.00 $ 5,980.00 EQ/Oppenheimer Main Street Small Cap $ 1,358.00 $ 2,402.00 $ 3,488.00 $ 6,050.00 EQ/PIMCO Real Return $ 1,281.00 $ 2,181.00 $ 3,133.00 $ 5,417.00 EQ/Short Duration Bond $ 1,269.00 $ 2,146.00 $ 3,076.00 $ 5,313.00 EQ/Small Company Index $ 1,249.00 $ 2,085.00 $ 2,977.00 $ 5,131.00 EQ/T. Rowe Price Growth Stock $ 1,307.00 $ 2,257.00 $ 3,256.00 $ 5,640.00 EQ/Templeton Growth $ 1,331.00 $ 2,327.00 $ 3,368.00 $ 5,839.00 EQ/UBS Growth and Income $ 1,305.00 $ 2,251.00 $ 3,246.00 $ 5,621.00 EQ/Van Kampen Comstock $ 1,293.00 $ 2,216.00 $ 3,189.00 $ 5,520.00 EQ/Van Kampen Emerging Markets Equity $ 1,358.00 $ 2,402.00 $ 3,488.00 $ 6,050.00 EQ/Van Kampen Mid Cap Growth $ 1,299.00 $ 2,232.00 $ 3,215.00 $ 5,566.00 EQ/Van Kampen Real Estate $ 1,327.00 $ 2,314.00 $ 3,347.00 $ 5,803.00 - ------------------------------------------------------------------------------------------------------ - ----------------------------------------------------------------------------------------------------------------------------- If you annuitize at the end of the If you do not surrender applicable time period and select a non-life contin- your contract at the end of gent period certain annuity option with less than five the years applicable time period - ----------------------------------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years 1 year 3 years - ----------------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap N/A $ 2,219.00 $ 3,195.00 $ 5,529.00 $ 494.00 $ 1,519.00 EQ/Franklin Income N/A $ 2,295.00 $ 3,317.00 $ 5,749.00 $ 521.00 $ 1,595.00 EQ/Franklin Small Cap Value N/A $ 2,305.00 $ 3,332.00 $ 5,776.00 $ 524.00 $ 1,605.00 EQ/Franklin Templeton Founding Strategy N/A $ 2,380.00 $ 3,453.00 $ 5,989.00 $ 550.00 $ 1,680.00 EQ/GAMCO Mergers and Acquisitions N/A $ 2,308.00 $ 3,337.00 $ 5,785.00 $ 525.00 $ 1,608.00 EQ/GAMCO Small Company Value N/A $ 2,241.00 $ 3,230.00 $ 5,594.00 $ 502.00 $ 1,541.00 EQ/International Core PLUS N/A $ 2,260.00 $ 3,261.00 $ 5,649.00 $ 509.00 $ 1,560.00 EQ/International Growth N/A $ 2,317.00 $ 3,352.00 $ 5,812.00 $ 528.00 $ 1,617.00 EQ/JPMorgan Core Bond N/A $ 2,139.00 $ 3,066.00 $ 5,294.00 $ 467.00 $ 1,439.00 EQ/JPMorgan Value Opportunities N/A $ 2,197.00 $ 3,159.00 $ 5,464.00 $ 487.00 $ 1,497.00 EQ/Large Cap Core PLUS N/A $ 2,206.00 $ 3,174.00 $ 5,492.00 $ 490.00 $ 1,506.00 EQ/Large Cap Growth PLUS N/A $ 2,203.00 $ 3,169.00 $ 5,482.00 $ 489.00 $ 1,503.00 EQ/Legg Mason Value Equity N/A $ 2,222.00 $ 3,200.00 $ 5,538.00 $ 495.00 $ 1,522.00 EQ/Long Term Bond N/A $ 2,130.00 $ 3,050.00 $ 5,265.00 $ 464.00 $ 1,430.00 EQ/Lord Abbett Growth and Income N/A $ 2,219.00 $ 3,195.00 $ 5,529.00 $ 494.00 $ 1,519.00 EQ/Lord Abbett Large Cap Core N/A $ 2,235.00 $ 3,220.00 $ 5,575.00 $ 500.00 $ 1,535.00 EQ/Lord Abbett Mid Cap Value N/A $ 2,232.00 $ 3,215.00 $ 5,566.00 $ 499.00 $ 1,532.00 EQ/Marsico Focus N/A $ 2,273.00 $ 3,281.00 $ 5,685.00 $ 513.00 $ 1,573.00 EQ/Mid Cap Value PLUS N/A $ 2,219.00 $ 3,195.00 $ 5,529.00 $ 494.00 $ 1,519.00 EQ/Money Market N/A $ 2,104.00 $ 3,009.00 $ 5,189.00 $ 455.00 $ 1,404.00 EQ/Montag & Caldwell Growth N/A $ 2,248.00 $ 3,241.00 $ 5,612.00 $ 504.00 $ 1,548.00 EQ/Mutual Shares N/A $ 2,314.00 $ 3,347.00 $ 5,803.00 $ 527.00 $ 1,614.00 EQ/Oppenheimer Global N/A $ 2,428.00 $ 3,528.00 $ 6,120.00 $ 566.00 $ 1,728.00 EQ/Oppenheimer Main Street Opportunity N/A $ 2,377.00 $ 3,448.00 $ 5,980.00 $ 549.00 $ 1,677.00 EQ/Oppenheimer Main Street Small Cap N/A $ 2,402.00 $ 3,488.00 $ 6,050.00 $ 558.00 $ 1,702.00 EQ/PIMCO Real Return N/A $ 2,181.00 $ 3,133.00 $ 5,417.00 $ 481.00 $ 1,481.00 EQ/Short Duration Bond N/A $ 2,146.00 $ 3,076.00 $ 5,313.00 $ 469.00 $ 1,446.00 EQ/Small Company Index N/A $ 2,085.00 $ 2,977.00 $ 5,131.00 $ 449.00 $ 1,385.00 EQ/T. Rowe Price Growth Stock N/A $ 2,257.00 $ 3,256.00 $ 5,640.00 $ 507.00 $ 1,557.00 EQ/Templeton Growth N/A $ 2,327.00 $ 3,368.00 $ 5,839.00 $ 531.00 $ 1,627.00 EQ/UBS Growth and Income N/A $ 2,251.00 $ 3,246.00 $ 5,621.00 $ 505.00 $ 1,551.00 EQ/Van Kampen Comstock N/A $ 2,216.00 $ 3,189.00 $ 5,520.00 $ 493.00 $ 1,516.00 EQ/Van Kampen Emerging Markets Equity N/A $ 2,402.00 $ 3,488.00 $ 6,050.00 $ 558.00 $ 1,702.00 EQ/Van Kampen Mid Cap Growth N/A $ 2,232.00 $ 3,215.00 $ 5,566.00 $ 499.00 $ 1,532.00 EQ/Van Kampen Real Estate N/A $ 2,314.00 $ 3,347.00 $ 5,803.00 $ 527.00 $ 1,614.00 - ----------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------ If you do not surrender your contract at applicable time period - ------------------------------------------------------------------------ Portfolio Name 5 years 10 years - ------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------ EQ/FI Mid Cap $ 2,595.00 $ 5,529.00 EQ/Franklin Income $ 2,717.00 $ 5,749.00 EQ/Franklin Small Cap Value $ 2,732.00 $ 5,776.00 EQ/Franklin Templeton Founding Strategy $ 2,853.00 $ 5,989.00 EQ/GAMCO Mergers and Acquisitions $ 2,737.00 $ 5,785.00 EQ/GAMCO Small Company Value $ 2,630.00 $ 5,594.00 EQ/International Core PLUS $ 2,661.00 $ 5,649.00 EQ/International Growth $ 2,752.00 $ 5,812.00 EQ/JPMorgan Core Bond $ 2,466.00 $ 5,294.00 EQ/JPMorgan Value Opportunities $ 2,559.00 $ 5,464.00 EQ/Large Cap Core PLUS $ 2,574.00 $ 5,492.00 EQ/Large Cap Growth PLUS $ 2,569.00 $ 5,482.00 EQ/Legg Mason Value Equity $ 2,600.00 $ 5,538.00 EQ/Long Term Bond $ 2,450.00 $ 5,265.00 EQ/Lord Abbett Growth and Income $ 2,595.00 $ 5,529.00 EQ/Lord Abbett Large Cap Core $ 2,620.00 $ 5,575.00 EQ/Lord Abbett Mid Cap Value $ 2,615.00 $ 5,566.00 EQ/Marsico Focus $ 2,681.00 $ 5,685.00 EQ/Mid Cap Value PLUS $ 2,595.00 $ 5,529.00 EQ/Money Market $ 2,409.00 $ 5,189.00 EQ/Montag & Caldwell Growth $ 2,641.00 $ 5,612.00 EQ/Mutual Shares $ 2,747.00 $ 5,803.00 EQ/Oppenheimer Global $ 2,928.00 $ 6,120.00 EQ/Oppenheimer Main Street Opportunity $ 2,848.00 $ 5,980.00 EQ/Oppenheimer Main Street Small Cap $ 2,888.00 $ 6,050.00 EQ/PIMCO Real Return $ 2,533.00 $ 5,417.00 EQ/Short Duration Bond $ 2,476.00 $ 5,313.00 EQ/Small Company Index $ 2,377.00 $ 5,131.00 EQ/T. Rowe Price Growth Stock $ 2,656.00 $ 5,640.00 EQ/Templeton Growth $ 2,768.00 $ 5,839.00 EQ/UBS Growth and Income $ 2,646.00 $ 5,621.00 EQ/Van Kampen Comstock $ 2,589.00 $ 5,520.00 EQ/Van Kampen Emerging Markets Equity $ 2,888.00 $ 6,050.00 EQ/Van Kampen Mid Cap Growth $ 2,615.00 $ 5,566.00 EQ/Van Kampen Real Estate $ 2,747.00 $ 5,803.00 - ------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix V at the end of this Prospectus. Fee table 17 CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as the end of the periods shown for each of the variable investment options available as of December 31, 2007. 18 Fee table 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT You may purchase a contract by making payments to us that we call "contributions." We require a minimum initial contribution of $10,000 for you to purchase a contract. You may make additional contributions of at least $500 each for NQ, QP and Rollover TSA contracts and $50 each for IRA contracts, subject to limitations noted below. The following table summarizes our rules regarding contributions to your contract. Both the owner and the annuitant named in the contract must meet the issue age requirements shown in the table, and contributions are based on the age of the older of the original owner and annuitant. Additional contributions may not be permitted in your state. Please see Appendix VII later in this Prospectus to see if additional contributions are permitted in your state. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000. We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We currently impose that limitation, except that we permit contributions greater than the 150% limit if both: (i) the owner (or joint owner or joint annuitant, if applicable) is 75 or younger; and (ii) the total contributions in any year after the 150% limit is reached do not exceed 100% of the prior year's contributions. We may accept less than the minimum initial contribution under a contract if an aggregate amount of contracts purchased at the same time by an individual (including spouse) meets the minimum. - -------------------------------------------------------------------------------- The "owner" is the person who is the named owner in the contract and, if an individual, is the measuring life for determining contract benefits. The "annuitant" is the person who is the measuring life for determining the contract's maturity date. The annuitant is not necessarily the contract owner. Where the owner of a contract is non-natural, the annuitant is the measuring life for determining contract benefits. - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions - -------------------------------------------------------------------------------- NQ 0 through 80 o $10,000 (initial) o $500 (additional) o $100 monthly and $300 quarterly under our auto- matic investment program (additional) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Contract type Source of contributions Limitations on contributions+ - -------------------------------------------------------------------------------- NQ o After-tax money. o No additional contributions after attainment of age 81 o Paid to us by check or or, if later, the first contract transfer of contract value in date anniversary.* a tax-deferred exchange under Section 1035 of the Internal Revenue Code. - --------------------------------------------------------------------------------
Contract features and benefits 19
- -------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions - -------------------------------------------------------------------------------- Rollover IRA 20 through 80 o $10,000 (initial) o $50 (additional) o $100 monthly and $300 quarterly under our auto- matic investment program (additional) (subject to tax maximums) - -------------------------------------------------------------------------------- Contract type Source of contributions Limitations on contributions+ - -------------------------------------------------------------------------------- Rollover IRA o Eligible rollover distribu- o No contributions after tions from 403(b) plans, attainment of age 81 or, if qualified plans, and govern- later, the first contract date mental employer 457(b) anniversary.* plans. o Contributions after age 70-1/2 o Rollovers from another must be net of required traditional individual retire- minimum distributions. ment arrangement. o Although we accept regular o Direct custodian-to- IRA contributions (limited to custodian transfers from $5,000) under Rollover IRA another traditional indi- contracts, we intend that vidual retirement this contract be used prima- arrangement. rily for rollover and direct transfer contributions. o Regular IRA contributions. o Additional catch-up contri- o Additional catch-up contri- butions of up to $1,000 per butions. calendar year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made.
20 Contract features and benefits
- -------------------------------------------------------------------------------- Available for owner and annuitant Minimum Contract type issue ages contributions - -------------------------------------------------------------------------------- Roth Conversion 20 through 80 o $10,000 (initial) IRA o $50 (additional) o $100 monthly and $300 quarterly under our auto- matic investment program (additional) (subject to tax maximums) - -------------------------------------------------------------------------------- Rollover TSA** 20 through 80 o $10,000 (initial) o $500 (additional) - -------------------------------------------------------------------------------------- Contract type Source of contributions Limitations on contributions+ - -------------------------------------------------------------------------------------- Roth Conversion o Rollovers from another o No additional rollover or IRA Roth IRA. direct transfer contributions after attainment of age 81 o Rollovers from a "desig- or, if later, the first contract nated Roth contribution date anniversary.* account" under a 401(k) plan or 403(b) plan. o Conversion rollovers after age 70-1/2 must be net of o Conversion rollovers from a required minimum distribu- traditional IRA or other tions for the traditional IRA eligible retirement plan. or other eligible retirement plan which is the source of o Direct transfers from the conversion rollover. another Roth IRA. o Regular Roth IRA contribu- o You cannot roll over funds tions. from a traditional IRA or o Additional catch-up contri- other eligible retirement butions. plan if your adjusted gross income is $100,000 or more. o Although we accept regular Roth IRA contributions (lim- ited to $5,000 ) under the Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contri- butions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribu- tion is made. Rollover TSA** o With documentation of o Additional rollover or direct employer or plan approval, transfer contributions may and limited to pre-tax be made up to attainment of funds, direct plan-to-plan age 81 or, if later, the first transfers from another contract date anniversary.* 403(b) plan or contract o Contributions after age 70-1/2 exchanges from another must be net of any required 403(b) contract under the minimum distributions. same plan. o We do not accept employer- o With documentation of remitted contributions. employer or plan approval, o We do not accept after tax and limited to pre-tax contributions, including des- funds, eligible rollover dis- ignated Roth contributions. tributions from other 403(b) plans, qualified plans, gov- ernmental employer 457(b) plans or traditional IRAs.
Contract features and benefits 21
- ------------------------------------------------------------------------------------------------------------------------------------ Available for owner and annuitant Minimum Contract type issue ages contributions Source of contributions Limitations on contributions+ - ------------------------------------------------------------------------------------------------------------------------------------ QP 20 through 70 o $10,000 (initial) o Only transfer contributions o A separate QP contract must from other investments be established for each plan o $500 (additional) within an existing qualified participant. plan trust. o We do not accept regular o The plan must be qualified ongoing payroll contribu- under Section 401(a) of the tions or contributions Internal Revenue Code. directly from the employer. o For 401(k) plans, trans- o Only one additional transfer ferred contributions may contribution may be made not include any after-tax during a contract year. contributions, including o No additional transfer con- designated Roth contribu- tributions after participant's tions. attainment of age 71 or, if later, the first contract date anniversary. See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. - ------------------------------------------------------------------------------------------------------------------------------------
+ Additional contributions may not be permitted under certain conditions in your state. Please see Appendix VII later in the Prospectus to see if additional contributions are permit ted in your state. If you are participating in a Principal guarantee benefit, contributions will only be permitted for the first six months after the contract is issued and no further contributions will be permitted for the life of the contract. For the Guaranteed withdrawal benefit for life option, additional contributions are not permitted after the later of: (i) the end of the first contract year, and (ii) the date you make your first withdrawal. * Please see Appendix VII later in this Prospectus for state variations. ** May not be available from all Selling broker-dealers. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. 22 Contract features and benefits OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. A joint owner may also be named. Only natural persons can be joint owners. This means that an entity such as a corporation cannot be a joint owner. For the Spousal continuation feature to apply, the spouses must either be joint owners, or, for Single life contracts, the surviving spouse must be the sole primary beneficiary. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. This contract is not available for purchase by Charitable Remainder Trusts. In general we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your state. For NQ contracts (with a single owner, joint owners, or a non-natural owner) purchased through an exchange that is not taxable under Section 1035 of the Internal Revenue Code, we permit joint annuitants. We also permit joint annuitants in non-exchange sales if you elect the Guaranteed withdrawal benefit for life on a Joint life basis, and the contract is owned by a non-natural owner. In all cases, the joint annuitants must be spouses. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II at the end of this Prospectus for more information on QP contracts. Certain benefits under your contract, as described later in this Prospectus, are based on the age of the owner. If the owner of the contract is not a natural person, these benefits will be based on the age of the annuitant. Under QP contracts, all benefits are based on the age of the annuitant. In this Prospectus, when we use the terms owner and joint owner, we intend these to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If GWBL is elected, the terms owner and Successor Owner are intended to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If the contract is jointly owned or is issued to a non-natural owner and the GWBL has not been elected, benefits are based on the age of the older joint owner or older joint annuitant, as applicable. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept initial and additional contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose. Additional contributions may also be made under our automatic investment program. These methods of payment, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealer, are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- Your initial contribution must generally be accompanied by an application and any other form we need to process the payments. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain that information. If we are unable to obtain all of the information we require within five business days after we receive an incomplete application or form, we will inform the financial professional submitting the application on your behalf. We will then return the contribution to you unless you specifically direct us to keep your contribution until we receive the required information. The contribution will be applied as of the date we receive the missing information. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option, the account for special money market dollar cost averaging and the fixed maturity options. If you elect the 100% Principal guarantee benefit, the Guaranteed withdrawal benefit for life or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, your investment options will be limited to the guaranteed interest option, the account for special money market dollar cost averaging and the following variable investment options: the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio ("permitted variable investment options"). Contract features and benefits 23 If you elect the 125% Principal guarantee benefit, your investment options will be limited to the guaranteed interest option, the account for special money market dollar cost averaging and the AXA Moderate Allocation Portfolio. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. 24 Contract features and benefits PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features including those optional benefits that restrict allocations to the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and EQ Advisors Trust for some Portfolios,. AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- ----------------------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - ----------------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. - ----------------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. - ----------------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a ALLOCATION greater emphasis on current income. - ----------------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. - ----------------------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, ALLOCATION with a greater emphasis on capital appreciation. - ----------------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. EQUITY - ----------------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital appreciation, consistent with a prudent level of risk. - ----------------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. - ----------------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current income and capital appreciation. - ----------------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. EQUITY - ----------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ----------------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION o AXA Equitable - ----------------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION o AXA Equitable - ----------------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS o AXA Equitable ALLOCATION - ----------------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION o AXA Equitable - ----------------------------------------------------------------------------------------------- AXA MODERATE-PLUS o AXA Equitable ALLOCATION - ----------------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - ----------------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND o BlackRock Financial Management, Inc. o Pacific Investment Management Company LLC - ----------------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ----------------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD o Pacific Investment Management Company LLC o Post Advisory Group, LLC - ----------------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - -----------------------------------------------------------------------------------------------
Contract features and benefits 25
- ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------
26 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear LONG/SHORT EQUITY markets using strategies that are designed to limit expo- sure to general equity market risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, EQUITY income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of VALUE income, accompanied by growth of capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to INCOME achieve an above-average and consistent total return. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. RESPONSIBLE - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. RESEARCH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. YIELD BOND - ------------------------------------------------------------------------------------------------------------------------------------ EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. BOND - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI MID CAP Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects for capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily seeks FOUNDING STRATEGY income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA ROSENBERG VALUE o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK BASIC VALUE o BlackRock Investment Management, LLC EQUITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK INTERNATIONAL o BlackRock Investment Management VALUE International Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BOSTON ADVISORS EQUITY o Boston Advisors, LLC INCOME - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN GROWTH o Capital Guardian Trust Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company RESEARCH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAYWOOD-SCHOLL HIGH o Caywood-Scholl Capital Management YIELD BOND - ------------------------------------------------------------------------------------------------------------------------------------ EQ/DAVIS NEW YORK VENTURE o Davis Selected Advisers, L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EQUITY 500 INDEX o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN INTERNATIONAL o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN OMEGA o Evergreen Investment Management Company, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI MID CAP o Fidelity Management & Research Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN INCOME o Franklin Advisers, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN SMALL CAP VALUE o Franklin Advisory Services, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN TEMPLETON o AXA Equitable FOUNDING STRATEGY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO MERGERS AND o GAMCO Asset Management Inc. ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO SMALL COMPANY o GAMCO Asset Management Inc. VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL CORE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL GROWTH o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 27
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with mod- erate risk to capital and maintenance of liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. OPPORTUNITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- ondary objective to seek reasonable current income. For purposes of this Portfolio, the words "reasonable current income" mean moderate income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LONG TERM BOND Seeks to maximize income and capital appreciation through investment in long-maturity debt obligations. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of INCOME income without excessive fluctuation in market value. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of CORE income with reasonable risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve its assets and maintain liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- sionally be short-term, and secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. OPPORTUNITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. SMALL CAP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with preservation of real capital and prudent investment man- agement. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility of principal. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN CORE BOND o JPMorgan Investment Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN VALUE o JPMorgan Investment Management Inc. OPPORTUNITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS o AXA Equitable o Institutional Capital LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY o Legg Mason Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LONG TERM BOND o BlackRock Financial Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND o Lord, Abbett & Co. LLC INCOME - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP o Lord, Abbett & Co. LLC CORE - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE o Lord, Abbett & Co. LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONEY MARKET o The Dreyfus Corporation - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL o Montag & Caldwell, Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MUTUAL SHARES o Franklin Mutual Advisers, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL o OppenheimerFunds, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. OPPORTUNITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. SMALL CAP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN o Pacific Investment Management Company, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND o BlackRock Financial Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------------------------------------------------
28 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and STOCK secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation with income as a secondary consideration. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. MARKETS EQUITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- term capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH o T. Rowe Price Associates, Inc. STOCK - ------------------------------------------------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH o Templeton Global Advisors Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS GROWTH AND INCOME o UBS Global Asset Management (Americas) Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN COMSTOCK o Morgan Stanley Investment Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN EMERGING o Morgan Stanley Investment Management Inc. MARKETS EQUITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN MID CAP o Morgan Stanley Investment Management Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN REAL ESTATE o Morgan Stanley Investment Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks, and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. Contract features and benefits 29 GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges, any withdrawal charges and any optional benefit charges. See Appendix VII later in this Prospectus for state variations. Depending on the state where your contract is issued, your lifetime minimum ranges from 1.00% to 3.00%. The data page for your contract shows the lifetime minimum rate. Check with your financial professional as to which rate applies in your state. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75% or 3.00%, depending on your lifetime minimum rate. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfers from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers, even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional or see Appendix VII later in this Prospectus to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options generally range from one to ten years to maturity. - -------------------------------------------------------------------------------- On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for owner and annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you apply for an Accumulator(R) Plus(SM) contract, a 60-day rate lock-in will apply from the date the application is signed. Any contributions received and designated for a fixed maturity option during this period will receive the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever is greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value (there may be a withdrawal charge). If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008, the next available maturity date was February 15, 2015. If no fixed maturity options are available, we will transfer your maturity value to the EQ/Money Market option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract, or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market 30 Contract features and benefits value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options (adjusted to reflect a similar maturity date), and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ALLOCATING YOUR CONTRIBUTIONS You may choose between self-directed and dollar cost averaging to allocate your contributions under your contract. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, guaranteed interest option (subject to restrictions in certain states - see Appendix VII later in this Prospectus for state variations) and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. No more than 25% of any contribution may be allocated to the guaranteed interest option. The total of your allocations into all available investment options must equal 100%. If an owner or an annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit's value is low and fewer units if the unit's value is high. Therefore, you may get a lower average cost per unit over the long term. This plan of investing, however, does not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options or the guaranteed interest option. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- SPECIAL MONEY MARKET DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the account for special money market dollar cost averaging option (which is part of the EQ/Money Market investment option) into any of the other variable investment options. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life, the 100% Principal guarantee benefit or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. You may elect to participate in a 3, 6 or 12-month program at any time subject to the age limitation on contributions described earlier in this Prospectus. Contributions into the account for special money market dollar cost averaging must be new contributions. In other words, you may not make transfers from amounts allocated in other variable investment options to initiate the program. You must allocate your entire initial contribution into the account for special money market dollar cost averaging if you are selecting the program at the time you apply for your Accumulator(R) Plus(SM) contract. Thereafter, contributions to any Contract features and benefits 31 new program must be at least $2,000. Contributions to an existing program must be at least $250. You may only have one program in effect at any time. Each month, we will transfer your account value in the account for special money market dollar cost averaging into the other variable investment options you select. Once the time period you selected has expired, you may then select to participate in the special money market dollar cost averaging program for an additional time period. At that time, you may also select a different allocation for monthly transfers from the account for special money market dollar cost averaging to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, the monthly transfer date from the account for special money market dollar cost averaging option will be the same as your contract date, but not later than the 28th day of the month. For a program selected after application, the first transfer date and each subsequent transfer date will be one month from the date the first contribution is made into the program, but not later than the 28th day of the month. All amounts will be transferred out by the end of the time period in effect. The only amounts that should be transferred from the account for special money market dollar cost averaging option are your regularly scheduled transfers to the variable investment options. If you request to transfer or withdraw any other amounts from the account for special money market dollar cost averaging, we will transfer all of the value you have remaining in the account to the variable investment options according to the allocation percentages we have on file for you. You may cancel your participation in the program at any time by notifying us in writing. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. If you are participating in a Principal guarantee benefit, the general dollar cost averaging program is not available. If you elect the Guaranteed withdrawal benefit for life, or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit option, general dollar cost averaging is not available. INVESTMENT SIMPLIFIER FIXED-DOLLAR OPTION. Under this option, you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life, the 100% Principal guarantee benefit or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. The fixed-dollar option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date, your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. INTEREST SWEEP OPTION. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life, the 100% Principal guarantee benefit or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- 32 Contract features and benefits You may not participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Under the Option I rebalancing program you may participate in any of the dollar cost averaging programs except special money market dollar cost averaging and general dollar cost averaging. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" immediately below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. Not all dollar cost averaging programs are available in all states. See Appendix VII later in this Prospectus for more information on state availability. CREDITS A credit will also be allocated to your account value at the same time that we allocate your contribution. Credits are allocated to the same investment options based on the same percentages used to allocate your contributions. The credit amounts attributable to your contributions are not included for purposes of calculating any of the guaranteed benefits. The amount of the credit will be 4%, 4.5% or 5% of each contribution based on the following breakpoints and rules: - -------------------------------------------------------------------------------- Credit percentage First year total contributions applied to Breakpoints contributions - -------------------------------------------------------------------------------- Less than $500,000 4% - -------------------------------------------------------------------------------- $500,000-$999,999.99 4.5% - -------------------------------------------------------------------------------- $1 million or more 5% - -------------------------------------------------------------------------------- The percentage of the credit is based on your total first year total contributions. If you purchase a Principal guarantee benefit, you may not make additional contributions after the first six months. This credit percentage will be credited to your initial contribution and each additional contribution made in the first contract year (after adjustment as described below), as well as those in the second and later contract years. The credit will apply to additional contributions only to the extent that the sum of that contribution and prior contributions to which no credit was applied exceeds the total withdrawals made from the contract since the issue date. Although the credit, as adjusted at the end of the first contract year, will be based upon first year total contributions, the following rules affect the percentage with which contributions made in the first contract year are credited during the first contract year: o Indication of intent: If you indicate in the application at the time you purchase your contract an intention to make additional contributions to meet one of the breakpoints (the "Expected First Year Contribution Amount") and your initial contribution is at least 50% of the Expected First Year Contribution Amount, your credit percentage will be as follows: o For any contributions resulting in total contributions to date less than or equal to your Expected First Year Contribution Amount, the credit percentage will be the percentage that applies to the Expected First Year Contribution Amount based on the table above. o For any subsequent contribution that results in your total contributions to date exceeding your Expected First Year Contribution Amount, such that the credit percentage should have been higher, we will increase the credit percentage applied to that contribution, as well as any prior or subsequent contributions made in the first contract year, accordingly. o If at the end of the first contract year your total contributions were lower than your Expected First Year Contribution Amount such that the credit applied should have been lower, we will recover any Excess Credit. The Excess Credit is equal to the difference between the credit that was actually applied based on your Expected First Year Contribution Amount (as applicable) and the credit that should have been applied based on first year total contributions. o The "Indication of intent" approach to first year contributions is not available in all states. Please see Appendix VII later in this Prospectus for information on state availability. o No indication of intent: o For your initial contribution (if available in your state) we will apply the credit percentage based upon the above table. o For any subsequent contribution that results in a higher applicable credit percentage (based on total contributions to date), we will increase the credit percentage applied to that contribution, as well as any prior or subsequent contributions made in the first contract year, accordingly. In addition to the recovery of any Excess Credit, we will recover all of the credit or a portion of the credit in the following situations: o If you exercise your right to cancel the contract, we will recover the entire credit made to your contract (see "Your right to cancel within a certain number of days" later in this Prospectus)(1) o If you start receiving annuity payments within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. Please see Appendix VII later in this Prospectus for information on state variations. o If the owner (or older joint owner, if applicable) dies during the one-year period following our receipt of a contribution to which a credit was applied, we will recover the amount of such Credit. For Joint life GWBL contracts, we will only recover the credit if the second owner dies within the one-year period following a contribution. - ---------------------- (1) The amount we return to you upon exercise of this right to cancel will not include any credit or the amount of charges deducted prior to cancellation but will reflect, except in states where we are required to return the amount of your contributions, any investment gain or loss in the variable investment options associated with your contributions and with the full amount of the credit. Contract features and benefits 33 We will recover any credit on a pro rata basis from the value in your variable investment options and guaranteed interest option. If there is insufficient value or no value in the variable investment options and guaranteed interest option, the fixed maturity options in order of the earliest maturing date(s), any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the account for special money market dollar cost averaging. A market value adjustment may apply to withdrawals from the fixed maturity options. We do not consider credits to be contributions for purposes of any discussion in this Prospectus. Credits are also not considered to be part of your investment in the contract for tax purposes. We use a portion of the mortality and expense risks charge and withdrawal charge to help recover our cost of providing the credit. See "Charges and expenses" later in this Prospectus. The charge associated with the credit may, over time, exceed the sum of the credit and any related earnings. You should consider this possibility before purchasing the contract. GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit and the death benefits, as described in this section. The benefit base for the Guaranteed minimum income benefit and an enhanced death benefit will be calculated as described below in this section whether these options are elected individually or in combination. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 6-1/2% (OR 6%, IF APPLICABLE) ROLL-UP TO AGE 85 (USED FOR THE GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to this benefit base is: o 6-1/2% (or 6%, if applicable) with respect to the variable investment options (including amounts allocated to the account for special money market dollar cost averaging, but excluding all other amounts allocated to the EQ/Money Market); the effective annual rate may be 4% in some states. Please see Appendix VII later in this Prospectus to see what applies in your state; and o 3% with respect to the EQ/Money Market, the fixed maturity options, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up on the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: o your initial contribution to the contract (plus any additional contributions), or o your highest account value on any contract date anniversary up to the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday, plus any contributions made since the most recent Annual Ratchet, less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of the deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. GREATER OF 6-1/2% (OR 6%, IF APPLICABLE) ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6-1/2% (or 6%, if applicable) Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. For the Guaranteed minimum income benefit, the benefit base is reduced by any applicable withdrawal charge remaining when the 34 Contract features and benefits option is exercised. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. 3% ROLL-UP TO AGE 85 (USED FOR THE GREATER OF 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make (including any applicable withdrawal charges). The amount of this deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The amount of any withdrawal charge is described under "Withdrawal charge" in "Charges and expenses" later in the Prospectus. The effective annual roll-up rate credited to the benefit base is 3%. The benefit base stops rolling up on the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday. GREATER OF THE 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 3% Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. GUARANTEED MINIMUM INCOME BENEFIT AND THE ROLL-UP BENEFIT BASE RESET. You will be eligible to reset your Guaranteed minimum income benefit Roll-Up benefit base on each contract date anniversary until the contract date anniversary following age 75. If you elect the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, you may reset its Roll-Up benefit base on each contract date anniversary until the contract date anniversary following age 75 AND your investment option choices will be limited to the guaranteed interest option, the account for special money market dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. The reset amount would equal the account value as of the contract date anniversary on which you reset your Roll-Up benefit base. The Roll-Up continues to age 85 on any reset benefit base. If you elect both the Guaranteed minimum income benefit AND the Greater of the 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit (the "Greater of enhanced death benefit"), you are eligible to reset the Roll-Up benefit base for these guaranteed benefits to equal the account value on any contract date anniversary until the contract date anniversary following age 75 and your investment options will not be restricted. If you elect both options, they are not available with different Roll-Up benefit bases: each option must include either the 6-1/2% Roll-Up benefit base or 6% Roll-Up benefit base. We will send you a notice in each year that the Roll-Up benefit base is eligible to be reset, and you will have 30 days from your contract date anniversary to reset your Roll-Up benefit base. If your request to reset your Roll-Up benefit base is received at our processing office more than 30 days after your contract date anniversary, your Roll-Up benefit base will reset on the next contract date anniversary on which you are eligible for a reset. You may choose one of the three available reset methods: one-time reset option, automatic annual reset program or automatic customized reset program. - -------------------------------------------------------------------------------- ONE-TIME RESET OPTION - resets your Roll-Up benefit base on a single contract date anniversary. AUTOMATIC ANNUAL RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary you are eligible for a reset. AUTOMATIC CUSTOMIZED RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary, if eligible, for the period you designate. - -------------------------------------------------------------------------------- If you wish to cancel your elected reset program, your request must be received by our processing office at least 30 days prior to your contract date anniversary to terminate your reset program for such contract date anniversary. Cancellation requests received after this window will be applied the following year. A reset cannot be cancelled after it has occurred. For more information, see "How to reach us" earlier in this Prospectus. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset until the next contract date anniversary. If after your death your spouse continues this contract, the benefit base will be eligible to be reset on each contract date anniversary, if applicable. The last age at which the benefit base is eligible to be reset is the contract date anniversary following owner (or older joint owner, if applicable) age 75. If you elect to reset your Roll-Up benefit base on any contract date anniversary, we may increase the charge for the Guaranteed minimum income benefit and the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. There is no charge increase for the Annual Ratchet to age 85 enhanced death benefit. See both "Guaranteed minimum death benefit charge" and "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus for more information. It is important to note that once you have reset your Roll-Up benefit base, a new waiting period to exercise the Guaranteed minimum income benefit will apply from the date of the reset: you may not exercise until the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. See "Exercise rules" under "Guaranteed minimum income benefit option" below for more information. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the exercise waiting period. Also, even when there is no additional charge when you reset your Roll-Up benefit base, the total dollar amount charged on future contract date anniversaries may increase as a result of the reset since the charges may be applied to a higher benefit base than would have been otherwise applied. See "Charges and expenses" in the Prospectus. If you are a traditional IRA, TSA or QP contract owner, before you reset your Roll-Up benefit base, please consider the effect of the 10-year exercise waiting period on your requirement to take lifetime required minimum distributions with respect to this contract. If you must begin Contract features and benefits 35 taking lifetime required minimum distributions during the 10-year waiting period, you may want to consider taking the annual lifetime required minimum distribution calculated for this contract from another traditional IRA, TSA or QP contract that you maintain. If you withdraw the lifetime required minimum distribution from this contract, and the required minimum distribution is more than 6-1/2% (or 6%) of the reset benefit base, the withdrawal would cause a pro-rata reduction in the benefit base. Alternatively, resetting the benefit base to a larger amount would make it less likely that the required minimum distributions would exceed the 6-1/2% (or 6%) threshold. See "Lifetime required minimum distribution withdrawals" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money." Also, see "Required minimum distributions" under "Individual retirement arrangements (IRAs)" and "Tax-sheltered annuity contracts (TSAs)" in "Tax information" and Appendix II -- "Purchase considerations for QP Contracts," later in this Prospectus. If you elect both a "Greater of" enhanced death benefit and the Guaranteed minimum income benefit, the Roll-Up benefit bases for both are reset simultaneously when you request a Roll-Up benefit base reset. You cannot elect a Roll-Up benefit base reset for one benefit and not the other. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed under "Guaranteed minimum income benefit option" below and annuity payout options are discussed under "Your annuity payout options" in "Accessing your money" later in this Prospectus. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the owner's (and any joint owner's) age and sex in certain instances. We may provide more favorable current annuity purchase factors for the annuity payout options. GUARANTEED MINIMUM INCOME BENEFIT The Guaranteed minimum income benefit is available if the owner is age 20 through 75 at the time the contract is issued. Subject to state availability (see Appendix VII later in this Prospectus), you may elect one of the following: o The Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base. o The Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base. Both options include the ability to reset your Guaranteed minimum income benefit base on each contract date anniversary until the contract date anniversary following age 75. See "Guaranteed minimum income benefit and the Roll-Up benefit base reset" earlier in this section. If you elect the Guaranteed minimum income benefit with a "Greater of" death benefit, you can choose between one of the following two combinations: o the Greater of the 6-1/2 Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6-1/2 Roll-Up benefit base, or o the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base. If you elect the Guaranteed minimum income benefit without the Greater of the 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, your investment options will be limited to the guaranteed interest option, the account for special money market dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. If the contract is jointly owned, the guaranteed minimum income benefit will be calculated on the basis of the older owner's age. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. If you elect both the Guaranteed minimum income benefit and a "Greater of" enhanced death benefit, the Roll-Up rate you elect must be the same for both features. This feature is not available if you elect a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. If the owner was older than age 60 at the time an IRA, QP or Rollover TSA contract was issued, the Guaranteed minimum income benefit may not be an appropriate feature because the minimum distributions required by tax law generally must begin before the Guaranteed minimum income benefit can be exercised. If you elect the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the owner's age as follows: - -------------------------------------------------------------------------------- Level payments - -------------------------------------------------------------------------------- Owner's age at exercise Period certain years - -------------------------------------------------------------------------------- 80 and younger 10 81 9 82 8 83 7 84 6 85 5 - -------------------------------------------------------------------------------- 36 Contract features and benefits We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit should be regarded as a safety net only. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base, less any applicable withdrawal charge remaining, to guaranteed annuity purchase factors, or (ii) the income provided by applying your account value to our then current annuity purchase factors. For Rollover TSA only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. Before you elect the Guaranteed minimum income benefit, you should consider the fact that it provides a form of insurance and is based on conservative actuarial factors. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. GUARANTEED MINIMUM INCOME BENEFIT "NO LAPSE GUARANTEE". In general, if your account value falls to zero (except as discussed below, if your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days), the Guaranteed minimum income benefit will be exercised automatically, based on the owner's (or older joint owner's, if applicable) current age and benefit base as follows: o You will be issued a supplementary contract based on a single life with a maximum 10 year period certain. Payments will be made annually starting one year from the date the account value fell to zero. o You will have 30 days from when we notify you to change the payout option and/or the payment frequency. Please note that we will not automatically exercise the Guaranteed minimum income benefit, as described above, if you have a TSA contract and withdrawal restrictions apply. The no lapse guarantee will terminate under the following circumstances: o If your aggregate withdrawals during any contract year exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days); o Upon the contract date anniversary following the owner (or older joint owner, if applicable) reaching age 85. Please note that if you participate in our Automatic RMD service, an automatic withdrawal under that program will not cause the no lapse guarantee to terminate even if a withdrawal causes your total contract year withdrawals to exceed 6-1/2% (or 6%, if applicable) of your Roll-Up benefit base at the beginning of the contract year. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the Guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male owner age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to the EQ/Money Market, the guaranteed interest option, the fixed maturity options or the loan reserve account under Rollover TSA contracts. - -------------------------------------------------------------------------------- Guaranteed minimum Contract date income benefit -- annual anniversary at exercise income payable for life - -------------------------------------------------------------------------------- 10 $10,065 15 $15,266 - -------------------------------------------------------------------------------- EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us along with all required information within 30 days following your contract date anniversary in order to exercise this benefit. Upon exercise of the Guaranteed minimum income benefit, the owner (or older joint owner, if applicable) will become the annuitant, and the contract will be annuitized on the basis of the annuitant's life. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payment contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death, or if later, the end of the period certain (where the payout option chosen includes a period certain). Contract features and benefits 37 EXERCISE RULES. Eligibility to exercise the Guaranteed minimum income benefit is based on the owner's (or older joint owner's, if applicable) age as follows: o If you were at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If you were at least age 45 and no older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after age 60. o If you were at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your 85th birthday; (ii) if you were age 75 when the contract was issued or the Roll-Up benefit base was reset, the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your attainment of age 85; (iii) for Accumulator(R) Plus(SM) QP contracts, the Plan participant can exercise the Guaranteed minimum income benefit only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) Plus(SM) QP contract into an Accumulator(R) Plus(SM) Rollover IRA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for the Plan participant to be eligible to exercise, However, if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, a rollover into an IRA will not be effected and payments will be made directly to the trustee; (iv) since no partial exercise is permitted, owners of defined benefit QP contracts who plan to change ownership of the contract to the participant must first compare the participant's lump sum benefit amount and annuity benefit amount to the GMIB benefit amount and account value, and make a withdrawal from the contract if necessary. See "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. (v) for Accumulator(R) Plus(SM) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Plus(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (vi) if you reset the Roll-Up benefit base (as described earlier in this section), your new exercise date will be the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the waiting period; (vii) a spouse beneficiary or younger spouse joint owner under Spousal continuation may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original owner could have exercised the benefit. In addition, the spouse beneficiary or younger spouse joint owner must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The spouse beneficiary or younger spouse joint owner's age on the date of the owner's death replaces the owner's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules. (viii) if the contract is jointly owned, you can elect to have the Guaranteed minimum income benefit paid either: (a) as a joint life benefit or (b) as a single life benefit paid on the basis of the older owner's age; and (ix) if the contract is owned by a trust or other non-natural person, eligibility to elect or exercise the Guaranteed minimum income benefit is based on the annuitant's (or older joint annuitant's, if applicable) age, rather than the owner's. See "Effect of the owner's death" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. Your contract provides a standard death benefit. If you do not elect one of the enhanced death benefits described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions, adjusted for withdrawals (and any associated withdrawal charges). Once your contract is issued, you may not change or voluntarily terminate your death benefit. If you elect one of the enhanced death benefits (not including the GWBL Enhanced death benefit), the death benefit is equal to your 38 Contract features and benefits account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, information and forms necessary to effect payment, or your elected enhanced death benefit on the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals (and associated withdrawal charges) whichever provides the higher amount. See "Payment of death benefit" later in this Prospectus for more information. Any of the enhanced death benefits (other than the Greater of the 3% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit) or the standard death benefit can be elected by themselves or with the Guaranteed minimum income benefit. Each enhanced death benefit has an additional charge. There is no additional charge for the standard death benefit. If you elect one of the enhanced death benefit options described below and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, any enhanced death benefit elected will be replaced with the standard death benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the owner (or older joint owner, if applicable) dies during the one-year period following our receipt of a contribution, the account value used to calculate the applicable guaranteed minimum death benefit will not reflect any Credits applied in the one-year period prior to death. For Joint life GWBL contracts, we will only recover the credit if the second owner dies within the one-year period following a contribution. Subject to state availability (see Appendix VII later in this Prospectus for state availability of these benefits), your age at contract issue, and your contract type, you may elect one of the following enhanced death benefits: Optional enhanced death benefit applicable for owner (or older joint owner, if applicable) ages 0 through 75 at issue of NQ contracts; 20 through 75 at issue of Rollover IRA, Roth Conversion IRA, and Rollover TSA contracts; and 20 through 70 at issue of QP contracts. o Annual Ratchet to age 85 o The Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 o The Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 Optional enhanced death benefit applicable for owner (or older joint owner, if applicable) ages 76 through 80 at issue of NQ, Rollover IRA, Roth Conversion IRA, and Rollover TSA contracts. o The Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 The Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 is not available for QP contracts. For contracts with non-natural owners, the available death benefits are based on the annuitant's age. Each enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Once you have made your enhanced death benefit election, you may not change it. As discussed earlier in this Prospectus, you can elect a "Greater of" enhanced death benefit with a corresponding Guaranteed minimum income benefit. You can elect one of the following two combinations: o the Greater of 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base, or o the Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base. If you purchase a "Greater of" enhanced death benefit with the Guaranteed minimum income benefit, you will be eligible to reset your Roll-Up benefit base on each contract date anniversary until the contract date anniversary following age 75. If you purchase a "Greater of" enhanced death benefit without the Guaranteed minimum income benefit, no reset is available. See "Guaranteed minimum income benefit and the Roll-Up benefit base reset" earlier in this section. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. See Appendix IV later in this Prospectus for an example of how we calculate an enhanced minimum death benefit. EARNINGS ENHANCEMENT BENEFIT Subject to state and contract availability (please see Appendix VII later in this Prospectus for state availability of these benefits), if you are purchasing a contract, under which the Earnings enhancement benefit is available, you may elect the Earnings enhancement benefit at the time you purchase your contract if the owner is age 75 or younger. The Earnings enhancement benefit provides an additional death benefit as described below. See the appropriate part of "Tax information" later in this Prospectus for the potential tax consequences of electing to purchase the Earnings enhancement benefit in an NQ, IRA or Rollover TSA contract. Once you purchase the Earnings enhancement benefit, you may not voluntarily terminate the feature. If you elect the Guaranteed withdrawal benefit for life, the Earnings enhancement benefit is not available. If you elect the Earnings enhancement benefit described below and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the owner (or older joint owner, if applicable) is 70 or younger when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is 70 or younger when he or she becomes the successor Contract features and benefits 39 owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 40% of: the greater of: o the account value or o any applicable death benefit decreased by: o total net contributions For purposes of calculating your Earnings enhancement benefit, the following applies: (i) "Net contributions" are the total contributions made (or if applicable, the total amount that would otherwise have been paid as a death benefit had the spouse beneficiary or younger spouse joint owner not continued the contract plus any subsequent contributions) adjusted for each withdrawal that exceeds your Earnings enhancement benefit earnings. "Net contributions" are reduced by the amount of that excess. Earnings enhancement benefit earnings are equal to (a) minus (b) where (a) is the greater of the account value and the death benefit immediately prior to the withdrawal, and (b) is the net contributions as adjusted by any prior withdrawals (credit amounts are not included in "net contributions"); and (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable Guaranteed minimum death benefit as of the date of death. For purposes of calculating your Earnings enhancement benefit, if any contributions are made in the one-year period prior to death of the owner (or older joint owner, if applicable), the account value will not include any Credits applied in the one-year period prior to death. If the owner (or older joint owner, if applicable) is age 71 through 75 when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is between the ages of 71 and 75 when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 25% of: the greater of: o the account value or o any applicable death benefit decreased by: o total net contributions. The value of the Earnings enhancement benefit is frozen on the first contract date anniversary after the owner (or older joint owner, if applicable) turns age 80, except that the benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce the benefit by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If the benefit is $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and the benefit after the withdrawal would be $24,000 ($40,000-$16,000). For an example of how the Earnings enhancement death benefit is calculated, please see Appendix VI. For contracts continued under Spousal continuation upon the death of the spouse (or older spouse, in the case of jointly owned contracts), the account value will be increased by the value of the Earnings enhancement death benefit as of the date we receive due proof of death. The benefit will then be based on the age of the surviving spouse as of the date of the deceased spouse's death for the remainder of the contract. If the surviving spouse is age 76 or older, the benefit will terminate and the charge will no longer be in effect. The spouse may also take the death benefit (increased by the Earnings enhancement benefit) in a lump sum. See "Spousal continuation" in "Payment of death benefit" later in this Prospectus for more information. The Earnings enhancement benefit must be elected when the contract is first issued; neither the owner nor the successor owner can add it subsequently. Ask your financial professional or see Appendix VII later in this Prospectus to see if this feature is available in your state. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL") For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL") guarantees that you can take withdrawals up to a maximum amount per year (your "Guaranteed annual withdrawal amount"). GWBL is only available at issue. This benefit is not available at issue ages younger than 45. GWBL is not available if you have elected the Guaranteed minimum income benefit, the Earnings enhancement benefit or one of our Principal guarantee benefits, described later in this prospectus. You may elect one of our automated payment plans or you may take partial withdrawals. All withdrawals reduce your account value and Guaranteed minimum death benefit. See "Accessing your money" later in this Prospectus. Your investment options will be limited to the guaranteed interest option, the account for special money market dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. You may buy this benefit on a single life ("Single life") or a joint life ("Joint life") basis. Under a Joint life contract, lifetime withdrawals are guaranteed for the life of both the owner and successor owner. For Joint life contracts, a successor owner may be named at contract issue only. The successor owner must be the owner's spouse. If you and the successor owner are no longer married, you may either: (i) drop the original successor owner or (ii) replace the original successor owner with your new spouse. This can only be done before the first withdrawal is made from the contract. After the first withdrawal, the successor owner can be dropped but cannot be replaced. If the successor owner is dropped after withdrawals begin, the charge will continue based on a Joint life basis. For NQ contracts, you have the option to designate the successor owner as a joint owner. For Joint life contracts owned by a non-natural owner, a joint annuitant may be named at contract issue only. The annuitant and joint annuitant must be spouses. If the annuitant and joint annuitant are no longer married, you may either: (i) drop the joint annuitant or (ii) replace the original joint annuitant with the annuitant's new spouse. This can only be done before the first withdrawal. After the first withdrawal, the joint annuitant may be dropped but cannot be replaced. If 40 Contract features and benefits the joint annuitant is dropped after withdrawals begin, the charge continues based on a Joint life basis. Joint life QP and TSA contracts are not permitted. The charge for the GWBL benefit will be deducted from your account value on each contract date anniversary. Please see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus for a description of the charge. You should not purchase this benefit if: o You plan to take withdrawals in excess of your Guaranteed annual withdrawal amount because those withdrawals may significantly reduce or eliminate the value of the benefit (see "Effect of Excess withdrawals" below in this section); o You are not interested in taking withdrawals prior to the contract's maturity date; o You are using the contract to fund a Rollover TSA or QP contract where withdrawal restrictions will apply; or o You plan to use it for withdrawals prior to age 59-1/2, as the taxable amount of the withdrawal will be includible in income and subject to an additional 10% federal income tax penalty, as discussed later in this Prospectus. The Federal Defense of Marriage Act precludes same-sex married couples, domestic partners, and civil union partners from being considered married under federal law. Such individuals, therefore, are not entitled to the favorable tax treatment accorded spouses under federal tax law. As a result, mandatory distributions from the contract must be made after the death of the first individual. Accordingly, the GWBL will have little or no value to the surviving same-gender spouse or partner. You should consult with your tax adviser for more information on this subject. For traditional IRAs, TSA and QP contracts, you may take your lifetime required minimum distributions ("RMDs") without losing the value of the GWBL benefit, provided you comply with the conditions described under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, this benefit may have limited usefulness for you and you should consider whether it is appropriate. Please consult your tax adviser. GWBL BENEFIT BASE At issue, your GWBL benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL benefit base increases by any subsequent contributions. o Your GWBL benefit base may be increased on each contract date anniversary, as described below under "Annual ratchet" and "5% deferral bonus." o Your GWBL benefit base is not reduced by withdrawals except those withdrawals that cause total withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess withdrawals" below in this section. GUARANTEED ANNUAL WITHDRAWAL AMOUNT Your initial Guaranteed annual withdrawal amount is equal to a percentage of the GWBL benefit base. The initial applicable percentage ("Applicable percentage") is based on the owner's age at the time of the first withdrawal. For Joint life contracts, the initial Applicable percentage is based on the age of the owner or successor owner, whoever is younger at the time of the first withdrawal. If your GWBL benefit base ratchets, as described below in this section under "Annual ratchet," on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. The Applicable percentages are as follows: - -------------------------------------------------------------------------------- Age Applicable percentage - -------------------------------------------------------------------------------- 45-64 4.0% 65-74 5.0% 75-84 6.0% 85 and older 7.0% - -------------------------------------------------------------------------------- We will recalculate the Guaranteed annual withdrawal amount on each contract date anniversary and as of the date of any subsequent contribution or Excess withdrawal, as described below under "Effect of Excess withdrawals" and "Subsequent contributions." The withdrawal amount is guaranteed never to decrease as long as there are no Excess withdrawals. Your Guaranteed annual withdrawals are not cumulative. If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. The withdrawal charge, if applicable, is waived for withdrawals up to the Guaranteed annual withdrawal amount, but all withdrawals are counted toward your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. EFFECT OF EXCESS WITHDRAWALS An Excess withdrawal is caused when you withdraw more than your Guaranteed annual withdrawal amount in any contract year. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, the entire amount of that withdrawal and each subsequent withdrawal in that contract year are considered Excess withdrawals. An Excess withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount. If you make an Excess withdrawal, we will recalculate your GWBL benefit base and the Guaranteed annual withdrawal amount, as follows: o The GWBL benefit base is reset as of the date of the Excess withdrawal to equal the lesser of: (i) the GWBL benefit base immediately prior to the Excess withdrawal and (ii) the account value immediately following the Excess withdrawal. o The Guaranteed annual withdrawal amount is recalculated to equal the Applicable percentage multiplied by the reset GWBL benefit base. Contract features and benefits 41 You should not purchase this contract if you plan to take withdrawals in excess of your Guaranteed annual withdrawal amount as such withdrawals may significantly reduce or eliminate the value of the GWBL benefit. If your account value is less than your GWBL benefit base (due, for example, to negative market performance), an Excess withdrawal, even one that is only slightly more than your Guaranteed annual withdrawal amount, can significantly reduce your GWBL benefit base and the Guaranteed annual withdrawal amount. For example, assume your GWBL benefit base is $100,000 and your account value is $80,000 when you decide to begin taking withdrawals at age 65. Your Guaranteed annual withdrawal amount is equal to $5,000 (5.0% of $100,000). You take an initial withdrawal of $8,000. Since your GWBL benefit base is immediately reset to equal the lesser of your GWBL benefit base prior to the Excess withdrawal ($100,000) and your account value immediately following the Excess withdrawal ($80,000 minus $8,000), your GWBL benefit base is now $72,000. In addition, your Guaranteed annual withdrawal amount is reduced to $3,600 (5.0% of $72,000), instead of the original $5,000. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds the greater of (i) the Guaranteed annual withdrawal amount or (ii) the 10% free withdrawal amount. A withdrawal charge would not be applied in the example above since the $8,000 withdrawal (equal to 10% of the contract's account value as of the beginning of the contract year) falls within the 10% free withdrawal amount. Under the example above, additional withdrawals during the same contract year could result in a further reduction of the GWBL benefit base and the Guaranteed annual withdrawal amount, as well as an application of withdrawal charges, if applicable. See "Withdrawal charge" in "Charges and expenses" later in this Prospectus. You should note that an Excess withdrawal that reduces your account value to zero terminates the contract, including all benefits, without value. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA, QP or TSA and participate in our Automatic RMD service, an automatic withdrawal under that program will not cause an Excess withdrawal, even if it exceeds your Guaranteed annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. Loans are not available under Rollover TSA contracts if GWBL is elected. ANNUAL RATCHET Your GWBL benefit base is recalculated on each contract date anniversary to equal the greater of: (i) the account value and (ii) the most recent GWBL benefit base. If your account value is greater, we will ratchet up your GWBL benefit base to equal your account value. If your GWBL benefit base ratchets on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. Your Guaranteed annual withdrawal amount will also be increased, if applicable, to equal your Applicable percentage times your new GWBL benefit base. If your GWBL benefit base ratchets, we may increase the charge for the benefit. Once we increase the charge, it is increased for the life of the contract. We will permit you to opt out of the ratchet if the charge increases. If you choose to opt out, your charge will stay the same but your GWBL benefit base will no longer ratchet. Upon request, we will permit you to accept a GWBL benefit base ratchet with the charge increase on a subsequent contract date anniversary. For a description of the charge increase, see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus. 5% DEFERRAL BONUS At no additional charge, during the first ten contract years, in each year you have not taken a withdrawal, we will increase your GWBL benefit base by an amount equal to 5% of your total contributions. If the Annual Ratchet (as discussed immediately above) occurs on any contract date anniversary, for the next and subsequent contract years, the bonus will be 5% of the most recent ratcheted GWBL benefit base plus any subsequent contributions. If the GWBL benefit base is reduced due to an Excess withdrawal, the 5% deferral bonus will be calculated using the reset GWBL benefit base plus any applicable contributions. The deferral bonus generally excludes contributions made in the prior 12 months. In the first contract year, the deferral bonus is determined using all contributions received in the first 90 days of the contract year. On any contract date anniversary on which you are eligible for a bonus, we will calculate the applicable bonus amount. If, when added to the current GWBL benefit base, the amount is greater than your account value, that amount will become your new GWBL benefit base. If that amount is less than or equal to your account value, your GWBL benefit base will be ratcheted to equal your account value, and the 5% deferral bonus will not apply. If you opt out of the Annual Ratchet (as discussed immediately above), the 5% deferral bonus will still apply. SUBSEQUENT CONTRIBUTIONS Subsequent contributions are not permitted after the later of: (i) the end of the first contract year and (ii) the date the first withdrawal is taken. Anytime you make an additional contribution, your GWBL benefit base will be increased by the amount of the contribution. Your Guaranteed annual withdrawal amount will be equal to the Applicable percentage of the increased GWBL benefit base. GWBL GUARANTEED MINIMUM DEATH BENEFIT There are two guaranteed minimum death benefits available if you elect the GWBL option: (i) the GWBL Standard death benefit, which is available at no additional charge for owner issue ages 45-80, and (ii) the GWBL Enhanced death benefit, which is available for an additional charge for owner issue ages 45-75. Please see Appendix VII later in this Prospectus to see if these guaranteed death benefits are available in your state. The GWBL Standard death benefit is equal to the GWBL Standard death benefit base. The GWBL Standard death benefit base is equal to your initial contribution and any additional contributions less a deduction that reflects any withdrawals you make (see "How withdrawals 42 Contract features and benefits affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus). The GWBL Enhanced death benefit is equal to the GWBL Enhanced death benefit base. Your initial GWBL Enhanced death benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL Enhanced death benefit base increases by any subse quent contribution; o Your GWBL Enhanced death benefit base increases to equal your account value if your GWBL benefit base is ratcheted, as described above in this section; o Your GWBL Enhanced death benefit base increases by any 5% deferral bonus, as described above in this section; o Your GWBL Enhanced death benefit base decreases by an amount which reflects any withdrawals you make. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit " in "Accessing your money" later in this Prospectus. The death benefit is equal to your account value (adjusted for any pro rata optional benefit charges) as of the date we receive satisfactory proof of death, any required instructions for method of payment, information and forms necessary to effect payment or the applicable GWBL Guaranteed minimum death benefit on the date of the owner's death (adjusted for any subsequent withdrawals and withdrawal charges), whichever provides a higher amount. For more information, see "Withdrawal charge" in "Charges and expenses" later in the Prospectus. EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO If your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no further payments or benefits. If an Excess withdrawal results in a withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. However, if your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, please note the following: o Your Accumulator(R) Plus(SM) contract terminates and you will receive a supplementary life annuity contract setting forth your continuing benefits. The owner of the Accumulator(R) Plus(SM) contract will be the owner and annuitant. The successor owner, if applicable, will be the joint annuitant. If the owner is non-natural, the annuitant and joint annuitant, if applicable, will be the same as under your Accumulator(R) Plus(SM) contract. o No subsequent contributions will be permitted. o If you were taking withdrawals through the "Maximum payment plan," we will continue the scheduled withdrawal payments on the same basis. o If you were taking withdrawals through the "Customized payment plan" or in unscheduled partial withdrawals, we will pay the balance of the Guaranteed annual withdrawal amount for that contract year in a lump sum. Payment of the Guaranteed annual withdrawal amount will begin on the next contract date anniversary. o Payments will continue at the same frequency for Single or Joint life contracts, as applicable, or annually if automatic payments were not being made. o Any guaranteed minimum death benefit remaining under the original contract will be carried over to the supplementary life annuity contract. The death benefit will no longer grow and will be reduced on a dollar-for-dollar basis as payments are made. If there is any remaining death benefit upon the death of the owner and successor owner, if applicable, we will pay it to the beneficiary. o The charge for the Guaranteed withdrawal benefit for life and the GWBL Enhanced death benefit will no longer apply. o If at the time of your death the Guaranteed annual withdrawal amount was being paid to you as a supplementary life annuity contract, your beneficiary may not elect the Beneficiary continuation option. OTHER IMPORTANT CONSIDERATIONS o This benefit is not appropriate if you do not intend to take withdrawals prior to annuitization. o Amounts withdrawn in excess of your Guaranteed annual withdrawal amount may be subject to a withdrawal charge, if applicable, as described in "Charges and expenses" later in the Prospectus. In addition, all withdrawals count toward your free withdrawal amount for that contract year. Excess withdrawals can significantly reduce or completely eliminate the value of the GWBL and GWBL Enhanced death benefit. See "Effect of Excess withdrawals" above in this section and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o Withdrawals are not considered as annuity payments for tax purposes, and may be subject to an additional 10% Federal income tax penalty if they are taken before age 59-1/2. See "Tax information" later in this Prospectus. o All withdrawals reduce your account value and Guaranteed minimum death benefit. See "How withdrawals are taken from your account value" and "How withdrawals affect your Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. o The GWBL benefit terminates if the contract is continued under the beneficiary continuation option or under the Spousal continuation feature if the spouse is not the successor owner. o If you surrender your contract to receive its cash value and your cash value is greater than your Guaranteed annual withdrawal amount, all benefits under the contract will terminate, including the GWBL benefit. Contract features and benefits 43 o If you transfer ownership of this contract, you terminate the GWBL benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. o Withdrawals are available under other annuity contracts we offer and this contract without purchasing a withdrawal benefit. o For IRA, QP and TSA contracts, if you have to take a required minimum distribution ('`RMD") and it is your first withdrawal under the contract, the RMD will be considered your "first withdrawal" for the purposes of establishing your GWBL Applicable percentage. o If you elect GWBL on a Joint life basis and subsequently get divorced, your divorce will not automatically terminate the contract. For both Joint life and Single life contracts, it is possible that the terms of your divorce decree could significantly reduce or completely eliminate the value of this benefit. PRINCIPAL GUARANTEE BENEFITS We offer two 10-year Principal guarantee benefits at an additional charge: the 100% Principal guarantee benefit and the 125% Principal guarantee benefit. You may only elect one Principal guarantee benefit ("PGB"). 100% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 100% Principal guarantee benefit is equal to your initial contribution and additional permitted contributions, adjusted for withdrawals. The guaranteed amount does not include any credits allocated to your contract. Under the 100% Principal guarantee benefit, your investment options are limited to the guaranteed interest option, the account for special money market dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. 125% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 125% Principal guarantee benefit is equal to 125% of your initial contribution and additional permitted contributions, adjusted for withdrawals. The guaranteed amount does not include any credits allocated to your contract. Under the 125% Principal guarantee benefit, your investment options are limited to the guaranteed interest option, the account for special money market dollar cost averaging and the AXA Moderate Allocation Portfolio. Under both Principal guarantee benefits, if, on the 10th contract date anniversary (or later if you've exercised a reset as explained below) ("benefit maturity date"), your account value is less than the guaranteed amount, we will increase your account value to equal the applicable guaranteed amount. Any such additional amounts added to your account value will be allocated pursuant to the allocation instructions for additional contributions we have on file. After the benefit maturity date, the guarantee will terminate. You have the option to reset (within 30 days following each applicable contract date anniversary) the guaranteed amount to the account value or 125% of the account value, as applicable, as of your fifth and later contract date anniversaries. If you exercise this option, you are eligible for another reset on each fifth and later contract date anniversary after the last reset up to the contract date anniversary following an owner's 80th birthday. If you elect to reset the guaranteed amount, your benefit maturity date will be extended to be the 10th contract date anniversary after the anniversary on which you reset the guaranteed amount. This extension applies each time you reset the guaranteed amount. If you elect either PGB, you may not elect the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, the systematic withdrawals option or the substantially equal withdrawals option. If you purchase a PGB, you may not make additional contributions to your contract after six months from the contract issue date. If you are planning to take required minimum distributions from this contract, this benefit may not be appropriate. See "Tax information" later in this Prospectus. If you elect a PGB and change ownership of the contract, your PGB will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Once you purchase a PGB, you may not voluntarily terminate this benefit. Your PGB will terminate if the contract terminates before the benefit maturity date, as defined below. If you die before the benefit maturity date and the contract continues, we will continue the PGB only if the contract can continue through the benefit maturity date. If the contract cannot so continue, we will terminate your PGB and the charge. See "Non-spousal joint contract continuation" in "Payment of death benefit" later in this Prospectus. The PGB will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a charge for the Principal guarantee benefits (see "Charges and expenses" later in this Prospectus). You should note that the purchase of a PGB is not appropriate if you want to make additional contributions to your contract beyond the first six months after your contract is issued. The purchase of a PGB is also not appropriate if you plan on terminating your contract before the benefit maturity date. The purchase of a PGB may not be appropriate if you plan on taking withdrawals from your contract before the benefit maturity date. Withdrawals from your contract before the benefit maturity date reduce the guaranteed amount under a PGB on a pro rata basis. You should also note that if you intend to allocate a large percentage of your contributions to the guaranteed interest option, the purchase of a PGB may not be appropriate because of the guarantees already provided by this option at no additional charge. Please note that loans (applicable to TSA contracts only) are not permitted under either PGB. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law 44 Contract features and benefits requires, this "free look" period may be longer. Other state variations may apply. Please contact your financial professional and/or see Appendix VII to find out what applies in your state. Generally, your refund will equal your account value (less loan reserve account under TSA contracts) under the contract on the day we receive notification to cancel the contract and will reflect (i) any investment gain or loss in the variable investment options (less the daily charges we deduct), (ii) any guaranteed interest in the guaranteed interest option, and (iii) any positive or negative market value adjustments in the fixed maturity options through the date we receive your contract. Some states require that we refund the full amount of your contribution (not reflecting (i), (ii) or (iii) above). For any IRA contracts returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. Please note that you will forfeit the credit by exercising this right of cancellation. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. If you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office or your financial professional can provide you with the cancellation instructions. In addition to the cancellation right described above, you have the right to surrender your contract, rather than cancel it. Please see "Surrendering your contract to receive its cash value," later in this Prospectus. Surrendering your contract may yield results different than canceling your contract, including a greater potential for taxable income. In some cases, your cash value upon surrender may be greater than your contributions to the contract. Please see "Tax information," later in this Prospectus. Contract features and benefits 45 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total value of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; and (iv) the loan reserve account (applies for Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value less: (i) the total amount or a pro rata portion of the annual administrative charge as well as any optional benefit charges; (ii) any applicable withdrawal charge; and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense risks; (ii) administrative, and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions plus the credit; (ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); (iii) increased to reflect transfer into, or decreased to reflect transfer out of a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, when we deduct the enhanced death benefit, guaranteed minimum income benefit, Principal guarantee benefits, Guaranteed withdrawal benefit for life and/or Earnings enhancement benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest account at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all your rights under your contract and any applicable guaranteed benefits, except as discussed below. See Appendix VII later in this Prospectus for any state variations with regard to terminating your contract. GUARANTEED MINIMUM INCOME BENEFIT NO LAPSE GUARANTEE. In certain circumstances, even if your account value falls to zero, your Guaranteed minimum income benefit will still have value. Please see "Contract features and benefits" earlier in this Prospectus for information on this feature. PRINCIPAL GUARANTEE BENEFITS. If you take no withdrawals, and your account value is insufficient to pay charges, we will not terminate your contract if you are participating in a PGB. Your contract will remain in force and we will pay your guaranteed amount at the benefit maturity date. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. If you elect the Guaranteed withdrawal benefit for life and your account value falls to zero due to 46 Determining your contract's value an Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary life annuity contract, even if your GWBL benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges the benefit will still have value. See "Contract features and benefits" earlier in this Prospectus. Determining your contract's value 47 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the variable investment options, subject to the following: o You may not transfer to a fixed maturity option that has a rate to maturity of 3%. o You may not transfer any amount to the account for special money market dollar cost averaging. o If an owner or annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the account value being allocated to the guaranteed interest option, based on the account value as of the previous business day. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option and interest sweep option dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or, (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the Investment options in the prior contract year; or, (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, 48 Transferring your money among investment options which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We currently offer two rebalancing programs that you can use to automatically reallocate your account value among your investment options. Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers from the guaranteed interest option to the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into or out of the guaranteed interest option to initiate the rebalancing program will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. Transferring your money among investment options 49 You may not elect Option II if you are participating in any dollar cost averaging program. You may not elect Option I if you are participating in special money market dollar cost averaging or general dollar cost averaging. If you elect a benefit that limits your variable investment options, those limitations will also apply to the rebalancing programs. 50 Transferring your money among investment options 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. Please see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. - -------------------------------------------------------------------------------- Method of withdrawal ------------------------------------------------------------------ Automatic Lifetime payment Pre-age required plans 59-1/2 minimum (GWBL System- substantially distribu- Contract only) Partial atic equal tion - -------------------------------------------------------------------------------- NQ Yes Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Con- version IRA Yes Yes Yes Yes No - -------------------------------------------------------------------------------- Rollover TSA* Yes Yes Yes No Yes - -------------------------------------------------------------------------------- QP** Yes Yes No No Yes - -------------------------------------------------------------------------------- * Employer or plan approval required for all transactions. Your ability to take withdrawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. ** All payments are made to the trust, as the owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. AUTOMATIC PAYMENT PLANS (For contracts with GWBL only) You may take automatic withdrawals under either the Maximum payment plan or the Customized payment plan, as described below. Under either plan, you may take withdrawals on a monthly, quarterly or annual basis. You may change the payment frequency of your withdrawals at any time, and the change will become effective on the next contract date anniversary. You may elect either the Maximum payment plan or the Customized payment plan at any time. You must wait at least 28 days from contract issue before automatic payments begin. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will increase following any Annual Ratchet or 5% deferral bonus. If you elect the Maximum payment plan and start monthly or quarterly payments after the beginning of a contract year, the payments you take that year will be less than your Guaranteed annual withdrawal amount. If you take a partial withdrawal while the Maximum payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will not be increased following any Annual Ratchet or 5% deferral bonus. You must elect to change the scheduled payment amount. It is important to note that if you elect the Customized payment plan and start monthly or quarterly withdrawals after the beginning of a contract year, you could select scheduled payment amounts that would cause an Excess withdrawal. If your selected scheduled payment would cause an Excess withdrawal, we will notify you. As discussed earlier in the Prospectus, Excess withdrawals may significantly reduce the value of the Guaranteed withdrawal benefit for life benefit. See "Effect of Excess withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you take a partial withdrawal while the Customized payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Partial withdrawals will be subject to a withdrawal charge if they exceed the 10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. Any request for a partial withdrawal will terminate your participation in either the Maximum payment plan or Customized payment plan, if applicable. Accessing your money 51 SYSTEMATIC WITHDRAWALS (All contracts except QP) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required). You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If the withdrawal charges on your contract have expired, you may elect a systematic withdrawal option in excess of percentages described in the preceding paragraph, up to 100% of the account value. However, if you elect a systematic withdrawal option in excess of these limits, and make a subsequent contribution to your contract, the systematic withdrawal option will be terminated. You may then elect a new systematic withdrawal option within the limits described in the preceding paragraph. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the systematic withdrawal exceeds the 10% free withdrawal amount. Systematic withdrawals are not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. SUBSTANTIALLY EQUAL WITHDRAWALS (All contracts except QP contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Substantially equal withdrawals that we calculate for you are not subject to a withdrawal charge, except to the extent that, when added to a partial withdrawal previously taken in the same contract year, the substantially equal withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount" in "Charges and expenses" later in this Prospectus). The substantially equal withdrawal program is not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA and Rollover TSA and QP contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This service is not available under defined benefit QP contracts. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. In such a case, a withdrawal charge may apply. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. 52 Accessing your money You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- We do not impose a withdrawal charge on minimum distribution withdrawals if you are enrolled in our automatic RMD service except if, when added to a partial withdrawal previously taken in the same contract year, the minimum distribution withdrawal exceeds the 10% free withdrawal amount. Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH GWBL. Generally, if you elect our Automatic RMD service, any lifetime required minimum distribution payment we make to you under our Automatic RMD service will not be treated as an Excess withdrawal. If you elect either the Maximum payment plan or the Customized payment plan AND our Automatic RMD service, we will make an extra payment, if necessary, on December 1st that will equal your lifetime required minimum distribution less all payments made through November 30 and any scheduled December payment. The combined automatic plan payments and lifetime required minimum distribution payment will not be treated as Excess withdrawals, if applicable. However, if you take any partial withdrawals in addition to your lifetime required minimum distribution and automatic payment plan payments, your applicable automatic payment plan will be terminated. The partial withdrawal may cause an Excess withdrawal and may be subject to a withdrawal charge. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. Further, your GWBL benefit base and Guaranteed annual withdrawal amount may be reduced. See "Effect of Excess Withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you elect our Automatic RMD service and elect to take your Guaranteed annual withdrawal amount in partial withdrawals without electing one of our available automatic payment plans, we will make a payment, if necessary, on December 1st that will equal your required minimum distribution less all withdrawals made through November 30th. If prior to December 1st you make a partial withdrawal that exceeds your Guaranteed annual withdrawal amount, but not your RMD amount, that partial withdrawal will be treated as an Excess withdrawal, as well as any subsequent partial withdrawals made during the same contract year. However, if by December 1st your withdrawals have not exceeded your RMD amount, the RMD payment we make to you will not be treated as an Excess withdrawal. FOR CONTRACTS WITH THE GUARANTEED MINIMUM INCOME BENEFIT. The no lapse guarantee will not be terminated if a required minimum distribution payment using our automatic RMD service causes your cumulative withdrawals in the contract year to exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received within the first 90 days). Owners of tax-qualified contracts (IRA, TSA and QP) generally should not reset the Roll-Up benefit base if lifetime required minimum distributions must begin before the end of the new exercise waiting period. See "Guaranteed minimum death benefit/Guaranteed minimum income benefit Roll-Up benefit base reset." in "Contract features and benefits" earlier in this Prospectus. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options and the guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment will apply to withdrawals from the fixed maturity options. HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND PRINCIPAL GUARANTEE BENEFITS In general, withdrawals (including RMDs) will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000-$16,000). For purposes of calculating the adjustment to your guaranteed benefits, the amount of the withdrawal will include the amount of any applicable withdrawal charge. Using the example above, the $12,000 withdrawal would include the withdrawal amount paid to you and the amount of any applicable withdrawal charge deducted from your account value. For more information on the calculation of the charge, see "Withdrawal charge" later in the Prospectus. With respect to the Guaranteed minimum income benefit and the Greater of 6-1/2% (or 6% or 3%, as applicable) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' 6-1/2% (or 6% or 3%, as applicable) Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6-1/2% (or 6% or 3%, as applicable) or less of the 6-1/2% (or 6% or 3%, as applicable) Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. For this purpose, in the first contract year, all contributions received in the first 90 days after contract issue will be considered to have been received on the first day of the contract year. In subsequent contract Accessing your money 53 years, additional contributions made during the contract year do not affect the amount of the withdrawals that can be taken on a dollar-for-dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6-1/2% (or 6% or 3%, as applicable) of the benefit base on the most recent anniversary, that entire withdrawal (including RMDs) and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6-1/2% (or 6% or 3%, as applicable) Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for each Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. HOW WITHDRAWALS AFFECT YOUR GWBL AND GWBL GUARANTEED MINIMUM DEATH BENEFIT Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes cumulative withdrawals in a contract year to exceed the Guaranteed annual withdrawal amount. Withdrawals that exceed the Guaranteed annual withdrawal amount, however, can significantly reduce your GWBL benefit base and GWBL Guaranteed annual withdrawal amount. For more information, see "Effect of Excess withdrawals" and "Other important considerations" under "Our Guaranteed withdrawal benefit for life ("GWBL") " in "Contract features and benefits" earlier in this Prospectus. Your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a dollar-for-dollar basis by any withdrawal up to the Guaranteed annual withdrawal amount. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a pro rata basis. If the reduced GWBL Enhanced death benefit base is greater than your account value (after the Excess withdrawal), we will further reduce your GWBL Enhanced death benefit base to equal your account value. For purposes of calculating your GWBL and GWBL Guaranteed minimum death benefit amount, the amount of the excess withdrawal will include the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information on calculation of the charge, see "Withdrawal charge" later in the Prospectus. WITHDRAWALS TREATED AS SURRENDERS If you withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. In addition, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. The rules in the preceding sentence do not apply if the Guaranteed minimum income benefit no lapse guarantee is in effect on your contract. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is an Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to an Excess withdrawal. In other words, if you take an Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Guaranteed withdrawal benefit for life" in "Contract features and benefits," earlier in this Prospectus, for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans from a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." If you elect the GWBL option or a PGB, loans are not permitted. You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subjected to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see Appendix VII later in this Prospectus for any state restrictions you may be subject to if you take a loan from a Rollover TSA contract. Also, see "Tax information" later in this Prospectus, for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of the loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan, including any accrued but unpaid loan interests, will be deducted from the death benefit amounts). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. See Appendix VII later in this Prospectus to see if a different interest rate applies in your state. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the "loan reserve account". Unless you specify otherwise, we will subtract your loan on a pro rata basis 54 Accessing your money from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment may apply. If those amounts are insufficient, we will deduct all or a portion of the loan from the account for special money market dollar cost averaging. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. Loan repayments are not considered contributions and therefore are not eligible for additional credits. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while an owner is living (or for contracts with non-natural owners while the annuitant is living) and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required). For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of the date we receive the required information, including the Guaranteed withdrawal benefit for life (if applicable), if your cash value is greater than your Guaranteed annual withdrawal amount remaining that year. If your cash value is not greater than your Guaranteed annual withdrawal amount remaining that year, then you will receive a supplementary life annuity contract. For more information, please see "Effect of your account value falling to zero" in "Contract features and benefits" earlier in this Prospectus. Also, if the Guaranteed minimum income benefit no lapse guarantee is in effect, the benefit will terminate without value if your cash value plus any other withdrawals taken in the contract year exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base (as of the beginning of the contract year). For more information, please see "Insufficient account value" in "Determining your contract value" and "the Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw (less any withdrawal charge) and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option and fixed maturity options (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery and wire transfer service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Plus(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) Plus(SM) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Plus(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Plus(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments which can be either level or increasing, and others enable you to receive variable annuity payments. Please see Appendix VII later in this Prospectus for variations that may apply to your state. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the owner's and annuitant's ages at contract issue. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit Accessing your money 55 option" in "Contract features and benefits" earlier in this Prospectus). If you elect the Guaranteed withdrawal benefit for life and choose to annuitize your contract, the Guaranteed withdrawal benefit for life will terminate without value even if your GWBL benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under GWBL. See "Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus for further information. - -------------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------------- Income Manager(R) payout options Life annuity with period (available for owners and annu- certain itants age 83 or less at contract Period certain annuity issue) - -------------------------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide you with details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisers Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). You may not elect an Income Manager(R) payout option without life contingencies unless withdrawal charges are no longer in effect under your Accumulator(R) Plus(SM). For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply your account value of your Accumulator(R) Plus(SM) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) Plus(SM). For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. 56 Accessing your money The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income benefit option, different payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any withdrawal charges. If amounts in a fixed maturity option are used to purchase any annuity payout option prior to the maturity date, a market value adjustment will apply. For the fixed annuity payout options and Variable Immediate Annuity payout options, no withdrawal charge is imposed if you select a life annuity, life annuity with period certain or life annuity with refund certain. The withdrawal charge applicable under your Accumulator(R) Plus(SM) is imposed if you select a non-life contingent period certain payout annuity. If the period certain is more than 5 years, then the withdrawal charge deducted will not exceed 5% of the account value. For the Income Manager(R) payout life contingent options, no withdrawal charge is imposed under the Accumulator(R) Plus(SM). If the withdrawal charge that otherwise would have been applied to your account value under your Accumulator(R) Plus(SM) is greater than 2% of the contributions that remain in your contract at the time you purchase your payout option, the withdrawal charges under the Income Manager(R) will apply. The year in which your account value is applied to the payout option will be "contract year 1." SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin from the Accumulator(R) Plus(SM) contract. Generally, the date annuity payments begin may not be earlier than five years (in a limited number of jurisdictions this requirement may be more or less than 5 years) from the contract date. Please see Appendix VII later in this Prospectus for information on state variations. Except with respect to Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. If you start receiving annuity payments within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. Please see Appendix VII later in this Prospectus for information on state variations. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments, or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is based on the age of the original annuitant at contract issue and cannot be changed even if you name a new annuitant. For contracts with joint annuitants, the maturity age is based on the older annuitant. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elect the Guaranteed withdrawal benefit for life and your contract is annuitized at maturity, we will offer an annuity payout option that guarantees you will receive payments for life that are at least equal to what you would have received under the Guaranteed withdrawal benefit for life. You will not be able to take withdrawals in addition to the payments under this annuity payout option. You will still be able to surrender the contract at any time for the remaining account value. As described in "Contract features and benefits" under "Guaranteed withdrawal benefit for life," these payments will have the potential to increase with favorable investment performance. Any remaining Guaranteed minimum death benefit value will be transferred to the annuity payout contract as your "minimum death benefit." If the enhanced death benefit had been elected, its value as of the date the annuity payout contract is issued will become your minimum death benefit, and it will continue to ratchet annually if your account value is greater than your minimum death benefit base. The minimum death benefit will be reduced dollar-for-dollar by each payment. If you die while there is any minimum death benefit remaining, it will be paid to your beneficiary. Please see Appendix VII later in this Prospectus for variations that may apply in your state. Accessing your money 57 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o At the time you make certain withdrawals or surrender your contract -- a withdrawal charge. o On each contract date anniversary -- a charge for each optional benefit that you elect: a death benefit (other than the Standard and GWBL Standard death benefit); the Guaranteed minimum income benefit; the Guaranteed withdrawal benefit for life; and the Earnings enhancement benefit. o On any contract date anniversary on which you are participating in a PGB -- a charge for a PGB. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits, and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 0.95% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the Guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. A portion of this charge also compensates us for the contract credit. For a discussion of the credit, see "Credits" in "Contract features and benefits" earlier in this Prospectus. We expect to make a profit from this charge. Administrative charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.35% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if available) in the order of the earliest 58 Charges and expenses maturity date(s) first. If such fixed maturity amounts are still insufficient, we will deduct all or a portion of this charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. WITHDRAWAL CHARGE A withdrawal charge applies in two circumstances: (1) if you make one or more withdrawals during a contract year that, in total, exceed the 10% free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value or apply your cash value to a non life contingent annuity payout option. For more information about the withdrawal charge if you select an annuity payout option, see "Your annuity payout options--The amount applied to purchase an annuity payout option" in "Accessing your money" earlier in the Prospectus. A portion of this charge also compensates us for the contract credit. For a discussion of the credit, see "Credits" in "Contracts features and benefits" earlier in this Prospectus. We expect to make a profit from this charge. The withdrawal charge equals a percentage of the contributions withdrawn. We do not consider credits to be contributions. Therefore, there is no withdrawal charge associated with a credit. The percentage of the withdrawal charge that applies to each contribution depends on how long each contribution has been invested in the contract. We determine the withdrawal charge separately for each contribution according to the following table: - -------------------------------------------------------------------------------- Contract year - -------------------------------------------------------------------------------- 1 2 3 4 5 6 7 8 9+ - -------------------------------------------------------------------------------- Percentage of contribution 8% 8% 7% 7% 6% 5% 4% 3% 0% - -------------------------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1." Amounts withdrawn up to the free withdrawal amount are not considered withdrawals of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and the withdrawal charge from your account value. Any amount deducted to pay withdrawal charges is also subject to the same withdrawal charge percentage. We deduct the charge in proportion to the amount of the withdrawal subtracted from each variable investment option. The withdrawal charge helps cover our sales expenses. For purposes of calculating reductions in your guaranteed benefits and associated benefit bases, the withdrawal amount includes both the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information, see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier in the Prospectus. The withdrawal charge does not apply in the circumstances described below. 10% free withdrawal amount. Each contract year you can withdraw up to 10% of your account value without paying a withdrawal charge. The 10% free withdrawal amount is determined using your account value at the beginning of each contract year. In the first contract year, the 10% free withdrawal amount is determined using all contributions received in the first 90 days of the contract year. Additional contributions during the contract year do not increase your 10% free withdrawal amount. The 10% free withdrawal amount does not apply if you surrender your contract except where required by law. Certain withdrawals. If you elected the Guaranteed minimum income benefit and/or the Greater of 6-1/2% (or 6%, if applicable) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6-1/2% (or 6%, if applicable) of the beginning of contract year 6-1/2% (or 6%, if applicable) Roll-Up to age 85 benefit base even if such withdrawals exceed the free withdrawal amount. Also, a withdrawal charge does not apply to a withdrawal that exceeds 6-1/2% (or 6%, if applicable) of the beginning of contract year 6-1/2% (or 6%, if applicable) Roll-Up to age 85 benefit base as long as it does not exceed the free withdrawal amount. If you are age 76-80 at issue and elected the Greater of 3% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, this waiver applies to withdrawals up to 3% of the beginning of the contract year 3% Roll-Up to age 85 benefit base. If your withdrawals exceed the amount described above, this waiver is not applicable to that withdrawal, or to any subsequent withdrawals for the life of the contract. If you elect the Guaranteed withdrawal benefit for life, we will waive any withdrawal charge for any withdrawals during the contract year up to the Guaranteed annual withdrawal amount, even if such withdrawals exceed the free withdrawal amount. However, each withdrawal reduces the free withdrawal amount for that contract year by the amount of the withdrawal. Also, a withdrawal charge does not apply to a withdrawal that exceeds the Guaranteed annual withdrawal amount as long as it does not exceed the free withdrawal amount. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds both the free withdrawal amount and the Guaranteed annual withdrawal amount. Disability, terminal illness, or confinement to nursing home. The withdrawal charge also does not apply if: (i) An owner (or older joint owner, if applicable) has qualified to receive Social Security disability benefits as certified by the Social Security Administration; or Charges and expenses 59 (ii) We receive proof satisfactory to us (including certification by a licensed physician) that an owner's (or older joint owner's, if applicable) life expectancy is six months or less; or (iii) An owner (or older joint owner, if applicable) has been confined to a nursing home for more than 90 days (or such other period, as required in your state) as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following: -- its main function is to provide skilled, intermediate, or custodial nursing care; -- it provides continuous room and board to three or more persons; -- it is supervised by a registered nurse or licensed practical nurse; -- it keeps daily medical records of each patient; -- it controls and records all medications dispensed; and -- its primary service is other than to provide housing for residents. We reserve the right to impose a withdrawal charge, in accordance with your contract and applicable state law, if the conditions as described in (i), (ii) or (iii) above existed at the time a contribution was remitted or if the condition that began within 12 months of the period following remittance. Some states may not permit us to waive the withdrawal charge in the above circumstances, or may limit the circumstances for which the withdrawal charge may be waived. Your financial professional can provide more information or you may contact our processing office. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.80% of the greater of the 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. If you opt to reset your Roll-Up benefit base on any contract date anniversary, we reserve the right to increase the charge for this enhanced death benefit up to a maximum of 0.95% of the applicable benefit base. You will be notified of the increased charge at the time we notify you of your eligibility to reset. The increased charge, if any, will apply as of the next contract date anniversary following the reset and on all contract date anniversaries thereafter. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.65% of the greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. If you opt to reset your Roll-Up benefit base on any contract date anniversary, if applicable, we reserve the right to increase the charge for this enhanced death benefit up to a maximum of 0.80% of the applicable benefit base. You will be notified of the increased charge at the time we notify you of your eligibility to reset. The increased charge, if any, will apply as of the next contract date anniversary following the reset and on all contract date anniversaries thereafter. GREATER OF 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.65% of the greater of the 3% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. GWBL ENHANCED DEATH BENEFIT. This death benefit is only available if you elect the GWBL. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary. The charge is equal to 0.30% of the GWBL Enhanced death benefit base. We will deduct this charge from your value in the variable investment options (or, if applicable, the permitted variable investment options) and the guaranteed interest option on a pro rata basis (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are still insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if applicable) in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If such fixed maturity amounts are still insufficient, we will deduct all or a portion of this charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. STANDARD DEATH BENEFIT AND GWBL STANDARD DEATH BENEFIT. There is no additional charge for these standard death benefits. PRINCIPAL GUARANTEE BENEFITS CHARGE If you purchase a PGB, we deduct a charge annually from your account value on each contract date anniversary on which you are participating in a PGB. The charge is equal 0.50% of the account value for the 100% Principal guarantee benefit and 0.75% of the account value for the 125% Principal guarantee benefit. We will continue to deduct the charge until your benefit maturity date. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If such amounts are still insufficient, we will deduct all or a portion of this charge from the 60 Charges and expenses account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. GUARANTEED MINIMUM INCOME BENEFIT CHARGE If you elect the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option or the contract date anniversary after the owner (or older joint owner, if applicable) reaches age 85, whichever occurs first. If you elect the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base, the charge is equal to 0.80% of the applicable benefit base on the contract date anniversary. If you elect the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base, the charge is equal to 0.65% of the applicable benefit base. If you opt to reset your Roll-Up benefit base on any contract date anniversary, we reserve the right to increase the charge for this benefit up to a maximum of 1.10% for the benefit that includes the 6-1/2% Roll-Up benefit base or 0.95% for the benefit that includes the 6% Roll-Up benefit base. You will be notified of the increased charge at the time we notify you of your eligibility to reset. The increased charge, if any, will apply as of the next contract date anniversary following the reset and on all contract date anniversaries thereafter. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are still insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If such fixed maturity amounts are still insufficient, we will deduct all or a portion of this charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. EARNINGS ENHANCEMENT BENEFIT CHARGE If you elect the Earnings enhancement benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.35% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If such fixed maturity amounts are still insufficient, we will deduct all or a portion of this charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE BENEFIT CHARGE If you elect the Guaranteed withdrawal benefit for life ("GWBL"), we deduct a charge annually as a percentage of your GWBL benefit base on each contract date anniversary. If you elect the Single Life option, the charge is equal to 0.60%. If you elect the Joint Life option, the charge is equal to 0.75%. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option on a pro rata basis. (See Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state.) If such amounts are still insufficient, we will deduct all or a portion of this charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid, on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. GWBL BENEFIT BASE ANNUAL RATCHET CHARGE. If your GWBL benefit base ratchets, we reserve the right to raise the charge at the time of an Annual Ratchet. The maximum charge for the GWBL Single Life option is 0.75%. The maximum charge for the Joint Life option is 0.90%. The increased charge, if any, will apply as of the contract date anniversary on which your GWBL benefit base ratchets and on all contract date anniversaries thereafter. We will permit you to opt out of the ratchet if the charge increases. For Joint life contracts, if the successor owner or joint annuitant is dropped before you take your first withdrawal, we will adjust the charge at that time to reflect a Single life. If the successor owner or joint annuitant is dropped after withdrawals begin, the charge will continue based on a Joint life basis. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate annuity payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. Charges and expenses 61 CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or other unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or the mortality and expense risks charge or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to the 12b-1 fee. If permitted under the terms of our exemptive order regarding Accumulator(R) Plus(SM) bonus feature, we may also change the crediting percentage that applies to contributions. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. 62 Charges and expenses 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. Under a contract with a non-natural owner that has joint annuitants, the surviving annuitant is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. In either case, the death benefit is increased by any amount applicable under the Earnings enhancement benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) and any amount applicable under the Earnings enhancement benefit, as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The account value used to determine the death benefit and the Earnings enhancement benefit will first be reduced by the amount of any Credits applied in the one-year period prior to the owner's (or older joint owner's, if applicable) death. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. - -------------------------------------------------------------------------------- When we use the terms owner and joint owner, we intend these to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If the contract is jointly owned or is issued to a non- natural owner and the GWBL has not been elected, the death benefit is payable upon the death of the older joint owner or older joint annuitant, as applicable. Under contracts with GWBL, the terms Owner and Successor Owner are intended to be references to Annuitant and Joint Annuitant, respectively, if the contract has a non-natural owner. - -------------------------------------------------------------------------------- Subject to applicable laws and regulations, you may impose restrictions on the timing and manner of the payment of the death benefit to your beneficiary. For example, your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. In general, if the annuitant dies, the owner (or older joint owner, if applicable) will become the annuitant, and the death benefit is not payable. If the contract had joint annuitants, it will become a single annuitant contract. EFFECT OF THE OWNER'S DEATH In general, if the owner dies while the contract is in force, the contract terminates and the applicable death benefit is paid. If the contract is jointly owned, the death benefit is payable upon the death of the older owner. For Joint life contracts with GWBL, the death benefit is paid to the beneficiary at the death of the second to die of the owner and successor owner. There are various circumstances, however, in which the contract can be continued by a successor owner or under a Beneficiary continuation option ("BCO"). For contracts with spouses who are joint owners, the surviving spouse will automatically be able to continue the contract under the "Spousal continuation" feature or under our Beneficiary continuation option, as discussed below. For contracts with non-spousal joint owners, the joint owner will be able to continue the contract as a successor owner subject to the limitations discussed below under "Non-spousal joint owner contract continuation." If you are the sole owner and your spouse is the sole primary beneficiary, your surviving spouse can continue the contract as a successor owner under "Spousal continuation" or under our Beneficiary continuation option, as discussed below. If the surviving joint owner is not the surviving spouse, or, for single owner contracts, if the beneficiary is not the surviving spouse, federal income tax rules generally require payments of amounts under the contract to be made within five years of an owner's death (the "5-year rule"). In certain cases, an individual beneficiary or non-spousal surviving joint owner may opt to receive payments over his/her life (or over a period not in excess of his/her life expectancy) if payments commence within one year of the owner's death. Any such election must Payment of death benefit 63 be made in accordance with our rules at the time of death. If the beneficiary of a contract with one owner or a younger non-spousal joint owner continues the contract under the 5-year rule, in general, all guaranteed benefits and their charges will end. If a PGB election is in effect upon your death with a benefit maturity date of less than five years from the date of death, it will remain in effect. For more information on non-spousal joint owner contract continuation, see the section immediately below. NON-SPOUSAL JOINT OWNER CONTRACT CONTINUATION Upon the death of either owner, the surviving joint owner becomes the sole owner. Any death benefit (if the older owner dies first) or cash value (if the younger owner dies first) must be fully paid to the surviving joint owner within five years. The surviving owner may instead elect to receive a life annuity, provided payments begin within one year of the deceased owner's death. If the life annuity is elected, the contract and all benefits terminate. If the older owner dies first, we will increase the account value to equal the Guaranteed minimum death benefit, if higher, and by the value of the Earnings enhancement benefit. The surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If any contributions are made during the one-year period prior to the owner's death, the account value will first be reduced by any Credits applied to any such contributions. If the contract continues, the Guaranteed minimum death benefit and charge and the Guaranteed minimum income benefit and charge will then be discontinued. Withdrawal charges will no longer apply, and no additional contributions will be permitted. If the younger owner dies first, the surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the death benefit is not payable, and the Guaranteed minimum death benefit and the Earnings enhancement benefit, if applicable, will continue without change. If the Guaranteed minimum income benefit cannot be exercised within the period required by federal tax laws, the benefit and charge will terminate as of the date we receive proof of death. Withdrawal charges will continue to apply and no additional contributions will be permitted. Upon the death of either owner, if the surviving owner elects the 5-year rule and a PGB was in effect upon the owner's death with a maturity date of more than five years from the date of death, we will terminate the benefit and the charge. SPOUSAL CONTINUATION If you are the contract owner and your spouse is the sole primary beneficiary or you jointly own the contract with your younger spouse, or if the contract owner is a non-natural person and you and your younger spouse are joint annuitants, your spouse may elect to continue the contract as successor owner upon your death. Spousal beneficiaries (who are not also joint owners) must be 85 or younger as of the date of the deceased spouse's death in order to continue the contract under Spousal continuation. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. Upon your death, the younger spouse joint owner (for NQ contracts only) or the spouse beneficiary (under a Single owner contract) may elect to receive the death benefit, continue the contract under our Beneficiary continuation option (as discussed below in this section) or continue the contract, as follows: o As of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary, we will increase the account value to equal the elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit, and adjusted for any subsequent withdrawals. If any contributions are made during the one-year period prior to the owner's death, the account value will first be reduced by any Credits applied to any such contributions. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. o In general, withdrawal charges will no longer apply to contributions made before your death. Withdrawal charges will apply if additional contributions are made. o The applicable Guaranteed minimum death benefit option may continue as follows: o If you elected either the Annual Ratchet to age 85 or the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, and if your surviving spouse is age 75 or younger on the date of your death, and you were age 84 or younger at death, the enhanced death benefit continues and will continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. If you were age 85 or older at death, we will reinstate the Guaranteed minimum death benefit you elected. The benefit base (which had previously been frozen at age 85) will now continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. o If you elected the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, and your surviving spouse is age 80 or younger at the date of your death, and you were age 84 or younger at death, the enhanced death benefit continues and will grow according to its terms until the contract date anniversary following the surviving spouse's 85th birthday. If you were age 85 or older at death, we will reinstate the enhanced death benefit you elected. The benefit base (which had been previously frozen at age 85) will now continue to grow according to its terms until the contract date anniversary following the surviving spouse's 85th birthday. If your spouse is younger than age 75, before electing to continue the contract, your spouse should consider that he or she could purchase a new contract and elect 64 Payment of death benefit the Greater of 6% (as opposed to 3%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit at the same cost. He or she could also purchase a contract with a "Greater of" 6-1/2% enhanced death benefit at an additional cost. o If you elected either the Annual Ratchet to age 85 or the Greater of the 6-1/2% (or 6%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit and your surviving spouse is age 76 or older on the date of your death, the Guaranteed minimum death benefit and charge will be discontinued. If you elected the Greater of the 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit and your surviving spouse is 81 or older, the Guaranteed minimum death benefit and charge will be discontinued. o If the Guaranteed minimum death benefit continues, the Roll-Up benefit base reset, if applicable, will be based on the surviving spouse's age at the time of your death. The next available reset will be based on the contract issue date or last reset, as applicable. o For single owner contracts with the GWBL Enhanced death benefit, we will discontinue the benefit and charge. However, we will freeze the GWBL Enhanced death benefit base as of the date of your death (less subsequent withdrawals), and pay it upon your spouse's death. o The Earnings enhancement benefit will be based on the surviving spouse's age at the date of the deceased spouse's death for the remainder of the life of the contract. If the benefit had been previously frozen because the older spouse had attained age 80, it will be reinstated if the surviving spouse is age 75 or younger. The benefit is then frozen on the contract date anniversary after the surviving spouse reaches age 80. If the surviving spouse is age 76 or older, the benefit and charge will be discontinued. o If elected, PGB continues and is based on the same benefit maturity date and guaranteed amount that was guaranteed. o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the surviving spouse's age at the date of the deceased spouse's death. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If you elect the Guaranteed withdrawal benefit for life on a Joint life basis, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. Withdrawal charges will continue to apply to all contributions made prior to the deceased spouse's death. No additional contributions will be permitted. If you elect the Guaranteed withdrawal benefit for life on a Single life basis, the benefit and charge will terminate. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. If the deceased spouse was a joint annuitant, the contract will become a single annuitant contract. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For jointly owned NQ contracts, if the younger spouse dies first no death benefit is paid, and the contract continues as follows: o The Guaranteed minimum death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit continue to be based on the older spouse's age for the life of the contract. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. If the deceased spouse was a joint annuitant, the contract will become a single annuitant contract. o If a PGB had been elected, the benefit continues and is based on the same benefit maturity date and guaranteed amount. o If you elect the Guaranteed withdrawal benefit for life, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. o The withdrawal charge schedule remains in effect. If you divorce, Spousal continuation does not apply. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state availability. Please speak with your financial professional or see Appendix VII later in this Prospectus for further information. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. For Joint life contracts with GWBL, BCO is only available after the death of the second owner. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit feature, adjusted for any subsequent withdrawals. The account value, however, will first be reduced by any Credits applied in the one-year period prior to the owner's death. Payment of death benefit 65 Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o The beneficiary replaces the deceased owner as annuitant. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a portion of the account value and no withdrawal charges, if any, will apply. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. For purposes of this discussion, "beneficiary" refers to the successor owner. This feature must be elected within 9 months following the date of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts: o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. 66 Payment of death benefit o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If the deceased is the owner or older joint owner: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the Beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value plus any amount applicable under the Earnings enhancement benefit, adjusted for any subsequent withdrawals. The account value, however, will first be reduced by any Credits applied in the one-year period prior to the owner's death. o No withdrawal charges will apply to any withdrawals by the beneficiary. If the deceased is the younger non-spousal joint owner: o The annuity account value will not be reset to the death benefit amount. o The contract's withdrawal charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments; the contract's free withdrawal amount will continue to apply to withdrawals but does not apply to surrenders. o We do not impose a withdrawal charge on scheduled payments except if, when added to any withdrawals previously taken in the same contract year, including for this purpose a contract surrender, the total amount of withdrawals and scheduled payments exceed the free withdrawal amount. See the "Withdrawal charges" in "Charges and expenses" earlier in this Prospectus. Payment of death benefit 67 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Plus(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Plus(SM) extra credit on each contribution, special money market dollar cost averaging program choice of death benefits, the Guaranteed withdrawal benefit for life benefit, the Guaranteed minimum income benefit, guaranteed interest option, fixed maturity options, selection of investment funds and its choices of pay out options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG VARIABLE INVESTMENT OPTIONS You can make transfers among variable investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same cal- 68 Tax information endar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. TAXATION OF LIFETIME WITHDRAWALS IF YOU ELECT GUARANTEED WITHDRAWAL BENEFIT FOR LIFE We treat Guaranteed annual withdrawals and other withdrawals as non-annuity payments for income tax purposes. These withdrawals are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. It reduces the investment in the contract. ANNUITY PAYMENTS Guaranteed annual withdrawals that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus, as well as GMIB and other annuitization payments that are based on life or life expectancy, are considered annuity payments for tax purposes. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your unrecovered investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. Collateral assignments are taxable to the extent of any earnings in the contract at the time any portion of the contract's value is assigned as collateral. Therefore, if you assign your contract as collateral for a loan with a third party after the contract is issued but before the end of the first contract year, you may have taxable income even though you receive no payments under the contract. AXA Equitable will report any income attributable to a collateral assignment on Form 1099-R. Also, if AXA Equitable makes payments or distributions to the assignee pursuant to directions under the collateral assignment agreement, any gains in such payments may be taxable to you and reportable on Form 1099-R even though you do not receive them. EARNINGS ENHANCEMENT BENEFIT In order to enhance the amount of the death benefit to be paid at the owner's death, you may purchase an Earnings enhancement benefit rider for your NQ contract. Although we regard this benefit as an investment protection feature which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Earnings enhancement benefit rider is not part of the contract. In such a case, the charges for the Earnings enhancement benefit rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable, and for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, Equitable would take all reasonable steps to attempt to avoid this result which could include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES You may purchase your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that is the source of the funds you are using to purchase the NQ contract is another nonqualified deferred annuity contract or life insurance or endowment contract. o the owner and the annuitant are the same under the source contract and the Accumulator(R) Plus(SM) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must be the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carries over to the Accumulator(R) Plus(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between the carriers, and provision of cost basis information may be required to process this type of exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. Tax information 69 DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. Beneficiary continuation option We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for a prior similar version of the NQ contract. See the discussion "Beneficiary continuation option for NQ contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2;" o scheduled payments, any additional withdrawals under "Withdrawal Option 2," or contract surrenders under "Withdrawal Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the Withdrawal Option selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling specifically does not address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or any withdrawal that might be taken). The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before 59-1/2. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Account 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Account 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Account 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Account 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets funding the account for the benefit of the IRA owner. The assets typically can include mutual funds and/or individual stocks and/or securities in a custodial account, and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral, regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax pur- 70 Tax information poses. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may purchase the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We currently do not offer traditional IRA contracts for use as employer-funded SEP IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS requires you to have before you purchase an IRA. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). AXA Equitable has applied for opinion letters from the IRS to approve the respective forms of nearly identical prior versions of the Accumulator(R) Plus(SM) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. It is not clear if and when any such approval may be received. We have in the past received IRS opinion letters approving the respective forms of similar traditional IRA and Roth IRA endorsements for use as a traditional and Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) Plus(SM) traditional and Roth IRA contracts. Your right to cancel within a certain number of days You can cancel either type of Accumulator(R) Plus(SM) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel within a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation would have an unfavorable tax impact. Traditional individual retirement annuities (traditional IRAs) Contributions to traditional IRAs. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). Regular contributions to traditional IRAs Limits on contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch up contributions" of up to $1,000 to your traditional IRA. Special rules for spouses. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. For 2008, the amount is $10,000. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. Deductibility of contributions. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored-tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions." That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. Tax information 71 If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits on deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000, after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000, after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000, after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted x regular = deductible divided by $10,000 contribution contribution for the year limit Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000. ($53,000, after cost of living adjustments for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution, and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. Nondeductible regular contributions. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. When you can make regular contributions. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. Rollover and transfer contributions to traditional IRAs Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. 72 Tax information Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. Rollovers from "eligible retirement plans" other than traditional IRAs Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for record keeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Rollovers from traditional IRAs to traditional IRAs You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVER AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. Excess contributions Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contribution amount for the applicable taxable year); or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular Tax information 73 traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. Recharacterizations Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. Withdrawals, payments and transfers of funds out of traditional IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Taxation of payments. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. Required minimum distributions BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts. If you take annual withdrawal instead of annuitizing, please consult your tax adviser concerning applicability of these complex rules to your situation. Lifetime required minimum distributions. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. When you have to take the first lifetime required minimum distribution. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your "Required Beginning Date," which is April 74 Tax information 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year--the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. How you can calculate required minimum distributions. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. Do you have to pick the same method to calculate your required minimum distributions for all of your traditional IRAs and other retirement plans? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. Will we pay you the annual amount every year from your traditional IRA based on the method you choose? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. What if you take more than you need to for any year? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. What if you take less than you need to for any year? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. What are the required minimum distribution payments after you die? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. Individual beneficiary. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. Spousal beneficiary. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions Tax information 75 until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. Non-individual beneficiary. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. Spousal continuation If the contract is continued under Spousal continuation the required minimum distribution rules are applied as if your surviving spouse is the contract owner. Payments to a beneficiary after your death IRA death benefits are taxed the same as IRA distributions. Borrowing and loans are prohibited transactions You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. Early distribution penalty tax A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special federal income tax definition); or o used to pay medical insurance premiums for unemployed individuals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special federal income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies using an IRS-approved distribution method. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. To meet the substantially equal periodic payment exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" above. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under this option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. Roth individual retirement annuities (Roth IRAs) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Plus(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. Contributions to Roth IRAs Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eligible retirement plans ("conversion" rollover contributions); or o tax-free rollover contributions from other Roth individual retirement arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). 76 Tax information Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. Regular contributions to Roth IRAs Limits on regular contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion under "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). Modified adjusted gross income limits will be cost of living indexed beginning in 2007. If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. When you can make contributions. Same as traditional IRAs. Deductibility of contributions. Roth IRA contributions are not tax deductible. Rollovers and direct transfers What is the difference between rollover and direct transfer transactions? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make rollovers between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Tax information 77 Conversion rollover contributions to Roth IRAs In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting -- a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. How to recharacterize. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA) You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover 78 Tax information contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. Distributions from Roth IRAs Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contribu tions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. Required minimum distributions during life Lifetime required minimum distributions do not apply. Required minimum distributions at death Same as traditional IRA under "What are the required minimum distribution payments after you die?" assuming death before the Required Beginning Date. Payments to a beneficiary after your death Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. Tax information 79 Borrowing and loans are prohibited transactions Same as traditional IRA. Excess contributions Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. Early distribution penalty tax Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) General This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) PLUS(SM) TSA CONTRACT Because the Accumulator(R) Plus(SM) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Plus(SM) TSA contract are extremely limited as described below. Accumulator(R) Plus(SM) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Plus(SM) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Plus(SM) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Plus(SM) TSA 80 Tax information contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Plus(SM) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) annuity contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) Plus(SM) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and Tax information 81 (iv) the employer sponsoring the 403(b) annuity plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumultor(R) Plus(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumultor(R) Plus(SM) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" in this Prospectus, as well as GMIB and other annuitization payments that are based on the annuitant's life or life expectancy, are considered annuity payments for tax purposes. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: 82 Tax information Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Plus(SM) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumultor(R) Plus(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Plus(SM) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. Tax information 83 SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribution from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. Federal income tax withholding on periodic annuity payments Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. 84 Tax information A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. Federal income tax withholding on non-periodic annuity payments (withdrawals). Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. Mandatory withholding from TSA and qualified plan distributions Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. Tax information 85 8. More information - -------------------------------------------------------------------------------- ABOUT SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of the Separate Account's operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Account invests solely in class IB/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from the Separate Account, or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in the prospectuses for each Trust, which generally accompany this Prospectus, or in their respective SAIs which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below: - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 - -------------------------------------------------------------------------------- 86 More information - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2013 3.00%* $ 86.25 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - -------------------------------------------------------------------------------- * Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw any of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMOs maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. Any withdrawal charges that are deducted from a fixed maturity option will result in a market value adjustment calculated in the same way. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined by using a widely-published Index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and fixed maturity options, as well as our general obligations. Credits allocated to your account value are funded from our general account. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is More information 87 not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept initial and subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information provided through certain broker-dealers with which we have established electronic facilities. In any such cases, you must sign our Acknowledgement of Receipt form. Where we require a signed application, the above procedures do not apply and no financial transactions will be permitted until we receive the signed application and have issued the contract. Where we issue a contract based on information provided through electronic facilities, we require an Acknowledgement of Receipt form, and financial transactions are only permitted if you request them in writing, sign the request and have it signature guaranteed, until we receive the signed Acknowledgement of Receipt form. After your contract has been issued, additional contributions may be transmitted by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. After your contract has been issued, additional contributions may be transmitted by wire. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, ROLLOVER IRA AND ROTH CONVERSION IRA CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ, Rollover IRA or Roth Conversion IRA contract on a monthly or quarterly basis. AIP is not available for QP contracts or Rollover TSA contracts. Please see Appendix VII later in this Prospectus to see if the automatic investment program is available in your state. The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options, the guaranteed interest option and available fixed maturity options but not the account for special money market dollar cost averaging. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. For contracts with GWBL, AIP will be automatically terminated after the later of: (i) the end of the first contract year, or (ii) the date the first withdrawal is taken. For contracts with PGB, AIP will be automatically terminated at the end of the first six months. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. 88 More information o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS, CREDITS, AND TRANSFERS o Contributions and credits allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions and credits allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions and credits allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Transfers to or from variable investment options will be made at the unit value next determined after receipt of transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in the prospectus for each Trust or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our policyowners arising out of these arrangements. However, the Board of Trustees or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our policyowners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or the distribution of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive written notification of any change at our processing office. More information 89 If you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, the Earnings enhancement benefit, a PGB and/or the Guaranteed withdrawal benefit for life ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. The Benefit will not terminate if the ownership of the contract is transferred from a non-natural owner to an individual but the contract will continue to be based on the annuitant's life. The Benefit will also not terminate if you transfer your individually-owned contract to a trust held for your (or your and your immediate family's) benefit; the Benefit will continue to be based on your life. If you were not the annuitant under the individually-owned contract, you will become the annuitant under the new contract. Please speak with your financial professional for further information. See Appendix VII later in this Prospectus for any state variations with regard to terminating any benefits under your contract. You cannot assign or transfer ownership of a Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available and you cannot assign Rollover IRA, Roth Conversion IRA and QP contracts as security for a loan or other obligation. If the employer that provided the funds does not restrict them, loans are available under a Rollover TSA contract. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract to another similar arrangement under federal income tax rules. In the case of such a transfer, we will impose a withdrawal charge, if one applies. Loans are not available under your NQ contract. In certain circumstances, you may collaterally assign all or a portion of the value of your NQ contract as security for a loan with a third party lender. The terms of the assignment are subject to our approval. The amount of the assignment may never exceed your account value on the day prior to the date we receive all necessary paperwork to effect the assignment. Only one assignment per contract is permitted, and any such assignment must be made prior to the first contract date anniversary. You must indicate that you have not purchased, and will not purchase, any other AXA Equitable (or affiliate's) NQ deferred annuity contract in the same calendar year that you purchase this contract. A collateral assignment does not terminate your benefits under the contract. However, all withdrawals, distributions and benefit payments, as well as the exercise of any benefits, are subject to the assignee's prior approval and payment directions. We will follow such directions until AXA Equitable receives written notification satisfactory to us that the assignment has been terminated. If the owner or beneficiary fails to provide timely notification of the termination, it is possible that we could pay the assignee more than the amount of the assignment, or continue paying the assignee pursuant to existing directions after the collateral assignment has in fact been terminated. Our payment of any death benefit to the beneficiary will also be subject to the terms of the assignment until we receive written notification satisfactory to us that the assignment has been terminated. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the National Association of Securities Dealers, Inc. ("NASD"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with 90 More information ongoing annual compensation of up to 0.60% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 6.75% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker- dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) Plus(SM) on a company and\or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and\or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the NASD, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable NASD rules and other laws and regulations. More information 91 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This Prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa-equitable.com. 92 Incorporation of certain documents by reference Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account No. 49 with the same daily asset charges of 1.55%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AT THE DAILY ASSET CHARGE OF 1.55% AFTER DECEMBER 31, 2007 - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------ 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.68 $ 13.09 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 31,080 6,793 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.30 $ 10.85 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,087 1,202 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.73 $ 11.29 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 7,023 2,537 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 49.91 $ 47.71 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 9,394 3,387 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.16 $ 12.57 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 85,777 22,340 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 255.59 $ 250.91 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 392 361 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.30 $ 18.35 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 813 747 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.79 $ 17.99 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5,611 1,983 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.72 $ 6.88 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 7,920 7,569 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.41 $ 15.95 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,355 630 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.47 $ 17.82 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,301 1,922 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.56 $ 17.62 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 9,126 5,695 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.03 $ 11.34 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 507 100 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.14 $ 10.96 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 773 255 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ----------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.28 $ 10.60 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 342 120 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.36 $ 10.27 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 501 286 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.55 $ 10.38 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 671 279 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 43.93 $ 42.57 $ 39.77 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 762 659 461 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.15 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,035 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 230.23 $ 224.21 $ 199.56 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 370 430 484 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.07 $ 18.13 $ 18.07 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 873 1,061 1,357 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.79 $ 13.03 $ 11.20 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,000 1,008 1,052 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.03 $ 6.21 $ 5.82 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 9.117 10,421 11,828 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.60 $ 15.54 $ 15.21 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 455 480 519 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.60 $ 15.12 $ 13.48 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,979 2,313 2,809 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.75 $ 14.21 $ 12.72 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5,091 5,823 6,106 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.36 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, -------------------------------------------- 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 33.91 $ 39.47 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 279 110 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 135.53 $ 206.51 $ 235.03 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 521 499 204 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.97 $ 16.81 $ 15.83 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,226 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.42 $ 9.51 $ 12.60 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 135 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 4.80 $ 7.08 $ 9.46 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 13,521 14,217 6,200 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.92 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 474 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.71 $ 14.14 $ 16.56 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,037 2,971 1,248 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.04 $ 11.80 $ 11.63 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 6,520 4,851 1,119 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AT THE DAILY ASSET CHARGE OF 1.55% AFTER DECEMBER 31, 2007 (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ----------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 23.62 $ 23.71 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,381 1,301 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 24.36 $ 22.46 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,881 3,580 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.81 $ 6.67 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,391 1,207 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.83 $ 8.91 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 349 147 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.35 $ 12.86 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,136 2,540 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.88 $ 12.87 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 7,563 4,914 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.17 $ 11.04 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,451 382 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.07 $ 10.84 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,797 665 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 30.17 $ 29.20 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,204 3,534 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.68 $ 9.92 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,997 457 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.62 $ 8.78 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,089 319 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.50 $ 12.70 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 6,060 4,317 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.47 $ 10.42 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 6,851 1,076 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.73 $ 10.82 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 936 153 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.50 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 13,483 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.80 $ 11.59 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,416 425 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 28.50 $ 26.49 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,211 519 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------ 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.92 $ 19.65 $ 18.05 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,147 1,430 1,339 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.15 $ 16.63 $ 13.89 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,145 3,356 3,673 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.84 $ 5.59 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 536 306 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.60 $ 8.03 $ 7.87 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 65 88 101 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.16 $ 11.75 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,470 2,815 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.67 $ 11.18 $ 10.23 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5,540 6,418 6,957 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.38 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 65 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.77 $ 25.07 $ 23.10 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,726 4,345 4,750 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.74 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 9 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.42 $ 8.23 $ 7,80 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 349 400 500 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.56 $ 11.04 $ 9.67 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,297 4,997 5,343 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.49 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 11 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 22.64 $ 22.05 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 111 63 -- - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.98 $ 17.04 $ 16.40 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,334 1,071 299 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.02 $ 13.42 $ 17.37 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,227 4,268 2,110 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.25 $ 8.63 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 79 19 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.91 $ 10.66 $ 11.05 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 7,543 2,052 628 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.36 $ 24.03 $ 27.79 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5,020 4,534 1,524 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.74 $ 7.67 $ 9.39 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 378 182 47 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.84 $ 8.52 $ 9.99 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5,392 4,418 609 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AT THE DAILY ASSET CHARGE OF 1.55% AFTER DECEMBER 31, 2007 (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.22 $ 14.30 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,598 2,904 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.25 $ 14.20 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,865 310 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.28 $ 14.07 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 8,678 7,950 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.32 $ 15.76 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,721 4,048 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.64 $ 10.41 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,557 4,130 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.84 $ 14.80 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,698 2,090 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.36 $ 11.19 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,312 738 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.58 $ 10.01 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,048 567 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.44 $ 12.21 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,062 501 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.75 $ 11.70 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 497 138 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.20 $ 12.32 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,108 531 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.25 $ 16.26 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5,863 2,666 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.67 $ 17.21 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,624 3,215 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 28.78 $ 27.92 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,506 2,933 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.74 $ 4.83 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,806 155 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.71 $ 10.70 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,519 623 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.54 $ 11.09 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,565 227 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.18 $ 10.56 $ 9.44 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,599 2,863 2,832 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.48 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.73 $ 13.65 $ 13.32 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 8,015 8,979 10,672 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.30 $ 12.99 $ 11.90 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,589 5,234 6,009 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.36 $ 8.87 $ 8.08 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,965 5,788 6,613 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.94 $ 12.99 $ 11.72 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,422 2,867 3,344 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.64 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 113 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.99 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 30 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.58 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 58 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.55 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 45 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.13 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 120 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.11 $ 13.86 $ 12.74 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,390 1,251 1,338 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.54 $ 14.18 $ 12.22 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,279 3,574 3,783 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 27.14 $ 26.87 $ 27.08 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,954 2,306 3,186 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 4.54 $ 4.38 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 14 6 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.23 $ 8.65 $ 11.10 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,786 2,530 1,050 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.09 $ 12.13 $ 11.41 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 12,695 8,943 1,427 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.53 $ 11.97 $ 13.04 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 6,939 6,123 1,419 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.73 $ 8.66 $ 10.47 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 7,231 7,160 2,262 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.20 $ 14.23 $ 21.92 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,796 4,345 2,112 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.87 $ 11.33 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 701 89 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.32 $ 11.09 $ 10.84 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,067 3,015 198 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 27.35 $ 27.44 $ 26.91 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,967 4,110 826 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AT THE DAILY ASSET CHARGE OF 1.55% AFTER DECEMBER 31, 2007 (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.12 $ 10.92 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 683 158 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.73 $ 11.09 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,020 186 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.76 $ 9.81 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,625 1,202 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.57 $ 10.20 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 603 205 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.27 $ 16.83 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,196 1,231 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.79 $ 15.90 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,146 71 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.80 $ 10.75 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,998 531 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.12 $ 6.15 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,796 424 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.41 $ 11.88 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,990 900 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 25.86 $ 18.50 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5,992 2,602 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.02 $ 13.29 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,291 361 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.28 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,762 -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 62.68 $ 57.17 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 180 171 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.91 $ 11.39 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,253 1,474 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.83 $ 11.96 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,640 696 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 31.67 $ 31.19 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,103 1,654 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.56 $ 16.77 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,753 1,168 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.92 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 300 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.97 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 25 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.52 $ 14.15 $ 12.21 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 854 1,001 1,152 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value 16.83 $ 16.44 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 15 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.47 $ 5.10 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 102 6 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.41 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 131 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.71 $ 10.48 $ 8.61 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,632 1,515 1,462 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.36 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 40 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 55.24 $ 51.85 $ 46.99 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 172 181 211 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.14 $ 11.13 $ 10.88 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,199 1,470 1,625 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.56 $ 10.98 $ 9.94 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 453 565 375 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 28.82 $ 28.41 $ 26.55 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,626 1,924 2,218 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.59 $ 11.96 $ 10.30 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 480 411 323 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.50 $ 10.92 $ 10.87 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 974 825 270 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.61 $ 6.06 $ 6.49 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,464 1,482 881 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 34.70 $ 49.56 $ 67.28 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 241 249 106 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.65 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,594 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.88 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 264 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 22.00 $ 23.03 $ 23.23 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,906 1,632 432 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.79 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 108 -- -- - ------------------------------------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AT THE DAILY ASSET CHARGE OF 1.55% AFTER DECEMBER 31, 2007 (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.62 $ 12.21 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 750 346 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.45 $ 9.54 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,621 999 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.50 $ 14.21 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,431 1,285 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.92 $ 10.82 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,398 884 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.58 $ 13.78 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,394 838 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.83 $ 8.65 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,924 627 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.14 $ 19.31 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,209 2,465 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.21 $ 10.49 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,629 2,459 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.92 $ 10.39 $ 9.62 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 269 397 296 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.68 $ 9.15 $ 8.71 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 613 930 759 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.10 $ 11.47 $ 10.18 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 919 809 635 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.03 $ 9.40 $ 8.54 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 663 773 720 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.20 $ 11.54 $ 10.18 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 550 720 545 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.97 $ 7.53 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 195 11 -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.89 $ 16.39 $ 14.22 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,629 3,013 3,182 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.93 $ 9.07 $ 8.77 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,792 3,478 278 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.63 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 201 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.77 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 424 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.89 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 503 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.19 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 427 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.35 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 364 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.51 $ 12.39 $ 10.69 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,460 2,447 588 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.65 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 386 -- -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-5 Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- Trustees who are considering the purchase of an Accumulator(R) Plus(SM) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this Prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) Plus(SM) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) Plus(SM) QP contract to fund a plan for the contract's features and benefits other than tax deferral, after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or contributions directly from the employer. For 401(k) plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a withdrawal charge and/or market value adjustment may apply. If in a defined benefit plan, the plan's actuary determines that an overfunding in the QP contract has occurred, then any transfers of plan assets out of the QP contract may result in the assessment of a withdrawal charge or a market value adjustment on the amount being transferred. For defined benefit plans, the maximum percentage of actuarial value of the plan participant's normal retirement benefit that can be funded by a QP contract is 80%. The account value under a QP contract may at any time be more or less than the lump sum actuarial equivalent of the accrued benefit for a defined benefit plan participant. AXA Equitable does not guarantee that the account value under a QP contract will at any time equal the actuarial value of 80% of a participant's accrued benefit. AXA Equitable will not perform or provide any plan recordkeeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for annuitants after age 70-1/2, trustees should consider: o whether required minimum distributions under QP contracts would cause withdrawals in excess of 6-1/2% (or 6%, as applicable) of the Guaranteed minimum income benefit Roll-Up benefit base; o that provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed; and o that if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, the payments will be made to the trustee. Finally, because the method of purchasing the QP contract, including the large initial contribution and the features of the QP contract may appeal more to plan participants who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisers whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. B-1 Appendix II: Purchase considerations for QP contracts Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00% ("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a).
- ------------------------------------------------------------------------------------------------------------------------------------ Hypothetical assumed rate to maturity ("j" in the calculations below) February 15, 2012 ------------------------------------------------------ 5.00% 9.00% - ------------------------------------------------------------------------------------------------------------------------------------ As of February 15, 2012 before withdrawal - ------------------------------------------------------------------------------------------------------------------------------------ (1) Market adjusted amount(b) $141,389 $121,737 - ------------------------------------------------------------------------------------------------------------------------------------ (2) Fixed maturity amount(c) $131,104 $131,104 - ------------------------------------------------------------------------------------------------------------------------------------ (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ------------------------------------------------------------------------------------------------------------------------------------ On February 15, 2012 after $50,000 withdrawal - ------------------------------------------------------------------------------------------------------------------------------------ (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ------------------------------------------------------------------------------------------------------------------------------------ (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ------------------------------------------------------------------------------------------------------------------------------------ (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ------------------------------------------------------------------------------------------------------------------------------------ (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ------------------------------------------------------------------------------------------------------------------------------------ (8) Maturity value(d) $111,099 $101,287 - ------------------------------------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ where j is either 5% or 9% (1+j)(1,461/365) (1+j)(D/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) x (1+0.07)(1,461/365)
Appendix III: Market value adjustment example C-1 Appendix IV: Enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the enhanced death benefit. The following illustrates the enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/Money Market, the guaranteed interest option or the fixed maturity options), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the enhanced death benefit for an owner age 45 would be calculated as follows:
- ------------------------------------------------------------------------------------------ End of Con- 6-1/2% Roll-Up to age 85 tract Year Account Value death benefit - ------------------------------------------------------------------------------------------ 1 $109,200 $ 106,500(3) - ------------------------------------------------------------------------------------------ 2 $120,120 $ 113,423(3) - ------------------------------------------------------------------------------------------ 3 $134,534 $ 120,795(3) - ------------------------------------------------------------------------------------------ 4 $107,628 $ 128,647(3) - ------------------------------------------------------------------------------------------ 5 $118,390 $ 137,009(4) - ------------------------------------------------------------------------------------------ 6 $132,597 $ 145,914(4) - ------------------------------------------------------------------------------------------ 7 $132,597 $ 155,399(4) - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ End of Con- 6% Roll-Up to age 85 Annual Ratchet to age 85 GWBL Enhanced tract Year benefit base benefit base death benefit base - ------------------------------------------------------------------------------------------ 1 $ 106,000(5) $ 109,200(1) $ 109,200(7) - ------------------------------------------------------------------------------------------ 2 $ 112,360(5) $ 120,120(1) $ 120,120(7) - ------------------------------------------------------------------------------------------ 3 $ 119,102(5) $ 134,534(1) $ 134,534(7) - ------------------------------------------------------------------------------------------ 4 $ 126,248(5) $ 134,534(2) $ 141,261(8) - ------------------------------------------------------------------------------------------ 5 $ 133,823(5) $ 134,534(2) $ 147,988(8) - ------------------------------------------------------------------------------------------ 6 $ 141,852(6) $ 134,534(2) $ 154,715(8) - ------------------------------------------------------------------------------------------ 7 $ 150,363(6) $ 134,534(2) $ 161,441(8) - ------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. ANNUAL RATCHET TO AGE 85 (1) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (2) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown would be the greater of the amounts shown under the 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85. (3) At the end of contract years 1 through 4, the enhanced death benefit will be based on the Annual Ratchet to age 85. (4) At the end of contract years 5 through 7, the enhanced death benefit will be based on the 6-1/2% Roll-Up to age 85. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown would be the greater of the amounts shown under the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. (5) At the end of contract years 1 through 5, the enhanced death benefit will be based on the Annual Ratchet to age 85. (6) At the end of contract years 6 and 7, the enhanced death benefit will be based on the 6% Roll-Up to age 85. GWBL ENHANCED DEATH BENEFIT This example assumes no withdrawals. The GWBL Enhanced death benefit is a guaranteed minimum death benefit that is only available if you elect the Guaranteed withdrawal benefit for life. If you plan to take withdrawals during any of the first seven contract years, this illustration is of limited usefulness to you. (7) At the end of contract years 1 through 3, the GWBL Enhanced death benefit is equal to the current account value. (8) At the end of contract years 4 through 7, the GWBL Enhanced death benefit is greater than the current account value. D-1 Appendix IV: Enhanced death benefit example Appendix V: Hypothetical Illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "Greater of 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85" enhanced minimum death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Plus(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single$100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying Portfolios (as described below), the corresponding net annual rates of return would be (2.78)%, 3.22% for the Accumulator(R) Plus(SM) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges but they do not reflect the charges we deduct from your account value annually for the enhanced death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return shown would be lower; however, the values shown in the following tables reflect the following contract charges: the "Greater of 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85" enhanced minimum death benefit charge, the Earnings enhancement benefit charge, the Guaranteed minimum income benefit charge, and any applicable administrative charge and withdrawal charge. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this Prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. Appendix V: Hypothetical Illustrations E-1 Variable deferred annuity Accumulator(R) Plus(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Greater of 6-1/2% Roll-Up to age 85 and Annual Ratchet to age 85 Guaranteed minimum death benefit Earnings enhancement benefit Guaranteed minimum income benefit
Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 Guaranteed Minimum Death Benefit ------------------- Account Value Cash Value ------------------- ------------------ Age Contract Year 0% 6% 0% 6% 0% 6% - ----- -------------- --------- --------- -------- --------- --------- --------- 60 1 104,000 104,000 96,000 96,000 100,000 100,000 61 2 99,051 105,269 91,051 97,269 106,500 106,500 62 3 94,146 106,464 87,146 99,464 113,423 113,423 63 4 89,275 107,574 82,275 100,574 120,795 120,795 64 5 84,431 108,591 78,431 102,591 128,647 128,647 65 6 79,605 109,504 74,605 104,504 137,009 137,009 66 7 74,786 110,299 70,786 106,299 145,914 145,914 67 8 69,966 110,966 66,966 107,966 155,399 155,399 68 9 65,135 111,490 65,135 111,490 165,500 165,500 69 10 60,283 111,857 60,283 111,857 176,257 176,257 74 15 35,229 110,744 35,229 110,744 241,487 241,487 79 20 7,825 102,785 7,825 102,785 330,859 330,859 84 25 0 84,474 0 84,474 0 453,305 89 30 0 72,488 0 72,488 0 482,770 94 35 0 63,012 0 63,012 0 482,770 95 36 0 60,951 0 60,951 0 482,770 Lifetime Annual Guaranteed Minimum Income Benefit Total Death Benefit ---------------------------------- with the Earnings Guaranteed Hypothetical enhancement benefit Income Income ------------------- ----------------- ---------------- Age 0% 6% 0% 6% 0% 6% - ----- --------- --------- -------- -------- -------- ------- 60 100,000 100,000 N/A N/A N/A N/A 61 109,100 109,100 N/A N/A N/A N/A 62 118,792 118,792 N/A N/A N/A N/A 63 129,113 129,113 N/A N/A N/A N/A 64 140,105 140,105 N/A N/A N/A N/A 65 151,812 151,812 N/A N/A N/A N/A 66 164,280 164,280 N/A N/A N/A N/A 67 177,558 177,558 N/A N/A N/A N/A 68 191,699 191,699 N/A N/A N/A N/A 69 206,760 206,760 N/A N/A N/A N/A 74 298,082 298,082 14,441 14,441 14,441 14,441 79 423,202 423,202 22,168 22,168 22,168 22,168 84 0 554,251 0 36,264 0 36,264 89 0 583,716 N/A N/A N/A N/A 94 0 583,716 N/A N/A N/A N/A 95 0 583,716 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. E-2 Appendix V: Hypothetical Illustrations Appendix VI: Earnings enhancement benefit example - -------------------------------------------------------------------------------- The following illustrates the calculation of a death benefit that includes the Earnings enhancement benefit for an owner age 45. The example assumes a contribution of $100,000 and no additional contributions. Where noted, a single withdrawal in the amount shown is also assumed. The calculation is as follows: No Withdrawal $3,000 withdrawal $6,000 withdrawal ---------------------------------------------------------------------------------------------------------------------- A Initial contribution 100,000 100,000 100,000 ---------------------------------------------------------------------------------------------------------------------- B Death benefit: prior to withdrawal.* 104,000 104,000 104,000 Earnings enhancement benefit earnings: death benefit less net contributions (prior to the withdrawal in ---------------------------------------------------------------------------------------------------------------------- C 4,000 4,000 4,000 D). B minus A. ---------------------------------------------------------------------------------------------------------------------- D Withdrawal 0 3,000 6,000 Excess of the withdrawal over the Earnings ---------------------------------------------------------------------------------------------------------------------- E enhancement benefit earnings 0 0 2,000 greater of D minus C or zero Net contributions (adjusted for the withdrawal in D) ---------------------------------------------------------------------------------------------------------------------- F 100,000 100,000 98,000 A minus E Death benefit (adjusted for the withdrawal in D) ---------------------------------------------------------------------------------------------------------------------- G 104,000 101,000 98,000 B minus D Death benefit less net contributions ---------------------------------------------------------------------------------------------------------------------- H 4,000 1,000 0 G minus F ---------------------------------------------------------------------------------------------------------------------- I Earnings enhancement benefit factor 40% 40% 40% Earnings enhancement benefit ---------------------------------------------------------------------------------------------------------------------- J 1,600 400 0 H times I Death benefit: including Earnings enhancement benefit ---------------------------------------------------------------------------------------------------------------------- K 105,600 101,400 98,000 G plus J ----------------------------------------------------------------------------------------------------------------------
* The death benefit is the greater of the account value or any applicable death benefit. Appendix VI: Earnings enhancement benefit example F-1 Appendix VII: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- The following information is a summary of the states where the Accumulator(R) Plus(SM)) contract or certain features and/or benefits are either not available as of the date of this Prospectus or vary from the contract's features and benefits as previously described in this Prospectus. STATES WHERE CERTAIN ACCUMULATOR(R) PLUS(SM)) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA See "Contract features and benefits"--"Your right to If you reside in the state of California and you are age 60 cancel within a certain number of days" and older at the time the contract is issued, you may return your variable annuity contract within 30 days from the date that you receive it and receive a refund as described below. If you allocate your entire initial contribution to the EQ/Money Market option (and/or guaranteed interest option, if available), the amount of your refund will be equal to your contribution less interest, unless you make a trans- fer, in which case the amount of your refund will be equal to your account value on the date we receive your request to cancel at our processing office. This amount could be less than your initial contribution. If the Principal guarantee ben- efit or Guaranteed withdrawal benefit for life is elected, the investment allocation during the 30 day free look period is limited to the guaranteed interest option. If you allocate any portion of your initial contribution to the variable invest- ment options (other than the EQ/Money Market option) and/or fixed maturity options, your refund will be equal to your account value on the date we receive your request to cancel at our processing office. - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA See "Contract features and benefits" in "Credits" The following information replaces the second bullet of the final set of bullets in this section: o You may annuitize your contract after thirteen months, however, if you elect to receive annuity payments within five years of the contract date, we will recover the credit that applies to any contribution made in that five years. If you start receiving annuity payments after five years from the contract date and within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS See "Contract features and benefits" in "Credits" The following information replaces the second bullet of the final set of bullets in this section: o You may annuitize your contract after twelve months, however, if you elect to receive annuity payments within five years of the contract date, we will recover the credit that applies to any contribution made in the first five years. If you start receiving annuity payments after five years from the contract date and within three years of making any contribution, we will recover the credit that applies to any contribution made within the prior three years. - ------------------------------------------------------------------------------------------------------------------------------------
G-1 Appendix VII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS See "Loans under Rollover TSA contracts" in "Accessing Your loan interest rate will not exceed 8% (or any lower (CONTINUED) your money" maximum rate that may become required by Illinois or fed- eral law). See "Selecting an annuity payout option" under "Your The following sentence replaces the first sentence of the annuity payout options" in "Accessing your money" second paragraph in this section: You can choose the date annuity payments begin but it may not be earlier than twelve months from the Accumulator(R) Plus(SM) contract date. - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS Annual administrative charge The annual administrative charge will not be deducted from amounts allocated to the Guaranteed interest option. See "Disability, terminal illness or confinement to This section is deleted in its entirety. nursing home" under "Withdrawal charge" in "Charges and expenses" - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI Automatic Investment Program Not Available QP (defined contribution and defined benefit) contracts Not Available See "How you can purchase and contribute to your con- Additional contributions are limited to the first year after tract" in "Contract features and benefits" the contract issue date only. The 150% limitation rule does not apply. - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY The following information applies to Accumulator(R) Plus(SM) contracts sold in New Jersey from May 29, 2007 to September 10, 2007: "Greater of 61/2% Roll-Up to age 85 or Annual Ratchet All references to this feature are deleted in their to age 85 enhanced death benefit" entirety. You have the choice of the following guaranteed minimum death benefits: the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85; the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85; the Annual Ratchet to age 85; the Standard death benefit; the GWBL Standard death benefit; or the GWBL Enhanced death benefit. See "Guaranteed minimum death benefit charge" in "Fee The charge for the Greater of 6% Roll-Up to age 85 or Annual table" Ratchet to age 85 is 0.60% The charge for the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 is 0.60% See "Guaranteed minimum death benefit charge" and Footnote (5) (and all related text) is deleted in its "Guaranteed minimum income benefit charge" in "Fee entirety. We do not reserve the right to increase your table" charge if you reset your Greater of 6% to age 85 or Annual Ratchet to age 85 enhanced death benefit and Guaranteed minimum income benefit Roll-Up benefit base. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-2
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY (CONTINUED) See "Guaranteed minimum income benefit and the Roll-Up All references to resetting your Roll-Up benefit base on benefit base reset" in "Contract features and benefits" each contract date anniversary are deleted in their entirety here and throughout the Prospectus. Instead, if you elect the Guaranteed minimum income benefit alone or together with the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, you will be eligible to reset the Roll-Up benefit base for these guaranteed benefits to equal the account value as of the 5th or later contract date anniversary. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset for five years. The guaranteed minimum income benefit that includes the 6-1/2% Roll-Up Benefit Base is not available in combination with the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. See "Guaranteed minimum income benefit option" in The table showing the maximum periods certain available "Contract features and benefits" under the life with a period certain payout option is deleted in its entirety and replaced with the following: ------------------------------------------------------------ Level payments ------------------------------------------------------------ Period certain years --------------------------------- Owner's age at exercise IRAs NQ ------------------------------------------------------------ 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 ------------------------------------------------------------ See "Greater of 6% Roll-Up to age 85 or Annual Ratchet The second sentence of the first paragraph and the entire to age 85" under "Guaranteed minimum death benefit second paragraph are deleted in their entirety and replaced charge" in "Charges and expenses" with the following: The charge is equal to 0.60% of the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. See "Greater of 3% Roll-Up to age 85 or Annual Ratchet The second sentence is deleted in its entirety and replaced to age 85" under "Guaranteed minimum death benefit with the following: charge" in "Charges and expenses" The charge is equal to 0.60% of the Greater of the 3% Roll-up to age 85 or the Annual Ratchet to age 85 benefit base. - ------------------------------------------------------------------------------------------------------------------------------------
G-3 Appendix VII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA Contributions Your contract refers to contributions as premiums. See "Disability, terminal illness, or confinement to Item (iii) under this section is deleted in its entirety nursing home" under "withdrawal charge" in "Charges and expenses" Required disclosure for Pennsylvania customers Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO Beneficiary continuation option (IRA) Not Available IRA, Roth IRA, Inherited IRA, Rollover TSA and QP Not Available (Defined Benefit) contracts See "How you can purchase and contribute to your con- Specific requirements for purchasing QP contracts in Puerto tract" in "Contract features and benefits" Rico are outlined below in "Purchase considerations for QP (Defined Contribution) contracts in Puerto Rico". See "Exercise Rules" under "How you can purchase and Exercise restrictions for the GMIB on a Puerto Rico QPDC contribute to your contract" in "Contract features and contract are described below, under "Purchase consider- benefits" ations for QP (Defined Contribution) contracts in Puerto Rico", and in your contract. See "Income Manager(R) payout options" in "Accessing This payout option is not available with QPDC contracts. your money" See "Transfers of ownership, collateral assignments, Transfers of ownership of QP contracts are governed by loans and borrowing" in "More information" Puerto Rico law. Please consult your tax, legal or plan advisor if you intend to transfer ownership of your contract. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-4
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO "Purchase considerations for QP (Defined Contribution) Purchase considerations for QP (Defined Contribution) (CONTINUED) contracts in Puerto Rico" -- this section replaces contracts in Puerto Rico: "Appendix II: Purchase considerations for QP Trustees who are considering the purchase of an contracts" in your Prospectus. Accumulator(R) Plus(SM) QP contract in Puerto Rico should discuss with their tax, legal and plan advisors whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the Guaranteed minimum income benefit and other guaranteed benefits, and the payment of death benefits in accordance with the requirements of Puerto Rico income tax rules. The QP contract and this Prospectus should be reviewed in full, and the following factors, among others, should be noted. Limits on Contract Ownership: o The QP contract is offered only as a funding vehicle to qualified plan trusts of single participant defined contri- bution plans that are tax-qualified under Puerto Rico law, not United States law. The contract is not available to US qualified plans or to defined benefit plans qualifying under Puerto Rico law. o The QP contract owner is the qualified plan trust. The annuitant under the contract is the self-employed Puerto Rico resident, who is the sole plan participant. o This product should not be purchased if the self- employed individual anticipates having additional employees become eligible for the plan. We will not allow additional contracts to be issued for participants other than the original business owner. o If the business that sponsors the plan adds another employee, no further contributions may be made to the contract. If the employer moves the funds to another funding vehicle that can accommodate more than one employee, this move could result in surrender charges, if applicable, and the loss of guaranteed benefits in the contract. - ------------------------------------------------------------------------------------------------------------------------------------
G-5 Appendix VII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO Limits on Contributions: (CONTINUED) o All contributions must be direct transfers from other investments within an existing qualified plan trust. o Employer payroll contributions are not accepted. o Only one additional transfer contribution may be made per contract year. o Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. o As mentioned above, if a new employee becomes eligible for the plan, the trustee will not be permitted to make any further contributions to the contract established for the original business owner. Limits on Payments: o Loans are not available under the contract. o All payments are made to the plan trust as owner, even though the plan participant/annuitant is the ultimate recipient of the benefit payment. o AXA Equitable does no tax reporting or withholding of any kind. The plan administrator or trustee will be solely responsible for performing or providing for all such services. o AXA Equitable does not offer contracts that qualify as IRAs under Puerto Rico law. The plan trust will exercise the GMIB and must continue to hold the supplementary contract for the duration of the GMIB payments. Plan Termination: o If the plan participant terminates the business, and as a result wishes to terminate the plan, the trust would have to be kept in existence to receive payments. This could create expenses for the plan. o If the plan participant terminates the plan and the trust is dissolved, or if the plan trustee (which may or may not be the same as the plan participant) is unwilling to accept payment to the plan trust for any reason, AXA Equitable would have to change the contract from a Puerto Rico QP to NQ in order to make payments to the individual as the new owner. Depending on when this occurs, it could be a taxable distribution from the plan, with a potential tax of the entire account value of the contract. Puerto Rico income tax withholding and reporting by the plan trustee could apply to the distribution transaction. o If the plan trust is receiving GMIB payments and the trust is subsequently terminated, transforming the contract into an individually owned NQ contract, the trustee would be responsible for the applicable Puerto Rico income tax withholding and reporting on the present value of the remaining annuity payment stream. o AXA Equitable is a U.S. insurance company, therefore distributions under the NQ contract could be subject to United States taxation and withholding on a "taxable amount not determined'' basis. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-6
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO Tax Information-"Special rules for NQ contracts" Income from NQ contracts we issue is U.S. source. A Puerto (CONTINUED) Rico resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico source income of Puerto Rico residents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable portion of amounts distributed from a contract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S. tax paid. Depending on your personal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS See "Annual administrative charge" in "Charges and The annual administrative charge will not be deducted from expenses" amounts allocated to the Guaranteed interest option. - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON Guaranteed interest option Not Available Investment simplifier -- Fixed-dollar option Not Available and Interest sweep option Fixed maturity options Not Available Income Manager(R) payout option Not Available Earnings enhancement benefit Not Available "Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet All references to these features are deleted in their to age 85 enhanced death benefit"; "Greater of 6% Roll-Up entirety. to age 85 or Annual Ratchet to age 85 enhanced death benefit"; and "GWBL Enhanced death benefit" You have the choice of the following guaranteed minimum death benefits: the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit; the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit; the Annual Ratchet to age 85; the Standard death benefit; or the GWBL Standard death benefit. See "Guaranteed minimum death benefit charge" in "Fee The charge for the Greater of 4% Roll-Up to age 85 or Annual table" and in "Charges and expenses" Ratchet to age 85 is 0.65% and cannot be increased. See "How you can purchase and contribute to your con- o For contracts with GWBL, the $1,500,000 contribution limit tract" in "Contract features and benefits" applies for all issue ages. o The second sentence of the third paragraph is deleted. The paragraph now reads: "We limit aggregate contribu- tions made after the first contract year to 150% of first- year contributions." - ------------------------------------------------------------------------------------------------------------------------------------
G-7 Appendix VII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON See "Guaranteed minimum death benefit and Guaranteed o If you elect the 6-1/2% (or 6%, as applicable) Guaranteed (CONTINUED) minimum income benefit base" in "Contract features and minimum income benefit with the Greater of 4% Roll-Up to benefits" age 85 or Annual Ratchet to age 85 enhanced death benefit, the variable investment options (including amounts allocated to the account for special money market dollar cost averaging, but excluding all other amounts allocated to the EQ/Money Market) will roll up at an annual rate of 6-1/2% (or 6%, as applicable) for the Guaranteed minimum income benefit base and 4% for the 4% Roll-Up to age 85 benefit base. o If you elect the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, without a Guaranteed minimum income benefit, the variable investment options (including amounts allocated to the account for special money market dollar cost averaging, but excluding all other amounts allocated to the EQ/Money Market) will roll up at an annual rate of 4% for the 4% Roll-Up to age 85 benefit base. See "Guaranteed minimum death benefit/Guaranteed mini- Your "Greater of 4% Roll-Up to Age 85 or Annual Ratchet to mum income benefit roll-up benefit benefit base reset" age 85 enhanced death benefit" benefit base will reset in "Contract features and benefits" only if your account value is greater than your Guaranteed minimum income benefit Roll-Up benefit base. See "How withdrawals affect your Guaranteed minimum The first sentence of the third paragraph is replaced with income benefit and Guaranteed minimum death benefit" the following: in "Accessing your money" o With respect to the 6-1/2% (or 6%, as applicable) Guar- anteed minimum income benefit, withdrawals (including any applicable withdrawal charges) will reduce the 6-1/2% (or 6%, as applicable) Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6-1/2% (or 6%, as applicable) or less of the 6-1/2% (or 6%, as applicable) Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. o With respect to the Guaranteed minimum income benefit and the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, if elected in combination, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6-1/2% (or 6%, as applicable) or less of the Guaranteed minimum income benefit's Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-8
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON o With respect to the Greater of 4% Roll-Up to age 85 or (CONTINUED) Annual Ratchet to age 85 enhanced death benefit, if elected without the Guaranteed minimum income benefit, withdrawals (including any applicable withdrawal charges) will reduce the 4% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6% or less of the 4% Roll-Up to age 85 benefit base on the contract issue date or the most recent contract date anniversary, if later. o With respect to the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, with- drawals (including any applicable withdrawal charges) will reduce the 3% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the with- drawals in a contract year is 3% or less of the 3% Roll-Up to age 85 enhanced death benefit base on the contract issue date or the most recent contract date anniversary, if later. See "Guaranteed minimum death benefit" in You have a choice of the standard death benefit, the Annual "Contract features and benefits" Ratchet to age 85 enhanced death benefit, the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, or the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. See "GWBL Guaranteed minimum death benefit" under Only the GWBL Standard death benefit is available. "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" See "Annual administrative charge" in "Charges and The second paragraph of this section is replaced with the expenses" following: The annual administrative charge will be deducted from the value in the variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of that charge for the year. See "10% free withdrawal amount" under "Withdrawal The 10% free withdrawal amount applies to full surrenders. charge" in "Charges and expenses" See "Certain withdrawals" under "Withdrawal charge" in If you elect the Greater of 4% Roll-Up to age 85 or Annual "Charges and expenses" Ratchet to age 85 enhanced death benefit without a Guar- anteed minimum income benefit, the withdrawal charge will be waived for any withdrawal that, together with any prior withdrawals made during the contract year, does not exceed 6% of the beginning of contract year 4% Roll-Up to age 85 benefit base, even if such withdrawals exceed the free with- drawal amount. - ------------------------------------------------------------------------------------------------------------------------------------
G-9 Appendix VII: State contract availability and/or variations of certain features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ State Features and Benefits Availability or Variation - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON See "Withdrawal charge" in "Charges and expenses" The owner (or older joint owner, if applicable) has (CONTINUED) under "Disability, terminal illness, or confinement qualified to receive Social Security disability benefits as to nursing home" certified by the Social Security Administration or a statement from an independent U.S. licensed physician stating that the owner (or older joint owner, if applicable) meets the definition of total disability for at least 6 continuous months prior to the notice of claim. Such disability must be re-certified every 12 months. - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-10 Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Name Change 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to obtain an Accumulator(R) Plus(SM) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) Plus(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 ................................................................................. Please send me an Accumulator(R) Plus(SM) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip X1889/Plus '02/'04, ML, '04(NY) '06, /'06.5 and '07 Series Accumulator(R) Select(SM) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before taking any action under your contract. You should read the prospectuses for each Trust, which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) SELECT(SM)? Accumulator(R) Select(SM) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options or fixed maturity options ("investment options"). There is no withdrawal charge under the contract. This contract is no longer available for new purchasers. This Prospectus is designed for current contract owners. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street o EQ/Ariel Appreciation II Small Cap o EQ/BlackRock Basic Value Equity o EQ/PIMCO Real Return o EQ/BlackRock International Value o EQ/Short Duration Bond o EQ/Boston Advisors Equity Income o EQ/Small Company Index o EQ/Calvert Socially Responsible o EQ/T. Rowe Price Growth Stock o EQ/Capital Guardian Growth o EQ/Templeton Growth o EQ/Capital Guardian Research o EQ/UBS Growth and Income o EQ/Caywood-Scholl High Yield Bond o EQ/Van Kampen Comstock o EQ/Davis New York Venture o EQ/Van Kampen Emerging Markets o EQ/Equity 500 Index Equity o EQ/Evergreen International Bond o EQ/Van Kampen Mid Cap Growth o EQ/Evergreen Omega o Multimanager Aggressive Equity o EQ/FI Mid Cap o Multimanager Core Bond o EQ/Franklin Income o Multimanager Health Care o EQ/Franklin Small Cap Value o Multimanager High Yield o EQ/Franklin Templeton Founding o Multimanager International Equity Strategy o Multimanager Large Cap Core Equity o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Growth o EQ/GAMCO Small Company Value o Multimanager Large Cap Value o EQ/International Core PLUS(1) o Multimanager Mid Cap Growth o EQ/International Growth o Multimanager Mid Cap Value o EQ/JPMorgan Core Bond o Multimanager Small Cap Growth o EQ/JPMorgan Value Opportunities o Multimanager Small Cap Value o EQ/Large Cap Core PLUS(2) o Multimanager Technology * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 45 and Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the fixed maturity options, which is discussed later in this Prospectus. TYPES OF CONTRACTS. Contracts were offered for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An annuity that is an investment vehicle for a qualified defined contribution plan ("QP") (Rollover and direct transfer contributions only). o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required.) A contribution of at least $25,000 was required to purchase a contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is a part of one of the registration statements. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01905 OREGON ONLY Contents of this Prospectus - -------------------------------------------------------------------------------- ACCUMULATOR(R) SELECT(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 5 How to reach us 6 Accumulator(R) Select(SM) at a glance -- key features 8 - -------------------------------------------------------------------------------- FEE TABLE 10 - -------------------------------------------------------------------------------- Example 13 Condensed financial information 14 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 15 - -------------------------------------------------------------------------------- How you can contribute to your contract 15 Owner and annuitant requirements 18 How you can make your contributions 18 What are your investment options under the contract? 18 Portfolios of the Trusts 19 Allocating your contributions 24 Your benefit base 26 Annuity purchase factors 26 Our baseBUILDER option 26 Guaranteed minimum death benefit 28 Your right to cancel within a certain number of days 29 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 30 - -------------------------------------------------------------------------------- Your account value and cash value 30 Your contract's value in the variable investment options 30 Your contract's value in the fixed maturity options 30 Insufficient account value 30 - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 31 - -------------------------------------------------------------------------------- Transferring your account value 31 Disruptive transfer activity 31 Rebalancing your account value 32 - ---------------------- "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 33 - -------------------------------------------------------------------------------- Withdrawing your account value 33 How withdrawals are taken from your account value 34 How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit 34 Loans under Rollover TSA contracts 34 Surrendering your contract to receive its cash value 35 When to expect payments 35 Your annuity payout options 35 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 38 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 38 Charges that the Trusts deduct 39 Group or sponsored arrangements 39 Other distribution arrangements 39 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 40 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 40 How death benefit payment is made 41 Beneficiary continuation option 41 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 43 - -------------------------------------------------------------------------------- Overview 43 Contracts that fund a retirement arrangement 43 Transfers among investment options 43 Taxation of nonqualified annuities 43 Individual retirement arrangements (IRAs) 45 Tax-sheltered annuity contracts (TSAs) 54 Federal and state income tax withholding and information reporting 58 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 61 - -------------------------------------------------------------------------------- About Separate Account No. 45 and Separate Account No. 49 61 About the Trusts 61 About our fixed maturity options 61 About the general account 62 About other methods of payment 63 Dates and prices at which contract events occur 63 About your voting rights 64 About legal proceedings 64 Financial statements 64 Transfers of ownership, collateral assignments, loans and borrowing 64 Distribution of the contracts 65 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 67 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Purchase considerations for QP contracts B-1 III -- Market value adjustment example C-1 IV -- Guaranteed minimum death benefit example D-1 V -- Hypothetical illustrations E-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page in Term Prospectus 5% Roll-Up to age 80 28 12 month dollar cost averaging 25 account value 30 administrative charge 38 annual ratchet to age 80 28 annuitant 15 annuitization 35 annuity maturity date 37 annuity payout options 35 annuity purchase factors 26 automatic investment program 63 baseBUILDER 26 baseBUILDER benefit charge 38 beneficiary 40 Beneficiary Continuation Option ("BCO") 41 business day 63 cash value 30 charges for state premium and other applicable taxes 39 contract date 9 contract date anniversary 9 contract year 9 contributions to Roth IRAs 51 regular contributions 51 rollovers and direct transfers 51 conversion contributions 52 contributions to traditional IRAs 45 regular contributions 45 rollovers and direct transfers 47 disruptive transfer activity 31 distribution charge 38 EQAccess 6 ERISA 39 fixed maturity options 24 free look 29 general account 62 General dollar cost averaging 25 Guaranteed minimum death benefit 28 Guaranteed minimum income benefit 27 IRA cover IRS cover investment options cover lifetime required minimum distribution withdrawals 34 loan reserve account 35 loans under Rollover TSA contracts 34 market adjusted amount 24 market timing 31 market value adjustment 24 maturity dates 24 maturity value 24 Mortality and expense risks charge 38 NQ cover partial withdrawals 33 Principal assurance allocation 25 Portfolio cover processing office 6 Protection Plus 29 Protection Plus charge 38 QP cover rate to maturity 24 Rebalancing 32 Rollover IRA cover Rollover TSA cover Roth Conversion IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 25 Separate Account No. 45 and Separate Account No. 49 61 substantially equal withdrawals 33 Successor owner and annuitant 41 systematic withdrawals 33 TOPS 6 Trusts 61 TSA cover traditional IRA cover unit 30 variable investment options 18 wire transmittals and electronic applications 63 To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract. Your financial professional can provide further explanation about your contract or supplemental materials. - -------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - -------------------------------------------------------------------------------- fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit baseBUILDER Guaranteed Minimum Income Benefit - -------------------------------------------------------------------------------- 4 Index of key words and phrases Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. Who is AXA Equitable? 5 HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) SelectSM P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) SelectSM c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) SelectSM P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) SelectSM 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year including notification of eligibility to exercise the guaranteed minimum income benefit, if applicable. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options (not available through EQAccess); o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or the Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of your transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or 6 Who is AXA Equitable? Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) election of the rebalancing program; (5) requests for loans under Rollover TSA contracts (employer or plan approval required); (6) spousal consent for loans under Rollover TSA contracts; (7) requests for withdrawals or surrenders from Rollover TSA contracts; (8) tax withholding elections; (9) election of the beneficiary continuation option; (10) IRA contribution recharacterizations; (11) Section 1035 exchanges; (12) direct transfers and rollovers; (13) purchase by, or change of ownership to, a non natural owner; (14) exercise of the Guaranteed minimum income benefit; and (15) death claims. WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) address changes; (2) beneficiary changes; (3) transfers between investment options; (4) contract surrender and withdrawal requests; (5) general dollar cost averaging; and (6) 12 month dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging; (3) rebalancing; (4) 12 month dollar cost averaging; (5) substantially equal withdrawals; (6) systematic withdrawals; and (7) the date annuity payments are to begin. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners all must sign. Who is AXA Equitable? 7 Accumulator(R) Select(SM) at a glance -- key features - -------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------------ Professional investment Accumulator(R) Select(SM)'s variable investment options invest in different Portfolios managed management by professional investment advisers. - ------------------------------------------------------------------------------------------------------------------------------------ Fixed maturity options o 10 fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. -------------------------------------------------------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ------------------------------------------------------------------------------------------------------------------------------------ Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among investment options inside the contract. -------------------------------------------------------------------------------------------------------- Annuity contracts that were purchased as an Individual Retirement Annuity (IRA), do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before you purchased your contract, you should have considered its features and benefits beyond tax deferral, as well as its features, benefits and costs relative to any other investment that you may have chosen in connection with your retirement plan or arrangement, to determine whether it would meet your needs and goals. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ------------------------------------------------------------------------------------------------------------------------------------ baseBUILDER(R) protection baseBUILDER combines a guaranteed minimum income benefit with the guaranteed minimum death benefit provided under the contract. The guaranteed minimum income benefit provides income protection for you during the annuitant's life once you elect to annuitize the contract. The guaranteed minimum death benefit provides a death benefit for the beneficiary should the annuitant die. - ------------------------------------------------------------------------------------------------------------------------------------ Contribution amounts o Additional minimum: $1,000 (NQ, QP and Rollover TSA contracts) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $50 IRA contracts Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million under all Accumulator(R) series contracts with the same owner or annuitant. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We currently impose that limitation except in certain circumstances, which are identified in "How you can contribute to your contract" in "Contract features and benefits" later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------ Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender You may incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ------------------------------------------------------------------------------------------------------------------------------------ Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(SM) payout options (described in a separate prospectus for that option) - ------------------------------------------------------------------------------------------------------------------------------------
8 Accumulator(R) Select(SM) at a glance -- key features Additional features o Guaranteed minimum death benefit even if you do not elect baseBUILDER o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually and annually) o Free transfers o Protection Plus(SM), an optional death benefit available under certain contracts (subject to state availability) - ------------------------------------------------------------------------------------------------------------------------------------ Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense risks, administrative charges and distribution charges at a current annual rate of 1.60%. o Annual 0.30% benefit base charge for the optional baseBUILDER benefit until you exercise your guaranteed minimum income benefit, elect another annuity payout option or the contract date anniversary after the annuitant reaches age 83, whichever occurs first. The benefit base is described under "Your benefit base" in "Contract features and benefits" later in this Prospectus. If you don't elect baseBUILDER, you still receive a guaranteed minimum death benefit under your contract at no additional charge. o An annual charge of 0.20% of the account value for the Protection Plus(SM) optional death benefit. o No sales charge deducted at the time you make contributions, no withdrawal charge and no annual contract fee. ----------------------------------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we received the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date appears in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. ----------------------------------------------------------------------------------------------------------- o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. This charge is generally deducted from the amount applied to an annuity payout option. o We currently deduct a $350 annuity administrative fee from amounts applied to purchase the variable immediate annuitization payout option. This option is described in a separate prospectus that is available from your financial professional. o Annual expenses of the Trust's Portfolios are calculated as a percentage of the average daily net assets invested in each Portfolio. Please see "Fee table" later in this Prospectus for details. - ------------------------------------------------------------------------------------------------------------------------------------ Annuitant issue ages NQ: 0-85 Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85 QP: 20-75 - ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available at certain ages. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional, or call us, if you have any questions. Other contracts We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts, based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. Accumulator(R) Select(SM) at a glance -- key features 9 Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you pay when owning the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay if you purchase a Variable Immediate Annuity payout option. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply. - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value at the time you request certain transactions - ------------------------------------------------------------------------------------------------------------------------------------ Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - ------------------------------------------------------------------------------------------------------------------------------------ The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses. - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ SEPARATE ACCOUNT ANNUAL EXPENSES: Mortality and expense risks 1.10%(1) Administrative 0.25% Distribution 0.25% ------- Total Separate account annual expenses 1.60% - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value each year if you elect the optional benefit - ------------------------------------------------------------------------------------------------------------------------------------ baseBuilder benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually on each contract date anniversary for which the benefit is in effect.) 0.30% - ------------------------------------------------------------------------------------------------------------------------------------ Protection Plus(SM) benefit charge (calculated as a percentage of the account value. Deducted annually on each contract date anniversary for which the benefit is in effect.) 0.20% - ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio. - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio operating expenses expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ ------- other expenses)(2) 0.63% 1.72%
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets. - ---------------------------------------------------------------------------------------------- Manage- Other Portfolio Name ment Fees (3) 12b-1 Fees(4) Expenses (5) - ---------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - ---------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.10% 0.25% 0.17% AXA Conservative Allocation 0.10% 0.25% 0.21% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% AXA Moderate Allocation 0.10% 0.25% 0.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% - ---------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------- Acquired Fee Net Fund Total Annual Waivers Annual Fees and Expenses and/or Expenses Expenses (Before Expense After (Underlying Expense Reimburse- Expense Portfolio Name Portfolios)(6) Limitations) ments(7) Limitations - ---------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - ---------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% - ----------------------------------------------------------------------------------------------
10 Fee table
- ------------------------------------------------------------------------------------------------------------- Manage- Other Portfolio Name ment Fees (3) 12b-1 Fees(4) Expenses (5) - ------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------- Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - ------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government 0.50% 0.25% 0.13% Securities EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% - ------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------- Acquired Fee Net Fund Total Annual Waivers Annual Fees and Expenses and/or Expenses Expenses (Before Expense After (Underlying Expense Reimburse- Expense Portfolio Name Portfolios)(6) Limitations) ments(7) Limitations - ------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------- Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - ------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government -- 0.88% -- 0.88% Securities EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(8) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% - -------------------------------------------------------------------------------------------------------------
Fee table 11
- ------------------------------------------------------------------------------------------------------------- Manage- Other Portfolio Name ment Fees (3) 12b-1 Fees(4) Expenses (5) - ------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------- EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% - ------------------------------------------------------------------------------------------------------------- Acquired Fee Net Fund Total Annual Waivers Annual Fees and Expenses and/or Expenses Expenses (Before Expense After (Underlying Expense Reimburse- Expense Portfolio Name Portfolios)(6) Limitations) ments(7) Limitations - ------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------- EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05% - -------------------------------------------------------------------------------------------------------------
(1) These charges compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. (2) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (3) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (7) and (8) for any expense limitation agreement infor mation. (4) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. For the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust, the 12b-1 fees will not be increased for the life of the contract. (5) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (7) and (8) for any expense limitation agreement information. (6) Each of these variable investment options invest in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (7) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into Expense Limitation Agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this agreement). Under these agreements AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements in the agreements. Plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: - -------------------------------------------------------------------------------- Portfolio Name - -------------------------------------------------------------------------------- Multimanager Aggressive Equity 0.97% - -------------------------------------------------------------------------------- Multimanager Health Care 1.67% - -------------------------------------------------------------------------------- Multimanager Large Cap Core Equity 1.34% - -------------------------------------------------------------------------------- Multimanager Large Cap Growth 1.29% - -------------------------------------------------------------------------------- Multimanager Large Cap Value 1.26% - -------------------------------------------------------------------------------- Multimanager Mid Cap Growth 1.52% - -------------------------------------------------------------------------------- Multimanager Mid Cap Value 1.53% - -------------------------------------------------------------------------------- Multimanager Small Cap Growth 1.35% - -------------------------------------------------------------------------------- Multimanager Small Cap Value 1.45% - -------------------------------------------------------------------------------- Multimanager Technology 1.67% - -------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% - -------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% - -------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% - -------------------------------------------------------------------------------- EQ/AllianceBernstein Value 0.87% - -------------------------------------------------------------------------------- EQ/Ariel Appreciation II 1.09% - -------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% - -------------------------------------------------------------------------------- EQ/Davis New York Venture 1.25% - -------------------------------------------------------------------------------- EQ/Evergreen Omega 1.12% - -------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% - -------------------------------------------------------------------------------- EQ/GAMCO Small Company Value 1.10% - -------------------------------------------------------------------------------- EQ/International Core PLUS 1.05% - -------------------------------------------------------------------------------- EQ/Large Cap Core PLUS 0.83% - -------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS 0.82% - -------------------------------------------------------------------------------- EQ/Legg Mason Value Equity 0.97% - -------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% - -------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% - -------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% - -------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS 0.81% - -------------------------------------------------------------------------------- 12 Fee table - -------------------------------------------------------------------------------- Portfolio Name - -------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth 1.13% - -------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% - -------------------------------------------------------------------------------- EQ/UBS Growth and Income 1.04% - -------------------------------------------------------------------------------- EQ/Van Kampen Comstock 0.99% - -------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% - -------------------------------------------------------------------------------- (8) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and adminis tration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009 EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected baseBUILDER and Protection Plus(SM)) would pay in the situations illustrated. Since the Protection Plus(SM) feature only applies under certain contracts, expenses would be lower for contracts that do not have Protection Plus(SM). The fixed maturity options and the 12 month dollar cost averaging program are not covered by the example. However, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to amounts in the fixed maturity options. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated and that your investment has a 5% return each year. The example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
- ----------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period - ----------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ----------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 1,483.00 $ 2,269.00 $ 4,346.00 AXA Conservative Allocation N/A $ 1,424.00 $ 2,173.00 $ 4,166.00 AXA Conservative-Plus Allocation N/A $ 1,440.00 $ 2,198.00 $ 4,214.00 AXA Moderate Allocation N/A $ 1,452.00 $ 2,219.00 $ 4,252.00 AXA Moderate-Plus Allocation N/A $ 1,465.00 $ 2,239.00 $ 4,290.00 Multimanager Aggressive Equity N/A $ 1,359.00 $ 2,066.00 $ 3,963.00 Multimanager Core Bond N/A $ 1,350.00 $ 2,051.00 $ 3,934.00 Multimanager Health Care N/A $ 1,557.00 $ 2,389.00 $ 4,568.00 Multimanager High Yield N/A $ 1,350.00 $ 2,051.00 $ 3,934.00 Multimanager International Equity N/A $ 1,495.00 $ 2,289.00 $ 4,383.00 Multimanager Large Cap Core Equity N/A $ 1,455.00 $ 2,224.00 $ 4,261.00 Multimanager Large Cap Growth N/A $ 1,461.00 $ 2,234.00 $ 4,280.00 Multimanager Large Cap Value N/A $ 1,446.00 $ 2,208.00 $ 4,233.00 Multimanager Mid Cap Growth N/A $ 1,517.00 $ 2,324.00 $ 4,449.00 Multimanager Mid Cap Value N/A $ 1,514.00 $ 2,319.00 $ 4,439.00 Multimanager Small Cap Growth N/A $ 1,523.00 $ 2,334.00 $ 4,467.00 Multimanager Small Cap Value N/A $ 1,489.00 $ 2,279.00 $ 4,365.00 Multimanager Technology N/A $ 1,557.00 $ 2,389.00 $ 4,568.00 - ----------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 1,300.00 $ 1,969.00 $ 3,776.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,309.00 $ 1,984.00 $ 3,805.00 EQ/AllianceBernstein International N/A $ 1,390.00 $ 2,117.00 $ 4,060.00 EQ/AllianceBernstein Large Cap Growth N/A $ 1,434.00 $ 2,188.00 $ 4,195.00 EQ/AllianceBernstein Quality Bond N/A $ 1,312.00 $ 1,990.00 $ 3,815.00 EQ/AllianceBernstein Small Cap Growth N/A $ 1,384.00 $ 2,107.00 $ 4,041.00 EQ/AllianceBernstein Value N/A $ 1,334.00 $ 2,025.00 $ 3,885.00 - ----------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- If you surrender or do not surrender your contract at the end of the applicable time period - ----------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ----------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 372.00 $ 1,133.00 $ 1,919.00 $ 3,996.00 AXA Conservative Allocation $ 352.00 $ 1,074.00 $ 1,823.00 $ 3,816.00 AXA Conservative-Plus Allocation $ 357.00 $ 1,090.00 $ 1,848.00 $ 3,864.00 AXA Moderate Allocation $ 361.00 $ 1,102.00 $ 1,869.00 $ 3,902.00 AXA Moderate-Plus Allocation $ 365.00 $ 1,115.00 $ 1,889.00 $ 3,940.00 Multimanager Aggressive Equity $ 330.00 $ 1,009.00 $ 1,716.00 $ 3,613.00 Multimanager Core Bond $ 327.00 $ 1,000.00 $ 1,701.00 $ 3,584.00 Multimanager Health Care $ 397.00 $ 1,207.00 $ 2,039.00 $ 4,218.00 Multimanager High Yield $ 327.00 $ 1,000.00 $ 1,701.00 $ 3,584.00 Multimanager International Equity $ 376.00 $ 1,145.00 $ 1,939.00 $ 4,033.00 Multimanager Large Cap Core Equity $ 362.00 $ 1,105.00 $ 1,874.00 $ 3,911.00 Multimanager Large Cap Growth $ 364.00 $ 1,111.00 $ 1,884.00 $ 3,930.00 Multimanager Large Cap Value $ 359.00 $ 1,096.00 $ 1,858.00 $ 3,883.00 Multimanager Mid Cap Growth $ 383.00 $ 1,167.00 $ 1,974.00 $ 4,099.00 Multimanager Mid Cap Value $ 382.00 $ 1,164.00 $ 1,969.00 $ 4,089.00 Multimanager Small Cap Growth $ 385.00 $ 1,173.00 $ 1,984.00 $ 4,117.00 Multimanager Small Cap Value $ 374.00 $ 1,139.00 $ 1,929.00 $ 4,015.00 Multimanager Technology $ 397.00 $ 1,207.00 $ 2,039.00 $ 4,218.00 - ----------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 310.00 $ 950.00 $ 1,619.00 $ 3,426.00 EQ/AllianceBernstein Intermediate Government Securities $ 313.00 $ 959.00 $ 1,634.00 $ 3,455.00 EQ/AllianceBernstein International $ 340.00 $ 1,040.00 $ 1,767.00 $ 3,710.00 EQ/AllianceBernstein Large Cap Growth $ 355.00 $ 1,084.00 $ 1,838.00 $ 3,845.00 EQ/AllianceBernstein Quality Bond $ 314.00 $ 962.00 $ 1,640.00 $ 3,465.00 EQ/AllianceBernstein Small Cap Growth $ 338.00 $ 1,034.00 $ 1,757.00 $ 3,691.00 EQ/AllianceBernstein Value $ 321.00 $ 984.00 $ 1,675.00 $ 3,535.00 - -----------------------------------------------------------------------------------------------
Fee table 13
- ------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period - ------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II N/A $ 1,427.00 $ 2,178.00 $ 4,176.00 EQ/BlackRock Basic Value Equity N/A $ 1,325.00 $ 2,010.00 $ 3,855.00 EQ/BlackRock International Value N/A $ 1,424.00 $ 2,173.00 $ 4,166.00 EQ/Boston Advisors Equity Income N/A $ 1,390.00 $ 2,117.00 $ 4,060.00 EQ/Calvert Socially Responsible N/A $ 1,387.00 $ 2,112.00 $ 4,051.00 EQ/Capital Guardian Growth N/A $ 1,362.00 $ 2,071.00 $ 3,973.00 EQ/Capital Guardian Research N/A $ 1,350.00 $ 2,051.00 $ 3,934.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,350.00 $ 2,051.00 $ 3,934.00 EQ/Davis New York Venture N/A $ 1,434.00 $ 2,188.00 $ 4,195.00 EQ/Equity 500 Index N/A $ 1,231.00 $ 1,855.00 $ 3,554.00 EQ/Evergreen International Bond N/A $ 1,384.00 $ 2,107.00 $ 4,041.00 EQ/Evergreen Omega N/A $ 1,393.00 $ 2,122.00 $ 4,070.00 EQ/FI Mid Cap N/A $ 1,365.00 $ 2,077.00 $ 3,983.00 EQ/Franklin Income N/A $ 1,440.00 $ 2,198.00 $ 4,214.00 EQ/Franklin Small Cap Value N/A $ 1,449.00 $ 2,214.00 $ 4,242.00 EQ/Franklin Templeton Founding Strategy N/A $ 1,523.00 $ 2,334.00 $ 4,467.00 EQ/GAMCO Mergers and Acquisitions N/A $ 1,452.00 $ 2,219.00 $ 4,252.00 EQ/GAMCO Small Company Value N/A $ 1,387.00 $ 2,112.00 $ 4,051.00 EQ/International Core PLUS N/A $ 1,406.00 $ 2,143.00 $ 4,109.00 EQ/International Growth N/A $ 1,461.00 $ 2,234.00 $ 4,280.00 EQ/JPMorgan Core Bond N/A $ 1,288.00 $ 1,948.00 $ 3,736.00 EQ/JPMorgan Value Opportunities N/A $ 1,344.00 $ 2,041.00 $ 3,914.00 EQ/Large Cap Core PLUS N/A $ 1,353.00 $ 2,056.00 $ 3,944.00 EQ/Large Cap Growth PLUS N/A $ 1,350.00 $ 2,051.00 $ 3,934.00 EQ/Legg Mason Value Equity N/A $ 1,369.00 $ 2,082.00 $ 3,992.00 EQ/Long Term Bond N/A $ 1,278.00 $ 1,933.00 $ 3,706.00 EQ/Lord Abbett Growth and Income N/A $ 1,365.00 $ 2,077.00 $ 3,983.00 EQ/Lord Abbett Large Cap Core N/A $ 1,381.00 $ 2,102.00 $ 4,031.00 EQ/Lord Abbett Mid Cap Value N/A $ 1,378.00 $ 2,097.00 $ 4,022.00 EQ/Marsico Focus N/A $ 1,418.00 $ 2,163.00 $ 4,147.00 EQ/Mid Cap Value PLUS N/A $ 1,365.00 $ 2,077.00 $ 3,983.00 EQ/Money Market N/A $ 1,253.00 $ 1,892.00 $ 3,625.00 EQ/Montag & Caldwell Growth N/A $ 1,393.00 $ 2,122.00 $ 4,070.00 EQ/Mutual Shares N/A $ 1,458.00 $ 2,229.00 $ 4,271.00 EQ/Oppenheimer Global N/A $ 1,569.00 $ 2,408.00 $ 4,605.00 EQ/Oppenheimer Main Street Opportunity N/A $ 1,520.00 $ 2,329.00 $ 4,458.00 EQ/Oppenheimer Main Street Small Cap N/A $ 1,545.00 $ 2,369.00 $ 4,532.00 EQ/PIMCO Real Return N/A $ 1,328.00 $ 2,015.00 $ 3,865.00 EQ/Short Duration Bond N/A $ 1,294.00 $ 1,959.00 $ 3,756.00 EQ/Small Company Index N/A $ 1,234.00 $ 1,860.00 $ 3,564.00 EQ/T. Rowe Price Growth Stock N/A $ 1,403.00 $ 2,138.00 $ 4,099.00 EQ/Templeton Growth N/A $ 1,471.00 $ 2,249.00 $ 4,308.00 EQ/UBS Growth and Income N/A $ 1,396.00 $ 2,128.00 $ 4,080.00 EQ/Van Kampen Comstock N/A $ 1,362.00 $ 2,071.00 $ 3,973.00 EQ/Van Kampen Emerging Markets Equity N/A $ 1,545.00 $ 2,369.00 $ 4,532.00 EQ/Van Kampen Mid Cap Growth N/A $ 1,378.00 $ 2,097.00 $ 4,022.00 - ------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------- If you surrender or do not surrender your contract at the end of the applicable time period - ------------------------------------------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II $ 353.00 $ 1,077.00 $ 1,828.00 $ 3,826.00 EQ/BlackRock Basic Value Equity $ 318.00 $ 975.00 $ 1,660.00 $ 3,505.00 EQ/BlackRock International Value $ 352.00 $ 1,074.00 $ 1,823.00 $ 3,816.00 EQ/Boston Advisors Equity Income $ 340.00 $ 1,040.00 $ 1,767.00 $ 3,710.00 EQ/Calvert Socially Responsible $ 339.00 $ 1,037.00 $ 1,762.00 $ 3,701.00 EQ/Capital Guardian Growth $ 331.00 $ 1,012.00 $ 1,721.00 $ 3,623.00 EQ/Capital Guardian Research $ 327.00 $ 1,000.00 $ 1,701.00 $ 3,584.00 EQ/Caywood-Scholl High Yield Bond $ 327.00 $ 1,000.00 $ 1,701.00 $ 3,584.00 EQ/Davis New York Venture $ 355.00 $ 1,084.00 $ 1,838.00 $ 3,845.00 EQ/Equity 500 Index $ 287.00 $ 881.00 $ 1,505.00 $ 3,204.00 EQ/Evergreen International Bond $ 338.00 $ 1,034.00 $ 1,757.00 $ 3,691.00 EQ/Evergreen Omega $ 341.00 $ 1,043.00 $ 1,772.00 $ 3,720.00 EQ/FI Mid Cap $ 332.00 $ 1,015.00 $ 1,727.00 $ 3,633.00 EQ/Franklin Income $ 357.00 $ 1,090.00 $ 1,848.00 $ 3,864.00 EQ/Franklin Small Cap Value $ 360.00 $ 1,099.00 $ 1,864.00 $ 3,892.00 EQ/Franklin Templeton Founding Strategy $ 385.00 $ 1,173.00 $ 1,984.00 $ 4,117.00 EQ/GAMCO Mergers and Acquisitions $ 361.00 $ 1,102.00 $ 1,869.00 $ 3,902.00 EQ/GAMCO Small Company Value $ 339.00 $ 1,037.00 $ 1,762.00 $ 3,701.00 EQ/International Core PLUS $ 345.00 $ 1,056.00 $ 1,793.00 $ 3,759.00 EQ/International Growth $ 364.00 $ 1,111.00 $ 1,884.00 $ 3,930.00 EQ/JPMorgan Core Bond $ 306.00 $ 938.00 $ 1,598.00 $ 3,386.00 EQ/JPMorgan Value Opportunities $ 324.00 $ 994.00 $ 1,691.00 $ 3,564.00 EQ/Large Cap Core PLUS $ 328.00 $ 1,003.00 $ 1,706.00 $ 3,594.00 EQ/Large Cap Growth PLUS $ 327.00 $ 1,000.00 $ 1,701.00 $ 3,584.00 EQ/Legg Mason Value Equity $ 333.00 $ 1,019.00 $ 1,732.00 $ 3,642.00 EQ/Long Term Bond $ 302.00 $ 928.00 $ 1,583.00 $ 3,356.00 EQ/Lord Abbett Growth and Income $ 332.00 $ 1,015.00 $ 1,727.00 $ 3,633.00 EQ/Lord Abbett Large Cap Core $ 337.00 $ 1,031.00 $ 1,752.00 $ 3,681.00 EQ/Lord Abbett Mid Cap Value $ 336.00 $ 1,028.00 $ 1,747.00 $ 3,672.00 EQ/Marsico Focus $ 350.00 $ 1,068.00 $ 1,813.00 $ 3,797.00 EQ/Mid Cap Value PLUS $ 332.00 $ 1,015.00 $ 1,727.00 $ 3,633.00 EQ/Money Market $ 294.00 $ 903.00 $ 1,542.00 $ 3,275.00 EQ/Montag & Caldwell Growth $ 341.00 $ 1,043.00 $ 1,772.00 $ 3,720.00 EQ/Mutual Shares $ 363.00 $ 1,108.00 $ 1,879.00 $ 3,921.00 EQ/Oppenheimer Global $ 401.00 $ 1,219.00 $ 2,058.00 $ 4,255.00 EQ/Oppenheimer Main Street Opportunity $ 384.00 $ 1,170.00 $ 1,979.00 $ 4,108.00 EQ/Oppenheimer Main Street Small Cap $ 393.00 $ 1,195.00 $ 2,019.00 $ 4,182.00 EQ/PIMCO Real Return $ 319.00 $ 978.00 $ 1,665.00 $ 3,515.00 EQ/Short Duration Bond $ 308.00 $ 944.00 $ 1,609.00 $ 3,406.00 EQ/Small Company Index $ 288.00 $ 884.00 $ 1,510.00 $ 3,214.00 EQ/T. Rowe Price Growth Stock $ 344.00 $ 1,053.00 $ 1,788.00 $ 3,749.00 EQ/Templeton Growth $ 368.00 $ 1,121.00 $ 1,899.00 $ 3,958.00 EQ/UBS Growth and Income $ 342.00 $ 1,046.00 $ 1,778.00 $ 3,730.00 EQ/Van Kampen Comstock $ 331.00 $ 1,012.00 $ 1,721.00 $ 3,623.00 EQ/Van Kampen Emerging Markets Equity $ 393.00 $ 1,195.00 $ 2,019.00 $ 4,182.00 EQ/Van Kampen Mid Cap Growth $ 336.00 $ 1,028.00 $ 1,747.00 $ 3,672.00 - -------------------------------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix V at the end of this Prospectus. CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. 14 Fee table 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT You may make additional contributions of at least $1,000 each for NQ, QP and Rollover TSA contracts and $50 for Rollover IRA and Roth Conversion IRA contracts, subject to limitations noted below. The following table summarizes our rules regarding contributions to your contract. All ages in the table refer to the age of the annuitant named in the contract. Initial contribution amounts are provided for informational purposes only. This contract is no longer available to new purchasers. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts that you own would then total more than $2,500,000. - -------------------------------------------------------------------------------- The "annuitant" is the person who is the measuring life for determining contract benefits. The annuitant is not necessarily the contract owner. - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------- Contract Annuitant Minimum type issue ages contributions - ------------------------------------------------------------------------------------------------- NQ 0 through 85 o $1,000 (additional) o $100 monthly and $300 quarterly under our automatic investment program (additional) - ------------------------------------------------------------------------------------------------ Rollover IRA 20 through 85 o $50 (additional) - ------------------------------------------------------------------------------------------------ Contract Limitations on type Source of contributions contributions - ------------------------------------------------------------------------------------------------ NQ o After-tax money. o No additional contributions after attainment of age 86 or, if later, the o Paid to us by check or transfer of first contract date anniversary. contract value in a tax-deferred exchange under Section 1035 of the Internal Revenue Code. - ------------------------------------------------------------------------------------------------ Rollover IRA o Eligible rollover distributions from o No rollover or direct transfer contri- 403(b) plans, qualified plans, and butions after attainment of age 86, governmental employer 457(b) or, if later, the first contract date plans. anniversary. o Rollovers from another traditional o Contributions after age 70-1/2 must individual retirement arrangement. be net of required minimum distributions. o Direct custodian-to-custodian trans- fers from another traditional o Although we accept regular IRA con- individual retirement arrangement. tributions (limited to $5,000) under Rollover IRA contracts, we intend that o Regular IRA contributions. this contract be used primarily for rollover and direct transfer o Additional catch-up contributions. contributions. o Additional catch-up contributions of up to $1,000 can be made where the owner is at least age 50 but under age 70-1/2 at any time during the cal- endar year for which the contribution is made. - ------------------------------------------------------------------------------------------------
Contract features and benefits 15
- ------------------------------------------------------------------------------------------------ Contract Annuitant Minimum type issue ages contributions - ------------------------------------------------------------------------------------------------ Roth Con- 20 through 85 o $50 (additional) version IRA - ------------------------------------------------------------------------------------------------ Rollover 20 through 85 o $1,000 (additional) TSA - ------------------------------------------------------------------------------------------------ Contract Limitations on type Source of contributions contributions - ------------------------------------------------------------------------------------------------ Roth Con- o Rollovers from another Roth IRA. o No additional rollover or direct trans- version IRA fer contributions after attainment of o Rollovers from a "designated Roth age 86 or, if later, the first contract contribution account" under a date anniversary. 401(k) plan or 403(b) plan. o Conversion rollovers after age 70-1/2 o Conversion rollovers from a tradi- must be net of required minimum tional IRA or other eligible distributions for the traditional IRA or retirement plan. other eligible retirement plan which is the source of the conversion o Direct transfers from another Roth rollover. IRA. o Regular Roth IRA contributions. o You cannot roll over funds from a traditional IRA or other eligible retire- o Additional catch-up contributions. ment plan if your adjusted gross income is $100,000 or more. o Although we accept regular Roth IRA contributions (limited to $5,000) under the Roth IRA contracts, we intend that this contract be used primarily for rollover and direct trans- fer contributions. o Additional catch-up contributions of up to $1,000 can be made where the owner is at least age 50 at any time during the calendar year for which the contribution is made. - ------------------------------------------------------------------------------------------------ Rollover o With documentation of employer or o No additional rollover or direct trans- TSA plan approval, and limited to pre-tax fer contributions may be made after funds, direct plan-to-plan transfers attainment of age 86 or, if later, the from another 403(b) plan or contract first contract date anniversary. exchanges from another 403(b) contract under the same plan. o Rollover or direct transfer contribu- tions after age 70-1/2 must be net of any required minimum distributions. o With documentation of employer or plan approval, and limited to pre- o We do not accept employer-remitted tax funds, eligible rollover contributions. distributions from other 403(b) plans, qualified plans, governmental o We do not accept after-tax contribu- employer 457(b) plans or tions, including designated Roth traditional IRAs. contributions. - ------------------------------------------------------------------------------------------------
16 Contract features and benefits
- ------------------------------------------------------------------------------------------------ Contract Annuitant Minimum type issue ages contributions - ------------------------------------------------------------------------------------------------ QP 20 through 75 o $1,000 (additional) - ------------------------------------------------------------------------------------------------ Contract Limitations on type Source of contributions contributions - ------------------------------------------------------------------------------------------------ QP o Only transfer contributions from o A separate QP contract must be other investments within an existing established for each plan participant. defined contribution qualified plan trust. o We do not accept regular ongoing payroll contributions or contributions directly from the employer. o The plan must be qualified under o Only one additional transfer contribu- Section 401(a) of the Internal Rev- tion may be made during a contract enue Code. year. o For 401(k) plans, transferred contri- o No additional transfer contributions butions may not include any after- after attainment of age 76 or, if later, tax contributions, including the first contract date anniversary. designated Roth contributions. o Contributions after age 70-1/2 must be net of any required minimum distri- butions. Please refer to Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts. - ------------------------------------------------------------------------------------------------
See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. Contract features and benefits 17 OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. We do not permit partnerships or limited liability corporations to be owners. We also reserve the right to prohibit availability of this contract to other non-natural owners. Only natural persons can be joint owners. In general we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your state. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. Under QP contracts, the owner must be the trustee of the qualified plan and the annuitant must be the plan participant/employee. See Appendix II at the end of this Prospectus for more information on QP contracts. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealers. Additional contributions may also be made under our automatic investment program. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain this information. These methods of payment are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options and the fixed maturity options. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. 18 Contract features and benefits PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- ------------------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. - ------------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. - ------------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a ALLOCATION greater emphasis on current income. - ------------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. - ------------------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, ALLOCATION with a greater emphasis on capital appreciation. - ------------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. EQUITY - ------------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital appreciation, consistent with a prudent level of risk. - ------------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. - ------------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current income and capital appreciation. - ------------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. EQUITY - ------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. CORE EQUITY - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ------------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION o AXA Equitable - ------------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION o AXA Equitable - ------------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS o AXA Equitable ALLOCATION - ------------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION o AXA Equitable - ------------------------------------------------------------------------------------------- AXA MODERATE-PLUS o AXA Equitable ALLOCATION - ------------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND o BlackRock Financial Management, Inc. o Pacific Investment Management Company LLC - ------------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD o Pacific Investment Management Company LLC o Post Advisory Group, LLC - ------------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - -------------------------------------------------------------------------------------------
Contract features and benefits 19
- ------------------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. GROWTH - ------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. VALUE - ------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP Long-term growth of capital. GROWTH - ------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE Long-term growth of capital. - ------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. GROWTH - ------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. VALUE - ------------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY Long-term growth of capital. - ------------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. MON STOCK - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with MEDIATE GOVERNMENT relative stability of principal. SECURITIES - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. NATIONAL - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. CAP GROWTH - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with BOND moderate risk to capital. - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. CAP GROWTH - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. - ------------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, EQUITY income. - ------------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of VALUE income, accompanied by growth of capital. - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - ------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - ------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - ------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - ------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - ------------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- o AllianceBernstein L.P. MON STOCK - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- o AllianceBernstein L.P. MEDIATE GOVERNMENT SECURITIES - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- o AllianceBernstein L.P. NATIONAL - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY o AllianceBernstein L.P. BOND - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II o Ariel Capital Management, LLC - ------------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE o BlackRock Investment Management, LLC EQUITY - ------------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL o BlackRock Investment Management VALUE International Limited - -------------------------------------------------------------------------------------------
20 Contract features and benefits
- ------------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to INCOME achieve an above-average and consistent total return. - ------------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. RESPONSIBLE - ------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. RESEARCH - ------------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. YIELD BOND - ------------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ------------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. BOND - ------------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. - ------------------------------------------------------------------------------------------- EQ/FI MID CAP Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects for capital appreciation. - ------------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. - ------------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily seeks FOUNDING STRATEGY income. - ------------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. ACQUISITIONS - ------------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. VALUE - ------------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with mod- erate risk to capital and maintenance of liquidity. - ------------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. OPPORTUNITIES - ------------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- ondary objective to seek reasonable current income. For purposes of this Portfolio, the words "reasonable current income" mean moderate income. - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ------------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY o Boston Advisors, LLC INCOME - ------------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH o Capital Guardian Trust Company - ------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company RESEARCH - ------------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH o Caywood-Scholl Capital Management YIELD BOND - ------------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE o Davis Selected Advisers, L.P. - ------------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ------------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA o Evergreen Investment Management Company, LLC - ------------------------------------------------------------------------------------------- EQ/FI MID CAP o Fidelity Management & Research Company - ------------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME o Franklin Advisers, Inc. - ------------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE o Franklin Advisory Services, LLC - ------------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON o AXA Equitable FOUNDING STRATEGY - ------------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND o GAMCO Asset Management Inc. ACQUISITIONS - ------------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY o GAMCO Asset Management Inc. VALUE - ------------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ------------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH o MFS Investment Management - ------------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND o JPMorgan Investment Management Inc. - ------------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE o JPMorgan Investment Management Inc. OPPORTUNITIES - ------------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS o AXA Equitable o Institutional Capital LLC o Mellon Capital Management Corporation - -------------------------------------------------------------------------------------------
Contract features and benefits 21
- ------------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - ------------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. - ------------------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------- EQ/LONG TERM BOND Seeks to maximize income and capital appreciation through investment in long-maturity debt obligations. - ------------------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of INCOME income without excessive fluctuation in market value. - ------------------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of CORE income with reasonable risk. - ------------------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------- EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. - ------------------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. - ------------------------------------------------------------------------------------------- EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve its assets and maintain liquidity. - ------------------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. GROWTH - ------------------------------------------------------------------------------------------- EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- sionally be short-term, and secondarily, income. - ------------------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. - ------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. OPPORTUNITY - ------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. SMALL CAP - ------------------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with preservation of real capital and prudent investment man- agement. - ------------------------------------------------------------------------------------------- EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility of principal. - ------------------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ------------------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and STOCK secondarily, income. - ------------------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. - ------------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation with income as a secondary consideration. - ------------------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. - ------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY o Legg Mason Capital Management, Inc. - ------------------------------------------------------------------------------------------- EQ/LONG TERM BOND o BlackRock Financial Management, Inc. - ------------------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND o Lord, Abbett & Co. LLC INCOME - ------------------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP o Lord, Abbett & Co. LLC CORE - ------------------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE o Lord, Abbett & Co. LLC - ------------------------------------------------------------------------------------------- EQ/MARSICO FOCUS o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ------------------------------------------------------------------------------------------- EQ/MONEY MARKET o The Dreyfus Corporation - ------------------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL o Montag & Caldwell, Inc. GROWTH - ------------------------------------------------------------------------------------------- EQ/MUTUAL SHARES o Franklin Mutual Advisers, LLC - ------------------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL o OppenheimerFunds, Inc. - ------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. OPPORTUNITY - ------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. SMALL CAP - ------------------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN o Pacific Investment Management Company, LLC - ------------------------------------------------------------------------------------------- EQ/SHORT DURATION BOND o BlackRock Financial Management, Inc. - ------------------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX o AllianceBernstein L.P. EQ/T. ROWE PRICE GROWTH o T. Rowe Price Associates, Inc. STOCK - ------------------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH o Templeton Global Advisors Limited - ------------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME o UBS Global Asset Management (Americas) Inc. - ------------------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK o Morgan Stanley Investment Management Inc. - -------------------------------------------------------------------------------------------
22 Contract features and benefits
- -------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - -------------------------------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. o Morgan Stanley Investment Management Inc. MARKETS EQUITY - -------------------------------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. o Morgan Stanley Investment Management Inc. GROWTH - --------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. Contract features and benefits 23 FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied: (i) the fixed maturity option's maturity date is within the current calendar year; and (ii) the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options range from one to ten years to maturity. - -------------------------------------------------------------------------------- The rate to maturity you will receive for each fixed maturity option is the rate to maturity in effect for new contributions allocated to that fixed maturity option on the date we apply your contribution. On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity options ending on February 15th for each of the maturity years 2009 through 2018. Not all of these fixed maturity options will be available for annuitant ages 76 and older. See "Allocating your contributions" below. As fixed maturity options expire, we expect to add maturity years so that generally 10 fixed maturity options are available at any time. YOUR CHOICES AT THE MATURITY DATE. We will notify you on or before December 31st of the year before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed above or in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option or into any of the variable investment options; or (b) withdraw the maturity value. If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the next available fixed maturity option with the earliest maturity date. As of February 15, 2008, the next available maturity date is February 15, 2009. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract or when we make deductions for charges) from a fixed maturity option before it matures, we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate to maturity in effect at that time for new allocations to that same fixed maturity option, and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix III at the end of this Prospectus provides an example of how the market value adjustment is calculated. ALLOCATING YOUR CONTRIBUTIONS You may choose from among three ways to allocate your contributions under your contract: self-directed, principal assurance (at contract issue only), or dollar cost averaging. We allocate subsequent contributions according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial 24 Contract features and benefits professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. However, the total of your allocations must equal 100%. If the annuitant is age 76 or older, you may allocate contributions to fixed maturity options if their maturities are five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the February 14th immediately following the date annuity payments are to begin. PRINCIPAL ASSURANCE ALLOCATION Principal assurance allocation is only available at contract issue. If you chose this allocation program, you selected a fixed maturity option. We specified a portion of your initial contribution and allocated it to that fixed maturity option in an amount that will cause the maturity value to equal the amount of your entire initial contribution on the fixed maturity option's maturity date. The maturity date you selected generally could not be later than 10 years, or earlier than 7 years from your contract date. If you were to make any withdrawals or transfers from the fixed maturity option before the option's maturity date, the amount in the fixed maturity option will be adjusted and may no longer grow to equal your initial contribution under the principal assurance allocation. Principal assurance was not available if none of those maturity dates were available at the time your contract was issued. You allocated the remainder of your initial contribution to the variable investment options however you chose. For example, if your initial contribution is $25,000, and on February 15, 2008 you chose the fixed maturity option with a maturity date of February 15, 2018 since the rate to maturity was 4.63% on February 15, 2008, we would have allocated $15,893 to that fixed maturity option and the balance to your choice of variable investment options. On the maturity date your value in the fixed maturity option would be $25,000. The principal assurance allocation was only available for annuitant ages 75 or younger when the contract was issued. If you anticipated taking required minimum distributions, you should have considered whether your values in the variable investment options would be sufficient to meet your required minimum distributions. See "Tax information" later in this Prospectus. You could not have elected principal assurance if you participated in the 12 month dollar cost averaging program at application . DOLLAR COST AVERAGING We offer two dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually transfer amounts from the EQ/Money Market option to the other variable investment options by periodically transferring approximately the same dollar amount to the other variable investment options you select. This will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- 12 MONTH DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the EQ/Money Market option into any of the other variable investment options. You may elect to participate in the 12 month dollar cost averaging program at any time subject to the age limitation on contributions described in Section 1 of this Prospectus. Contributions into the account for 12 month dollar cost averaging may not be transfers from other investment options. You must have allocated your entire initial contribution into the EQ/Money Market option if you selected the 12 month dollar cost averaging program at application to purchase an Accumulator(R) Select(SM) contract; thereafter your initial allocation to any 12 month dollar cost averaging program time period must be at least $2,000 and any subsequent contribution to that same time period must be at least $250. You may only have one time period in effect at any time. We will transfer your value in the EQ/Money Market option into the other variable investment options that you select over the next 12 months or such other period we may offer. Once the time period then in effect has run, you may then select to participate in the dollar cost averaging program for an additional time period. At that time, you may also select a different allocation for transfers to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, the transfer date will be the same day of the month as the contract date, but not later than the 28th. For a 12 month dollar cost averaging program selected after application, the first transfer date and each subsequent transfer date for the time period selected will be one month from the date the first contribution is made into the 12 month dollar cost averaging program, but not later than the 28th of the month. All amounts will be transferred out by the end of the time period then in effect. Under this program we will not deduct the mortality and expense risks, administrative and distribution charges from assets in the EQ/Money Market option. You may not transfer amounts to the EQ/Money Market option established for this program that are not part of the 12 month dollar cost averaging program. The only amounts that should be transferred from the EQ/Money Market option are your regularly scheduled transfers to the other variable investment options. If you request to transfer or withdraw any other amounts from the EQ/Money Market option, we will transfer all of the value that you have remaining in the account for 12 month dollar cost averaging to the investment options according to the allocation percentages we have on file for you. You may ask us to cancel your participation at any time. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any Contract features and benefits 25 time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly, or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. The maximum amount we will transfer is equal to your value in the EQ/Money Market option at the time the program is elected, divided by the number of transfers scheduled to be made. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. ---------------------------------- You may not elect general dollar cost averaging or 12 month dollar cost averaging if you are participating in the rebalancing program. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. You could not elect the 12 month dollar cost averaging program if you selected the principal assurance program at application. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits, see "Your benefit base" below. YOUR BENEFIT BASE The benefit base is used to calculate the guaranteed minimum income benefit and the 5% Roll-Up to age 80 guaranteed minimum death benefit. Your benefit base is not an account value or a cash value. See "Our baseBUILDER option" and "Guaranteed minimum death benefit" below. The benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make. The amount of this deduction is described under "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. The effective annual roll-up rate credited to the benefit base is: o 5% or 6%, depending on your contract issue date, for the benefit base with respect to the variable investment options (other than the Multimanager Core Bond, EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/AllianceBernstein Quality Bond and EQ/Short Duration Bond options), and the 12 month dollar cost averaging program; and o 3% for the benefit base with respect to the Multimanager Core Bond, EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/AllianceBernstein Quality Bond and EQ/Short Duration Bond options, the fixed maturity options and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up after the contract date anniversary following the annuitant's 80th birthday. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the guaranteed minimum income benefit and annuity payout options. The guaranteed minimum income benefit is discussed in "Our baseBUILDER option" and annuity payout options are discussed in "Accessing your money" later in this Prospectus. The guaranteed annuity purchase factors are those factors specified in your contract. The current annuity purchase factors are any more favorable factors that may be in effect at any given time. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit and the annuitant's (and any joint annuitant's) age and sex in certain instances. OUR BASEBUILDER OPTION The following section provides information about the baseBUILDER option, which was only available at the time you purchased your contract. The annuitant was age 20 through 75 at the time of contract issue. The baseBUILDER option combines a guaranteed minimum income benefit with the guaranteed minimum death benefit that was provided under your contract. If you elected the baseBUILDER option at purchase, you pay an additional charge that is described under "baseBUILDER benefit charge" in "Charges and expenses" later in this Prospectus. The guaranteed minimum income benefit component of the baseBUILDER option is described below. Whether you elected the baseBUILDER option or not, the guaranteed minimum death benefit was provided under the contract. The guaranteed minimum death benefit is described under "Guaranteed minimum death benefit" below in this section. The guaranteed minimum income benefit guarantees you a minimum amount of lifetime income under our Income Manager(R) contract. Only a life with a period certain Income Manager(R) payout annuity contract is available. You choose whether you want the option to be paid on a single or joint life basis at the time you exercise the option. The maximum period certain available under the Income Manager(R) payout option is 10 years. This period may be shorter, depending on the annuitant's age as follows: - -------------------------------------------------------------------------------- Level payments - -------------------------------------------------------------------------------- Period certain years -------------------------------------------------- Annuitant's Age at exercise IRAs NQ - -------------------------------------------------------------------------------- 60 to 75 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 - -------------------------------------------------------------------------------- 26 Contract features and benefits - -------------------------------------------------------------------------------- Level payments - -------------------------------------------------------------------------------- Period certain years -------------------------------------------------- Annuitant's Age at exercise IRAs NQ - -------------------------------------------------------------------------------- 81 7 9 82 7 8 83 7 7 - -------------------------------------------------------------------------------- We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The guaranteed minimum income benefit, which is also known as a living benefit, should be regarded as a safety net only. It provides income protection if you elect an income payout while the annuitant is alive. - -------------------------------------------------------------------------------- When you exercise the guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your guaranteed minimum income benefit which is calculated by applying your benefit base to guaranteed annuity purchase factors, or (ii) the income provided by applying your actual account value to our then current annuity purchase factors. For Rollover TSA only, we will subtract from the benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments respectively, due to the effect of interest compounding. The benefit base is applied only to the baseBUILDER guaranteed annuity purchase factors in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of guaranteed minimum income benefit" below. The guaranteed minimum income benefit provides a form of insurance and is based on conservative actuarial factors. The guaranteed annuity purchase factors we use to determine your Income Manager(R) benefit under baseBUILDER are more conservative than the guaranteed annuity purchase factors we use for the Income Manager(R) payout annuity option. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the baseBUILDER Income Manager(R) will be smaller than each periodic payment under the Income Manager(R) payout annuity option. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. The table below illustrates the guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male annuitant age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to the Multimanager Core Bond, EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/AllianceBernstein Quality Bond or EQ/Short Duration Bond options, the fixed maturity options or the loan reserve account. - -------------------------------------------------------------------------------- Guaranteed minimum income Contract date benefit -- annual income anniversary at exercise payable for life - -------------------------------------------------------------------------------- 10 $10,816 15 $16,132 - -------------------------------------------------------------------------------- EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the guaranteed minimum income benefit. You must return your contract to us, along with all required information, within 30 days following your contract date anniversary, in order to exercise this benefit. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payout contract is issued. Payments are made on the 15th of the month and generally begin one payment made from issue. You may choose to take a withdrawal prior to exercising the guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death. You will be eligible to exercise the guaranteed minimum income benefit during your life and the annuitant's life, as follows: o If the annuitant was at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If the annuitant was at least age 45 and no older than age 53 when the contract was issued, you are eligible to exercise the guaranteed minimum income benefit within 30 days following each contract date anniversary after the annuitant is age 60. o If the annuitant was at least age 54 and no older than age 75 when the contract was issued, you are eligible to exercise the guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 7th contract date anniversary. Please note: (i) the latest date you may exercise the guaranteed minimum income benefit is the contract date anniversary following the annuitant's 83rd birthday; and (ii) if the annuitant was age 75 when the contract was issued, the only time you may exercise the guaranteed minimum income Contract features and benefits 27 benefit is within 30 days following the first and second contract date anniversary that it becomes available; (iii) if the annuitant was older than age 63 at the time an IRA, QP or Rollover TSA contract was issued, the baseBUILDER option may not be an appropriate feature because the minimum distributions required by tax law generally must begin before the guaranteed minimum income benefit can be exercised; (iv) for Accumulator(R) Select(SM) QP contracts, the Plan participant can exercise the baseBUILDER option only if he or she elects to take a distribution from the Plan and, in connection with this distribution, the Plan's trustee changes the ownership of the contract to the participant. This effects a rollover of the Accumulator(R) Select(SM) QP contract into an Accumulator(R) Select(SM) Rollover IRA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for the Plan participant to be eligible to exercise; (v) for Accumulator(R) Select(SM) Rollover TSA contracts, you may exercise the baseBUILDER option only if you effect a rollover of the TSA contract to an Accumulator(R) Select(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (vi) for a successor owner/annuitant, the earliest exercise date is based on the original contract issue date and the age of the successor owner/annuitant as of the Processing Date successor owner/annuitant takes effect; and (vii) if you are the owner but not the annuitant and you die prior to exercise, then the following applies: o A successor owner who is not the annuitant may not be able to exercise the baseBUILDER option without causing a tax problem. You should consider naming the annuitant as successor owner, or if you do not name a successor owner, as the sole primary beneficiary. You should carefully review your successor owner and/or beneficiary designations at least one year prior to the first contract date anniversary on which you could exercise the benefit. o If the successor owner is the annuitant, the baseBUILDER option continues only if the benefit could be exercised under the rules described above on a contract date anniversary that is within one year following the owner's death. This would be the only opportunity for the successor owner to exercise. If the baseBUILDER option cannot be exercised within this timeframe, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. o If you designate your surviving spouse as successor owner, the baseBUILDER option continues and your surviving spouse may exercise the benefit according to the rules described above even if your spouse is not the annuitant and even if the benefit is exercised more than one year after your death. If your surviving spouse dies prior to exercise, the rule described in the previous bullet applies. A successor owner or beneficiary that is a trust or other non-o natural person may not exercise the benefit; in this case, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. See "When an NQ contract owner dies before the annuitant" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract's value" and "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT A guaranteed minimum death benefit was provided as part of the baseBUILDER benefit. A guaranteed minimum death benefit was also provided under your contract even if you did not elect baseBUILDER. In this case, the baseBUILDER benefit charge does not apply. Guaranteed minimum death benefit applicable for annuitants who were ages 0 through 79 at issue of NQ contracts; 20 through 79 at issue of Rollover IRA, Roth Conversion IRA and Rollover TSA contracts; and 20 through 75 at issue of QP contracts. You must have elected either the "5% Roll-Up to age 80" or the "annual ratchet to age 80" guaranteed minimum death benefit when you applied for a contract. Once you made your election, you cannot change it. 5% ROLL-UP TO AGE 80. The guaranteed minimum death benefit is equal to the benefit base described earlier in "Your benefit base" ANNUAL RATCHET TO AGE 80. On the contract date, your guaranteed minimum death benefit equaled your initial contribution. Then, on each contract date anniversary, we determine your guaranteed minimum death benefit by comparing your current guaranteed minimum death benefit to your account value on that contract date anniversary. If your account value is higher than your guaranteed minimum death benefit, we will increase your guaranteed minimum death benefit to equal your account value. On the other hand, if your account value on the contract date anniversary is less than your guaranteed minimum death benefit, we will not adjust your guaranteed minimum death benefit either up or down. If you make additional contributions, we will increase your current guaranteed minimum death benefit by the dollar amount of the contribution on the date the contribution is allocated to your investment options. If you take a withdrawal from your contract, we will reduce your guaranteed minimum death benefit on the date you take the withdrawal. GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE FOR ANNUITANTS WHO WERE AGES 80 THROUGH 85 AT ISSUE OF NQ, ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS. On the contract date, your guaranteed minimum death benefit equaled your initial contribution. Thereafter, it is increased by the dol- 28 Contract features and benefits lar amount of any additional contributions. We will reduce your guaranteed minimum death benefit if you take any withdrawals. Please see both "Insufficient account value" in "Determining your contract's value" and "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus for more information on these guaranteed benefits. See Appendix IV at the end of this Prospectus for an example of how we calculate the guaranteed minimum death benefit. Protection Plus(SM) The following section provides information about the Protection Plus(SM) option, which was only available at the time you purchased your contract. If Protection Plus(SM) was not elected when the contract was first issued, neither the owner nor the successor owner/annuitant can add it subsequently. Protection Plus(SM) is an additional death benefit as described below. See the appropriate part of "Tax information" later in this Prospectus for the potential tax consequences of having purchased the Protection Plus(SM) feature in an NQ or IRA contract. If the annuitant was 69 or younger when we issued your Contract (or if the successor owner/annuitant is 69 or younger when he or she becomes the successor owner/annuitant), the death benefit will be: the greater of: o the account value or o any applicable guaranteed minimum death benefit Increased by: 40% of the lesser of: o the total net contributions or o the death benefit less total net contributions For purposes of calculating your Protection Plus(SM) benefit, the following applies: (i) "Net contributions" are the total contributions made (or, if applicable, the total amount that would otherwise have been paid as a death benefit had the successor owner/annuitant election not been made plus any subsequent contributions) reduced on a pro rata basis to reflect withdrawals (including loans). Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce net contributions by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If contributions aggregated $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and net contributions after the withdrawal would be $24,000 ($40,000-$16,000); (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable guaranteed minimum death benefit as of the date of death. If the annuitant was age 70 through 75 when we issued your contract (or if the successor owner/annuitant was between the ages of 70 and 75 when he or she becomes the successor owner/annuitant under a contract where Protection Plus(SM) had been elected at issue), the death benefit will be: the greater of: o the account value or o any applicable guaranteed minimum death benefit Increased by: 25% of the lesser of: o the total net contributions (as described above) or o the death benefit (as described above) less total net contributions. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS This is provided for informational purposes only. Since this contract is no longer available to new purchasers, this cancellation provision is no longer applicable. If for any reason you are not satisfied with your contract, you may return it to us for a refund of the full amount of your contribution. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law requires, this "free look" period may be longer. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. In addition to the cancellation right described above, if you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office, or your financial professional, can provide you with the cancellation instructions. Contract features and benefits 29 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) market adjusted amounts in the fixed maturity options; and (iii) the loan reserve account (applicable to Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) decreased to reflect a withdrawal; (iii) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, when we deduct the baseBUILDER benefit charge and/or the Protection Plus(SM) benefit charge the number of units credited to your contract will be reduced. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all of your rights under your contract and any applicable guaranteed benefits. 30 Determining your contract's value 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer to a fixed maturity option that matures in the current calendar year or that has a rate to maturity of 3% or less. o You may not transfer any amount to the 12-month dollar cost averaging program. o If the annuitant is 76 or older, you must limit your transfers to fixed maturity options to those with maturities of five years or less. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied, the rate to maturity is 3%. Also, the maturity dates may be no later than the February 15th immediately following the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date the transfer may cause a market value adjustment. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. Transferring your money among investment options 31 When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, neither trust had implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We currently offer a rebalancing program that you can use to automatically reallocate your account value among the variable investment options. You must tell us: (a) the percentage you want invested in each variable investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually or annually on a contract year basis). Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. While your rebalancing program is in effect, we will transfer amounts among the variable investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. Your entire account value in the variable investment options must be included in the rebalancing program. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- You may elect the rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while the rebalancing program is in effect we will process the transfer as requested; your rebalancing allocations will not be changed and the rebalancing program will remain in effect unless you request that it be canceled in writing. You may not elect the rebalancing program if you are participating in the general dollar cost averaging or 12 month dollar cost averaging program. Rebalancing is not available for amounts you have allocated in the fixed maturity options. 32 Transferring your money among investment options 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. If you request to withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus and "How withdrawals affect your guaranteed minimum income benefit and guaranteed minimum death benefit" below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. - -------------------------------------------------------------------------------- Method of withdrawal - -------------------------------------------------------------------------------- Pre-Age Lifetime 59-1/2 required substantially minimum Contract Partial Systematic equal distribution - -------------------------------------------------------------------------------- NQ Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Conversion IRA Yes Yes Yes No - -------------------------------------------------------------------------------- QP* Yes No No Yes - -------------------------------------------------------------------------------- Rollover TSA** Yes Yes No Yes - -------------------------------------------------------------------------------- * All payments are made to the trust as owner of the contract. See "Appendix II: Purchase considerations for QP contracts" later in this Prospectus. ** Employer and plan approval required for all transactions. Your ability to take withdrawals, or loans from, or surrender your TSA contract may be limited. You must provide withdrawal restriction information when you apply for a contract. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. SYSTEMATIC WITHDRAWALS (All contracts except QP contracts) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, the amount or the percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. SUBSTANTIALLY EQUAL WITHDRAWALS (All IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be Accessing your money 33 made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a lump sum withdrawal. We will calculate the new withdrawal amount. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or the baseBUILDER option, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. Under Rollover TSA contracts, you may not elect minimum distribution withdrawals if a loan is outstanding. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options. If there is insufficient value or no value in the variable investment options, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options in order of the earliest maturity date(s) first. A market value adjustment may apply to withdrawals from the fixed maturity options. If those amounts are insufficient, we will deduct all or a portion of the charge from amounts in the 12 month dollar cost averaging program. HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar basis or on a pro rata basis as explained below: INCOME BENEFIT AND DEATH BENEFIT 5% ROLL-UP TO AGE 80 -- If you elected the 5% Roll-Up to age 80 guaranteed minimum death benefit, your benefit base will be reduced on a dollar-for-dollar basis as long as the sum of your withdrawals in a contract year is 5% or less of the benefit base on the most recent contract date anniversary. Once you take a withdrawal that causes the sum of your withdrawals in a contract year to exceed 5% of the benefit base on the most recent contract date anniversary, that withdrawal and any subsequent withdrawals in that same contract year will reduce your benefit base on a pro rata basis. Additional contributions made during the contract year do not affect the amount of withdrawals that can be taken on a dollar-for-dollar basis in that contract year. The timing of your withdrawals and whether they exceed the 5% threshold described above can have significant impact on your guaranteed minimum income benefit or guaranteed minimum death benefit. ANNUAL RATCHET TO AGE 80 -- If you elected the annual ratchet to age 80 guaranteed minimum death benefit, each withdrawal will reduce both your income and death benefit on a pro rata basis. ANNUITANT ISSUE AGES 80 THROUGH 85 -- If your contract was issued when the annuitant was between ages 80 and 85, each withdrawal will always reduce your current guaranteed minimum death benefit on a pro rata basis. Reduction on a dollar-for-dollar basis means that your current benefit will be reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by that same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your guaranteed minimum death benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x ..40) and your new guaranteed minimum death benefit after the withdrawal would be $24,000 ($40,000 - $16,000). LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Also, see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, 34 Accessing your money (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan, including any accrued but unpaid loan interest, will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the loan reserve account. Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options. If there is insufficient value or no value in the variable investment options, any additional amount of the loan will be subtracted from the fixed maturity options in order of the earliest maturity date(s) first. A market value adjustment may apply. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while the annuitant is living and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of that date. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of which, sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the fixed maturity options (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Select(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) Select(SM) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Select(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Select(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the annuitant's age when the contract was issued. In addition, if you are exercising your guaranteed minimum income benefit under baseBUILDER, your choice of payout options are those that are available under baseBUILDER (see "Our baseBUILDER option" in "Contract features and benefits" earlier in this Prospectus). Accessing your money 35 - -------------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------------- Income Manager(R) payout options Life annuity with period certain (available for annuitants age 83 Period certain annuity or less at contract issue) - -------------------------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15 or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Income Manager(R) NQ and IRA payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). For QP and Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the QP or Rollover TSA contract. You may choose to apply the account value of your Accumulator(R) Select(SM) contract to an Income Manager(R) payout annuity. The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Living Benefit option, different payout options may apply as well as other various differences. See "Our baseBUILDER option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose. If amounts in a fixed maturity option are used to purchase any annuity payout option prior to the maturity date, a market value adjustment will apply. SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We 36 Accessing your money require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin but it may not be earlier than thirteen months from the Accumulator(R) Select(SM) contract date. Except with respect to the Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is generally the contract date anniversary that follows the annuitant's 90th birthday. We will send a notice with the annual statement one year prior to the maturity age. Accessing your money 37 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o A charge for baseBUILDER, if you elect this optional benefit. o A charge for Protection Plus(SM), if you elect this optional benefit. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. To help with your retirement planning, we may offer other annuities with different charges, benefits and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the guaranteed minimum death benefit. The daily charge is equivalent to an annual rate of 1.10% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. Administrative charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. BASEBUILDER BENEFIT CHARGE If you elected the baseBUILDER, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary after the annuitant reaches age 83, whichever occurs first. The charge is equal to 0.30% of the benefit base in effect on the contract date anniversary. We will deduct this charge from your value in the variable investment options on a pro rata basis. If there is not enough value in the variable investment options, we will deduct all or a portion of the charge first, from the fixed maturity options, in order of the earliest maturity date(s) first. A market value adjustment may apply. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. PROTECTION PLUS(SM) CHARGE If you elected Protection Plus(SM), we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.20% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment option on a pro rata basis. If there is not enough value in the variable investment options, we will deduct all or a portion of the charge first, from the fixed maturity options, in the order of the earliest maturity date(s) first. A market value adjustment may apply. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. 38 Charges and expenses CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY ANNUITIZATION PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity annuitization payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.20%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firm's fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the mortality and expense risks charge or change the minimum initial contribution requirements. We also may change the guaranteed minimum income benefit and the guaranteed minimum death benefit or offer variable investment options that invest in shares of either Trust that are not subject to the 12b-1 fee. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA"), or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that result in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. Charges and expenses 39 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designated your beneficiary when you applied for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. In a QP contract, the beneficiary must be the trustee. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the guaranteed minimum death benefit. The guaranteed minimum death benefit is part of your contract, whether you select the baseBUILDER benefit or not. We determine the amount of the death benefit (other than the guaranteed minimum death benefit) and any amount applicable under the Protection Plus(SM) feature, as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the guaranteed minimum death benefit will be the guaranteed minimum death benefit as of the date of the annuitant's death, adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. EFFECT OF THE ANNUITANT'S DEATH If the annuitant dies before the annuity payments begin, we will pay the death benefit to your beneficiary. Generally, the death of the annuitant terminates the contract. However, a surviving spouse of the deceased owner/annuitant can choose to be treated as the successor owner/annuitant and continue the contract. Only a spouse who is the sole primary beneficiary can be a successor owner/annuitant. The successor owner/annuitant feature is only available under NQ and individually owned IRA contracts. For individually owned IRA contracts, a beneficiary may be able to have limited ownership as discussed under "Beneficiary continuation option" below. WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT Under certain conditions the owner changes after the original owner's death for purposes of receiving federal tax law required distributions from the contract. When you are not the annuitant under an NQ contract and you die before annuity payments begin, unless you specify otherwise, the beneficiary named to receive this death benefit upon the annuitant's death will become the successor owner. If you do not want this beneficiary to be the successor owner, you should name a specific successor owner. You may name a successor owner at any time during your life by sending satisfactory notice to our processing office. If the contract is jointly owned and the first owner to die is not the annuitant, the surviving owner becomes the sole contract owner. This person will be considered the successor owner for purposes of the distribution rules described in this section. The surviving owner automatically takes the place of any other beneficiary designation. You should carefully consider the following if you have elected the guaranteed minimum income benefit and you are the owner but not the annuitant. Because the payments under the guaranteed minimum income benefit are based on the life of the annuitant, and the federal tax law required distributions described below are based on the life of the successor owner, a successor owner who is not also the annuitant may not be able to exercise the guaranteed minimum income benefit, if you die before annuity payments begin. Therefore, one year before you become eligible to exercise the guaranteed minimum income benefit, you should consider the effect of your beneficiary designations on potential payments after your death. For more information, see "Exercise of guaranteed minimum income benefit," under "Our baseBUILDER option," in "Contract features and benefits" earlier in this Prospectus. Unless the surviving spouse of the owner who has died (or in the case of a joint ownership situation, the surviving spouse of the first owner to die) is the successor owner for this purpose, the entire interest in the contract must be distributed under the following rules: o The cash value of the contract must be fully paid to the successor owner (new owner) within five years after your death (or in a joint ownership situation, the death of the first owner to die). o The successor owner may instead elect to receive the cash value as a life annuity (or payments for a period certain of not longer than the successor owner's life expectancy). Payments must begin within 40 Payment of death benefit one year after the non-annuitant owner's death. Unless this alternative is elected, we will pay any cash value five years after your death (or the death of the first owner to die). o A successor owner should name a new beneficiary. If the surviving spouse is the successor owner or joint owner, the spouse may elect to continue the contract and no distributions are required as long as the surviving spouse and annuitant are living. HOW DEATH BENEFIT PAYMENT IS MADE We will pay the death benefit to the beneficiary in the form of the annuity payout option you have chosen. If you have not chosen an annuity payout option as of the time of the annuitant's death, the beneficiary will receive the death benefit in a single sum. However, subject to any exceptions in the contract, our rules and any applicable requirements under federal income tax rules, the beneficiary may elect to apply the death benefit to one or more annuity payout options we offer at the time. See "Your annuity payout options" in "Accessing your money" earlier in this Prospectus. Please note that any annuity payout option chosen may not extend beyond the life expectancy of the beneficiary. SUCCESSOR OWNER AND ANNUITANT If you are both the contract owner and the annuitant, and your spouse is the sole primary beneficiary or the joint owner, then your spouse may elect to receive the death benefit or continue the contract as successor owner/annuitant. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state rules, we will follow federal rules. If your surviving spouse decides to continue the contract, then as of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary to effect the successor owner/annuitant feature, we will increase the account value to equal your guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. In determining whether the guaranteed minimum death benefit will continue to grow, we will use your surviving spouse's age (as of the date we receive satisfactory proof of your death, any required instructions and the information and forms necessary to effect the successor owner/annuitant feature). Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, upon the contract owner's death, to maintain the contract in the deceased contract owner's name and receive distributions under the contract instead of receiving the death benefit in a lump sum. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value plus any amount applicable under the Protection Plus(SM) feature, adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs')," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the ben eficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the guaranteed minimum income benefit or Protection Plus(SM) feature under the contract, they will no longer Payment of death benefit 41 be in effect and charges for such benefits will stop. Also, any guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a por tion of the account value. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. 42 Payment of death benefit 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the Prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Select(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, the amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. Annuity contracts can also be purchased in connection with retirement plans qualified under Section 401(a) of the Code ("QP contracts"). How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Select(SM) 12 Month Dollar Cost Averaging, choice of death benefits, baseBUILDER guaranteed minimum income benefit, selection of variable investment options and fixed maturity options and its choices of payout options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, the guaranteed minimum income benefit and enhanced death benefits. You should consider the potential implication of these Regulations before you make additional contributions or decide how to take required minimum distribution payments. See also Appendix II at the end of this Prospectus for a discussion of QP contracts. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. Tax information 43 ANNUITY PAYMENTS Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your "investment in the contract." Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. PROTECTION PLUS(SM) FEATURE In order to enhance the amount of the death benefit to be paid at the annuitant's death, you may have purchased a Protection Plus(SM) rider for your NQ contract. Although we regard this benefit as an investment protection feature which is part of the contract and which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Protection Plus(SM) rider is not part of the contract. In such a case the charges for the Protection Plus(SM) rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable and, for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, AXA Equitable would take all reasonable steps to attempt to avoid this result, which would include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES The following information applies if you purchased your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange was not taxable under Section 1035 of the Internal Revenue Code if: o the contract that was the source of the funds you used to purchase the NQ contract was another nonqualified deferred annuity contract (or life insurance or endowment contract). o The owner and the annuitant were the same under the source contract and the Accumulator(R) Select(SM) NQ contract. If you used a life insurance or endowment contract the owner and the insured must have been the same on both sides of the exchange transaction. Section 1035 exchanges are generally not available after the death of the owner (or the annuitant in a non-natural owner contract). The tax basis, also referred to as your investment in the contract, of the source contract carried over to the Accumulator(R) Select(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between carriers and provision of cost basis information may be required to process this type of an exchange. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Accounts 45 and 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. 44 Tax information Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Accounts 45 and 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Accounts 45 and 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets for the benefit of the IRA owner. The assets funding the account typically include mutual funds and/or individual stocks and/or securities in a custodial account and bank certificates of deposit in a trusteed account . In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may have purchased the contract as either a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We currently do not offer traditional IRA contracts for use as employer-funded SEP-IRA plans, although we may do so in the future. The first part of this section covers some of the special tax rules that apply to traditional IRAs. The next part of this section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We have received an opinion letter from the IRS approving the respective forms of the Accumulator(R) Select(SM)traditional and Roth IRA contracts for use as a traditional IRA and a Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) Select(SM) traditional and Roth IRA contracts. Your right to cancel within a certain number of days This is provided for informational purposes only. Since this contract is no longer available to new purchasers, this cancellation provision is no longer applicable. You can cancel any version of the Accumulator(R) Select(SM) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel within a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. Traditional individual retirement annuities (traditional IRAs) Contributions to traditional IRAs. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). Regular contribution to traditional IRAs Limits on contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $4,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch-up contributions" of up to $1,000 to your traditional IRA. Special rules for spouses. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation, or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 to any combination of traditional IRAs and Roth IRAs. Any Tax information 45 contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. Deductibility of contributions. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored, tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions". That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits to deductible contributions beginning in 2007. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2007 for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted - -------------------- x regular = deductible divided by $10,000 contribution contribution for the year limit Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return and your adjusted gross income cannot exceed $50,000 ($53,000 after cost of living indexing adjustment for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA, or SARSEP IRA, as well as a traditional IRA or Roth IRA. Nondeductible regular contributions. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum dollar per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make ages 50 - 70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in 46 Tax information order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. When you can make regular contributions. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a tax year. Rollover and transfer contributions to traditional IRAs Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. Rollovers from "eligible retirement plans" other than traditional IRAs Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) SelectSM IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a 403(b) plan, qualified plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA and subsequently take a premature distribution. Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Rollovers from traditional IRAs to traditional IRAs You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA Tax information 47 to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) SelectSM IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. Excess contributions Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o contributions of more than the maximum regular contribution amount for the applicable taxable year); or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. Recharacterizations Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. Withdrawals, payments and transfers of funds out of traditional IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Taxation of payments. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, TSA or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. 48 Tax information Required minimum distributions Background on Regulations -- Required Minimum Distributions. Distributions must be made from traditional IRAs according to the rules contained in the Code and the Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing. Please consult your tax adviser concerning applicability of these complex rules to your situation. Lifetime required minimum distributions. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. When you have to take the first lifetime required minimum distribution. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year -- the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. How you can calculate required minimum distributions. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. Do you have to pick the same method to calculate your required minimum distributions for all of your traditional IRAs and other retirement plans? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. Will we pay you the annual amount every year from your traditional IRA based on the method you choose? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawals to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. What if you take more than you need to for any year? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. What if you take less than you need to for any year? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. What are the required minimum distribution payments after you die? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. Individual beneficiary. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expect- Tax information 49 ancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. Spousal beneficiary. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. Non-individual beneficiary. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. Successor owner and annuitant If your spouse is the sole primary beneficiary and elects to become the successor owner and annuitant, no death benefit is payable until your surviving spouse's death. The required minimum distribution rules are applied as if your surviving spouse is the contract owner. Payments to a beneficiary after your death IRA death benefits are taxed the same as IRA distributions. Borrowing and loans are prohibited transactions You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. Early distribution penalty tax A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 591/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special fed eral income tax definition); or o used to pay medical insurance premiums for unemployed indi viduals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special fed eral income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method. To meet the substantially equal periodic payment exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" earlier in this section. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under this option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as 50 Tax information changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. Roth individual retirement annuities (Roth IRAs) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." Accumulator(R) Select(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. Contributions to Roth IRAs Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs ("conversion rollover" contributions); or o tax-free rollover contributions from other Roth individual retire ment arrangements, or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. Regular contributions to Roth IRAs Limits on regular contributions. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach age 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, AGI between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. When you can make contributions. Same as traditional IRAs. Deductibility of contributions. Roth IRA contributions are not tax deductible. Rollovers and direct transfers What is the difference between rollover and direct transfer transactions? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make a rollover between different plan types (for example, traditional IRA to Roth IRA). You make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); Tax information 51 o a "designated Roth contribution account" under a 401(k) plan or o a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. Conversion rollover contributions to Roth IRAs In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA--whether or not it is the traditional IRA you are converting--a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. How to recharacterize. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the 52 Tax information next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. Withdrawals, payments and transfers of funds out of Roth IRAs No federal income tax law restrictions on withdrawals. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. Distributions from Roth IRAs Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to the special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable- year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contribu tions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Tax information 53 Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. Required minimum distributions during life Lifetime required minimum distributions do not apply. Required minimum distributions at death Same as traditional IRA under "What are the required minimum distribution payments after you die?" assuming death before the Required Beginning Date. Payments to a beneficiary after your death Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. Borrowing and loans are prohibited transactions Same as traditional IRA. Excess contributions Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. Early distribution penalty tax Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, 54 Tax information employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) SELECT(SM) TSA CONTRACT Because the Accumulator(R) Select(SM) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Select(SM) TSA contract are extremely limited as described below. Accumulator(R) Select(SM) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Select(SM) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Select(SM) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Select(SM) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 701/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an Tax information 55 eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) SelectSM TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer, a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Select(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. 56 Tax information If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Select(SM) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. If you elect an annuity payout option, you will recover any investment in the contract as each payment is received by dividing the investment in the contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) SelectSM IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Select(SM) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death Tax information 57 benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) SelectSM IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Select(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Select(SM) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age).- FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. 58 Tax information Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribu tion from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. Federal income tax withholding on periodic annuity payments Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. Federal income tax withholding on non-periodic annuity payments (withdrawals) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. Mandatory withholding from TSA and qualified plan distributions Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. Tax information 59 SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS The trustee is responsible for making all required notifications on tax matters to plan participants and to the IRS. See Appendix II at the end of this Prospectus. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 45 and Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. 60 Tax information 8. More information - -------------------------------------------------------------------------------- ABOUT SEPARATE ACCOUNT NO. 45 AND SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 45 and Separate Account No. 49. We established Separate Account No. 45 in 1994 and Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 45 and in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 45 and Separate Account No. 49 that represent our investments in Separate Account No. 45 and Separate Account No. 49 or that represent fees and charges under the contracts that we have earned, respectively. The results of the Separate Accounts' operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 45 and Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 45 and Separate Account No. 49 are registered under the Investment Company Act of 1940 and are registered and classified under that act as "unit investment trusts." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 45 or Separate Account No. 49. Although Separate Account No. 45 and Separate Account No. 49 are registered, the SEC does not monitor the activity of Separate Account No. 45 or Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within the Separate Accounts invests solely in Class IB/B shares issued by the corresponding Portfolio of either Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from either Separate Account, or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate each Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against each Separate Account or a variable investment option directly); (5) to deregister the Separate Accounts under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Accounts; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS AXA Premier VIP Trust and EQ Advisors Trust are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. AXA Equitable serves as the investment manager of the Trusts. As such, AXA Equitable oversees the activities of the investment advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those advisers. The Trusts do not impose sales charges or "loads" for buying and selling its shares. All dividends and other distributions on the Trusts' shares are reinvested in full. The Board of Trustees of each Trust may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan and other aspects of its operations, appears generally in the prospectuses for each Trust, or in the respective SAIs which generally are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below: More information 61 - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 2013 3.05% $ 86.04 2014 3.52% $ 81.24 2015 4.05% $ 75.72 2016 4.30% $ 71.39 2017 4.50% $ 67.27 2018 4.63% $ 63.57 - -------------------------------------------------------------------------------- * Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw all of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity that applies on the withdrawal date to new allocations to the same fixed maturity option. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. - -------------------------------------------------------------------------------- Your market adjusted amount is the present value of the maturity value discounted at the rate to maturity in effect for new contributions to that same fixed maturity option on the date of the calculation. - -------------------------------------------------------------------------------- If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. See Appendix III at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) above would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined in accordance with our procedures then in effect. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We have no specific formula for establishing the rates to maturity for the fixed maturity options. We expect the rates to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the fixed maturity options, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is 62 More information not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" in "Contract features and benefits" earlier in this Prospectus. Even if we accepted the wire order and essential information, a contract generally was not issued until we received and accepted a properly completed application. In certain cases, we may have issued a contract based on information provided through certain broker-dealers with whom we have established electronic facilities. In any such case, you must have signed our Acknowledgment of Receipt form. Where we required a signed application, the above procedures did not apply and no financial transactions were permitted until we received the signed application and issued the contract. Where we issued a contract based on information provided through electronic facilities, we required an Acknowledgment of Receipt form. Financial transactions were only permitted if you requested them in writing, signed the request and had it signature guaranteed, until we received the signed Acknowledgment of Receipt form. After a contract is issued, additional contributions are allowed by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find our more about such arrangements. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account or credit union checking account and contributed as an additional contribution into an NQ contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts. The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of More information 63 receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4 p.m., Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day. o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; or o the formal approval of Independent Public Accounting Firm selected for each Trust; or o any other matters described in each prospectus for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. VOTING RIGHTS OF OTHERS Currently, we control the Trusts. Their shares are sold to our separate accounts and an affiliated qualified plan trust. In addition, shares of the Trusts are held by separate accounts of insurance companies both affiliated and unaffiliated with us. Shares held by these separate accounts will probably be voted according to the instructions of the owners of insurance policies and contracts issued by those insurance companies. While this will dilute the effect of the voting instructions of the contract owners, we currently do not foresee any disadvantages because of this. The Board of Trustees of each Trust intends to monitor events in order to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a response to any of those events insufficiently protects our contract owners, we will see to it that appropriate action is taken. SEPARATE ACCOUNT NO. 45 AND SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Accounts require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account Nos. 45 and 49, respectively, nor would any of these proceedings be likely to have a material adverse effect upon either Separate Account, our ability to meet our obligations under the contracts, or the distribution of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 45 and Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the applicable SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive written notification of any change at our processing office. You cannot assign your NQ contract as collateral or security for a loan. Loans are also not available under your NQ contract. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available and you cannot assign Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts as security for a loan or other obligation. If the employer that provided the funds does not restrict them, loans are available under a Rollover TSA contract. 64 More information For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contract to another similar arrangement under federal income tax rules . DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). AXA Advisors serves as principal underwriter of Separate Account No. 45, and AXA Distributors serves as the principal underwriter of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 1.00% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 2.00% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker- dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) Select(SM) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-- More information 65 based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. 66 More information 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa- equitable.com. Incorporation of certain documents by reference 67 Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Accounts No. 45 and No. 49 with the same daily asset charges of 1.60%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------------------ 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.65 $ 13.07 $ 11.26 $ 10.59 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 152 189 92 24 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,517 3,308 1,298 726 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.28 $ 10.84 $ 10.35 $ 10.27 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 256 190 168 63 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,731 1,508 1,073 686 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.71 $ 11.28 $ 10.54 $ 10.37 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 594 462 397 279 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,825 1,741 1,299 787 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 49.36 $ 47.21 $ 43.48 $ 42.17 $ 39.41 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,073 1,195 1,301 1,400 1,489 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,439 3,955 4,167 3,907 2,733 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.14 $ 12.55 $ 11.14 $ 10.61 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,599 1043 408 180 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 10,293 11,247 7,926 3,664 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 251.49 $ 247.00 $ 226.77 $ 220.94 $ 196.75 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 159 200 244 275 301 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 377 490 586 683 689 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.14 $ 18.20 $ 17.94 $ 18.01 $ 17.95 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,229 1,493 1,833 2,200 2,818 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,956 2,358 2,881 3,326 3,448 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.66 $ 17.88 $ 14.71 $ 12.97 $ 11.15 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,393 1,534 1,664 1,745 1,928 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,456 4,168 4,498 4,337 4,026 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.69 $ 6.86 $ 7.01 $ 6.19 $ 5.81 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,913 2,322 2,818 3,283 3,962 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 9,407 11,991 14,352 15,822 17,115 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.29 $ 15.84 $ 15.50 $ 15.45 $ 15.13 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 219 243 296 279 282 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,861 2,329 2,753 2,951 3,122 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.36 $ 17.73 $ 16.53 $ 15.07 $ 13.43 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 718 908 1,100 1,230 1,362 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,356 3,069 3,839 4,346 4,534 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------------------ 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 33.62 $ 39.15 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,564 1,005 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 598 97 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 133.70 $ 203.81 $ 232.08 $ 275.01 $ 223.79 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 314 380 310 66 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 581 661 618 255 35 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.86 $ 16.72 $ 15.75 $ 14.70 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 3,868 2,545 486 59 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,501 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.38 $ 9.48 $ 12.56 $ 16.61 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,910 404 302 38 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 604 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 4.79 $ 7.07 $ 9.45 $ 11.77 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 4,522 5,608 4,909 1,112 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 16,550 18,765 17,412 5,630 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.85 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 347 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,064 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.69 $ 14.11 $ 16.53 $ 14.78 $ 11.77 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,384 1,276 718 30 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,377 3,423 3,189 818 211 - ------------------------------------------------------------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------------------ 2007 2006 2005 2004 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.48 $ 17.54 $ 14.69 $ 14.16 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 3,862 1,465 1,617 1,814 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 13,726 13,777 15,585 17,155 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.02 $ 11.33 $ 10.36 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 19 17 5 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 89 99 53 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 23.49 $ 23.60 $ 19.83 $ 19.58 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 774 917 1,046 1,213 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,711 3,644 4,227 4,909 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 24.23 $ 22.35 $ 18.07 $ 16.57 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 437 514 514 468 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,272 4,311 4,992 5,077 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.78 $ 6.64 $ 5.82 $ 5.57 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 306 421 387 56 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 684 907 1,277 370 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.79 $ 8.87 $ 8.57 $ 8.01 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 8 10 10 11 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 250 367 468 498 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.28 $ 12.80 $ 12.11 $ 11.71 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 145 134 45 29 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,030 2,547 2,581 2,715 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.83 $ 12.82 $ 11.63 $ 11.14 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 910 654 775 867 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 16,294 9,568 11,228 12,694 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.15 $ 11.03 $ 10.38 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 139 108 40 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 246 247 113 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.06 $ 10.84 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 99 33 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 634 332 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 29.96 $ 29.01 $ 25.62 $ 24.94 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 582 723 864 968 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 6,391 8,474 10,127 11,584 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.66 $ 9.92 $ 9.74 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 113 61 4 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 777 471 36 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.58 $ 8.74 $ 8.39 $ 8.20 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 174 157 190 242 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,455 1,731 2,184 2,500 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------------------ 2003 2002 2001 2000 1999 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.68 $ 10.01 $ 11.78 $ 11.61 $ 12.04 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,839 1,712 1,138 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 15,959 8,615 6,000 3,700 1,532 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.99 $ 13.94 $ 17.00 $ 16.37 $ 14.88 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,296 1,419 1,305 431 163 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,335 2,235 1,559 1,079 173 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.84 $ 10.98 $ 13.39 $ 17.34 $ 20.10 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 487 498 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5,316 3,555 3,126 2,033 771 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.86 $ 6.24 $ 8.62 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 25 38 6 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 478 128 13 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.27 $ 9.24 $ 12.75 $ 17.16 $ 21.20 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 39 16 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,971 2,171 2,221 1,658 576 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.21 $ 7.89 $ 10.65 $ 11.04 $ 10.60 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 896 961 166 112 13 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 12,682 9,408 3,151 2,953 987 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 22.99 $ 18.28 $ 23.93 $ 27.69 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,030 1,042 1,038 734 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 11,512 7,152 6,601 6,057 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.79 $ 5.73 $ 7.66 $ 9.38 $ 10.80 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 184 143 90 17 8 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,016 424 141 78 6 - ------------------------------------------------------------------------------------------------------------------------------------ - -------------------------------------------------------------------------------- For the years ending December 31, 1998 - -------------------------------------------------------------------------------- EQ/AllianceBernstein Value - -------------------------------------------------------------------------------- Unit value $ 11.81 - -------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 315 - -------------------------------------------------------------------------------- EQ/Ariel Appreciation II - -------------------------------------------------------------------------------- Unit value -- - -------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - -------------------------------------------------------------------------------- Unit value $ 12.71 - -------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- EQ/BlackRock International Value - -------------------------------------------------------------------------------- Unit value $ 12.75 - -------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 422 - -------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - -------------------------------------------------------------------------------- Unit value -- - -------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - -------------------------------------------------------------------------------- Unit value -- - -------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- EQ/Capital Guardian Growth - -------------------------------------------------------------------------------- Unit value $ 16.54 - -------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 282 - -------------------------------------------------------------------------------- EQ/Capital Guardian Research - -------------------------------------------------------------------------------- Unit value -- - -------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - -------------------------------------------------------------------------------- Unit value -- - -------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- EQ/Davis New York Venture - -------------------------------------------------------------------------------- Unit value -- - -------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- EQ/Equity 500 Index - -------------------------------------------------------------------------------- Unit value -- - -------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- EQ/Evergreen International Bond - -------------------------------------------------------------------------------- Unit value -- - -------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- EQ/Evergreen Omega - -------------------------------------------------------------------------------- Unit value -- - -------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- - -------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - --------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------------------- 2007 2006 2005 2004 - --------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - --------------------------------------------------------------------------------------------------------- Unit value $ 13.45 $ 12.66 $ 11.53 $ 11.02 - --------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,036 1,207 1,413 1,558 - --------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,276 8,561 10,309 11,422 - --------------------------------------------------------------------------------------------------------- EQ/Franklin Income - --------------------------------------------------------------------------------------------------------- Unit value $ 10.46 $ 10.42 -- -- - --------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 447 120 -- -- - --------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,051 730 -- -- - --------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - --------------------------------------------------------------------------------------------------------- Unit value $ 9.72 $ 10.81 -- -- - --------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 29 7 -- -- - --------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 73 51 -- -- - --------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - --------------------------------------------------------------------------------------------------------- Unit value $ 9.50 -- -- -- - --------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 61 -- -- -- - --------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,153 -- -- -- - --------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - --------------------------------------------------------------------------------------------------------- Unit value $ 11.78 $ 11.58 $ 10.49 -- - --------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 64 44 19 -- - --------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 230 268 107 -- - --------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - --------------------------------------------------------------------------------------------------------- Unit value $ 28.22 $ 26.24 $ 22.44 $ 21.86 - --------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 151 102 89 21 - --------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 300 291 339 74 - --------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - --------------------------------------------------------------------------------------------------------- Unit value $ 16.15 $ 14.24 $ 12.14 $ 10.53 - --------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 212 235 191 193 - --------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 7,394 9,957 11,032 11,933 - --------------------------------------------------------------------------------------------------------- EQ/International Growth - --------------------------------------------------------------------------------------------------------- Unit value $ 16.23 $ 14.19 $ 11.48 -- - --------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 94 24 3 -- - --------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 409 273 98 -- - --------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - --------------------------------------------------------------------------------------------------------- Unit value $ 14.21 $ 14.01 $ 13.68 $ 13.60 - --------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 869 924 943 748 - --------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 10,140 12,428 14,021 15,208 - --------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - --------------------------------------------------------------------------------------------------------- Unit value $ 15.24 $ 15.68 $ 13.24 $ 12.94 - --------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 229 281 306 338 - --------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,182 4,115 4,803 5,325 - --------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - --------------------------------------------------------------------------------------------------------- Unit value $ 10.60 $ 10.37 $ 9.33 $ 8.84 - --------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 230 298 328 421 - --------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 5,022 6,684 7,849 8,941 - --------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - --------------------------------------------------------------------------------------------------------- Unit value $ 16.75 $ 14.72 $ 13.88 $ 12.94 - --------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 676 791 957 1,142 - --------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,691 3,075 3,566 4,258 - --------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - --------------------------------------------------------------------------------------------------------- Unit value $ 10.35 $ 11.18 $ 10.63 -- - --------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 73 63 6 -- - --------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 503 784 195 -- - --------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------------------ 2003 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.65 $ 6.83 $ 8.51 $ 9.99 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,665 1,471 932 126 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 10,509 4,322 2,644 617 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.42 $ 7.22 $ 8.64 $ 11.09 $ 13.93 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 146 59 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 10,611 5,973 5,697 5,514 1,286 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.28 $ 13.05 $ 12.10 $ 11.40 $ 10.39 $ 10.73 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 804 702 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 16,175 13,419 10,537 5,112 2,026 379 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.86 $ 9.51 $ 11.94 $ 13.02 $ 12.39 $ 12.76 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 377 359 287 124 12 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5,701 4,777 4,156 1,755 978 714 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.07 $ 6.72 $ 8.64 $ 10.45 $ 10.70 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 474 474 543 359 103 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 9,707 8,237 8,655 7,052 2,906 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.68 $ 9.18 $ 14.20 $ 21.88 $ 27.40 $ 16.03 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,345 1,556 1,966 1,834 383 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,710 4,661 5,707 5,759 1,680 200 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------------------ 2007 2006 2005 2004 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.57 $ 10.00 $ 9.98 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 99 64 55 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 315 390 431 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.42 $ 12.20 $ 10.58 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 116 83 13 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 368 502 135 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.73 $ 11.69 $ 10.54 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 29 22 21 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 161 166 132 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.18 $ 12.31 $ 11.13 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 128 115 102 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 480 519 490 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.20 $ 16.22 $ 15.07 $ 13.84 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 676 745 712 676 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 7,491 10,192 11,276 11,463 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.58 $ 17.13 $ 15.47 $ 14.13 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,135 1,391 1,673 1,805 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,320 6,178 7,278 7,736 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 28.40 $ 27.57 $ 26.81 $ 26.55 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,201 1,177 1,247 1,478 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,889 3,996 4,058 4,693 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.72 $ 4.81 $ 4.53 $ 4.36 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 79 29 44 3 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 656 206 172 19 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.70 $ 10.70 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 121 23 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 748 372 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.53 $ 11.09 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 68 12 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 230 61 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.11 $ 10.92 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 5 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 66 21 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.72 $ 11.09 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 32 14 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 123 30 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.75 $ 9.80 $ 9.92 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 316 206 120 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,098 1,411 848 -- - ------------------------------------------------------------------------------------------------------------------------------------ UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------------------ 2003 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.72 $ 9.86 $ 11.33 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 685 427 24 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 10,296 2,423 78 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.18 $ 9.29 $ 11.07 $ 10.82 $ 10.45 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 2,005 2,145 1,487 87 18 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 7,229 3,714 2,090 251 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 26.78 $ 27.06 $ 27.16 $ 26.65 $ 25.55 $ 24.80 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,911 2,863 3,954 1,882 549 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 6,370 9,288 13,759 -- 9,875 5,805 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------------------ 2007 2006 2005 2004 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.56 $ 10.19 $ 9.96 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 84 104 26 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 588 593 132 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.18 $ 16.75 $ 14.46 $ 14.10 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 281 323 325 378 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,100 2,912 3,372 3.996 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.62 $ 15.76 $ 16.68 $ 16.30 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 293 12 13 2 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,641 104 146 19 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.80 $ 10.75 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 109 28 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 572 298 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.10 $ 6.12 $ 5.45 $ 5.08 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 65 69 33 4 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 300 397 286 69 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.39 $ 11.87 $ 10.41 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 116 129 40 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 424 647 410 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 25.72 $ 18.41 $ 13.65 $ 10.45 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 810 929 929 860 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,354 4,518 5,043 4,587 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.00 $ 13.28 $ 12.35 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 73 30 33 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 507 322 172 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.28 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 720 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 61.99 $ 56.56 $ 54.68 $ 51.36 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 39 53 62 74 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 233 292 331 388 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.87 $ 11.36 $ 11.12 $ 11.11 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 822 915 1,033 1,124 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5,230 6,686 7,527 8,293 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.79 $ 11.93 $ 11.53 $ 10.96 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 179 223 269 301 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,241 1,865 2,078 2,231 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 31.34 $ 30.88 $ 28.55 $ 28.15 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 409 475 558 647 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,743 3,798 4,585 5,526 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.51 $ 16.73 $ 13.57 $ 11.94 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 343 377 423 460 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,972 2,676 2,300 2,160 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------------------ 2003 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.18 $ 8.48 $ 10.90 $ 10.86 $ 11.42 $ 9.61 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 358 240 239 113 23 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,084 1,913 1,535 1,382 522 211 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T.Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.58 $ 5.59 $ 6.04 $ 6.47 $ 10.97 $ 5.70 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 837 857 821 715 126 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,232 2,823 3,043 2,958 962 203 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 46.56 $ 34.41 $ 49.16 $ 66.77 $ 78.30 $ 67.13 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 79 66 73 65 16 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 429 338 402 420 141 16 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.87 $ 10.64 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,240 1,234 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 8,217 3,282 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.93 $ 7.88 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 265 189 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,758 398 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 26.32 $ 21.83 $ 22.86 $ 23.07 $ 25.73 $ 27.12 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 634 511 500 219 35 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5,467 2,248 1,835 1,211 574 170 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.29 $ 7.79 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 371 286 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,684 553 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------
A-5 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2007 2006 2005 2004 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.58 $ 12.18 $ 10.89 $ 10.37 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 154 175 208 255 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,291 1,745 1,956 2,038 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.42 $ 9.52 $ 9.66 $ 9.13 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 290 355 356 384 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,015 4,202 4,551 4,852 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.46 $ 14.18 $ 12.07 $ 11.46 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 309 326 300 304 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,218 4,325 4,766 4,712 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.88 $ 10.79 $ 10.01 $ 9.38 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 327 402 460 503 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,156 4,520 5,281 6,078 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.54 $ 13.75 $ 12.18 $ 11.53 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 288 386 425 575 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,710 3,885 4,432 5,059 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.79 $ 8.61 $ 7.94 $ 7.51 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 193 125 61 11 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 436 605 410 22 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.05 $ 19.22 $ 16.83 $ 16.33 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 272 395 502 499 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,968 5,693 6,888 7,850 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.17 $ 10.46 $ 9.91 $ 9.05 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 701 889 1,089 1,346 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,564 3,343 4,090 4,725 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2003 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.61 $ 7.62 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 249 213 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,850 635 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.70 $ 6.77 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 385 283 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4,258 1,299 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.17 $ 7.89 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 297 292 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,848 1,272 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.53 $ 6.18 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 538 344 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5,628 1,488 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.17 $ 7.35 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 467 381 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,927 1,262 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.17 $ 10.49 $ 12.37 $ 10.68 $ 9.15 $ 9.14 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 370 275 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 7,354 5,021 3,274 2,109 98 344 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.76 $ 5.65 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 281 96 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,117 205 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-6 Appendix II: Purchase considerations for QP contracts - -------------------------------------------------------------------------------- Trustees who purchased an Accumulator(R) Select(SM) QP contract should discuss with their tax advisers whether this is an appropriate investment vehicle for the employer's plan. Trustees should consider whether the plan provisions permit the investment of plan assets in the QP contract, the distribution of such an annuity, the purchase of the Guaranteed minimum income benefit under baseBUILDER and other guaranteed benefits and the payment of death benefits in accordance with the requirements of the federal income tax rules. The QP contract and this prospectus should be reviewed in full, and the following factors, among others, should be noted. Assuming continued plan qualification and operation, earnings on qualified plan assets will accumulate value on a tax-deferred basis even if the plan is not funded by the Accumulator(R) Select(SM) QP contract or another annuity contract. Therefore, you should purchase an Accumulator(R) QP contract to fund a plan for the contract's features and benefits other than tax deferral, after considering the relative costs and benefits of annuity contracts and other types of arrangements and funding vehicles. We will not accept defined benefit plans. This QP contract accepts only transfer contributions from other investments within an existing qualified plan trust. We will not accept ongoing payroll contributions or other contributions from the employer. For 401(k) plans, no employee after-tax contributions are accepted. A "designated Roth contribution account" is not available in the QP contract. Checks written on accounts held in the name of the employer instead of the plan or the trustee will not be accepted. Only one additional transfer contribution may be made per contract year. If amounts attributable to an excess or mistaken contribution must be withdrawn, a market value adjustment may apply. AXA Equitable will not perform or provide any plan recordkeeping services with respect to the QP contracts. The plan's administrator will be solely responsible for performing or providing for all such services. There is no loan feature offered under the QP contracts, so if the plan provides for loans and a participant takes a loan from the plan, other plan assets must be used as the source of the loan and any loan repayments must be credited to other investment vehicles and/or accounts available under the plan. Given that required minimum distributions must generally commence from the plan for participants after age 70-1/2, trustees should consider that: o the QP contract may not be an appropriate purchase for participants approaching or over age 70-1/2; o provisions in the Treasury Regulations on required minimum distributions require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating required minimum distributions. This could increase the amounts required to be distributed; o Contributions after age 70-1/2 must be net of any required minimum distributions; and o the guaranteed minimum income benefit under baseBUILDER may not be an appropriate feature for participants who are older than age 60-1/2 when the contract is issued. Finally, because the method of purchasing the QP contract, including the large initial contribution, and the features of the QP contract may appeal more to plan participants who are older and tend to be highly paid, and because certain features of the QP contract are available only to plan participants who meet certain minimum and/or maximum age requirements, plan trustees should discuss with their advisors whether the purchase of the QP contract would cause the plan to engage in prohibited discrimination in contributions, benefits or otherwise. B-1 Appendix II: Purchase considerations for QP contracts Appendix III: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00% ("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000 is made four years later on February 15, 2012(a)
- ------------------------------------------------------------------------------------------------------------------------------------ Hypothetical assumed rate to maturity ("j" in the calculations below) February 15, 2012 - ------------------------------------------------------------------------------------------------------------------------------------ 5.00% 9.00% - ------------------------------------------------------------------------------------------------------------------------------------ As of February 15, 2012 before withdrawal - ------------------------------------------------------------------------------------------------------------------------------------ (1) Market adjusted amount(b) $141,389 $121,737 - ------------------------------------------------------------------------------------------------------------------------------------ (2) Fixed maturity amount(c) $131,104 $131,104 - ------------------------------------------------------------------------------------------------------------------------------------ (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ------------------------------------------------------------------------------------------------------------------------------------ On February 15, 2012 after $50,000 withdrawal - ------------------------------------------------------------------------------------------------------------------------------------ (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ------------------------------------------------------------------------------------------------------------------------------------ (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ------------------------------------------------------------------------------------------------------------------------------------ (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ------------------------------------------------------------------------------------------------------------------------------------ (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ------------------------------------------------------------------------------------------------------------------------------------ (8) Maturity value(d) $111,099 $101,287 - ------------------------------------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ where is either 5% or 9% (1+j)(D/365) (1+j)(1,461/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) (1+0.07)(1,461/365)
Appendix III: Market value adjustment example C-1 Appendix IV: Guaranteed minimum death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the guaranteed minimum death benefit. The following illustrates the guaranteed minimum death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the Multimanager Core Bond, EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/AllianceBernstein Quality Bond or EQ/Short Duration Bond options or the fixed maturity options), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the guaranteed minimum death benefit for an annuitant age 45 would be calculated as follows:
- -------------------------------------------------------------------------------------- End of 5% Roll-Up to age 80 Annual ratchet to age 80 contract guaranteed minimum guaranteed minimum year Account value death benefit(1) death benefit - -------------------------------------------------------------------------------------- 1 $105,000 $ 105,000(1) $ 105,000(3) - -------------------------------------------------------------------------------------- 2 $115,500 $ 110,250(2) $ 115,500(3) - -------------------------------------------------------------------------------------- 3 $129,360 $ 115,763(2) $ 129,360(3) - -------------------------------------------------------------------------------------- 4 $103,488 $ 121,551(1) $ 129,360(4) - -------------------------------------------------------------------------------------- 5 $113,837 $ 127,628(1) $ 129,360(4) - -------------------------------------------------------------------------------------- 6 $127,497 $ 134,010(1) $ 129,360(4) - -------------------------------------------------------------------------------------- 7 $127,497 $ 140,710(1) $ 129,360(4) - --------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. 5% ROLL-UP TO AGE 80 (1) At the end of contract year 1, and again at the end of contract years 4 through 7, the death benefit will be the guaranteed minimum death benefit. (2) At the end of contract years 2 and 3, the death benefit will be the current account value since it is higher than the current guaranteed minimum death benefit. ANNUAL RATCHET TO AGE 80 (3) At the end of contract years 1 through 3, the guaranteed minimum death benefit is the current account value. (4) At the end of contract years 4 through 7, the guaranteed minimum death benefit is the guaranteed minimum death benefit at the end of the prior year since it is equal to or higher than the current account value. D-1 Appendix IV: Guaranteed minimum death benefit example Appendix V: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "5% Roll-Up to age 80" Guaranteed minimum death benefit, the Protection Plus(SM) benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Select(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying Portfolios (as described below), the corresponding net annual rates of return would be (2.79)% and 3.21% for the Accumulator(R) Select(SM) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges, but they do not reflect the charges we deduct from your account value annually for the 5% Roll-Up to age 80 Guaranteed minimum death benefit, Protection Plus(SM) benefit, and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return shown would be lower; however, the values shown in the following tables reflect the following contract charges: the "5% Roll-Up to age 80" Guaranteed minimum death benefit charge, the Protection Plus(SM) benefit charge, the Guaranteed minimum income benefit charge and any applicable administrative charge. The values shown under "Lifetime Annual Guaranteed Minimum Income Benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime Annual Guaranteed Minimum Income Benefit" columns indicates that the contract has terminated due to insufficient account value and, consequently, the guaranteed benefit has no value. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.67%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.27% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. Appendix V: Hypothetical illustrations E-1 Variable deferred annuity Accumulator(R) Select(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: 5% Roll-Up to age 80 Guaranteed minimum death benefit Protection Plus Guaranteed minimum income benefit
5% Roll-Up to age 80 Lifetime Annual Guaranteed Total Death Benefit Guaranteed Minimum Death with Protection Minimum Account Value Cash Value Benefit Plus Income Benefit Contract ------------------- ------------------- ------------------- ------------------- ---------------- Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% Age --------- --------- --------- --------- --------- --------- --------- --------- --------- -------- ------- 60 1 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 N/A N/A 61 2 96,701 102,689 96,701 102,689 105,000 105,000 107,000 107,000 N/A N/A 62 3 93,484 105,442 93,484 105,442 110,250 110,250 114,350 114,350 N/A N/A 63 4 90,347 108,262 90,347 108,262 115,763 115,763 122,068 122,068 N/A N/A 64 5 87,286 111,149 87,286 111,149 121,551 121,551 130,171 130,171 N/A N/A 65 6 84,298 114,105 84,298 114,105 127,628 127,628 138,679 138,679 N/A N/A 66 7 81,380 117,130 81,380 117,130 134,010 134,010 147,613 147,613 N/A N/A 67 8 78,529 120,226 78,529 120,226 140,710 140,710 156,994 156,994 N/A N/A 68 9 75,742 123,394 75,742 123,394 147,746 147,746 166,844 166,844 N/A N/A 69 10 73,016 126,634 73,016 126,634 155,133 155,133 177,186 177,186 N/A N/A 74 15 60,201 143,970 60,201 143,970 197,993 197,993 237,190 237,190 13,860 13,860 79 20 48,482 163,281 48,482 163,281 252,695 252,695 313,773 313,773 21,201 21,201 84 25 37,917 185,094 37,917 185,094 265,330 265,330 331,462 331,462 26,560 26,560 89 30 31,882 213,716 31,882 213,716 265,330 265,330 331,462 331,462 N/A N/A 94 35 27,400 247,799 27,400 247,799 265,330 265,330 331,462 331,462 N/A N/A 95 36 26,582 255,241 26,582 255,241 265,330 265,330 331,462 331,462 N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a policy would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual policy years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. E-2 Appendix V: Hypothetical illustrations Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to obtain an Accumulator(R) Select(SM) Statement of Additional Information for Separate Account No. 45 and Separate Account No. 49 Send this request form to: Accumulator(R) Select(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 Please send me a combined Accumulator(R) Select SAI for Separate Account No. 45 and Separate Account No. 49 dated May 1, 2008 - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip x1891/Select `02/'04, OR, '04(NY), `06/'06.5, and '07 Series GE> Accumulator(R) Select(SM) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing, or taking any other action under your contract. You should read the prospectuses for each Trust which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) SELECT(SM)? Accumulator(R) Select(SM) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option or fixed maturity options ("investment options"). There is no withdrawal charge under the contract. Certain features and benefits described in this Prospectus may vary in your state; all features and benefits may not be available in all contracts, in all states or from all selling broker-dealers. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street Small o EQ/Ariel Appreciation II Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities Portfolio ("portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option and the fixed maturity options, which are discussed later in this Prospectus. TYPES OF CONTRACTS. Contracts were offered for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). o Traditional and Roth Inherited IRA beneficiary continuation contract ("Inherited IRA") (direct transfer contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $25,000 was required to purchase a contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547, or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. This contract is no longer available for new purchasers. This contract is no longer being sold. This Prospectus is designed for current contract owners. In addition to the possible state variations noted above, you should note that your contract features and charges may vary depending on the date on which you purchased your contract. For more information about the particular features, charges and options applicable to you, please contact your financial professional or refer to your contract, as well as review Appendix VIII later in this Prospectus for contract variation information and timing. You may not change your contract or its features as issued. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. Select 02/04 Series X01896 (R-4/15) Contents of this Prospectus - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (Not all of the features listed are available under all contracts or in all states.) - -------------------------------------------------------------------------------- ACCUMULATOR(R) SELECT(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) Select(SM) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 13 - -------------------------------------------------------------------------------- Example 17 Condensed financial information 19 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 20 - -------------------------------------------------------------------------------- How you can contribute to your contract 20 Owner and annuitant requirements 23 How you can make your contributions 23 What are your investment options under the contract? 23 Portfolios of the Trusts 24 Allocating your contributions 30 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 33 Annuity purchase factors 34 Guaranteed minimum income benefit option* 34 Guaranteed minimum death benefit 37 Principal Protector(SM) 38 Inherited IRA beneficiary continuation contract 41 Your right to cancel within a certain number of days 42 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 43 - -------------------------------------------------------------------------------- Your account value and cash value 43 Your contract's value in the variable investment options 43 Your contract's value in the guaranteed interest option 43 Your contract's value in the fixed maturity options 43 Insufficient account value 43 - ---------------------- * Depending on when you purchased your contract, this benefit may be called the "Living Benefit." Accordingly, if applicable, all references to the Guaranteed minimum income benefit in this Prospectus and any related registration statement documents are references to the Living Benefit. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are "We," "our," and "us" refer to AXA Equitable. issued under group contracts in some states. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 45 - -------------------------------------------------------------------------------- Transferring your account value 45 Disruptive transfer activity 45 Rebalancing your account value 46 - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 48 - -------------------------------------------------------------------------------- Withdrawing your account value 48 How withdrawals are taken from your account value 49 How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2 49 How withdrawals affect Principal Protector(SM) 50 Withdrawals treated as surrenders 50 Loans under Rollover TSA contracts 50 Surrendering your contract to receive its cash value 51 When to expect payments 51 Your annuity payout options 51 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 54 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 54 Charges that the Trusts deduct 57 Group or sponsored arrangements 57 Other distribution arrangements 57 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 58 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 58 How death benefit payment is made 59 Spousal protection 60 Beneficiary continuation option 60 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 64 - -------------------------------------------------------------------------------- Overview 64 Contracts that fund a retirement arrangement 64 Transfers among investment options 64 Taxation of nonqualified annuities 64 Individual retirement arrangements (IRAs) 66 Tax-sheltered annuity contracts (TSAs) 75 Federal and state income tax withholding and information reporting 80 Impact of taxes to AXA Equitable 81 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 82 - -------------------------------------------------------------------------------- About our Separate Account No. 49 82 About the Trusts 82 About our fixed maturity options 82 About the general account 83 About other methods of payment 84 Dates and prices at which contract events occur 84 About your voting rights 85 About legal proceedings 85 Financial statements 85 Transfers of ownership, collateral assignments, loans and borrowing 85 Distribution of the contracts 86 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 88 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Market value adjustment example B-1 III -- Enhanced death benefit example C-1 IV -- Hypothetical illustrations D-1 V -- Guaranteed principal benefit example E-1 VI -- Protection Plus(SM) example F-1 VII -- State contract availability and/or variations of certain features and benefits G-1 VIII -- Contract variations H-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page in Term Prospectus 6% Roll-Up to age 85 enhanced death benefit 33 12 month dollar cost averaging 32 account value 43 administrative charge 54 annual administrative charge 54 Annual Ratchet to age 85 enhanced death benefit 33 annuitant 20 annuitization 51 annuity maturity date 53 annuity payout options 51 annuity purchase factors 34 automatic investment program 84 beneficiary 58 Beneficiary continuation option ("BCO") 60 business day 84 cash value 43 charges for state premium and other applicable taxes 56 contract date 23 contract date anniversary 23 contract year 23 contributions to Roth IRAs 72 regular contributions 72 rollovers and transfers 73 conversion contributions 73 contributions to traditional IRAs 67 regular contributions 67 rollovers and transfers 68 disruptive transfer activity 45 distribution charge 54 EQAccess 7 ERISA 57 Fixed-dollar option 32 fixed maturity options 29 free look 42 general account 83 general dollar cost averaging 32 guaranteed interest option 29 Guaranteed minimum death benefit 37 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 33 Guaranteed minimum death benefit charge 55 Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset option 34 Guaranteed minimum income benefit 34 Guaranteed minimum income benefit charge 55 Guaranteed minimum income benefit "no lapse guarantee" 35 Guaranteed principal benefits 30 IRA cover IRS 64 Inherited IRA cover investment options cover Investment Simplifier 32 Lifetime minimum distribution withdrawals 49 loan reserve account 50 loans under Rollover TSA 50 market adjusted amount 29 market timing 45 maturity dates 29 market value adjustment 29 maturity value 29 Mortality and expense risks charge 54 NQ cover Optional step up charge 56 partial withdrawals 48 Portfolio cover Principal assurance 30 processing office 7 Principal Protector(SM) 38 Principal Protector(SM) charge 56 Protection Plus(SM) 38 Protection Plus(SM) charge 56 rate to maturity 29 Rebalancing 46 Rollover IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 30 Separate Account No. 49 82 Spousal protection 60 Standard death benefit 33 substantially equal withdrawals 48 Successor owner and annuitant 59 Systematic withdrawals 48 TOPS 7 Trusts 82 traditional IRA cover TSA cover unit 43 variable investment options 23 wire transmittals and electronic applications 84 To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract. Also, depending on when you purchased your contract, some of these may not apply to you or may be named differently under your contract. Your financial professional can provide further explanation about your contract or supplemental materials. 4 Index of key words and phrases
- ---------------------------------------------------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - ---------------------------------------------------------------------------------------------------------------------------- fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guaranteed minimum income benefit Guaranteed Income Benefit or Living Benefit guaranteed interest option Guaranteed Interest Account Principal Protector(SM) Guaranteed withdrawal benefit GWB benefit base Principal Protector(SM) benefit base GWB Annual withdrawal amount Principal Protector(SM) Annual withdrawal amount GWB Annual withdrawal option Principal Protector(SM) Annual withdrawal option GWB Excess withdrawal Principal Protector(SM) Excess withdrawal - ----------------------------------------------------------------------------------------------------------------------------
Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) Select(SM) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) Select(SM) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) Select(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) Select(SM) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year, and any calendar quarter in which there was a transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility to exercise the Guaranteed minimum income benefit and/or the Roll-Up benefit base reset option. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options (not available through EQAccess); o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors, you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or the Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of any transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Who is AXA Equitable? 7 Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts; (7) tax withholding elections; (8) election of the beneficiary continuation option; (9) IRA contribution recharacterizations; (10) Section 1035 exchanges; (11) direct transfers and rollovers; (12) exercise of the Guaranteed minimum income benefit; (13) requests to reset your Roll-Up benefit base (for certain contracts with both the Guaranteed minimum income benefit and the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit); (14) requests to step up your Guaranteed withdrawal benefit ("GWB") benefit base, if applicable, under the Optional step up provision; (15) requests to terminate or reinstate your GWB, if applicable, under the Beneficiary continuation option, if applicable; (16) death claims; (17) purchase by, or change of ownership to, a non-natural person; (18) change in ownership (NQ only, if available under your contract); and (19) enrollment in our "automatic required minimum distribution (RMD) service." WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; (3) general dollar cost averaging (including the fixed dollar and interest sweep options); and (4) 12 month dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging (including the fixed dollar and interest sweep options); (3) 12 month dollar cost averaging; (4) substantially equal withdrawals; (5) systematic withdrawals; and (6) the date annuity payments are to begin. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners both must sign. 8 Who is AXA Equitable? Accumulator(R) Select(SM) at a glance -- key features - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (Not all of the features listed are available under all contracts or in all states.) - --------------------------------------------------------------------------------
Professional investment Accumulator(R) Select(SM)'s variable investment options invest in different Portfolios managed management by professional investment advisers. - ------------------------------------------------------------------------------------------------------------------------------------ Fixed maturity options o Fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2 only). ------------------------------------------------------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - ------------------------------------------------------------------------------------------------------------------------------------ Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among investment options inside the contract. ------------------------------------------------------------------------------------------------------- You should be aware that annuity contracts that were purchased as an Individual Retirement Annuity (IRA) or tax sheltered annuity (TSA) do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before you purchased your contract, you should have considered its features and benefits beyond tax deferral, as well as its features, benefits and costs relative to any other investment that you may have chosen in connection with your retirement plan or arrangement, to determine whether it would meet your needs and goals. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during the annuitant's income benefit (or "Living life once you elect to annuitize the contract. Benefit") - ------------------------------------------------------------------------------------------------------------------------------------ Principal Protector(SM) Principal Protector(SM) is our optional Guaranteed withdrawal benefit ("GWB"), which provides for recovery of your total contributions through withdrawals, even if your account value falls to zero, provided that during each contract year, your total withdrawals do not exceed a specified amount. This feature may not have been available under your contract. - ------------------------------------------------------------------------------------------------------------------------------------ Contribution amounts o Initial minimum: $25,000 o Additional minimum: $500 (NQ and Rollover TSA) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $1,000 (Inherited IRA contracts) $50 (IRA contracts) Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million ($500,000 for certain owners or annuitants who are age 81 and older at contract issue). See "How you can contribute to your contract" in "Contract features and benefits" later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Select(SM) at a glance -- key features 9
Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender You may incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ------------------------------------------------------------------------------------------------------------------------------------ Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - ------------------------------------------------------------------------------------------------------------------------------------ Additional features* o Guaranteed minimum death benefit options o Guaranteed principal benefit options (including Principal assurance) o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semi-annually and annually) o Free transfers o Protection Plus(SM), an optional death benefit available under certain contracts (subject to state availability) o Spousal protection (not available under certain contracts) o Successor owner/annuitant o Beneficiary continuation option o Guaranteed minimum income benefit no lapse guarantee (available under contracts with applications that were signed and submitted on or after January 1, 2005 subject to state availability) o Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset (available under contracts with applications that were signed and submitted on or after October 1, 2005 subject to state availability). * Not all features are available under all contracts. Please see Appendix VIII later in this Prospectus for more information.
10 Accumulator(R) Select(SM) at a glance -- key features
Fees and charges+ o Daily charges on amounts invested in the variable investment options for mortality and expense risks, administrative charges and distribution charges at an annual rate of 1.70%. o The charges for the Guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the applicable benefit base. The benefit base is described under "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" in "Contract features and benefits" later in this Prospectus. o An annual charge of 0.65% of the applicable benefit base charge for the optional Guaranteed minimum income benefit until you exercise the benefit, elect another annuity payout option or the contract date anniversary after the annuitant reaches age 85, whichever occurs first. The benefit base is described under "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" in "Contract features and benefits" later in this Prospectus. o An annual charge for the optional Guaranteed principal benefit option 2 (if available) deducted the first ten contract date anniversaries equal to 0.50% of account value. o If your account value at the end of the contract year is less than $50,000, we deduct an annual administrative charge equal to $30, or during the first two contract years, 2% of your account value, if less. If your account value on the contract date anniversary, is $50,000 or more, we will not deduct the charge. o An annual charge of 0.35% of your account value for the 5% GWB Annual withdrawal option (if available) or 0.50% of your account value for the 7% GWB Annual withdrawal option (if available) for the Principal Protector(SM) benefit. If you "step up" your GWB benefit base, we reserve the right to raise the charge up to 0.60% and 0.80%, respectively. See "Principal Protector(SM)" in "Contract features and benefits" later in this Prospectus. o An annual charge of 0.35% of your account value for the Protection Plus(SM) optional death benefit. o No sales charge deducted at the time you make contributions and no withdrawal charge. ----------------------------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we received the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date appears in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. ----------------------------------------------------------------------------------------------------- o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. This charge is generally deducted from the amount applied to an annuity payout option. o We currently deduct a $350 annuity administrative fee from amounts applied to purchase the variable immediate annuitization payout option. This option is described in a separate prospectus that is available from your financial professional. o Annual expenses of the Trusts' Portfolios are calculated as a percentage of the average daily net assets invested in each Portfolio. Please see "Fee table" later in this Prospectus for details. + The fees and charges shown in this section are the maximum charges a contract owner will pay. Please see your contract for the fees and charges that apply to you. Also, some of the optional benefits may not be available under your contract.
Accumulator(R) Select(SM) at a glance -- key features 11
Annuitant issue ages NQ: 0-85 Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85 Inherited IRA: 0-70
- -------------------------------------------------------------------------------- The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available in your state or at certain ages. Please see Appendix VII later in this Prospectus for more information on state availability and/or variations of certain features and benefits. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. The Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional or call us, if you have questions. Other contracts We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. 12 Accumulator(R) Select(SM) at a glance -- key features Fee table The following tables describe the fees and expenses that you pay when owning the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The fees and charges shown in this section are the maximum fees and charges that a contract owner will pay. Please see your contract and/or Appendix VIII later in this prospectus for the fees and charges that apply under your contract. All features listed below may not have been available at the time you purchased your contract. See Appendix IX later in this Prospectus for more information. The first table describes fees and expenses that you will pay if you purchase a Variable Immediate Annuity payout option. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply. - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value at the time you request certain transactions - ------------------------------------------------------------------------------------------------------------------------------------ Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - ------------------------------------------------------------------------------------------------------------------------------------ The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses. - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value on each contract date anniversary - ------------------------------------------------------------------------------------------------------------------------------------ Maximum annual administrative charge(1) If your account value on a contract date anniversary is less than $50,000(2) $ 30 If your account value on a contract date anniversary is $50,000 or more $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ SEPARATE ACCOUNT ANNUAL EXPENSES: Mortality and expense risks 1.10%(3) Administrative 0.25% Distribution 0.35% ------- Total Separate account annual expenses 1.70% - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value each year if you elect any of the following optional benefits - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(1) on each contract date anniversary for which the benefit is in effect.) Standard death benefit 0.00% Annual Ratchet to age 85 0.30% of the Annual Ratchet to age 85 benefit base (maximum); 0.25% (current) 6% Roll-Up to age 85 0.45% of the 6% Roll-Up to age 85 benefit base Greater of 5% Roll-Up to age 85 or Annual Ratchet to age 85 0.50% of the greater of 5% Roll-Up to age 85 benefit base of the Annual Ratchet to age 85 benefit base, as applicable. Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 0.60% of the greater of 6% Roll-Up to age 85 benefit base or the Annual Ratchet to age 85 benefit base, as applicable - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed principal benefit charge for option 2 (calculated as a percentage of the account value. Deducted annually(1) on the first 10 contract date anniversaries.) 0.50% - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum income (or "Living Benefit") benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(1) on each contract date anniversary for which the benefit is in effect.) 0.65%
- -------------------------------------------------------------------------------- Fee table 13 Protection Plus(SM) benefit charge (calculated as a percentage of the account value. Deducted annually(1) on each contract date anniversary for which the benefit is in effect.) 0.35% - ------------------------------------------------------------------------------------------------------------------------------------ Principal Protector(SM) benefit charge (calculated as a percentage 0.35% for the 5% GWB Annual withdrawal option of the account value. Deducted annually(1) on each contract date anniversary, provided your GWB benefit base is greater than zero.) 0.50% for the 7% GWB Annual withdrawal option If you "step up" your GWB benefit base, we reserve the right to 0.60% for the 5% GWB Annual withdrawal option increase your charge up to: 0.80% for the 7% GWB Annual withdrawal option Please see "Principal Protector(SM)" in "Contract features and benefits" for more information about this feature, including its benefit base and the optional step up provision, and "Principal Protector(SM) charge" in "Charges and expenses," both later in this Prospectus, for more information about when the charge applies. - ------------------------------------------------------------------------------------------------------------------------------------ Net loan interest charge -- Rollover TSA contracts only (calculated and deducted daily as a percentage of the outstanding loan amount) 2.00%(4) - ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio. Portfolio operating expenses expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted from Portfolio assets including management fees, 12b-1 fees, service fees, and/or other expenses)(5) Lowest Highest ------ ------- 0.63% 3.56%
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets. - ------------------------------------------------------------------------------------------------------------------------------------ Manage- ment 12b-1 Other Portfolio Name Fees(6) Fees(7) Expenses(8) - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation 0.10% 0.25% 0.17% AXA Conservative Allocation 0.10% 0.25% 0.21% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% AXA Moderate Allocation 0.10% 0.25% 0.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% Acquired Fund Total Fees and Annual Expenses Expenses Fee Waiv- Net Annual (Underly- (Before ers and/or Expenses ing Expense Expense (After Portfo- Limita- Reimburse- Expense Portfolio Name lios)(9) tions) ments(10) Limitations) - ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88%
14 Fee table
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets. - ------------------------------------------------------------------------------------------------------------------------------------ Manage- ment 12b-1 Other Portfolio Name Fees(6) Fees(7) Expenses(8) - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% - ------------------------------------------------------------------------------------------------------------------------------------ Acquired Fund Total Fees and Annual Expenses Expenses Fee Waiv- Net Annual (Underly- (Before ers and/or Expenses ing Expense Expense (After Portfo- Limita- Reimburse- Expense Portfolio Name lios)(9) tions) ments(10) Limitations) EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(11) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate -- 1.36% (0.10)% 1.26% - ------------------------------------------------------------------------------------------------------------------------------------
Fee table 15 Notes: (1) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. If you are an existing contract owner, this pro rata deduction may not apply under your contract. See Appendix VIII later in this Prospectus for more information. For Principal Protector(SM) only, (if available) if the contract and benefit are continued under the Beneficiary continuation option with Principal Protector(SM), the pro rata deduction for the Principal Protector(SM) charge is waived. (2) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, if applicable, the charge is $30 for each contract year. (3) These charges compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. (4) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (5) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (6) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's shareholders. See footnotes (10) and (11) for any expense limitation agreement information. (7) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. For the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust, the 12b-1 fees will not be increased for the life of the contract. (8) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (10) and (11) for any expense limitation agreement information. (9) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (10)The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: ----------------------------------------------- Portfolio Name ----------------------------------------------- Multimanager Aggressive Equity 0.97% ----------------------------------------------- Multimanager Health Care 1.67% ----------------------------------------------- Multimanager Large Cap Core Equity 1.34% ----------------------------------------------- Multimanager Large Cap Growth 1.29% ----------------------------------------------- Multimanager Large Cap Value 1.26% ----------------------------------------------- Multimanager Mid Cap Growth 1.52% ----------------------------------------------- Multimanager Mid Cap Value 1.53% ----------------------------------------------- Multimanager Small Cap Growth 1.35% ----------------------------------------------- Multimanager Small Cap Value 1.45% ----------------------------------------------- Multimanager Technology 1.67% ----------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% ----------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% ----------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% ----------------------------------------------- EQ/AllianceBernstein Value 0.87% ----------------------------------------------- EQ/Ariel Appreciation II 1.09% ----------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% ----------------------------------------------- EQ/Davis New York Venture 1.25% ----------------------------------------------- EQ/Evergreen Omega 1.12% ----------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% ----------------------------------------------- EQ/GAMCO Small Company Value 1.10% ----------------------------------------------- EQ/International Core PLUS 1.05% ----------------------------------------------- EQ/Large Cap Core PLUS 0.83% ----------------------------------------------- EQ/Large Cap Growth PLUS 0.82% ----------------------------------------------- EQ/Legg Mason Value Equity 0.97% ----------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% ----------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% ----------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% ----------------------------------------------- EQ/Mid Cap Value PLUS 0.81% ----------------------------------------------- EQ/Montag & Caldwell Growth 1.13% ----------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% ----------------------------------------------- EQ/UBS Growth and Income 1.04% ----------------------------------------------- EQ/Van Kampen Comstock 0.99% ----------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% ----------------------------------------------- 16 Fee table (11)In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and administration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the Guaranteed minimum income benefit with the enhanced death benefit that provides for the greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 and Protection Plus(SM)) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.004% of contract value. The fixed maturity options, guaranteed interest option and the 12 month dollar cost averaging program are not covered by the example. However, the annual administrative charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options, guaranteed interest option and the 12 month dollar cost averaging program. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Fee table 17
- ------------------------------------------------------------------------------------------------------------------------------------ If you annuitize at the end of the applicable time period - ------------------------------------------------------------------------------------------------------------------------------------ 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------------------------------------ AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation N/A $ 1,872.00 $ 2,928.00 $ 5,726.00 AXA Conservative Allocation N/A $ 1,814.00 $ 2,836.00 $ 5,561.00 AXA Conservative-Plus Allocation N/A $ 1,830.00 $ 2,860.00 $ 5,605.00 AXA Moderate Allocation N/A $ 1,842.00 $ 2,880.00 $ 5,640.00 AXA Moderate-Plus Allocation N/A $ 1,854.00 $ 2,899.00 $ 5,675.00 Multimanager Aggressive Equity N/A $ 1,750.00 $ 2,733.00 $ 5,375.00 Multimanager Core Bond N/A $ 1,741.00 $ 2,718.00 $ 5,348.00 Multimanager Health Care N/A $ 1,945.00 $ 3,044.00 $ 5,930.00 Multimanager High Yield N/A $ 1,741.00 $ 2,718.00 $ 5,348.00 Multimanager International Equity N/A $ 1,884.00 $ 2,948.00 $ 5,761.00 Multimanager Large Cap Core Equity N/A $ 1,845.00 $ 2,885.00 $ 5,649.00 Multimanager Large Cap Growth N/A $ 1,851.00 $ 2,894.00 $ 5,666.00 Multimanager Large Cap Value N/A $ 1,836.00 $ 2,870.00 $ 5,622.00 Multimanager Mid Cap Growth N/A $ 1,905.00 $ 2,982.00 $ 5,820.00 Multimanager Mid Cap Value N/A $ 1,902.00 $ 2,977.00 $ 5,812.00 Multimanager Small Cap Growth N/A $ 1,912.00 $ 2,991.00 $ 5,837.00 Multimanager Small Cap Value N/A $ 1,878.00 $ 2,938.00 $ 5,743.00 Multimanager Technology N/A $ 1,945.00 $ 3,044.00 $ 5,930.00 - ------------------------------------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock N/A $ 1,692.00 $ 2,638.00 $ 5,203.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,701.00 $ 2,653.00 $ 5,230.00 EQ/AllianceBernstein International N/A $ 1,781.00 $ 2,782.00 $ 5,464.00 EQ/AllianceBernstein Large Cap Growth N/A $ 1,824.00 $ 2,851.00 $ 5,587.00 EQ/AllianceBernstein Quality Bond N/A $ 1,704.00 $ 2,658.00 $ 5,239.00 EQ/AllianceBernstein Small Cap Growth N/A $ 1,775.00 $ 2,772.00 $ 5,446.00 EQ/AllianceBernstein Value N/A $ 1,726.00 $ 2,693.00 $ 5,303.00 EQ/Ariel Appreciation II N/A $ 1,817.00 $ 2,841.00 $ 5,570.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,501.00 $ 3,910.00 $ 7,354.00 EQ/BlackRock Basic Value Equity N/A $ 1,717.00 $ 2,678.00 $ 5,276.00 EQ/BlackRock International Value N/A $ 1,814.00 $ 2,836.00 $ 5,561.00 EQ/Boston Advisors Equity Income N/A $ 1,781.00 $ 2,782.00 $ 5,464.00 EQ/Calvert Socially Responsible N/A $ 1,778.00 $ 2,777.00 $ 5,455.00 EQ/Capital Guardian Growth N/A $ 1,753.00 $ 2,738.00 $ 5,384.00 EQ/Capital Guardian Research N/A $ 1,741.00 $ 2,718.00 $ 5,348.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,741.00 $ 2,718.00 $ 5,348.00 EQ/Davis New York Venture N/A $ 1,824.00 $ 2,851.00 $ 5,587.00 EQ/Equity 500 Index N/A $ 1,624.00 $ 2,528.00 $ 4,999.00 EQ/Evergreen International Bond N/A $ 1,775.00 $ 2,772.00 $ 5,446.00 EQ/Evergreen Omega N/A $ 1,784.00 $ 2,787.00 $ 5,473.00 EQ/FI Mid Cap N/A $ 1,756.00 $ 2,742.00 $ 5,393.00 EQ/Franklin Income N/A $ 1,830.00 $ 2,860.00 $ 5,605.00 EQ/Franklin Small Cap Value N/A $ 1,839.00 $ 2,875.00 $ 5,631.00 EQ/Franklin Templeton Founding Strategy N/A $ 1,912.00 $ 2,991.00 $ 5,837.00 EQ/GAMCO Mergers and Acquisitions N/A $ 1,842.00 $ 2,880.00 $ 5,640.00 EQ/GAMCO Small Company Value N/A $ 1,778.00 $ 2,777.00 $ 5,455.00 EQ/International Core PLUS N/A $ 1,796.00 $ 2,806.00 $ 5,508.00 EQ/International Growth N/A $ 1,851.00 $ 2,894.00 $ 5,666.00 EQ/JPMorgan Core Bond N/A $ 1,680.00 $ 2,618.00 $ 5,166.00 EQ/JPMorgan Value Opportunities N/A $ 1,735.00 $ 2,708.00 $ 5,330.00 EQ/Large Cap Core PLUS N/A $ 1,744.00 $ 2,723.00 $ 5,357.00 EQ/Large Cap Growth PLUS N/A $ 1,741.00 $ 2,718.00 $ 5,348.00 EQ/Legg Mason Value Equity N/A $ 1,759.00 $ 2,747.00 $ 5,402.00 EQ/Long Term Bond N/A $ 1,671.00 $ 2,603.00 $ 5,138.00 EQ/Lord Abbett Growth and Income N/A $ 1,756.00 $ 2,742.00 $ 5,393.00 EQ/Lord Abbett Large Cap Core N/A $ 1,772.00 $ 2,767.00 $ 5,437.00 EQ/Lord Abbett Mid Cap Value N/A $ 1,769.00 $ 2,762.00 $ 5,429.00 EQ/Marsico Focus N/A $ 1,808.00 $ 2,826.00 $ 5,544.00 EQ/Mid Cap Value PLUS N/A $ 1,756.00 $ 2,742.00 $ 5,393.00 EQ/Money Market N/A $ 1,646.00 $ 2,563.00 $ 5,064.00 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ If you surrender or do not surrender your con- tract at the end of the applicable time period - ------------------------------------------------------------------------------------------------------------------------------------ 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------------------------------------ AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation $ 499.00 $ 1,522.00 $ 2,578.00 $ 5,376.00 AXA Conservative Allocation $ 479.00 $ 1,464.00 $ 2,486.00 $ 5,211.00 AXA Conservative-Plus Allocation $ 485.00 $ 1,480.00 $ 2,510.00 $ 5,255.00 AXA Moderate Allocation $ 489.00 $ 1,492.00 $ 2,530.00 $ 5,290.00 AXA Moderate-Plus Allocation $ 493.00 $ 1,504.00 $ 2,549.00 $ 5,325.00 Multimanager Aggressive Equity $ 457.00 $ 1,400.00 $ 2,383.00 $ 5,025.00 Multimanager Core Bond $ 454.00 $ 1,391.00 $ 2,368.00 $ 4,998.00 Multimanager Health Care $ 525.00 $ 1,595.00 $ 2,694.00 $ 5,580.00 Multimanager High Yield $ 454.00 $ 1,391.00 $ 2,368.00 $ 4,998.00 Multimanager International Equity $ 504.00 $ 1,534.00 $ 2,598.00 $ 5,411.00 Multimanager Large Cap Core Equity $ 490.00 $ 1,495.00 $ 2,535.00 $ 5,299.00 Multimanager Large Cap Growth $ 492.00 $ 1,501.00 $ 2,544.00 $ 5,316.00 Multimanager Large Cap Value $ 487.00 $ 1,486.00 $ 2,520.00 $ 5,272.00 Multimanager Mid Cap Growth $ 511.00 $ 1,555.00 $ 2,632.00 $ 5,470.00 Multimanager Mid Cap Value $ 510.00 $ 1,552.00 $ 2,627.00 $ 5,462.00 Multimanager Small Cap Growth $ 513.00 $ 1,562.00 $ 2,641.00 $ 5,487.00 Multimanager Small Cap Value $ 501.00 $ 1,528.00 $ 2,588.00 $ 5,393.00 Multimanager Technology $ 525.00 $ 1,595.00 $ 2,694.00 $ 5,580.00 - ------------------------------------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock $ 437.00 $ 1,342.00 $ 2,288.00 $ 4,853.00 EQ/AllianceBernstein Intermediate Government Securities $ 441.00 $ 1,351.00 $ 2,303.00 $ 4,880.00 EQ/AllianceBernstein International $ 468.00 $ 1,431.00 $ 2,432.00 $ 5,114.00 EQ/AllianceBernstein Large Cap Growth $ 483.00 $ 1,474.00 $ 2,501.00 $ 5,237.00 EQ/AllianceBernstein Quality Bond $ 442.00 $ 1,354.00 $ 2,308.00 $ 4,889.00 EQ/AllianceBernstein Small Cap Growth $ 466.00 $ 1,425.00 $ 2,422.00 $ 5,096.00 EQ/AllianceBernstein Value $ 449.00 $ 1,376.00 $ 2,343.00 $ 4,953.00 EQ/Ariel Appreciation II $ 480.00 $ 1,467.00 $ 2,491.00 $ 5,220.00 EQ/AXA Rosenberg Value Long/Short Equity $ 722.00 $ 2,151.00 $ 3,560.00 $ 7,004.00 EQ/BlackRock Basic Value Equity $ 446.00 $ 1,367.00 $ 2,328.00 $ 4,926.00 EQ/BlackRock International Value $ 479.00 $ 1,464.00 $ 2,486.00 $ 5,211.00 EQ/Boston Advisors Equity Income $ 468.00 $ 1,431.00 $ 2,432.00 $ 5,114.00 EQ/Calvert Socially Responsible $ 467.00 $ 1,428.00 $ 2,427.00 $ 5,105.00 EQ/Capital Guardian Growth $ 458.00 $ 1,403.00 $ 2,388.00 $ 5,034.00 EQ/Capital Guardian Research $ 454.00 $ 1,391.00 $ 2,368.00 $ 4,998.00 EQ/Caywood-Scholl High Yield Bond $ 454.00 $ 1,391.00 $ 2,368.00 $ 4,998.00 EQ/Davis New York Venture $ 483.00 $ 1,474.00 $ 2,501.00 $ 5,237.00 EQ/Equity 500 Index $ 414.00 $ 1,274.00 $ 2,178.00 $ 4,649.00 EQ/Evergreen International Bond $ 466.00 $ 1,425.00 $ 2,422.00 $ 5,096.00 EQ/Evergreen Omega $ 469.00 $ 1,434.00 $ 2,437.00 $ 5,123.00 EQ/FI Mid Cap $ 459.00 $ 1,406.00 $ 2,392.00 $ 5,043.00 EQ/Franklin Income $ 485.00 $ 1,480.00 $ 2,510.00 $ 5,255.00 EQ/Franklin Small Cap Value $ 488.00 $ 1,489.00 $ 2,525.00 $ 5,281.00 EQ/Franklin Templeton Founding Strategy $ 513.00 $ 1,562.00 $ 2,641.00 $ 5,487.00 EQ/GAMCO Mergers and Acquisitions $ 489.00 $ 1,492.00 $ 2,530.00 $ 5,290.00 EQ/GAMCO Small Company Value $ 467.00 $ 1,428.00 $ 2,427.00 $ 5,105.00 EQ/International Core PLUS $ 473.00 $ 1,446.00 $ 2,456.00 $ 5,158.00 EQ/International Growth $ 492.00 $ 1,501.00 $ 2,544.00 $ 5,316.00 EQ/JPMorgan Core Bond $ 433.00 $ 1,330.00 $ 2,268.00 $ 4,816.00 EQ/JPMorgan Value Opportunities $ 452.00 $ 1,385.00 $ 2,358.00 $ 4,980.00 EQ/Large Cap Core PLUS $ 455.00 $ 1,394.00 $ 2,373.00 $ 5,007.00 EQ/Large Cap Growth PLUS $ 454.00 $ 1,391.00 $ 2,368.00 $ 4,998.00 EQ/Legg Mason Value Equity $ 461.00 $ 1,409.00 $ 2,397.00 $ 5,052.00 EQ/Long Term Bond $ 430.00 $ 1,321.00 $ 2,253.00 $ 4,788.00 EQ/Lord Abbett Growth and Income $ 459.00 $ 1,406.00 $ 2,392.00 $ 5,043.00 EQ/Lord Abbett Large Cap Core $ 465.00 $ 1,422.00 $ 2,417.00 $ 5,087.00 EQ/Lord Abbett Mid Cap Value $ 464.00 $ 1,419.00 $ 2,412.00 $ 5,079.00 EQ/Marsico Focus $ 477.00 $ 1,458.00 $ 2,476.00 $ 5,194.00 EQ/Mid Cap Value PLUS $ 459.00 $ 1,406.00 $ 2,392.00 $ 5,043.00 EQ/Money Market $ 422.00 $ 1,296.00 $ 2,213.00 $ 4,714.00 - 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18 Fee table
- ------------------------------------------------------------------------------------------------------------------------------------ If you annuitize at the end of the applicable time period - ------------------------------------------------------------------------------------------------------------------------------------ 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth N/A $ 1,784.00 $ 2,787.00 $ 5,473.00 EQ/Mutual Shares N/A $ 1,848.00 $ 2,890.00 $ 5,657.00 EQ/Oppenheimer Global N/A $ 1,957.00 $ 3,063.00 $ 5,963.00 EQ/Oppenheimer Main Street Opportunity N/A $ 1,909.00 $ 2,986.00 $ 5,829.00 EQ/Oppenheimer Main Street Small Cap N/A $ 1,933.00 $ 3,025.00 $ 5,896.00 EQ/PIMCO Real Return N/A $ 1,720.00 $ 2,683.00 $ 5,285.00 EQ/Short Duration Bond N/A $ 1,686.00 $ 2,628.00 $ 5,184.00 EQ/Small Company Index N/A $ 1,627.00 $ 2,533.00 $ 5,008.00 EQ/T. Rowe Price Growth Stock N/A $ 1,793.00 $ 2,802.00 $ 5,500.00 EQ/Templeton Growth N/A $ 1,860.00 $ 2,909.00 $ 5,692.00 EQ/UBS Growth and Income N/A $ 1,787.00 $ 2,792.00 $ 5,482.00 EQ/Van Kampen Comstock N/A $ 1,753.00 $ 2,738.00 $ 5,384.00 EQ/Van Kampen Emerging Markets Equity N/A $ 1,933.00 $ 3,025.00 $ 5,896.00 EQ/Van Kampen Mid Cap Growth N/A $ 1,769.00 $ 2,762.00 $ 5,429.00 EQ/Van Kampen Real Estate N/A $ 1,848.00 $ 2,890.00 $ 5,657.00 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ If you surrender or do not surrender your con- tract at the end of the applicable time period - ------------------------------------------------------------------------------------------------------------------------------------ 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth $ 469.00 $ 1,434.00 $ 2,437.00 $ 5,123.00 EQ/Mutual Shares $ 491.00 $ 1,498.00 $ 2,540.00 $ 5,307.00 EQ/Oppenheimer Global $ 529.00 $ 1,607.00 $ 2,713.00 $ 5,613.00 EQ/Oppenheimer Main Street Opportunity $ 512.00 $ 1,559.00 $ 2,636.00 $ 5,479.00 EQ/Oppenheimer Main Street Small Cap $ 520.00 $ 1,583.00 $ 2,675.00 $ 5,546.00 EQ/PIMCO Real Return $ 447.00 $ 1,370.00 $ 2,333.00 $ 4,935.00 EQ/Short Duration Bond $ 435.00 $ 1,336.00 $ 2,278.00 $ 4,834.00 EQ/Small Company Index $ 415.00 $ 1,277.00 $ 2,183.00 $ 4,658.00 EQ/T. Rowe Price Growth Stock $ 472.00 $ 1,443.00 $ 2,452.00 $ 5,150.00 EQ/Templeton Growth $ 495.00 $ 1,510.00 $ 2,559.00 $ 5,342.00 EQ/UBS Growth and Income $ 470.00 $ 1,437.00 $ 2,442.00 $ 5,132.00 EQ/Van Kampen Comstock $ 458.00 $ 1,403.00 $ 2,388.00 $ 5,034.00 EQ/Van Kampen Emerging Markets Equity $ 520.00 $ 1,583.00 $ 2,675.00 $ 5,546.00 EQ/Van Kampen Mid Cap Growth $ 464.00 $ 1,419.00 $ 2,412.00 $ 5,079.00 EQ/Van Kampen Real Estate $ 491.00 $ 1,498.00 $ 2,540.00 $ 5,307.00 - ------------------------------------------------------------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. Fee table 19 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT You may make additional contributions of at least $500 each for NQ and Rollover TSA contracts and $50 for Rollover IRA and Roth Conversion contracts and $1000 for Inherited IRA contracts, subject to limitations noted below. The following table summarizes our rules regarding contributions to your contract. In some states our rules may vary. All ages in the table refer to the age of the annuitant named in the contract. Initial contribution amounts are provided for informational purposes only. This contract is no longer available to new purchasers. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000 ($500,000 for owners or annuitants who are ages 81 and older at contract issue) -- depending on your contract, this restriction may not apply to you. See Appendix VIII later in this Prospectus for more information. We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. - -------------------------------------------------------------------------------- The "annuitant" is the person who is the measuring life for determining contract benefits. The annuitant is not necessarily the contract owner. - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Available Contract for annuitant type issue ages* Minimum contributions - -------------------------------------------------------------------------------- NQ 0 through 85 o $25,000 (initial) o $500 (additional) o $100 monthly and $300 quarterly under our auto- matic investment program (additional) - -------------------------------------------------------------------------------- Rollover IRA 20 through 85 o $25,000 (initial) o $50 (additional) - -------------------------------------------------------------------------------- Contract Limitations on type Source of contributions contributions+ - -------------------------------------------------------------------------------- NQ o After-tax money. o No additional contributions after attainment of age 86 o Paid to us by check or or, if later, the first transfer of contract value in contract date anniversary.* a tax-deferred exchange under Section 1035 of the Internal Revenue Code. - -------------------------------------------------------------------------------- Rollover IRA o Eligible rollover o No rollover or direct transfer distributions from 403(b) contributions after attain- plans, qualified plans, and ment of age 86 or, if later, governmental employer 457(b) the first contract date anni- plans. versary.* o Rollovers from another o Contributions after age 70-1/2 traditional individual must be net of required retirement arrangement. minimum distributions. o Direct custodian-to- o Although we accept regular custodian transfers from IRA contributions (limited to another traditional $5,000) under the Rollover individual retirement IRA contracts, we intend arrangement. that this contract be used primarily for rollover and direct transfer contributions. o Regular IRA contributions. o Additional catch-up contributions. o Additional catch-up contributions of up to $1,000 per calendar year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - --------------------------------------------------------------------------------
20 Contract features and benefits
- -------------------------------------------------------------------------------- Available Contract for annuitant type issue ages* Minimum contributions - -------------------------------------------------------------------------------- Roth Conversion 20 through 85 o $25,000 (initial) IRA o $50 (additional) - -------------------------------------------------------------------------------- Rollover TSA 20 through 85 o $25,000 (initial) o $500 (additional) - -------------------------------------------------------------------------------- Contract Limitations on type Source of contributions contributions(+) - -------------------------------------------------------------------------------- Roth Conversion o Rollovers from another o No additional rollover or IRA Roth IRA. direct transfer contributions after attainment of age 86 or, o Rollovers from a "designated if later, the first contract Roth contribution date anniversary.* account" under a 401(k) plan or 403(b) plan. o Conversion rollovers after age 70-1/2 must be net of o Conversion rollovers from a required minimum distributions traditional IRA or other for the traditional IRA eligible retirement plan. or other eligible retirement plan which is the source of o Direct transfers from the conversion rollover. another Roth IRA. o Regular Roth IRA o You cannot roll over funds contributions. from a traditional IRA or other eligible retirement o Additional catch-up plan if your adjusted gross contributions. income is $100,000 or more. o Although we accept regular Roth IRA contributions (limited to $5,000) under the Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contri- butions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribu- tion is made. - -------------------------------------------------------------------------------- Rollover TSA o With documentation of o No additional rollover or employer or plan approval, direct transfer contributions and limited to pre-tax after attainment of age 86 funds, direct plan-to-plan or, if later, the first transfers from another contract date anniversary.* 403(b) plan or contract exchanges from another o Contributions after age 403(b) plan or contract 70-1/2 must be net of any exchanges from another required minimum 403(b) contract under the distributions. same plan. o We do not accept employer- o With documentation of remitted contributions. employer or plan approval, and limited to pre-tax o We do not accept after tax funds, eligible rollover contributions, including distributions from other designated Roth 403(b) plans, qualified plans, contributions. governmental employer 457(b) plans or traditional IRAs. - --------------------------------------------------------------------------------
Contract features and benefits 21 - -------------------------------------------------------------------------------- Available Contract for annuitant type issue ages* Minimum contributions - -------------------------------------------------------------------------------- Inherited IRA 0-70 o $25,000 (initial) Beneficiary Continuation o $1,000 (additional) Contract (traditional IRA or Roth IRA) - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- Contract Limitations on type Source of contributions contributions+ - ------------------------------------------------------------------------------- Inherited IRA o Direct o Any additional contributions Beneficiary custodian-to-custodian must be from the same type Continuation transfers of your interest as of IRA of the same deceased Contract a death beneficiary of the owner. (traditional IRA deceased owner's traditional o Non-spousal beneficiary or Roth IRA) individual retirement direct rollover contributions arrangement or Roth IRA to from qualified plans, 403(b) an IRA of the same type. plans and governmental employer 457(b) plans may be made to a traditional Inherited IRA contract under specified circumstances. - ------------------------------------------------------------------------------- + If you purchase Guaranteed principal benefit option 2, no contributions are permitted after the six month period beginning on the contract date. Additional contributions may not be permitted under certain conditions in your state. Please see Appendix VII later in this Prospectus to see if additional contributions are permitted in your state. * Please see Appendix VIII for variations that may apply to your contract. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. 22 Contract features and benefits OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. We do not permit partnerships or limited liability corporations to be owners. We also reserve the right to prohibit availability of this contract to other non-natural owners. Only natural persons can be joint owners. If the Spousal protection feature is available under your contract and is elected, the spouses must be joint owners, one of the spouses must be the annuitant and both must be named as the only primary beneficiaries. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. In general, we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your state. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. See Inherited IRA beneficiary continuation contract later in this section for Inherited IRA owner and annuitant requirements. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealers. Additional contributions may also be made under our automatic investment program. These methods of payment are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option and the fixed maturity options. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. Contract features and benefits 23 PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- -------------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. - -------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. - -------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a ALLOCATION greater emphasis on current income. - -------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. - -------------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, ALLOCATION with a greater emphasis on capital appreciation. - -------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. EQUITY - -------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital appreciation, consistent with a prudent level of risk. - -------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. - -------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current income and capital appreciation. - -------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. EQUITY - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. CORE EQUITY - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS o AXA Equitable ALLOCATION - -------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------------- AXA MODERATE-PLUS o AXA Equitable ALLOCATION - -------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - -------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND o BlackRock Financial Management, Inc. o Pacific Investment Management Company LLC - -------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - -------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD o Pacific Investment Management Company LLC o Post Advisory Group, LLC - -------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - --------------------------------------------------------------------------------------
24 Contract features and benefits
- -------------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. GROWTH - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. VALUE - -------------------------------------------------------------------------------------- MULTIMANAGER MID CAP Long-term growth of capital. GROWTH - -------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE Long-term growth of capital. - -------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. GROWTH - -------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. VALUE - -------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY Long-term growth of capital. - -------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN Seeks to achieve long-term growth of capital. COMMON STOCK - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN Seeks to achieve high current income consistent with INTERMEDIATE GOVERNMENT relative stability of principal. SECURITIES - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN Seeks to achieve long-term growth of capital. INTERNATIONAL - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. CAP GROWTH - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with BOND moderate risk to capital. - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. CAP GROWTH - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. - -------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. - -------------------------------------------------------------------------------------- EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear LONG/SHORT EQUITY markets using strategies that are designed to limit exposure to general equity market risk. - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - -------------------------------------------------------------------------------------- MULTIMANAGER MID CAP o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - -------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - -------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - -------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - -------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - -------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- o AllianceBernstein L.P. MON STOCK - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- o AllianceBernstein L.P. MEDIATE GOVERNMENT SECURITIES - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- o AllianceBernstein L.P. NATIONAL - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE o AllianceBernstein L.P. CAP GROWTH - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY o AllianceBernstein L.P. BOND - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL o AllianceBernstein L.P. CAP GROWTH - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE o AllianceBernstein L.P. - -------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II o Ariel Capital Management, LLC - -------------------------------------------------------------------------------------- EQ/AXA ROSENBERG VALUE o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY - --------------------------------------------------------------------------------------
Contract features and benefits 25
- -------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, EQUITY income. - -------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of VALUE income, accompanied by growth of capital. - -------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to INCOME achieve an above-average and consistent total return. - -------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. RESPONSIBLE - -------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. - -------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. RESEARCH - -------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. YIELD BOND - -------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. - -------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - -------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. BOND - -------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. - -------------------------------------------------------------------------------------- EQ/FI MID CAP Seeks to achieve long-term growth of capital. - -------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects for capital appreciation. - -------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. - -------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily seeks FOUNDING STRATEGY income. - -------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. ACQUISITIONS - -------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. VALUE - -------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. - -------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. - -------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with mod- erate risk to capital and maintenance of liquidity. - -------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. OPPORTUNITIES - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE o BlackRock Investment Management, LLC EQUITY - -------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL o BlackRock Investment Management VALUE International Limited - -------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY o Boston Advisors, LLC INCOME - -------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - -------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH o Capital Guardian Trust Company - -------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company RESEARCH - -------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH o Caywood-Scholl Capital Management YIELD BOND - -------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE o Davis Selected Advisers, L.P. - -------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX o AllianceBernstein L.P. - -------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - -------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA o Evergreen Investment Management Company, LLC - -------------------------------------------------------------------------------------- EQ/FI MID CAP o Fidelity Management & Research Company - -------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME o Franklin Advisers, Inc. - -------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE o Franklin Advisory Services, LLC - -------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON o AXA Equitable FOUNDING STRATEGY - -------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND o GAMCO Asset Management Inc. ACQUISITIONS - -------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY o GAMCO Asset Management Inc. VALUE - -------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - -------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH o MFS Investment Management - -------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND o JPMorgan Investment Management Inc. - -------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE o JPMorgan Investment Management Inc. OPPORTUNITIES - --------------------------------------------------------------------------------------
26 Contract features and benefits
- -------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- ondary objective to seek reasonable current income. For purposes of this Portfolio, the words "reasonable current income" mean moderate income. - -------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. - -------------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. - -------------------------------------------------------------------------------------- EQ/LONG TERM BOND Seeks to maximize income and capital appreciation through investment in long-maturity debt obligations. - -------------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of INCOME income without excessive fluctuation in market value. - -------------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of CORE income with reasonable risk. - -------------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. - -------------------------------------------------------------------------------------- EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. - -------------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. - -------------------------------------------------------------------------------------- EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve its assets and maintain liquidity. - -------------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. GROWTH EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- sionally be short-term, and secondarily, income. - -------------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. - -------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. OPPORTUNITY - -------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. SMALL CAP - -------------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with preservation of real capital and prudent investment man- agement. - -------------------------------------------------------------------------------------- EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility of principal. - -------------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the deduction of Portfolio expenses) the total return of the Russell 2000 Index. - -------------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and STOCK secondarily, income. - -------------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS o AXA Equitable o Institutional Capital LLC o Mellon Capital Management Corporation - -------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - -------------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY o Legg Mason Capital Management, Inc. - -------------------------------------------------------------------------------------- EQ/LONG TERM BOND o BlackRock Financial Management, Inc. - -------------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND o Lord, Abbett & Co. LLC INCOME - -------------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP o Lord, Abbett & Co. LLC CORE - -------------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE o Lord, Abbett & Co. LLC - -------------------------------------------------------------------------------------- EQ/MARSICO FOCUS o Marsico Capital Management, LLC - -------------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - -------------------------------------------------------------------------------------- EQ/MONEY MARKET o The Dreyfus Corporation - -------------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL o Montag & Caldwell, Inc. GROWTH EQ/MUTUAL SHARES o Franklin Mutual Advisers, LLC - -------------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL o OppenheimerFunds, Inc. - -------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. OPPORTUNITY - -------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc SMALL CAP - -------------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN o Pacific Investment Management Company, LLC - -------------------------------------------------------------------------------------- EQ/SHORT DURATION BOND o BlackRock Financial Management, Inc. - -------------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX o AllianceBernstein L.P. - -------------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH o T. Rowe Price Associates, Inc. STOCK - -------------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH o Templeton Global Advisors Limited - --------------------------------------------------------------------------------------
Contract features and benefits 27
- -------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation with income as a secondary consideration. - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. MARKETS EQUITY - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. GROWTH - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- term capital appreciation. - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME o UBS Global Asset Management (Americas) Inc. - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK o Morgan Stanley Investment Management Inc. - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING o Morgan Stanley Investment Management Inc. MARKETS EQUITY - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP o Morgan Stanley Investment Management Inc. GROWTH - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN REAL ESTATE o Morgan Stanley Investment Management Inc. - --------------------------------------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the portfolios. The prospectuses should be read carefully before investing. 28 Contract features and benefits GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges and any optional benefit charges. See Appendix VII later in this Prospectus for state variations. Depending on the state where your contract was issued, your lifetime minimum rate ranges from 1.50% to 3.00%. The data page for your contract shows the lifetime minimum rate. Check with your financial professional as to which rate applies in your state. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75% or 3.00%, depending on your lifetime minimum rate. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfers to and from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if, on the date the contribution or transfer is to be applied, the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional or see Appendix VII later in this Prospectus to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options range from one to ten years to maturity. - -------------------------------------------------------------------------------- Under the Special 10 year fixed maturity option (which is available only under contracts that offer GPB Option 2), additional contributions will have the same maturity date as your initial contribution (see "the Guaranteed Principal benefits" below.) The rate to maturity you will receive for each additional contribution is the rate to maturity in effect for new contributions allocated to that fixed maturity option on the date we apply your contribution. On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value was reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you applied for an Accumulator(R) Select(SM) contract, a 60-day rate lock-in applied from the date the application was signed. Any contributions received and designated for a fixed maturity option during that period received the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever had been greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from any of the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value. If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008, the next available maturity date was February 15, 2015. If no fixed maturity options are available we will transfer your maturity value to the EQ/Money Market option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity Contract features and benefits 29 date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options, (adjusted to reflect a similar maturity date) and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amounts of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix II at the end of this Prospectus provides an example of how the market value adjustment is calculated. ALLOCATING YOUR CONTRIBUTIONS You may choose from among three ways to allocate your contributions under your contract: self-directed, the guaranteed principal benefits (at contract issue only) or dollar cost averaging. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, guaranteed interest option (subject to restrictions in certain states -- See Appendix VII later in this Prospectus for state variations) and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. No more than 25% of any contribution may be allocated to the guaranteed interest option. The total of your allocations into all available investment options must equal 100%. If the annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. THE GUARANTEED PRINCIPAL BENEFITS (INCLUDING PRINCIPAL ASSURANCE) We offered a guaranteed principal benefit ("GPB") with two options. See Appendix VII later in this Prospectus for more information on state availability and Appendix VIII for contract variation and/or availability of these benefits. You could only elect one of the GPBs. Neither GPB was available under Inherited IRA contracts. We did not offer either GPB when the rate to maturity for the applicable fixed maturity option was 3%. Both GPB options allow you to allocate a portion of your total contributions to the variable investment options, while ensuring that your account value will at least equal your contributions, adjusted for withdrawals and transfers, on a specified date. GPB Option 2 generally provides you with the ability to allocate more of your contributions to the variable investment options than could be allocated using GPB Option 1 (also known as Principal assurance). If you elected either GPB, you could not elect the Guaranteed minimum income benefit, Principal Protector(SM), the systematic withdrawals option or the substantially equal withdrawals option. However, certain contract owners who elected GPB are not subject to these restrictions. See Appendix VIII for information on what applies under your contract. You could elect GPB Option 1 only if the annuitant was age 80 or younger when the contract was issued (after age 75, only the 7-year fixed maturity option was available). You could elect GPB Option 2 only if the annuitant was age 75 or younger when the contract was issued. If you purchased an IRA or Rollover TSA contract, before you either purchased GPB Option 2 or elected GPB Option 1 with a maturity year that would extend beyond the year in which you will reach age 70-1/2, you should have considered whether your value in the variable investment options, guaranteed interest option and permissible funds outside this contract were sufficient to meet your required minimum distributions. See "Tax information" later in this Prospectus. If you elected GPB Option 2 and change ownership of the contract, GPB Option 2 will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. GUARANTEED PRINCIPAL BENEFIT OPTION 1 (UNDER CERTAIN CONTRACTS, THIS FEATURE IS CALLED "PRINCIPAL ASSURANCE"). GPB Option I was available at contract issue only. Under GPB Option 1, you selected a fixed matu- 30 Contract features and benefits rity option at the time you signed your application. We specified a portion of your initial contribution and allocated it to that fixed maturity option in an amount that will cause the maturity value to equal the amount of your entire initial contribution on the fixed maturity option's maturity date. The percentage of your contribution allocated to the fixed maturity option was calculated based upon the rate to maturity then in effect for the fixed maturity option you chose. Your contract contains information on the amount of your contribution allocated to the fixed maturity option. The maturity date you selected generally could not be later than 10 years, or earlier than 7 years from your contract date. If you were to make any withdrawals or transfers from the fixed maturity option before the option's maturity date, the amount in the fixed maturity option will be adjusted and may no longer grow to equal your initial contribution under GPB Option 1. You allocated the remainder of your initial contribution to the investment options however you chose, other than the Investment simplifier. (If you elected the General or 12 month dollar cost averaging program, the remainder of your initial contribution (that is, amounts other than those allocated to the fixed maturity option under GPB Option 1) was allocated to that dollar cost averaging program). Upon the maturity date of the fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." There is no charge for GPB Option 1. GUARANTEED PRINCIPAL BENEFIT OPTION 2. You may purchase GPB Option 2 was only available at contract issue. IF YOU PURCHASED GPB OPTION 2, YOU MAY NOT MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE RATE TO MATURITY ON THE SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore, any discussion in this Prospectus that involves any additional contributions after the first six months will be inapplicable. This feature was not available under all contracts. We have specified the portion of your initial contribution, and any additional permitted contributions, to be allocated to a special 10 year fixed maturity option. Your contract contains information on the percentage of applicable contributions allocated to the Special 10 year fixed maturity option. You may allocate the rest of your contributions among the investment options (other than the Special 10 year fixed maturity option) however you choose, as permitted under your contract, and other than the Investment simplifier. (If you elect the General or 12 month dollar cost averaging program, the remainder of all contributions (that is, amounts other than those allocated to the Special 10 year fixed maturity option) must be allocated to that dollar cost averaging program). The Special 10 year fixed maturity option will earn interest at the specified rate to maturity then in effect. If on the 10th contract date anniversary, your annuity account value is less than the amount that is guaranteed under GPB Option 2, we will increase your annuity account value to be equal to the guaranteed amount under GPB Option 2. Any such additional amounts added to your annuity account value will be allocated to the EQ/Money Market investment option. After the maturity date of the Special 10 year fixed maturity option, the guarantee under GPB Option 2 will terminate. Upon the maturity date of the Special 10 year fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." The guaranteed amount under GPB Option 2 is equal to your initial contribution adjusted for any additional permitted contributions, transfers out of the Special 10 year fixed maturity option and withdrawals from the contract (see "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus). Any transfers or withdrawals from the Special 10 year fixed maturity option will also be subject to a market value adjustment (see "Market value adjustment" under "Fixed maturity options" above in this section). If you purchased the Guaranteed principal benefit option 2, you can- not voluntarily terminate this benefit. GPB Option 2 will terminate if the contract terminates before the maturity date of the Special 10 year fixed maturity option. If the owner and the annuitant are different people and the owner dies before the maturity date of the Special 10 year fixed maturity option, we will continue GPB Option 2 only if the contract can continue through the maturity date of the Special 10 year fixed maturity option. If the contract cannot so continue, we will terminate GPB Option 2. GPB Option 2 will continue where there is a successor owner/annuitant. GPB Option 2 will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a fee associated with GPB Option 2 (see "Charges and expenses" later in this Prospectus). You should note that the purchase of GPB Option 2 would not have been appropriate if you wanted to make additional contributions to your contract beyond the first six months after your contract was issued. If you later decide that you would like to make additional contributions to the Accumulator(R) Select(SM) contract, we may permit you to purchase another contract. If we do, however, you should note that we do not reduce or waive any of the charges on the new contract, nor do we guarantee that the features available under this contract will be available under the new contract. This means that you might end up paying more with respect to certain charges than if you had simply purchased a single contract (for example, the administrative charge). The purchase of GPB Option 2 also would not have been appropriate if you planned on terminating your contract before the maturity date of the Special 10 year fixed maturity option. In addition, because we prohibit contributions to your contract after the first six months, certain contract benefits that are dependent upon contributions or account value will be limited (for example, the guaranteed death benefits and Protection Plus(SM)). You should also note that if you intended to allocate a large percentage of your contributions to the guaranteed interest option or other fixed maturity options, the purchase of GPB Option 2 would not have been appropriate because of the guarantees already provided by these options. An example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract is included in Appendix V later in this Prospectus. Contract features and benefits 31 DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options or the guaranteed interest option. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- 12 MONTH DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the EQ/Money Market option into any of the other variable investment options. You may elect to participate in the 12 month dollar cost averaging program at any time subject to the age limitation on contributions described earlier in this Prospectus. Contributions into the account for 12 month dollar cost averaging may not be transfers from other investment options. You must allocate your entire initial contribution into the EQ/Money Market option if you are selecting the 12 month dollar cost averaging program at application to purchase an Accumulator(R) Select(SM) contract; thereafter, initial allocations to any new 12 month dollar cost averaging program time period must be at least $2,000 and any subsequent contribution to that same time period must be at least $250. You may only have one time period in effect at any time. We will transfer your value in the EQ/Money Market option into the other variable investment options that you select over the next 12 months or such other period we may offer. Once the time period then in effect has run, you may then select to participate in the dollar cost averaging program for an additional time period. At that time, you may also select a different allocation for transfers to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, the transfer date will be the same day of the month as the contract date, but not later than the 28th. For a 12 month dollar cost averaging program selected after application, the first transfer date and each subsequent transfer date for the time period selected will be one month from the date the first contribution is made into the 12 month dollar cost averaging program, but not later than the 28th of the month. All amounts will be transferred out by the end of the time period then in effect. Under this program we will not deduct the mortality and expense risks, administrative, and distribution charges from assets in the EQ/Money Market option. You may not transfer amounts to the EQ/Money Market option established for this program that are not part of the 12 month dollar cost averaging program. The only amounts that should be transferred from the EQ/Money Market option are your regularly scheduled transfers to the other variable investment options. If you request to transfer or withdraw any other amounts from the EQ/Money Market option, we will transfer all of the value that you have remaining in the account for 12 month dollar cost averaging to the investment options according to the allocation percentages we have on file for you. You may ask us to cancel your participation at any time. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. INVESTMENT SIMPLIFIER Fixed-dollar option. Under this option you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. The fixed-dollar option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. Interest sweep option. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. On the last day of each month, we check to see whether you have at least $7,500 in the guaranteed interest option. We will automatically 32 Contract features and benefits cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not currently participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Only investment simplifier is available with the Option 1 rebalancing program. If you elect a GPB, you may also elect the 12 month or General dollar cost averaging program. If you elect either of these programs, everything other than amounts allocated to the fixed maturity option under the GPB must be allocated to that dollar cost averaging program. You may still elect the Investment simplifier for amounts transferred from investment options (other than the fixed maturity option under the GPB you have elected), and, for GPB Option 1, you may also elect Investment simplifier for subsequent contributions. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum income benefit (or the "Living Benefit") base" immediately below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. Not all dollar cost averaging programs are available in all states (see Appendix VII later in this Prospectus for more information on state availability). GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit and the death benefits as described in this section. The benefit base for the Guaranteed minimum income benefit and an enhanced death benefit will be calculated as described below in this section whether these options are elected individually or in combination. Your benefit base (known as the "Living Benefit" under certain existing contracts) is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make. The amount of the deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. 6% (OR 5%) ROLL-UP TO AGE 85 (USED FOR THE 6% ROLL-UP TO AGE 85 ENHANCED DEATH BENEFIT AND THE GREATER OF THE 6% (OR 5%) ROLL-UP TO AGE 85 ENHANCED DEATH BENEFIT OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make. The amount of the deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The effective annual roll-up rate credited to this benefit base is: o 6% (or 5%) with respect to the variable investment options (other than EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond) and monies allocated to the 12 month dollar cost averaging program; the effective annual rate is 4% in Washington. Please see Appendix VII later in this Prospectus to see what roll-up rate applies in your state (or Appendix VIII for what applies to your contract); and o 3% with respect to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond, the fixed maturity options, the Special 10 year fixed maturity option, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up after the contract date anniversary following the annuitant's 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, AND THE GREATER OF THE 6% (OR 5%) ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: o your initial contribution to the contract (plus any additional contributions), or o your highest account value on any contract date anniversary up to the contract date anniversary following the annuitant's 85th birthday, plus any contributions made since the most recent Annual Ratchet, less o a deduction that reflects any withdrawals you make. The amount of the deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. Contract features and benefits 33 GREATER OF THE 6% (OR 5%) ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6% (or 5%) Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. GUARANTEED MINIMUM DEATH BENEFIT/GUARANTEED MINIMUM INCOME BENEFIT ROLL-UP BENEFIT BASE RESET. If both the Guaranteed minimum income benefit AND the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit (the "Greater of enhanced death benefit") are elected, you may reset the Roll-Up benefit base for these guaranteed benefits to equal the account value as of the 5th or later contract date anniversary. The reset amount would equal the account value as of the contract date anniversary on which you reset your Roll-Up benefit base. The 6% Roll-Up continues to age 85 on any reset benefit base. We will send you a notice in each year that the Roll-Up benefit base is eligible to be reset, and you will have 30 days from your contract date anniversary to reset your Roll-Up benefit base. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset for five years. If after your death your spouse continues this contract as Successor owner/annuitant, the benefit base will be eligible to be reset either five years from the contract date or from the last reset date, if applicable. The last age at which the benefit base is eligible to be reset is annuitant age 75. It is important to note that once you have reset your Roll-Up benefit base, a new 10 year waiting period to exercise the Guaranteed minimum income benefit will apply from the date of the reset; you may not exercise until the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. See "Exercise rules" under "Guaranteed minimum income benefit option" below for more information. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the exercise waiting period. Also, even when there is no additional charge when you reset your Roll-Up benefit base, the total dollar amount charged on future contract date anniversaries may increase as a result of the reset since the charges may be applied to a higher benefit base than would have been otherwise applied. See "Charges and expenses" in the Prospectus. The Roll-Up benefit base for both the Greater of enhanced death benefit and the Guaranteed minimum income benefit are reset simultaneously when you request a Roll-Up benefit base reset. You cannot elect a Roll-Up benefit base reset for one benefit and not the other. For information about whether the Guaranteed death benefit/ Guaranteed minimum income benefit roll-up benefit base reset is available under your contract, please see Appendix VIII later in this Prospectus. The availability of the Guaranteed minimum death benefit/ guaranteed minimum income benefit roll-up benefit base reset is also subject to state approval. Please contact your financial professional for more information about availability in your state. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed in "Guaranteed minimum income benefit option" below and annuity payout options are discussed in "Accessing your money" later in this Prospectus. Your contract specifies different guaranteed annuity purchase factors for the Guaranteed minimum income benefit and the annuity payout options. We may provide more favorable current annuity purchase factors for the annuity payout options. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in certain instances. GUARANTEED MINIMUM INCOME BENEFIT OPTION (DEPENDING ON WHEN YOU PURCHASED YOUR CONTRACT, THIS BENEFIT MAY BE CALLED THE "LIVING BENEFIT." SEE APPENDIX VIII LATER IN THIS PROSPECTUS FOR MORE INFORMATION.) The Guaranteed minimum income benefit was available if the annuitant was age 20 through 75 at the time the contract was issued. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. If you purchased this contract as an Inherited IRA or if you elected a GPB option or Principal Protector(SM), the Guaranteed minimum income benefit is not available. Depending on when you purchased your contract, the Guaranteed minimum income benefit rider may have been available with Principal assurance. See Appendix VIII later in this Prospectus for more information. If you purchased this contract to fund a charitable remainder trust, the Guaranteed minimum income benefit was not available, except for certain split-funded charitable remainder trusts. If the annuitant was older than age 60 at the time an IRA or Rollover TSA contract was issued, the Guaranteed minimum income benefit may not be an appropriate feature because the minimum distributions required by tax law generally must begin before the Guaranteed minimum income benefit can be exercised. If the owner and annuitant are different in an NQ contract, there may be circumstances where the benefit may not be exercisable after an owner's death. Depending on when you purchased your contract, if you elected the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Also, for more information about when the Guaranteed minimum income benefit will terminate under your contract, please see Appendix VIII later in this Prospectus. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option, subject to state availability. Depending on when you purchased your contract, your options may be different. See Appendix VIII later in this Prospectus for more information. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life 34 Contract features and benefits basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the annuitant's age as follows:
Level payments - -------------------------------------- Period certain years Annuitant's ------------------- age at exercise IRAs NQ - ------------------ ---------- -------- 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - --------------------------------------
We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit should be regarded as a safety net only. It provides income protection if you elect an income payout while the annuitant is alive. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base to guaranteed annuity purchase factors, or (ii) the income provided by applying your account value to our then current annuity purchase factors. For Rollover TSA only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. The Guaranteed minimum income benefit provides a form of insurance and is based on conservative actuarial factors. The guaranteed annuity purchase factors we use to determine your payout annuity benefit under the Guaranteed minimum income benefit are more conservative than the guaranteed annuity purchase factors we use for our standard payout annuity options. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the Guaranteed minimum income benefit payout annuity will be smaller than each periodic payment under our standard payout annuity options. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. GUARANTEED MINIMUM INCOME BENEFIT "NO LAPSE GUARANTEE". Subject to availability, in general, if your account value falls to zero (except, as discussed below, if your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base as of the beginning of the contract year), the Guaranteed minimum income benefit will be exercised automatically, based on the annuitant's current age and benefit base, as follows: o You will be issued a supplementary contract based on a single life with a maximum 10 year period certain. Payments will be made annually starting one year from the date the account value fell to zero. o You will have 30 days from when we notify you to change the payout option and/or the payment frequency. Please note that we will not automatically exercise the Guaranteed minimum income benefit, as described above, if you have a TSA contract and withdrawal restrictions apply. The no lapse guarantee will terminate under the following circumstances: o If your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year); o If your aggregate withdrawals during any contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year); o On the contract date anniversary following annuitant's 85th birthday. For information about whether the Guaranteed minimum income benefit no lapse guarantee is available under your contract, please see Appendix VIII later in this Prospectus. The availability of the Guaranteed minimum income benefit no lapse guarantee is dependent on when, and in what state, you purchased your contract. Please see Appendices VII and VIII, later in this Prospectus. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the Guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male annuitant age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, Contract features and benefits 35 withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options (including the Special 10 year fixed maturity option, if available) or the loan reserve account.
- -------------------------------------------------------------- Guaranteed minimum income Contract date benefit -- annual income anniversary at exercise payable for life - -------------------------------------------------------------- 10 $11,891 15 $18,597 - --------------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us, along with all required information, within 30 days following your contract date anniversary in order to exercise this benefit. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payout contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death or, if later, then end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income benefit during your life and the annuitant's life, as follows: o If the annuitant was at least age 20 and not older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If the annuitant was at least age 45 and not older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after the annuitant is age 60. o If the annuitant was at least age 50 and not older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's 85th birthday; (ii) if the annuitant was age 75 when the contract was issued or the Roll-Up benefit base was reset, if applicable, the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's attainment of age 85; (iii) for Accumulator(R) Select(SM) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Select(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day time frame following the contract date anniversary in order for you to be eligible to exercise. However, if the Guaranteed minimum income benefit is automatically exercised as a result of the no lapse guarantee, a rollover into an IRA will not be effected and payments will be made directly to the trustee; (iv) if you reset the Roll-Up benefit base (if available and as described earlier in this section), your new exercise date will be the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the waiting period; (v) a successor owner/annuitant may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original annuitant could have exercised the benefit. In addition, the successor owner/annuitant must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The successor owner/annuitant's age on the date of the annuitant's death replaces the annuitant's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules. If Spousal Protection is available under your contract and is elected, and the spouse who is the annuitant dies, the above rules apply if the contract is continued by the surviving spouse as the successor owner annuitant; and (vi) if you are the owner but not the annuitant and you die prior to exercise, then the following applies: o A successor owner who is not the annuitant may not be able to exercise the Guaranteed minimum income benefit without causing a tax problem. You should consider naming the annuitant as successor owner, or if you do not name a successor owner, as the sole primary beneficiary. You should carefully review your successor owner and/or beneficiary designations at least one year prior to the first contract date anniversary on which you could exercise the benefit. o If the successor owner is the annuitant, the Guaranteed minimum income benefit continues only if the benefit could be exercised under the rules described above on a contract date anniversary that is within one year following the owner's death. This would be the only opportunity for the successor owner to exercise. If the Guaranteed minimum income benefit cannot be exercised within this timeframe, 36 Contract features and benefits the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. o If you designate your surviving spouse as successor owner, the Guaranteed minimum income benefit continues and your surviving spouse may exercise the benefit according to the rules described above, even if your spouse is not the annuitant and even if the benefit is exercised more than one year after your death. If your surviving spouse dies prior to exercise, the rule described in the previous bullet applies. o A successor owner or beneficiary that is a trust or other non-natural person may not exercise the benefit; in this case, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. See "When an NQ contract owner dies before the annuitant" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT Your contract provides a standard death benefit. If you did not elect one of the enhanced death benefits described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions adjusted for any withdrawals and any taxes that apply. The standard death benefit was the only death benefit available for annuitants who were ages 76 through 85 at issue. The applicable issue ages may be different for certain contract owners, depending on when you purchased your contract. Please see Appendix VIII later in this Prospectus for more information. Once your contract has been issued, you may not change or voluntarily terminate your death benefit. If you elected one of the enhanced death benefits, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment, OR your elected enhanced death benefit on the date of the annuitant's death (adjusted for any subsequent withdrawals and taxes that apply), whichever provides the higher amount. If you elected the Spousal protection option, if available, the Guaranteed minimum death benefit is based on the age of the older spouse, who may or may not be the annuitant, for the life of the contract. See "Spousal protection" in "Payment of death benefit" later in this Prospectus for more information. Any of the enhanced death benefits or the standard death benefit can be elected by themselves or with the Guaranteed minimum income benefit. If you elected one of the enhanced death benefit options described below and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, any enhanced death benefit elected will be replaced with the standard death benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANTS AGES 0 THROUGH 75 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; AND 0 THROUGH 70 AT ISSUE OF INHERITED IRA CONTRACTS. DEPENDING ON WHEN YOU PURCHASED YOUR CONTRACT, YOUR AVAILABLE ISSUE AGES MAY HAVE BEEN OLDER AT THE TIME YOU PURCHASED YOUR CONTRACT. Subject to state availability and contract availability (please see Appendix VII for state availability of these benefits and Appendix VIII for contract variations later in this Prospectus), the following enhanced death benefits were available: o Annual Ratchet to age 85. o 6% Roll-Up to age 85. o The Greater of 5% Roll-Up to age 85 or the Annual Ratchet to age 85 o The Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. Each enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Once you have made your enhanced death benefit election, you may not change it. If you elected Principal Protector(SM), only the standard death benefit and the Annual Ratchet to Age 85 enhanced death benefit were available. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals and (transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus for more information on these guaranteed benefits. See Appendix III later in this Prospectus for an example of how we calculate an enhanced death benefit. Protection Plus(SM) The following section provides information about the Protection PlusSM option, which was only available at the time you purchased your contract. If Protection PlusSM was not elected when the contract was first issued, neither the owner nor the successor owner/annuitant can add it subsequently. Protection Plus(SM) is an additional death benefit as described below. See "Tax information" later in this Prospectus for the potential tax consequences of having purchased the Protection Plus(SM) feature in an NQ, IRA or Rollover TSA contract. If you purchased the Contract features and benefits 37 Protection Plus(SM) feature, you may not voluntarily terminate this feature. If you elected Principal Protector(SM) the Protection Plus(SM) feature is not available. Depending on when you purchased your contract, if you elected the Protection Plus(SM) option described below and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the annuitant was 70 or younger when we issued your Contract (or if the successor owner/annuitant is 70 or younger when he or she becomes the successor owner/annuitant and Protection Plus(SM) had been elected at issue), the death benefit will be: the greater of: o the account value or o any applicable death benefit Increased by: o such death benefit less total net contributions, multiplied by 40%. For purposes of calculating your Protection Plus(SM) benefit, the following applies: (i) "Net contributions" are the total contributions made (or, if applicable, the total amount that would otherwise have been paid as a death benefit had the successor owner/annuitant election not been made plus any subsequent contributions) adjusted for each withdrawal that exceeds your Protection Plus(SM) earnings. "Net contributions" are reduced by the amount of that excess. Protection Plus(SM) earnings are equal to (a) minus (b) where (a) is the greater of the account value and the death benefit immediately prior to the withdrawal and (b) is the net contributions as adjusted by any prior withdrawals; and (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable Guaranteed minimum death benefit as of the date of death. If you are an existing contract owner and not a new purchaser, your net contributions may be reduced on a pro rata basis to reflect withdrawals (including any TSA loans). For information about what applies to your contract, see Appendix VIII later in this Prospectus. If the annuitant was age 71 through 75 (this age may be higher for certain contract owners, depending on when you purchased your contract) when we issued your contract (or if the successor owner/ annuitant is between the ages of 71 and 75 when he or she becomes the successor owner/annuitant and Protection Plus(SM) had been elected at issue), the death benefit will be: the greater of: o the account value or o any applicable death benefit Increased by: o such death benefit (as described above) less total net contributions, multiplied by 25%. The value of the Protection Plus(SM) death benefit is frozen on the first contract date anniversary after the annuitant turns age 80, except that the benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce the benefit by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If the benefit is $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and the benefit after the withdrawal would be $24,000 ($40,000 - $16,000). For an example of how the Protection Plus(SM) death benefit is calculated, please see Appendix VI. If you elected Spousal protection, the Protection Plus(SM) benefit is based on the age of the older spouse, who may or may not be the annuitant. Upon the death of the non-annuitant spouse, the account value will be increased by the value of the Protection Plus(SM) benefit as of the date we receive due proof of death. Upon the death of the annuitant, the value of the Protection Plus(SM) benefit is either added to the death benefit payment or to the account value if Successor owner/annuitant is elected. If the surviving spouse elects to continue the contract, the benefit will be based on the age of the surviving spouse as of the date of the deceased spouse's death for the remainder of the contract. If the surviving spouse is age 76 or older, the benefit will terminate and the charge will no longer be in effect. See "Spousal protection" in "Payment of death benefit" later in this Prospectus for more information. Ask your financial professional or see Appendix VII later in this Prospectus to see if this feature was available in your state. PRINCIPAL PROTECTOR(SM) The following section provides information about the Principal Protector(SM) option, which was only available at the time you purchased your contract. If Principal Protector(SM) was not elected when the contract was first issued, neither the owner nor the successor owner/annuitant can add it subsequently. As described below, Principal Protector(SM) provides for recovery of your total contributions through withdrawals, even if your account value falls to zero, provided that during each contract year, your total withdrawals do not exceed your GWB Annual withdrawal amount. Principal Protector(SM) is not an automated withdrawal program. You may request a withdrawal through any of our available withdrawal methods. See "Withdrawing your account value" in "Accessing your money" later in this Prospectus. All withdrawals reduce your account value and the guaranteed minimum death benefit. Principal Protector(SM) could be elected at contract issue, for an additional charge, if the annuitant was age 0 through 85 for NQ contracts or age 20 through 75 for all IRA contracts. Please see "Principal Protector(SM) charge" in "Charges and expenses" later in this Prospectus for a description of the charge and when it applies. If you elected this benefit, you cannot terminate it. Depending on when you purchased your contract, this feature may not be available. See Appendix VIII later in this Prospectus for more information. If you die, and your beneficiary elects the Beneficiary continuation option, if available, your beneficiary may continue Principal Protector(SM) provided that the beneficiary was 75 or younger on the original con- 38 Contract features and benefits tract date. If the beneficiary was older, Principal Protector(SM) will terminate without value even if the GWB benefit base is greater than zero. In the case of multiple beneficiaries, any beneficiary older than 75 may not continue Principal Protector(SM) and that beneficiary's portion of the GWB benefit base will terminate without value, even if it was greater than zero. The ability to continue Principal Protector(SM) under the Beneficiary continuation option is subject to state availability. If it was approved in your state, it was added to your contract if you had already elected Principal Protector(SM). See "Beneficiary continuation option" under "Payment of death benefit" later in the Prospectus for more information on continuing Principal Protector(SM) under the Beneficiary continuation option. If you purchased this contract as a TSA or Inherited IRA, Principal Protector(SM) was not available. This benefit was also not available if you elected the Guaranteed minimum income benefit, the Greater of 6% Roll-Up to age 85 and Annual Ratchet to Age 85 enhanced death benefit, Protection Plus(SM), GPB Option 1 or GPB Option 2. This benefit may not have been available under your contract. For more information, please see Appendix VIII later in this Prospectus. If you elected the Principal Protector(SM) option described below and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Withdrawals in excess of your GWB Annual withdrawal amount significantly reduce or eliminate the value of the benefit. See "Effect of GWB Excess withdrawals" below. For traditional IRAs, the Principal Protector(SM) makes provision for you to take lifetime required minimum distributions ("RMDs") without losing the value of the Principal Protector(SM) guarantee, provided you comply with the conditions under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, including utilization of our Automatic RMD service, this benefit may have limited usefulness for you. Please consult your tax adviser. YOUR GWB BENEFIT BASE At issue, your GWB benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWB benefit base increases by the dollar amount of any additional contributions. o Your GWB benefit base decreases by the dollar amount of withdrawals. o Your GWB benefit base may be further decreased if a withdrawal is taken in excess of your GWB Annual withdrawal amount. o Your GWB benefit base may also be increased under the Optional step up provision. o Your GWB benefit base may also be increased under the one time step up applicable with the Beneficiary continuation option. Each of these events is described in detail below. Once your GWB benefit base is depleted, you may continue to make withdrawals from your account value, but they are not guaranteed under Principal Protector(SM). YOUR GWB ANNUAL WITHDRAWAL AMOUNT Your GWB Annual withdrawal amount is equal to either 5% or 7% ("Applicable percentage"), as applicable, of your initial GWB benefit base, and is the maximum amount that you can withdraw each year without making a GWB Excess withdrawal, as described below. When you purchased your contract, you chose between two available GWB Annual withdrawal options: o 7% GWB Annual withdrawal option o 5% GWB Annual withdrawal option The GWB Annual withdrawal amount may decrease as a result of a GWB Excess withdrawal and may increase as a result of an Automatic reset, additional contributions or a "step up" of the GWB benefit base; each of these transactions are discussed below in detail. Once you elect a GWB Annual withdrawal option, it cannot be changed. Your GWB Annual withdrawal amounts are not cumulative. If you withdraw less than the GWB Annual withdrawal amount in any contract year, you may not add the remainder to your GWB Annual withdrawal amount in any subsequent year. EFFECT OF GWB EXCESS WITHDRAWALS A GWB Excess withdrawal is caused when you withdraw more than your GWB Annual withdrawal amount in any contract year. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your GWB Annual withdrawal amount, the entire amount of the withdrawal and each subsequent withdrawal in that contract year are GWB Excess withdrawals. A GWB Excess withdrawal can cause a significant reduction in both your GWB benefit base and your GWB Annual withdrawal amount. If you make a GWB Excess withdrawal, we will recalculate your GWB benefit base and the GWB Annual withdrawal amount. As of the date of the GWB Excess withdrawal, the GWB benefit base is first reduced by the dollar amount of the withdrawal, and the reduced GWB benefit base and the GWB Annual withdrawal amount are then further adjusted, as follows: o If the account value after the deduction of the withdrawal is less than the GWB benefit base, then the GWB benefit base is reset equal to the account value. o If the account value after the deduction of the withdrawal is greater than or equal to the GWB benefit base, then the GWB benefit base is not adjusted further. o The GWB Annual withdrawal amount equals the lesser of: (i) the Applicable percentage of the adjusted GWB benefit base and (ii) the GWB Annual withdrawal amount prior to the GWB Excess withdrawal. You should not purchase this benefit if you plan to take withdrawals in excess of your GWB Annual withdrawal amount, as such withdrawals significantly reduce or eliminate the value of Principal Protector(SM). If your account value is less than your GWB benefit base (due, for example, to negative market performance), a GWB Excess withdrawal, even one that is only slightly more than your GWB Annual withdrawal amount, can significantly reduce your GWB benefit base and the GWB Annual withdrawal amount. Contract features and benefits 39 For example, if you contribute $100,000 at contract issue, your initial GWB benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option, your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume in contract year four that your account value is $80,000, you have not made any prior withdrawals, and you request an $8,000 withdrawal. Your $100,000 benefit base is first reduced by $8,000 to now equal $92,000. Your GWB benefit base is then further reduced to equal the new account value: $72,000 ($80,000 minus $8,000). In addition, your GWB Annual withdrawal amount is reduced to $5,040 (7% of $72,000), instead of the original $7,000. You should further note that a GWB Excess withdrawal that reduces your account value to zero eliminates any remaining value in your GWB benefit base. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA and participate in our Automatic RMD service, and you do not take any other withdrawals, an automatic withdrawal under that program will not cause a GWB Excess withdrawal, even if it exceeds your GWB Annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. If you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option and chooses scheduled payments, such payments will not cause a GWB Excess withdrawal, provided no additional withdrawals are taken. If your beneficiary chooses the "5-year rule" instead of scheduled payments, this waiver does not apply and a GWB Excess withdrawal may occur if withdrawals exceed the GWB Annual withdrawal amounts. EFFECT OF AUTOMATIC RESET If you take no withdrawals in the first five contract years, the Applicable percentage to determine your GWB Annual withdrawal amount will be automatically reset at no additional charge. The Applicable percentage under the 7% GWB Annual withdrawal option will be increased to 10%, and the Applicable percentage under the 5% GWB Annual withdrawal option will be increased to 7%. The Applicable percentage is automatically reset on your fifth contract date anniversary, and your GWB Annual withdrawal amount will be recalculated. If you die before the fifth contract date anniversary, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, if available, the Automatic reset will apply on the fifth contract date anniversary if you have not taken any withdrawals and: (1) your beneficiary chooses scheduled payments and payments have not yet started; or, (2) if your beneficiary chooses the "5-year rule" option and has not taken withdrawals. See "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. EFFECT OF ADDITIONAL CONTRIBUTIONS Anytime you make an additional contribution, we will recalculate your GWB benefit base and your GWB Annual withdrawal amount. Your GWB benefit base will be increased by the amount of the contribution and your GWB Annual withdrawal amount will be equal to the greater of (i) the Applicable percentage of the new GWB benefit base, or (ii) the GWB Annual withdrawal amount in effect immediately prior to the additional contribution. If you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, no additional contributions will be permitted. OPTIONAL STEP UP PROVISION Except as stated below, any time after the fifth contract date anniversary, you may request a step up in the GWB benefit base to equal your account value. If your GWB benefit base is higher than the account value as of the date we receive your step up request, no step up will be made. If a step up is made, we may increase the charge for the benefit. For a description of the charge increase, see "Principal Protector(SM) charge" in "Charges and expenses" later in this Prospectus. Once you elect to step up the GWB benefit base, you may not do so again for five complete contract years from the next contract date anniversary. Under both the Spousal protection and the successor owner annuitant features, upon the first death, the surviving spouse must wait five complete contract years from the last step up or from contract issue, whichever is later, to be eligible for a step up. As of the date of your GWB benefit base step up, your GWB Annual withdrawal amount will be equal to the greater of (i) your GWB Annual withdrawal amount before the step up, and (ii) your GWB Applicable percentage applied to your stepped up GWB benefit base. It is important to note that a step up in your GWB benefit base may not increase your GWB Annual withdrawal amount. In that situation, the effect of the step up is only to increase your GWB benefit base and support future withdrawals. We will process your step up request even if it does not increase your GWB Annual withdrawal amount, and we will increase the Principal Protector(SM) charge, if applicable. In addition, you will not be eligible to request another step up for five complete contract years. After processing your request, we will send you a confirmation showing the amount of your GWB benefit base and your GWB Annual withdrawal amount. For example, if you contribute $100,000 at contract issue, your initial GWB benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option, your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume you take withdrawals of $7,000 in each of the first five contract years, reducing the GWB benefit base to $65,000. After five contract years, further assume that your account value is $92,000, and you elect to step up the GWB benefit base from $65,000 to $92,000. The GWB Annual withdrawal amount is recalculated to equal the greater of 7% of the new GWB benefit base, which is $6,440 (7% of $92,000), or the current GWB Annual withdrawal amount, $7,000. Therefore, following the step up, even though your GWB benefit base has increased, your GWB Annual withdrawal amount does not increase and remains $7,000. The Optional step up provision is not available once your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option. However, if you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, the GWB benefit base will be stepped up to equal the account value, if higher, as of the transaction date that we receive the Beneficiary continuation 40 Contract features and benefits option election. As of the date of the GWB benefit base step up, your beneficiary's GWB Annual withdrawal amount will be equal to the greater of (i) your GWB Annual withdrawal amount before the step up, and (ii) your GWB Applicable percentage applied to the stepped up GWB benefit base. This is a one-time step up at no additional charge. OTHER IMPORTANT CONSIDERATIONS o Principal Protector(SM) protects your principal only through withdrawals. Your account value may be less than your total contributions. o You can take withdrawals under your contract without purchasing Principal Protector(SM). In other words, you do not need this benefit to make withdrawals. o Withdrawals made under Principal Protector(SM) will be treated, for tax purposes, in the same way as other withdrawals under your contract. o All withdrawals are subject to all of the terms and conditions of the contract. Principal Protector(SM) does not change the effect of withdrawals on your account value or guaranteed minimum death benefit; both are reduced by withdrawals whether or not you elect Principal Protector(SM). See "How withdrawals are taken from your account value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. o If you withdraw less than the GWB Annual withdrawal amount in any contract year, you may not add the remainder to your GWB Annual withdrawal amount in any subsequent year. o GWB Excess withdrawals can significantly reduce or completely eliminate the value of this benefit. See "Effect of GWB Excess withdrawals" above in this section and "Withdrawing your account value" in "Accessing your money" later in this Prospectus. o If you surrender your contract to receive its cash value, all benefits under the contract will terminate, including Principal Protector(SM) if your cash value is greater than your GWB Annual withdrawal amount. Therefore, when surrendering your contract, you should seriously consider the impact on Principal Protector(SM) when you have a GWB benefit base that is greater than zero. o If you die and your beneficiary elects the Beneficiary continuation option, then your beneficiary should consult with a tax adviser before choosing to use the "5-year rule." The "5-year rule" is described in "Payment of death benefit" under "Beneficiary continuation option" later in this Prospectus. The GWB benefit base may be adversely affected if the beneficiary makes any withdrawals that cause a GWB Excess withdrawal. Also, when the contract terminates at the end of 5 years, any remaining GWB benefit base would be lost. INHERITED IRA BENEFICIARY CONTINUATION CONTRACT This contract was available to an individual beneficiary of a traditional IRA or a Roth IRA where the deceased owner held the individual retirement account or annuity (or Roth individual retirement account or annuity) with an insurance company or financial institution other than AXA Equitable. The purpose of the inherited IRA beneficiary continuation contract is to permit the beneficiary to change the funding vehicle that the deceased owner selected ("original IRA") while taking the required minimum distribution payments that must be made to the beneficiary after the deceased owner's death. See the discussion of required minimum distributions under "Tax information." This contract is intended only for beneficiaries who want to take payments at least annually over their life expectancy. These payments generally must begin (or must have begun) no later than December 31 of the calendar year following the year the deceased owner died. This contract is not suitable for beneficiaries electing the "5-year rule." See "Beneficiary continuation option for IRA and Roth IRA contracts" under "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. You should discuss with your tax adviser your own personal situation. This contract may not have been available in all states. Please speak with your financial professional for further information. Depending on when you purchased your contract, this contract may not have been available. See Appendix VIII later in this Prospectus for more information. The inherited IRA beneficiary continuation contract could only have been purchased by a direct transfer of the beneficiary's interest under the deceased owner's original IRA. The owner of the inherited IRA beneficiary continuation contract is the individual who is the beneficiary of the original IRA. (Certain trusts with only individual beneficiaries will be treated as individuals for this purpose.) The contract must also contain the name of the deceased owner. In this discussion, "you" refers to the owner of the inherited IRA beneficiary continuation contract. The inherited IRA beneficiary continuation contract could have been purchased whether or not the deceased owner had begun taking required minimum distribution payments during his or her life from the original IRA or whether you had already begun taking required minimum distribution payments of your interest as a beneficiary from the deceased owner's original IRA. You should discuss with your own tax adviser when payments must begin or must be made. Under the inherited IRA beneficiary continuation contract: o You must receive payments at least annually (but may have elected to receive payments monthly or quarterly). Payments are generally made over your life expectancy determined in the calendar year after the deceased owner's death and determined on a term certain basis. o You must receive payments from this contract even if you are receiving payments from another IRA of the deceased owner in an amount that would otherwise satisfy the amount required to be distributed from this contract. o The beneficiary of the original IRA is the annuitant under the inherited IRA beneficiary continuation contract. In the case where the beneficiary is a "see-through trust," the oldest beneficiary of the trust is the annuitant. Contract features and benefits 41 o An inherited IRA beneficiary continuation contract not available for annuitants over age 70. o The initial contribution had to be a direct transfer from the deceased owner's original IRA and was subject to minimum contribution amounts. See "How you can contribute to your contract" earlier in this section. o Subsequent contributions of at least $1,000 are permitted but must be direct transfers of your interest as a beneficiary from another IRA with a financial institution other than AXA Equitable, where the deceased owner is the same as under the original IRA contract. o You may make transfers among the investment options. o You may choose at any time to withdraw all or a portion of the account value. Any partial withdrawal must be at least $300. o The Guaranteed minimum income benefit, successor owner/ annuitant feature, 12-month dollar cost averaging program, automatic investment program, GPB Options 1 and 2, Principal Protector(SM) and systematic withdrawals are not available under the Inherited IRA beneficiary continuation contract. o If you die, we will pay to a beneficiary that you choose the greater of the annuity account value or the applicable death benefit. o Upon your death, your beneficiary has the option to continue taking required minimum distributions based on your remaining life expectancy or to receive any remaining interest in the contract in a single sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If your beneficiary elects to continue to take distributions, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value as of the date we receive satisfactory proof of death and any required instructions, information and forms. If you had elected any enhanced death benefits, they will no longer be in effect and charges for such benefits will stop. The Guaranteed minimum death benefit will also no longer be in effect. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS This is provided for informational purposes only. Since these contracts are no longer available to new purchasers, this cancellation provision is no longer applicable. If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law requires, this "free look" period may be longer. Other state variations may apply. Please contact your financial professional to find out what applies in your state. Generally, your refund will be the same as any other surrender and you will receive your account value (less loan reserve account under Rollover TSA contracts) under the contract on the day we receive notification of your decision to cancel the contract, which will reflect (i) any investment gain or loss in the variable investment options (less the daily charges we deduct), (ii) any guaranteed interest in the guaranteed interest option, and (iii) any positive or negative market value adjustments in the fixed maturity options through the date we receive your contract. Some states, however, require that we refund the full amount of your contribution (not reflecting (i), (ii) or (iii) above). For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract, whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. In addition to the cancellation right described above, if you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office, or your financial professional, can provide you with the cancellation instructions. 42 Contract features and benefits 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE* Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; and (iv) the loan reserve account (applicable to Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less: (i) the total amount or a pro rata portion of the annual administrative charge, as well as optional benefit charges*; and (ii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. ---------------------------------- * Depending on when you purchased your contract, your account value will be reduced by a pro rata portion of the administrative charge only. See Appendix VIII later in this Prospectus for more information. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) decreased to reflect a withdrawal; (iii) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, if applicable, when we deduct the enhanced death benefit, Guaranteed minimum income benefit, GPB Option 2, Principal Protector(SM) and/or the Protection Plus(SM) benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest option at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all your rights under your contract and any applicable guaranteed benefits, except as discussed below. See Appendix VII later in this Prospectus for any state variations with regard to the termination of your contract. GUARANTEED MINIMUM INCOME BENEFIT NO LAPSE GUARANTEE (not available under all contracts). In certain circumstances, even if your account value falls to zero, your Guaranteed minimum income benefit will still have value. Please see "Contract features and benefits" earlier in this Prospectus for information on this feature. PRINCIPAL PROTECTOR(SM) (not available under all contracts) If you elected Principal Protector(SM) and your account value falls to zero due to a GWB Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary annuity contract, as discussed below, even if your GWB benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not a GWB Excess withdrawal or due to a deduction of charges, please note the following: Determining your contract's value 43 o If your GWB benefit base equals zero, we will terminate your contract and make no payment. o If your GWB benefit base is greater than zero but less than or equal to the balance of your GWB Annual withdrawal amount, if any, for that contract year, we will terminate your contract and pay you any remaining GWB benefit base. o If your GWB benefit base is greater than the balance of your remaining GWB Annual withdrawal amount, if any, for that contract year, we will pay you your GWB Annual withdrawal amount balance and terminate your contract, and we will pay you your remaining GWB benefit base as an annuity benefit, as described below. o If the Beneficiary continuation option is elected (not available in all states), and the account value falls to zero while there is a remaining GWB benefit base, we will make payments to the beneficiary as follows: o If the beneficiary had elected scheduled payments we will continue to make scheduled payments over remaining life expectancy until the GWB benefit base is zero, and the Principal Protector(SM) charge will no longer apply. o If the beneficiary had elected the "5-year rule" and the GWB benefit base is greater than the remaining GWB Annual withdrawal amount, if any, for that contract year, we will pay the beneficiary the GWB Annual withdrawal amount balance. We will continue to pay the beneficiary the remaining GWB Annual withdrawal amount each year until the GWB benefit base equals zero, or the contract terminates at the end of the fifth contract year, whichever comes first. Any remaining GWB benefit base at the end of the fifth contract year will terminate without value. ANNUITY BENEFIT. If the contract terminates and the remaining GWB benefit base is to be paid in installments, we will issue you an annuity benefit contract and make annual payments equal to your GWB Annual withdrawal amount on the contract date anniversary beginning on the next contract date anniversary, until the cumulative amount of such payments equals the remaining GWB benefit base (as of the date the contract terminates). The last installment payment may be smaller than the previous installment payments in order for the total of such payments to equal the remaining GWB benefit base. The annuity benefit supplemental contract will carry over the same owner, annuitant and beneficiary as under your contract. If you die before receiving all of your payments, we will make any remaining payments to your beneficiary. The charge for Principal Protector(SM) will no longer apply. If at the time of your death the GWB Annual withdrawal amount was being paid to you as an annuity benefit, your beneficiary may not elect the Beneficiary continuation option. 44 Determining your contract's value 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer to a fixed maturity option that has a rate to maturity of 3% or less. o You may not transfer any amount to the 12-month dollar cost averaging program. o If the annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied, the rate to maturity is 3%. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment and affect your GPB. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the annuity account value being allocated to the guaranteed interest option, based on the annuity account value as of the previous business day. If you are an existing contract owner, this restriction may not apply. See Appendix VIII later in this Prospectus for contract variations. o No transfers are permitted into the Special 10 year fixed maturity option. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option, the interest sweep option and dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the Investment options in the prior contract year; or (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contracts features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that Transferring your money among investment options 45 do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We offer rebalancing, which you can use to automatically reallocate your account value among your investment options. We currently offer two options: "Option I" and "Option II." Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers between the guaranteed interest option and the variable 46 Transferring your money among investment options investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into or out of the guaranteed interest option to initiate the rebalancing program will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. You may not elect Option II if you are participating in any dollar cost averaging program. You may not elect Option I if you are participating in general or 12 month dollar cost averaging. Transferring your money among investment options 47 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. If you withdraw more than 90% of your contract's current cash value, we will treat it as a request to surrender your contract for its cash value. See "Surrendering your contract to receive its cash value" below. For the potential tax consequences of withdrawals, see "Tax information" later in this Prospectus. Please see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. - -------------------------------------------------------------------------------- Method of withdrawal - -------------------------------------------------------------------------------- Lifetime required Substantially minimum Contract Partial Systematic equal distribution - -------------------------------------------------------------------------------- NQ Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Conversion IRA Yes Yes Yes No - -------------------------------------------------------------------------------- Rollover TSA* Yes Yes No Yes - -------------------------------------------------------------------------------- Inherited IRA No No No ** - -------------------------------------------------------------------------------- * Employer or plan approval is required for all transactions. Your ability to take withdrawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. ** This contract pays out post-death required minimum distributions. See "Inherited beneficiary contract" in "Contract, features and benefits" earlier in this Prospectus. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. SYSTEMATIC WITHDRAWALS (All contracts except Inherited IRAs) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required). You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. If you already own your contract, the applicable percentages may be higher. See Appendix VIII later in this Prospectus for information on what applies to your contract. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. This option is not available if you have elected a guaranteed principal benefit-- this restriction may not apply to certain contract owners, depending on when you purchased your contract. See Appendix VIII later in this Prospectus for more information. SUBSTANTIALLY EQUAL WITHDRAWALS (All Rollover IRA and Roth Conversion IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating 48 Accessing your money fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. Depending on when you purchased your contract, this option may not be available if you have elected a guaranteed principal benefit. This restriction may not apply to all contract owners. See Appendix VIII later in this Prospectus for more information. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA and Rollover TSA contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH PRINCIPAL PROTECTOR(SM). If you elected Principal Protector(SM), provided no other withdrawals are taken during a contract year in which you participate in our Automatic RMD service, an automatic withdrawal using our service will not cause a GWB Excess withdrawal, even if it exceeds your GWB Annual withdrawal amount. If you take any other withdrawal while you participate in the service, however, this GWB Excess withdrawal exception terminates permanently. In order to take advantage of this exception, you must elect and maintain participation in our Automatic RMD service at your required beginning date, or the contract date, if your required beginning date has occurred before the contract was purchased. See "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus for further information. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options, and the guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options (other than the Special 10 year fixed maturity option, if applicable) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option, if applicable). HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2 In general, withdrawals will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000 - $16,000). Transfers out of the Special 10 year fixed maturity option will reduce the GPB Option 2 amount on a pro rata basis. In addition, if you make a contract withdrawal from the Special 10 year fixed maturity option, we will reduce your GPB Option 2 in a similar manner; however, the reduction will reflect both a transfer out of the Special 10 year fixed maturity option and a withdrawal from the contract. Therefore, the reduction in the GPB Option 2 is greater when you take a contract withdrawal from the Special 10 year fixed maturity option than it would be if you took the withdrawal from another investment option. Similar to the example above, if your account value is $30,000 and you withdraw $12,000 from the Special 10 year fixed maturity option, you have withdrawn 40% of your account value. If your GPB Option 2 Accessing your money 49 benefit was $40,000 before the withdrawal, the reduction to reflect the transfer out of the Special 10 year fixed maturity option would equal $16,000 ($40,000 x .40). The amount used to calculate the reduction to reflect the withdrawal from the contract is $24,000 ($40,000 - $16,000). The reduction to reflect the withdrawal would equal $9,600 ($24,000 x .40), and your new benefit after the withdrawal would be $14,400 ($24,000 - $9,600). With respect to the Guaranteed minimum income benefit and the Greater of 6% (or 5%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, withdrawals will reduce each of the benefits' 6% (or 5%) Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6% (or 5%) or less of the 6% (or 5%) Roll-Up benefit base on the most recent contract date anniversary. Additional contributions made during the contract year do not affect the amount of withdrawals that can be taken on a dollar-for-dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6% (or 5%) of the benefit base on the most recent anniversary, that entire withdrawal and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6% (or 5%) Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for each Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. The effect of withdrawals on your Guaranteed minimum income benefit and Guaranteed minimum death benefit (including) the Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, may be different. See Appendix VIII later in this Prospectus for information on what applies to your contract. HOW WITHDRAWALS AFFECT PRINCIPAL PROTECTOR(SM) If you elected Principal Protector(SM), if available, any withdrawal reduces your GWB benefit base by the amount of the withdrawal. In addition, a GWB Excess withdrawal can significantly reduce your GWB Annual withdrawal amount and further reduce your GWB benefit base. For more information, see "Effect of GWB Excess withdrawals" and "Other important considerations" under "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. WITHDRAWALS TREATED AS SURRENDERS If you request to withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. Also, under certain contracts, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. If you are an existing contract owner, the rules in the preceding sentence may not apply under your contract or if the Guaranteed minimum income benefit no lapse guarantee is available and in effect on your contract. See Appendix VIII later in this Prospectus for information See also "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR PRINCIPAL PROTECTOR(SM). If you elected Principal Protector(SM), all withdrawal methods described above can be used. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is a GWB Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to a GWB Excess withdrawal. In other words, if you take a GWB Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWB benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Principal Protector(SM)" in "Contract features and benefits," earlier in this Prospectus, for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see Appendix VII later in this Prospectus for any state restrictions you may be subject to if you take a loan from a Rollover TSA contract. Also, see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan including any accrued and unpaid loan interest, will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the loan reserve account. Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional 50 Accessing your money amount of the loan will be subtracted from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option). If the amounts are withdrawn from the Special 10 year fixed maturity option, the guaranteed benefit will be adversely affected. See "Guaranteed principal benefit option 2" in "Contract features and benefits" earlier in this Prospectus. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while the annuitant is living and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of the date we receive the required information, including Principal Protector(SM) (if applicable) if your cash value is greater than your GWB Annual withdrawal amount. If you have a GWB benefit base greater than zero, you should consider the impact of a contract surrender on the Principal Protector(SM) benefit. If your surrender request does not constitute a GWB Excess withdrawal, you may be eligible for additional benefits. If, however, your surrender request constitutes a GWB Excess withdrawal, you will lose those benefits. Also, if the Guaranteed minimum income benefit no lapse guarantee is in effect under your contract, the Guaranteed minimum income benefit will terminate without value if your cash value plus any other withdrawals taken in the contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year). For more information, please see "Annuity benefit" under "Insufficient account value" in "Determining your contract value" and "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of which sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option and fixed maturity options (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Select(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) Select(SM) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Select(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Select(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. Please see Appendix VII later in this Prospectus for variations that may apply in your state. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the annuitant's age when the contract was issued. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit Accessing your money 51 option" in "Contract features and benefits" earlier in this Prospectus). If you elect Principal Protector(SM) and choose to annuitize your contract, Principal Protector(SM) will terminate without value even if your GWB benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under Principal Protector(SM). See "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus for further information. - -------------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------------- Income Manager(R) payout options Life annuity with period certain (available for annuitants age 83 Period certain annuity or less at contract issue) - -------------------------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). For Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the Rollover TSA contract. You may choose to apply only part of the account value of your Accumulator(R) Select(SM) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) Select(SM). For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income option (or "Living Benefit" option), different payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. 52 Accessing your money THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose. If amounts in a fixed maturity option are used to purchase any annuity payout option prior to the maturity date, a market value adjustment will apply. SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin. In most states, it may not be earlier than thirteen months from the Accumulator(R) Select(SM) contract date. Please see Appendix VII later in this Prospectus for information on state variations. Except with respect to the Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments, or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elected Principal Protector(SM) and your contract is annuitized at maturity, we will offer an annuity payout option for life that guarantees you will receive payments that are at least equal to what you would have received under Principal Protector until the point at which your GWB Benefit Base is depleted. After your GWB Benefit Base is depleted, you will continue to receive periodic payments while you are living. The amount of each payment will be the same as the payment amount that you would have received if you had applied your account value on the maturity date to purchase a life annuity at the annuity purchase rate guaranteed in your contract; this payment amount may be more or less than your GWB Annual Withdrawal amount. Please see Appendix VII later in this Prospectus for variations that may apply in your state. Accessing your money 53 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o On each contract date anniversary, a charge for each optional benefit that you have elected: a death benefit (other than the Standard death benefit); the Guaranteed minimum income benefit; Principal Protector(SM); and Protection Plus(SM). o On the first 10 contract date anniversaries -- a charge for GPB Option 2, if you have elected this optional benefit. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. The fees and charges described are the maximum fees and charges that a contract owner will pay. Please see your contract and/or Appendix VIII for the fees and charges that apply under your contract. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard guaranteed minimum death benefit. The daily charge is equivalent to an annual rate of 1.10% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. Administrative charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.35% of the net assets in each variable investment option. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option, if applicable) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any 54 Charges and expenses remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elected the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. If you are an existing contract owner, the charge may be as much as 0.30% of the Annual Ratchet to age 85 benefit base. Please see Appendix VIII later in this Prospectus or your contract for more information. GREATER OF 5% ROLL-UP TO AGE 85 If you elected this enhanced death benefit, we deduct a charge annually from your account value on each date anniversary for which it is in effect. The charge is equal to 0.50% of the Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elected this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.60% of the greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. For certain contract owners, your charge may be less, depending on when you purchased your contract. Please see Appendix VIII later in this Prospectus or your contract for more information. 6% ROLL-UP TO AGE 85. If you elected the 6% Roll-Up to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.45% of the 6% Roll-Up to age 85 benefit base. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If these amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply, depending on when you purchased your contract. See Appendix VIII later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. There is no charge if you exercise the Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset option. STANDARD DEATH BENEFIT. There is no additional charge for the standard death benefit. GUARANTEED PRINCIPAL BENEFIT OPTION 2 If you purchased GPB Option 2, we deduct a charge annually from your account value on the first 10 contract date anniversaries. The charge is equal to 0.50% of the account value. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct any remaining portion of the charge from amounts in any fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply, depending on when you purchased your contract. See Appendix VIII later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. GUARANTEED MINIMUM INCOME BENEFIT (THE "LIVING BENEFIT") CHARGE If you elected the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary after the annuitant reaches 85, whichever occurs first. The charge is equal to 0.65% of the applicable benefit base in effect on the contract date anniversary. For certain contract owners, your charge may be less, depending on when you purchased your contract. Please see Appendix VIII later in this Prospectus or your contract for more information. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. (See Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state.) If those amounts are still insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If the contract is surrendered or annuitized or a Charges and expenses 55 death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply, depending on when you purchased your contract. See Appendix VIII later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option, if available). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. There is no charge if you exercise the Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset option or for the Guaranteed minimum income benefit no lapse guarantee. This option is not available under all contracts. PROTECTION PLUS(SM) CHARGE If you elected Protection Plus(SM), we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.35% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If you are an existing contract owner, this pro rata deduction may not apply under your contract. See Appendix VIII later in this Prospectus for more information. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. PRINCIPAL PROTECTOR(SM) CHARGE If you elected Principal Protector(SM), we deduct a charge annually as a percentage of your account value on each contract date anniversary. If you elect the 5% GWB Annual withdrawal option, the charge is equal to 0.35%. If you elect the 7% GWB Annual withdrawal option, the charge is equal to 0.50%. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VII later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. For certain contract owners, this pro rata deduction may not apply, depending on when you purchased your contract. See Appendix VIII later in this Prospectus for more information. If you die, and your beneficiary continues Principal Protector(SM) under the Beneficiary continuation option, we will not deduct a pro rata portion of the charge upon your death. However the Principal Protector(SM) charge will continue. A market value adjustment will apply to deductions from the fixed maturity options. If your GWB benefit base falls to zero but your contract is still in force, the charge will be suspended as of the next contract date anniversary. The charge will be reinstated, as follows: (i) if you make a subsequent contribution, we will reinstate the charge that was in effect at the time your GWB benefit base became depleted, (ii) if you elect to exercise the Optional step up provision, we will reinstate a charge, as discussed immediately below, and (iii) if your beneficiary elects the Beneficiary continuation option and reinstates the Principal Protector(SM) benefit with a one time step up, we will reinstate the charge that was in effect when the GWB benefit base fell to zero. If your beneficiary elects the Beneficiary continuation option, and is eligible to continue Principal Protector(SM), the benefit and the charge will continue unless your beneficiary tells us to terminate the benefit at the time of election. OPTIONAL STEP UP CHARGE. Every time you elect the Optional step up, we reserve the right to raise the benefit charge at the time of the step up. The maximum charge for Principal Protector(SM) with a 5% GWB Annual withdrawal option is 0.60%. The maximum charge for Principal Protector(SM) with a 7% GWB Annual withdrawal amount option is 0.80%. The increased charge, if any, will apply as of the next contract anniversary following the step up and on all contract date anniversaries thereafter. If you die and your beneficiary elects the Beneficiary continuation option, if available, a one time step up only (at no additional charge) is applicable. For more information on the Optional step up, one time step up and Automatic reset provisions, see "Principal Protector(SM) " in "Contract features and benefits." If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY ANNUITIZATION PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity annuitization payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. 56 Charges and expenses CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the mortality and expense risks charge or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to 12b-1 fees. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. Charges and expenses 57 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designated your beneficiary when you applied for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfer to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) and any amount applicable under the Protection Plus(SM) feature, as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the annuitant's death, adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. EFFECT OF THE ANNUITANT'S DEATH If the annuitant dies before the annuity payments begin, we will pay the death benefit to your beneficiary. Generally, the death of the annuitant terminates the contract. However, a surviving spouse, who is the sole primary beneficiary, of the deceased owner/annuitant can choose to be treated as the successor owner/annuitant and continue the contract. The Successor owner/ annuitant feature is only available under NQ and individually owned IRA (other than Inherited IRAs) contracts. See "Inherited IRA beneficiary continuation contract" in "Contracts features and benefits," earlier in this Prospectus. For NQ and all types of IRA contracts, a beneficiary may be able to have limited ownership as discussed under "Beneficiary continuation option" below. WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT Under certain conditions the owner changes after the original owner's death for purposes of receiving required distributions from the contract. When you are not the annuitant under an NQ contract and you die before annuity payments begin, unless you specify otherwise, the beneficiary named to receive this death benefit upon the annuitant's death will become the successor owner. If you do not want this beneficiary to be the successor owner, you should name a specific successor owner. You may name a successor owner at any time during your life by sending satisfactory notice to our processing office. If the contract is jointly owned and the first owner to die is not the annuitant, the surviving owner becomes the sole contract owner. This person will be considered the successor owner for purposes of the distribution rules described in this section. The surviving owner automatically takes the place of any other beneficiary designation. You should carefully consider the following if you have elected the Guaranteed minimum income benefit and you are the owner, but not the annuitant. Because the payments under the Guaranteed minimum income benefit are based on the life of the annuitant, and the federal tax law required distributions described below are based on the life of the successor owner, a successor owner who is not also the annuitant may not be able to exercise the Guaranteed minimum income benefit, if you die before annuity payments begin. Therefore, one year before you become eligible to exercise the Guaranteed minimum income benefit, you should consider the effect of your beneficiary designations on potential payments after your death. For more information, see "Exercise rules," under "Guaranteed minimum income benefit option," in "Contract features and benefits" earlier in this Prospectus. Unless the surviving spouse of the owner who has died (or in the case of a joint ownership situation, the surviving spouse of the first owner to die) is the successor owner for this purpose, the entire interest in the contract must be distributed under the following rules: o The cash value of the contract must be fully paid to the successor owner (new owner) within five years after your death (the "5-year rule"), or in a joint ownership situation, the death of the first owner to die. 58 Payment of death benefit o If Principal Protector(SM) was elected and if the "5-year rule" is elected and the successor owner dies prior to the end of the fifth year, we will pay any remaining account value in a lump sum and the contract and any remaining GWB benefit base will terminate without value. The successor owner should consult with a tax adviser before choosing to use the "5 year rule." The GWB benefit base may be adversely affected if the successor owner makes any withdrawals that cause a GWB Excess withdrawal. Also, when the contract terminates at the end of 5 years, any remaining GWB benefit base would be lost. If you elected Principal Protector(SM), the successor owner has the option to terminate the benefit and charge upon receipt by us of due proof of death and notice to discontinue the benefit; otherwise, the benefit and charge will automatically continue. o The successor owner may instead elect to receive the cash value as a life annuity (or payments for a period certain of not longer than the successor owner's life expectancy). Payments must begin within one year after the non-annuitant owner's death. Unless this alternative is elected, we will pay any cash value five years after your death (or the death of the first owner to die). o A successor owner should consider naming a new beneficiary. If the surviving spouse is the successor owner or joint owner, the spouse may elect to continue the contract. No distributions are required as long as the surviving spouse and annuitant are living. An eligible successor owner, including a surviving joint owner after the first owner dies, may elect the beneficiary continuation option for NQ contracts discussed in "Beneficiary continuation option" below. HOW DEATH BENEFIT PAYMENT IS MADE We will pay the death benefit to the beneficiary in the form of the annuity payout option you have chosen. If you have not chosen an annuity payout option as of the time of the annuitant's death, the beneficiary will receive the death benefit in a single sum. Payment of the death benefit in a lump sum terminates all rights and any applicable guarantees under the contract, including Guaranteed minimum income benefit, GPB Options 1 and 2, and Principal Protector(SM). However, subject to any exceptions in the contract, our rules and any applicable requirements under federal income tax rules, the beneficiary may elect to apply the death benefit to one or more annuity payout options we offer at the time. See "Your annuity payout options" in "Accessing your money" earlier in this Prospectus. Please note that any annuity payout option chosen may not extend beyond the life expectancy of the beneficiary. SUCCESSOR OWNER AND ANNUITANT If you are both the contract owner and the annuitant, and your spouse is the sole primary beneficiary or the joint owner, then your spouse may elect to receive the death benefit or continue the contract as successor owner/annuitant. The successor owner/annuitant must be 85 or younger as of the date of the non-surviving spouse's death. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. If your surviving spouse decides to continue the contract, then as of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary to effect the Successor owner/annuitant feature, we will increase the account value to equal your elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. In determining whether your applicable Guaranteed minimum death benefit option will continue to grow, we will use your surviving spouse's age as of the date we receive satisfactory proof of your death, any required instructions and the information and forms necessary to effect the successor owner/annuitant feature. We will determine whether your applicable Guaranteed minimum death benefit option will continue as follows: o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 84 or younger at death, the guaranteed minimum death benefit continues based upon the option that was elected by the original owner/annuitant and will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 85 or older at death, we will reinstate the Guaranteed minimum death benefit that was elected by the original owner/annuitant. The benefit will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 76 or over on the date of the original owner/annuitant's death, the Guaranteed minimum death benefit will no longer grow, and we will no longer charge for the benefit. If you elected Principal Protector(SM), the benefit and charge will remain in effect. If the GWB benefit base is zero at the time of your death, and the charge had been suspended, the charge will be reinstated if any of the events, described in "Principal Protector(SM) charge" in "Charges and expenses" earlier in this Prospectus, occur. The GWB benefit base will not automatically be stepped up to equal the account value, if higher, upon your death. Your spouse must wait five complete years from the prior step up or from contract issue, whichever is later, in order to be eligible for the Optional step up. For more information, see "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For information on the operation of the successor owner/annuitant feature with the Guaranteed minimum income benefit, see "Exercise of Guaranteed minimum income benefit" under "Guaranteed mini- For information on the operation of the successor owner/annuitant feature with the Guaranteed minimum income benefit, see "Exercise of Guaranteed minimum income benefit" under "Guaranteed mini- Payment of death benefit 59 mum income benefit option" in "Contract features and benefits," earlier in this Prospectus. For information on the operation of this feature with Protection Plus(SM), see "Protection Plus(SM)" in "Guaranteed minimum death benefit "under "Contract features and benefits," earlier in this Prospectus. SPOUSAL PROTECTION SPOUSAL PROTECTION OPTION FOR NQ CONTRACTS ONLY. This feature permits spouses who are joint contract owners to increase the account value to equal the guaranteed minimum death benefit, if higher, and by the value of any Protection Plus(SM) benefit, if elected, upon the death of either spouse. This account value "step up" occurs even if the surviving spouse was the named annuitant. If you and your spouse jointly own the contract and one of you is the named annuitant, you had the right to elect the Spousal protection option at the time you purchased your contract at no additional charge. Both spouses must be between the ages of 20 and 70 at the time the contract was issued and must each have been named the primary beneficiary in the event of the other's death. The annuitant's age is generally used for the purpose of determining contract benefits. However, for the Annual Ratchet to age 85 and the Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 guaranteed minimum death benefits and the Protection Plus(SM) benefit, the benefit is based on the older spouse's age. The older spouse may or may not be the annuitant. However, for purposes of the Guaranteed minimum death benefit/guaranteed minimum income benefit roll-up benefit base reset option, the last age at which the benefit base may be reset is based on the annuitant's age, not the older spouse's age. If the annuitant dies prior to annuitization, the surviving spouse may elect to receive the death benefit, including the value of the Protection Plus(SM) benefit, or, if eligible, continue the contract as the sole owner/ annuitant by electing the successor owner/annuitant option. If the non-annuitant spouse dies prior to annuitization, the surviving spouse continues the contract automatically as the sole owner/annuitant. In either case, the contract would continue, as follows: o As of the date we receive due proof of the spouse's death, the account value will be reset to equal the Guaranteed minimum death benefit as of the date of the non-surviving spouse's death, if higher, increased by the value of the Protection Plus(SM) benefit. o The Guaranteed minimum death benefit continues to be based on the older spouse's age for the life of the contract, even if the younger spouse is originally or becomes the sole owner/annuitant. o The Protection Plus(SM) benefit will now be based on the surviving spouse's age at the date of the non-surviving spouse's death for the remainder of the life of the contract. If the benefit had been previously frozen because the older spouse had attained age 80, it will be reinstated if the surviving spouse is age 75 or younger. The benefit is then frozen on the contract date anniversary after the surviving spouse reaches age 80. If the surviving spouse is age 76 or older, the benefit will be discontinued even if the surviving spouse is the older spouse (upon whose age the benefit was originally based). o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the successor owner/annuitant, if applicable. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If you elect Principal Protector(SM), the benefit and charge will remain in effect. If your GWB benefit base is zero at the time of your death, and the charge had been suspended, the charge will be reinstated if any of the events, described in "Principal Protector(SM) charge" in "Charges and expenses" earlier in this Prospectus, occur. The GWB benefit base will not automatically be stepped up to equal the account value, if higher, upon your death. Your spouse must wait five complete years from the prior step up or from contract issue, whichever is later, in order to be eligible for the Optional step up. For more information, see "Principal Protector(SM)" in "Contract features and benefits" earlier in this Prospectus. We will not allow Spousal protection to be added after contract issue. If there is a change in owner or primary beneficiary, the Spousal protection benefit will be terminated. If you divorce but do not change the owner or primary beneficiary, Spousal protection continues. Depending on when you purchase your contract, this feature may not be available to you. See Appendix VIII later in this Prospectus for more information about your contract. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state availability. Please speak with your financial professional or see Appendix VII later in this Prospectus for further information. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature, adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the 60 Payment of death benefit year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain circumstances) under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. See below for certain circumstances where Principal Protector(SM) may continue to apply. o The beneficiary may choose at any time to withdraw all or a portion of the account value. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. o If you had elected Principal Protector(SM), your spousal beneficiary may not continue Principal Protector(SM), and the benefit will terminate without value, even if the GWB benefit base is greater than zero. In general, spousal beneficiaries who wish to continue Principal Protector(SM) should consider continuing the contract under the Successor owner and annuitant feature, if eligible. In general, eligibility requires that your spouse must be the sole primary beneficiary. Please see "Successor owner and annuitant" in "How death benefit payment is made" under "Payment of death benefit" earlier in this Prospectus for further details. If there are multiple beneficiaries who elect the Beneficiary continuation option, the spousal beneficiary may continue the contract without Principal Protector(SM) and non-spousal beneficiaries may continue with Principal Protector(SM). In this case, the spouse's portion of the GWB benefit base will terminate without value. o If you had elected Principal Protector(SM), your non-spousal beneficiary may continue the benefit, as follows: o The beneficiary was 75 or younger on the original contract date. o The benefit and charge will remain in effect unless your beneficiary tells us to terminate the benefit at the time of the Beneficiary continuation option election. o One time step up: Upon your death, if your account value is greater than the GWB benefit base, the GWB benefit base will be automatically stepped up to equal the account value, at no additional charge. If Principal Protector(SM) is not in effect at the time of your death because the GWB benefit base is zero, the beneficiary may reinstate the benefit (at the charge that was last in effect) with the one time step up. If the beneficiary chooses not to reinstate the Principal Protector(SM) at the time the Beneficiary continuation option is elected, Principal Protector(SM) will terminate. o If there are multiple beneficiaries each beneficiary's interest in the GWB benefit base will be separately accounted for. o As long as the GWB benefit base is $5,000 or greater, the beneficiary may elect the Beneficiary continuation option and continue Principal Protector(SM) even if the account value is less than $5,000. o If scheduled payments are elected, the beneficiary's scheduled payments will be calculated, using the greater of the account value or the GWB benefit base, as of each December 31. If the beneficiary dies prior to receiving all payments, we will make the remaining payments to the person designated by the deceased non-spousal beneficiary, unless that person elects to take any remaining account value in a lump sum, in which case any remaining GWB benefit base will terminate without value. o If the "5-year rule" is elected and the beneficiary dies prior to the end of the fifth year, we will pay any remaining account value in a lump sum and the contract and any remaining GWB benefit base will terminate without value. o Provided no other withdrawals are taken during a contract year while the beneficiary receives scheduled payments, the scheduled payments will not cause a GWB Excess withdrawal, even if they exceed the GWB Annual withdrawal amount. If the beneficiary takes any other withdrawals while Payment of death benefit 61 the Beneficiary continuation option scheduled payments are in effect, the GWB Excess withdrawal exception terminates permanently. In order to take advantage of this exception, the beneficiary must elect the scheduled payments rather than the "5-year rule." If the beneficiary elects the "5-year rule," there is no exception. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as the Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. If the owner and annuitant are different and the owner dies before the annuitant, for purposes of this discussion, "beneficiary" refers to the successor owner. For a discussion of successor owner, see "When an NQ contract owner dies before the annuitant" earlier in this section. This feature must be elected within 9 months following the date of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts (regardless of whether the owner and annuitant are the same person): o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain circumstances) under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. See below for certain circumstances where Principal Protector(SM) may continue to apply. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. o If you had elected Principal Protector(SM), your spousal beneficiary may not continue Principal Protector(SM), and the benefit will terminate without value, even if the GWB benefit base is greater than zero. In general, spousal beneficiaries who wish to continue Principal Protector(SM) should consider continuing the contract under the Successor owner and annuitant feature, if eligible. In general, eligibility requires that you must be the owner and annuitant and your spouse must be the sole primary beneficiary. Please see "Successor owner and annuitant" in "How death benefit payment is made" under "Payment of death benefit" earlier in this Prospectus for further details. If there are multiple beneficiaries who elect the Beneficiary continuation option, the spousal beneficiary may continue the contract without Principal Protector(SM) and non-spousal beneficiaries may continue with Principal Protector(SM). In this case, the spouse's portion of the GWB benefit base will terminate without value. o If the non-spousal beneficiary chooses scheduled payments under "Withdrawal Option 1," as discussed above in this section, Principal Protector(SM) may not be continued and will automatically terminate without value even if the GWB benefit base is greater than zero. o If you had elected Principal Protector(SM), your non-spousal beneficiary may continue the benefit, as follows: o The beneficiary was 75 or younger on the original contract date. o The benefit and charge will remain in effect unless your beneficiary tells us to terminate the benefit at the time of the Beneficiary continuation option election. o One time step up: Upon your death, if your account value is greater than the GWB benefit base, the GWB benefit base will be automatically stepped up to equal the account value, 62 Payment of death benefit at no additional charge. If Principal Protector(SM) is not in effect at the time of your death because the GWB benefit base is zero, the beneficiary may reinstate the benefit (at the charge that was last in effect) with the one time step up. If the beneficiary chooses not to reinstate the Principal Protector(SM) at the time the Beneficiary continuation option is elected, Principal Protector(SM) will terminate. o If there are multiple beneficiaries, each beneficiary's interest in the GWB benefit base will be separately accounted for. o As long as the GWB benefit base is $5,000 or greater, the beneficiary may elect the Beneficiary continuation option and continue Principal Protector(SM) even if the account value is less than $5,000. o If scheduled payments under "Withdrawal Option 2" is elected, the beneficiary's scheduled payments will be calculated using the greater of the account value or the GWB benefit base, as of each December 31. If the beneficiary dies prior to receiving all payments, we will make the remaining payments to the person designated by the deceased non-spousal beneficiary, unless that person elects to take any remaining account value in a lump sum, in which case any remaining GWB benefit base will terminate without value. o If the "5-year rule" is elected and the beneficiary dies prior to the end of the fifth year, we will pay any remaining account value in a lump sum and the contract and any remaining GWB benefit base will terminate without value. o Provided no other withdrawals are taken during a contract year while the beneficiary receives scheduled payments, the scheduled payments will not cause a GWB Excess withdrawal, even if they exceed the GWB Annual withdrawal amount. If the beneficiary takes any other withdrawals while the Beneficiary continuation option scheduled payments are in effect, the GWB Excess withdrawal exception terminates permanently. In order to take advantage of this exception, the beneficiary must elect scheduled payments under "Withdrawal Option 2" rather than the "5-year rule." If the beneficiary elects the "5-year rule," there is no exception. If you are both the owner and annuitant: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the annuity account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Protection Plus(SM) feature, adjusted for any subsequent withdrawals. If the owner and annuitant are not the same person: o If the beneficiary continuation option is elected, the beneficiary automatically becomes the new annuitant of the contract, replacing the existing annuitant. o The annuity account value will not be reset to the death benefit amount. If a contract is jointly owned: o The surviving owner supersedes any other named beneficiary and may elect the beneficiary continuation option. o If the deceased joint owner was also the annuitant, see "If you are both the owner and annuitant" earlier in this section. o If the deceased joint owner was not the annuitant, see "If the owner and annuitant are not the same person" earlier in this section. Payment of death benefit 63 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Select(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax, and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, the amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Select(SM)'s 12 month dollar cost averaging, choice of death benefits, the Principal Protector(SM) benefit, the Guaranteed minimum income benefit, selection of variable investment options, guaranteed interest option, fixed maturity options and its choices of payout options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, the guaranteed minimum income benefit and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. ANNUITY PAYMENTS Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying 64 Tax information taxes on it. This is your "investment in the contract." Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. PROTECTION PLUS(SM) FEATURE In order to enhance the amount of the death benefit to be paid at the annuitant's death, you may have purchased a Protection Plus(SM) rider for your NQ contract. Although we regard this benefit as an investment protection feature which is part of the contract and which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Protection Plus(SM) rider is not part of the contract. In such a case the charges for the Protection Plus(SM) rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable, and for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, AXA Equitable would take all reasonable steps to attempt to avoid this result, which could include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES The following information applies if you purchased your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that was the source of the funds you used to purchase the NQ contract was another nonqualified deferred annuity contract (or life insurance or endowment contract). o The owner and the annuitant were the same under the source contract and the Accumulator(R) Select(SM) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must have been the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carried over to the Accumulator(R) Select(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between carriers, and provision of cost basis information may be required to process this type of an exchange. Section 1035 exchanges are generally not available after the death of owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. BENEFICIARY CONTINUATION OPTION We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for NQ contracts. See the discussion "Beneficiary continuation option for NQ Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2"; o scheduled payments, any additional withdrawals under "Withdrawal Option 2", or contract surrenders under "Withdrawal Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the Withdrawal Option selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling specifically does not address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or any withdrawal that might be taken). The ruling also does not address the effect of the retention of the Principal Protector(SM) feature discussed earlier in this Prospectus under "Contract features and benefits," which a non-spousal beneficiary may elect under certain conditions. Before electing the beneficiary continuation Tax information 65 option feature, the individuals you designate as beneficiary or successor owner should discuss with their tax advisers the consequences of such elections. The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Accounts 45 and 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Accounts 45 and 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Accounts 45 and 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets for the benefit of the IRA owner. The assets funding the account typically include mutual funds and/or individual stocks and/or securities in a custodial account and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may have purchased the contract as either a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We also offered the Inherited IRA for payment of post-death required minimum distributions from traditional IRAs and Roth IRAs. We currently do not offer traditional IRA contracts for use as employer-funded SEP-IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS required you to have before you purchased an IRA. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). For some of the contracts covered by this Prospectus, we have received an opinion letter from the IRS approving the respective forms of the Accumulator(R) Select(SM) traditional and Roth IRA contracts for use as a traditional IRA and a Roth IRA, respectively. For others, we have not applied for an opinion letter from the IRS to approve the respective forms of the Accumulator(R) Select(SM) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under any series of Accumulator(R) Select(SM) traditional and Roth IRA contracts. 66 Tax information YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS This is provided for informational purposes only. Since this contract is no longer available to new purchasers, this cancellation provision is no longer available. You can cancel any version of the Accumulator(R) Select(SM) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel within a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS) CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS LIMITS ON CONTRIBUTIONS. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch up contributions" of up to $1,000 to your traditional IRA. SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored-tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions." That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits to deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with an AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on Tax information 67 the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted ______________________ x regular = deductible divided by $10,000 contribution contribution for the year limit ADDITIONAL "SAVER'S CREDIT" FOR CONTRIBUTIONS TO A TRADITIONAL IRA OR ROTH IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000 ($53,000 after cost of living indexing adjustment for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution, and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. ROLLOVER AND TRANSFER CONTRIBUTIONS TO TRADITIONAL IRAS Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. ROLLOVERS FROM "ELIGIBLE RETIREMENT PLANS" OTHER THAN TRADITIONAL IRAS Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan, or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for 68 Tax information your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN TRADITIONAL IRAS Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. EXCESS CONTRIBUTIONS Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contri bution amount for the applicable taxable year); or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. RECHARACTERIZATIONS Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Tax information 69 TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. REQUIRED MINIMUM DISTRIBUTIONS BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing. Please consult your tax adviser concerning applicability of these complex rules to your situation. LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. WHEN YOU HAVE TO TAKE THE FIRST LIFETIME REQUIRED MINIMUM DISTRIBUTION. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year--the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to 70 Tax information an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON THE METHOD YOU CHOOSE? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. SUCCESSOR OWNER AND ANNUITANT If your spouse is the sole primary beneficiary and elects to become the successor owner and annuitant, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. Tax information 71 PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH IRA death benefits are taxed the same as IRA distributions. BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special fed eral income tax definition); or o used to pay medical insurance premiums for unemployed indi viduals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special fed eral income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies using an IRS-approved distribution method). To meet this last exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" above. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under this option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Select(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. CONTRIBUTIONS TO ROTH IRAS Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eligible retirement plans ("conversion rollover" contributions); or o tax-free rollover contributions from other Roth individual retire ment arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. REGULAR CONTRIBUTIONS TO ROTH IRAS LIMITS ON REGULAR CONTRIBUTIONS. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. 72 Tax information With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment); o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. WHEN YOU CAN MAKE CONTRIBUTIONS. Same as traditional IRAs. DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible. ROLLOVERS AND DIRECT TRANSFERS WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make a rollover between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. CONVERSION ROLLOVER CONTRIBUTIONS TO ROTH IRAS In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA--whether or not it is the traditional IRA you are converting--a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum Tax information 73 distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. RECHARACTERIZATIONS You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. HOW TO RECHARACTERIZE. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. DISTRIBUTIONS FROM ROTH IRAS Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. QUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning 74 Tax information with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contribu tions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2008, the conversion contribution is treated as contributed prior to other conversion contributions made in 2008. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. REQUIRED MINIMUM DISTRIBUTIONS DURING LIFE Lifetime required minimum distributions do not apply. REQUIRED MINIMUM DISTRIBUTIONS AT DEATH Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the required Beginning Date. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS Same as traditional IRA. EXCESS CONTRIBUTIONS Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. EARLY DISTRIBUTION PENALTY TAX Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). Tax information 75 As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) SELECT(SM) TSA CONTRACT Because the Accumulator(R) Select(SM) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Select(SM) TSA contract are extremely limited as described below. Accumulator(R) Select(SM) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the 403(b) annuity contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Select(SM) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Select(SM) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Select(SM) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Select(SM) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: 76 Tax information o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) annuity contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) Select(SM) contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Select(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. Tax information 77 TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Select(SM) Rollover TSA contract, we do not track your investment in the contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Select(SM) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on 78 Tax information Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Select(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Select(SM) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). Tax information 79 FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribu tion from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); ors o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan par ticipant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. 80 Tax information A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. Tax information 81 8. More information - -------------------------------------------------------------------------------- ABOUT OUR SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of Separate Account's operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within Separate Account No. 49 invests solely in class B/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from the Separate Account or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling its shares. All dividends and other distributions on Trust shares are reinvested in full. The Board of Trustees of the Trusts may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan and other aspects of its operations, appears in the prospectuses for each Trust which generally accompany this Prospectus, or in their respective SAIs which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below: - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 - -------------------------------------------------------------------------------- 82 More information - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2013 3.00%* $ 86.25 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - -------------------------------------------------------------------------------- * Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw all of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMOs maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. See Appendix II at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) above would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity option, the "current rate to maturity" will be determined by using a widely-published Index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and fixed maturity options, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA More information 83 Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accepted the wire order and essential information, a contract generally was not issued until we received and accepted a properly completed application. In certain cases, we may have issued a contract based on information provided through certain broker-dealers with whom we have established electronic facilities. In any such cases, you must have signed our Acknowledgement of Receipt form. Where we required a signed application, the above procedures did not apply and no financial transactions were permitted until we received the signed application and issued the contract. Where we issued a contract based on information provided through electronic facilities, we required an Acknowledgement of Receipt form. Financial transactions were only permitted if you requested them in writing, signed the request and had it signature guaranteed, until we received the signed Acknowledgement of Receipt form. After a contract is issued, additional contributions are allowed by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, Inherited IRA Beneficiary Continuation (traditional IRA or Roth IRA) or Rollover TSA contracts, nor is it available with GPB Option 2. Please see Appendix VII later in this Prospectus to see if the automatic investment program is available in your state. The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of 84 More information receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; or o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in each prospectus for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustees or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. One result of proportional voting is that a small number of contract owners may control the outcome of a vote. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or the distributions of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive written notification of any change at our processing office. You cannot assign your NQ contract as collateral or security for a loan. Loans are also not available under your NQ contract. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. More information 85 For NQ contracts only, subject to regulatory approval, if you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, Protection Plus(SM) death benefit, Guaranteed principal benefit option 2, and/or the Principal Protector(SM) ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. For certain contract owners, this restriction may not apply to you, depending on when you purchased your contract. See Appendix VIII later in this Prospectus for more information. However, the Benefit will not terminate if the ownership of the contract is transferred to: (i) a family member (as defined in the contract); (ii) a trust created for the benefit of a family member or members; (iii) a trust qualified under section 501(c) of the Internal Revenue Code; or (iv) a successor by operation of law, such as an executor or guardian. Please speak with your financial professional for further information. See Appendix VII later in this Prospectus for any state variations with regard to terminating any benefits under your contract. You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available (except for Rollover TSA contracts) and you cannot assign Rollover IRA, Roth Conversion IRA or Rollover TSA contracts as security for a loan or other obligation. If the employer that provided the funds does not restrict them, loans are available under a Rollover TSA contract. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA or Rollover TSA contract to another similar arrangement under federal income tax rules. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 1.00% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 2.00% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker- dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. 86 More information The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) Select(SM) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. More information 87 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www. axa-equitable.com. 88 Incorporation of certain documents by reference Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.70%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.05 $ 14.43 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 6,377 3,109 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.76 $ 11.31 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,454 1,800 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.40 $ 11.96 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,753 3,022 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 48.27 $ 46.21 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,098 2,325 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.45 $ 13.82 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 23,506 14,705 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $243.48 $ 239.38 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 65 73 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.82 $ 17.92 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 404 376 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.41 $ 17.67 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,236 1,508 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.62 $ 6.80 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,050 1,042 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.06 $ 15.63 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 626 590 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.14 $ 17.56 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 443 462 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.31 $ 17.38 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,123 2,507 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.99 $ 11.31 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 227 123 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.07 $ 10.91 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 383 13,017 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.45 $ 11.72 $ 10.66 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,519 656 32 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.82 $ 10.74 $ 10.30 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,000 281 1 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.19 $ 11.02 $ 10.41 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,176 414 84 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 42.61 $ 41.36 $ 38.70 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,725 893 383 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.28 $ 11.71 $ 10.66 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 6,917 2,788 46 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 219.99 $ 214.55 $ 191.26 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 73 64 29 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.67 $ 17.76 $ 17.72 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 481 416 458 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.55 $ 12.84 $ 11.05 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,037 649 530 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.96 $ 6.16 $ 5.78 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,055 981 856 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.31 $ 15.27 $ 14.97 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 573 555 512 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.39 $ 14.95 $ 13.34 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 372 312 478 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.57 $ 14.06 $ 12.60 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,363 2,169 1,481 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.35 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 40 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.94 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 784 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2002 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 33.05 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 86 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 130.09 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 9 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.65 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 259 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.32 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 142 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 4.77 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 341 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.71 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 198 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.63 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 121 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.96 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 530 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 23.24 $ 23.37 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 842 856 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 23.97 $ 22.13 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,136 1052 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.71 $ 6.59 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 571 504 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.71 $ 8.81 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 373 353 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.14 $ 12.67 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,289 1,484 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.71 $ 12.72 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,063 1,393 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.12 $ 11.01 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 180 225 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.05 $ 10.84 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,189 216 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 29.54 $ 28.64 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,547 1,418 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.64 $ 9.90 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 476 185 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.49 $ 8.67 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 249 215 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.35 $ 12.57 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,166 1,890 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.45 $ 10.42 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,574 368 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.71 $ 10.81 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 421 38 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.49 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,805 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.75 $ 11.56 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 337 193 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 27.67 $ 25.76 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 618 233 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.66 $ 19.43 $ 17.87 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 849 802 502 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.91 $ 16.44 $ 13.75 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 782 522 441 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.78 $ 5.54 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 326 15 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.51 $ 7.96 $ 7.82 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 314 204 249 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.00 $ 11.62 $ 11.20 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 351 160 164 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.55 $ 11.08 $ 10.16 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,585 1,200 776 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.37 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 81 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 25.31 $ 24.66 $ 22.76 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,604 1,386 1,074 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.74 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 8 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.33 $ 8.15 $ 7.75 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 280 377 218 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.47 $ 10.97 $ 9.62 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,556 1,391 883 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.48 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 77 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 22.05 $ 21.50 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 79 9 -- - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2002 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.86 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 184 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.92 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 161 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.22 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 42 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.19 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 40 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.86 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 200 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.11 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 399 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.70 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 32 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.81 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 285 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.01 $ 14.13 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,289 3,208 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.18 $ 14.17 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 665 269 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.07 $ 13.88 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,473 1,477 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.08 $ 15.53 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 288 351 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.50 $ 10.28 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 458 510 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.57 $ 14.58 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 492 192 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.32 $ 11.17 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 809 532 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.54 $ 9.98 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 248 135 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.39 $ 12.18 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 369 308 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.70 $ 11.67 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 442 196 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.15 $ 12.29 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 888 591 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.08 $ 16.13 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,346 2,714 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.40 $ 16.96 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,069 1,156 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 27.65 $ 26.86 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,051 1102 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.66 $ 4.77 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 657 83 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.69 $ 10.70 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,727 258 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.51 $ 11.08 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 674 83 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.06 $ 10.47 $ 9.38 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,337 1,926 1,026 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.47 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 56 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.57 $ 13.50 $ 13.20 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,527 1,343 1,175 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.12 $ 12.84 $ 11.78 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 347 370 307 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.26 $ 8.79 $ 8.03 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 603 610 598 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.76 $ 12.84 $ 11.60 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 184 149 93 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.63 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 144 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.98 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 173 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.57 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 83 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.54 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 84 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.12 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 290 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.01 $ 13.79 $ 12.69 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,354 1,938 1,510 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.34 $ 14.02 $ 12.10 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,107 1,007 636 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 26.15 $ 25.92 $ 26.17 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 845 349 434 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 4.49 $ 4.34 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 72 22 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2002 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.19 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 282 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.99 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 441 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.45 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 128 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.69 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 229 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.12 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 38 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.85 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 386 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.24 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 237 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 26.47 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 630 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.10 $ 10.92 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 154 20 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.70 $ 11.09 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 277 19 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.72 $ 9.78 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,235 730 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.53 $ 10.17 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 262 202 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.02 $ 16.60 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 713 744 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T. Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.30 $ 15.46 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 401 47 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.78 $ 10.75 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 853 178 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.04 $ 6.07 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 89 104 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.36 $ 11.85 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 539 602 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 25.45 $ 18.23 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,726 1239 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.95 $ 13.26 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 782 297 - ------------------------------------------------------------------------------------------------------------------------------------ EQ Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.27 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,440 -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 60.62 $ 55.37 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 56 47 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.80 $ 11.30 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,494 2,030 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.72 $ 11.87 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 390 400 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 30.68 $ 30.26 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 526 758 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.39 $ 16.64 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,047 1,030 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.91 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 286 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.96 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 60 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.35 $ 14.00 $ 12.10 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 596 575 449 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T. Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.39 $ 16.03 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 41 6 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.41 $ 5.05 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 69 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.40 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 296 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.53 $ 10.37 $ 8.53 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 755 609 457 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.34 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 179 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 53.59 $ 50.38 $ 45.72 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 25 28 10 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.08 $ 11.07 $ 10.84 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,611 1,424 1,202 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.49 $ 10.93 $ 9.91 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 338 284 143 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 28.00 $ 27.64 $ 25.87 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 755 771 557 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.51 $ 11.90 $ 10.27 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 783 806 360 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2002 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.44 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 122 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T. Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.56 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 69 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 33.82 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.63 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 628 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.87 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 57 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 21.48 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 125 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.78 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 135 - ------------------------------------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.50 $ 12.11 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 473 453 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.35 $ 9.47 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 881 1,014 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.37 $ 14.10 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,210 1,363 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.81 $ 10.74 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 934 1,035 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.46 $ 13.68 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 805 1010 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.71 $ 8.54 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 788 475 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.88 $ 19.05 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 748 1201 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.10 $ 10.41 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 597 350 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.85 $ 10.34 $ 9.59 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 353 272 238 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.62 $ 9.10 $ 8.68 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 980 876 792 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.02 $ 11.42 $ 10.15 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,238 1,242 726 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.96 $ 9.35 $ 8.52 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,075 1,055 731 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.13 $ 11.49 $ 10.15 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 876 1,011 560 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.89 $ 7.46 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 242 59 -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.69 $ 16.22 $ 14.09 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 991 884 641 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.87 $ 9.02 $ 8.74 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 311 306 98 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2002 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.61 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 104 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.76 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 408 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.88 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 316 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.18 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 292 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.34 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 206 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.43 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 270 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.64 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 14 - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-5 Appendix II: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00% ("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000 is made four years later on February 15, 2012(a).
- ----------------------------------------------------------------------------------------------------------------- Hypothetical assumed rate to maturity ("j" in the calculations below) February 15, 2012 ------------------------------------------- 5.00% 9.00% - ----------------------------------------------------------------------------------------------------------------- As of February 15, 2012 before withdrawal - ----------------------------------------------------------------------------------------------------------------- (1) Market adjusted amount(b) $141,389 $121,737 - ----------------------------------------------------------------------------------------------------------------- (2) Fixed maturity amount(c) $131,104 $131,104 - ----------------------------------------------------------------------------------------------------------------- (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ----------------------------------------------------------------------------------------------------------------- On February 15, 2012 after $50,000 withdrawal - ----------------------------------------------------------------------------------------------------------------- (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ----------------------------------------------------------------------------------------------------------------- (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ----------------------------------------------------------------------------------------------------------------- (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ----------------------------------------------------------------------------------------------------------------- (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ----------------------------------------------------------------------------------------------------------------- (8) Maturity value(d) $111,099 $101,287 - -----------------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ where j is either 5% or 9% (1+j)(1,461/365) (1+j)(D/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount \x (1+h)(D/365) = ($84,741 or $77,257) \x (1+0.07)(1,461/365)
B-1 Appendix II: Market value adjustment example Appendix III: Enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the enhanced death benefit, if elected. The following illustrates the enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option or the fixed maturity options or the Special 10 year fixed maturity option), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the enhanced death benefit for an annuitant age 45 would be calculated as follows: - -------------------------------------------------------------------------------- End of contract 6% Roll-Up to age 85 Annual Ratchet to age 85 year Account value benefit base(1) benefit base - -------------------------------------------------------------------------------- 1 $105,000 $ 106,000(1) $ 105,000(3) - -------------------------------------------------------------------------------- 2 $115,500 $ 112,360(2) $ 115,500(3) - -------------------------------------------------------------------------------- 3 $129,360 $ 119,102(2) $ 129,360(3) - -------------------------------------------------------------------------------- 4 $103,488 $ 126,248(1) $ 129,360(4) - -------------------------------------------------------------------------------- 5 $113,837 $ 133,823(1) $ 129,360(4) - -------------------------------------------------------------------------------- 6 $127,497 $ 141,852(1) $ 129,360(4) - -------------------------------------------------------------------------------- 7 $127,497 $ 150,363(1) $ 129,360(4) - -------------------------------------------------------------------------------- The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. 6% ROLL-UP TO AGE 85 (1) At the end of contract years 1 and 4 through 7, the 6% Roll-Up to age 85 enhanced death benefit is greater than the current account value. (2) At the end of contract years 2 and 3, the 6% Roll-Up to age 85 enhanced death benefit is equal to the current account value. ANNUAL RATCHET TO AGE 85 (3) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (4) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. GREATER OF 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown is the greater of the amounts shown under the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. Appendix III: Enhanced death benefit example C-1 Appendix IV: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85" Guaranteed minimum death benefit, the Protection Plus(SM) benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Select(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying Portfolios (as described below), the corresponding net annual rates of return would be (2.93)%, 3.07% for the Accumulator(R) Select(SM) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges but they do not reflect the charges we deduct from your account value annually for the optional Guaranteed minimum death benefit, Protection Plus(SM) benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return would be lower; however, the values shown in the following tables reflect the following contract charges: the "Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85" Guaranteed minimum death benefit charge, the Protection Plus(SM) benefit charge, the Guaranteed minimum income benefit charge and any applicable administrative charge. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this Prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. D-1 Appendix IV: Hypothetical illustrations Variable deferred annuity Accumulator(R) Select(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 Guaranteed minimum death benefit Protection Plus Guaranteed minimum income benefit
Greater of 6% Roll- Up to age 85 or the Lifetime Annual Annual Ratchet to Guaranteed Minimum Income Benefit age 85 Guaranteed Total Death Benefit ---------------------------------- Minimum with Protection Guaranteed Hypothetical Account Value Cash Value Benefit Death Plus Income Income Contract ------------------- ------------------- ------------------- ------------------- ----------------- ---------------- Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% Age --------- --------- --------- --------- --------- --------- --------- --------- --------- -------- -------- -------- ------- 60 1 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A 61 2 95,405 101,384 95,405 101,384 106,000 106,000 108,400 108,400 N/A N/A N/A N/A 62 3 90,881 102,727 90,881 102,727 112,360 112,360 117,304 117,304 N/A N/A N/A N/A 63 4 86,421 104,021 86,421 104,021 119,102 119,102 126,742 126,742 N/A N/A N/A N/A 64 5 82,017 105,261 82,017 105,261 126,248 126,248 136,747 136,747 N/A N/A N/A N/A 65 6 77,663 106,440 77,663 106,440 133,823 133,823 147,352 147,352 N/A N/A N/A N/A 66 7 73,350 107,551 73,350 107,551 141,852 141,852 158,593 158,593 N/A N/A N/A N/A 67 8 69,072 108,585 69,072 108,585 150,363 150,363 170,508 170,508 N/A N/A N/A N/A 68 9 64,821 109,534 64,821 109,534 159,385 159,385 183,139 183,139 N/A N/A N/A N/A 69 10 60,590 110,390 60,590 110,390 168,948 168,948 196,527 196,527 N/A N/A N/A N/A 74 15 39,386 112,896 39,386 112,896 226,090 226,090 276,527 276,527 14,266 14,266 14,266 14,266 79 20 17,335 111,269 17,335 111,269 302,560 302,560 383,584 383,584 20,393 20,393 20,393 20,393 84 25 0 103,398 0 103,398 0 404,893 0 493,179 0 34,821 0 34,821 89 30 0 101,488 0 101,488 0 429,187 0 517,472 N/A N/A N/A N/A 94 35 0 102,409 0 102,409 0 429,187 0 517,472 N/A N/A N/A N/A 95 36 0 102,608 0 102,608 0 429,187 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. Appendix IV: Hypothetical illustrations D-2 Appendix V: Guaranteed principal benefit example - -------------------------------------------------------------------------------- For purposes of these examples, we assume that there is an initial contribution of $100,000, made to the contract on February 15, 2008. We also assume that no additional contributions, no transfers among options and no withdrawals from the contract are made. For GPB Option 1, the example also assumes that a 10 year fixed maturity option is chosen. The hypothetical gross rates of return with respect to amounts allocated to the variable investment options are 0%, 6% and 10%. The numbers below reflect the deduction of all applicable separate account and contract charges and also reflect the charge for GPB Option 2. Also, for any given performance of your variable investment options, GPB Option 1 produces higher account values than GPB Option 2 unless investment performance has been significantly positive. The examples should not be considered a representation of past or future expenses. Similarly, the annual rates of return assumed in the example are not an estimate or guarantee of future investment performance. GPB Options 1 and 2 were only available at issue. The dates in the example are provided for illustrative purposes only. - ---------------------------------------------------------------------------------------------------------- Assuming 100% in variable Assuming 100% Under GPB Under GPB investment in FMO Option 1 Option 2 options - ---------------------------------------------------------------------------------------------------------- Amount allocated to FMO on February 15, 2008 based upon a 4.01% rate to maturity 100,000 67,470 40,000 -- Initial account value allocated to the variable investment options on February 15, 2008 0 32,530 60,000 100,000 Account value in the fixed maturity option on February 15, 2018 148,215 100,000 59,286 0 - ---------------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018, assuming a 0% gross rate of return) 148,215 124,162 100,000* 74,276 - ---------------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018, assuming a 6% gross rate of return) 148,215 144,016 133,718** 135,308 - ---------------------------------------------------------------------------------------------------------- Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018, assuming a 10% gross rate of return) 148,215 164,411 168,972** 198,006 - ----------------------------------------------------------------------------------------------------------
* Since the annuity account value is less than the alternate benefit under GPB Option 2, the annuity account value is adjusted upward to the guaranteed amount or an increase of $499 in this example ** Since the annuity account value is greater than the alternate benefit under GPB Option 2, GPB Option 2 will not affect the annuity account value. E-1 Appendix V: Guaranteed principal benefit example Appendix VI: Protection Plus(SM) example - -------------------------------------------------------------------------------- The following illustrates the calculation of a death benefit that includes Protection Plus for an annuitant age 45. The example assumes a contribution of $100,000 and no additional contributions. Where noted, a single withdrawal in the amount shown is also assumed. If you purchased your contract after approximately September 2003, the example shown in the second and third columns apply. For all other contract owners, the example in the last two columns apply. The calculation is as follows: - -------------------------------------------------------------------------------- A Initial Contribution - -------------------------------------------------------------------------------- B Death Benefit: prior to withdrawal.* Protection Plus Earnings: Death Benefit less net - -------------------------------------------------------------------------------- C contributions (prior to the withdrawal in D). B minus A. - -------------------------------------------------------------------------------- D Withdrawal Withdrawal % as a % of AV (assuming Death - -------------------------------------------------------------------------------- E Benefit = AV) greater of D divided by B Excess of the withdrawal over the Protection Plus - -------------------------------------------------------------------------------- F earnings greater of D minus C or zero Net Contributions (adjusted for the withdrawal in D) - -------------------------------------------------------------------------------- G A reduced for E or F Death Benefit (adjusted for the withdrawal in D) - -------------------------------------------------------------------------------- H B minus D Death Benefit less Net Contributions - -------------------------------------------------------------------------------- I H minus G - -------------------------------------------------------------------------------- J Protection Plus Factor Protection Plus Benefit - -------------------------------------------------------------------------------- K I times J Death Benefit: Including Protection Plus - -------------------------------------------------------------------------------- L H plus K - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- $ 3000 $ 6000 withdrawal - withdrawal - No $3000 $6000 Prorata Prorata Withdrawal withdrawal withdrawal Treatment Treatment - -------------------------------------------------------------------------------- A 100,000 100,000 100,000 100,000 100,000 - -------------------------------------------------------------------------------- B 104,000 104,000 104,000 104,000 104,000 - -------------------------------------------------------------------------------- C 4,000 4,000 4,000 N/A N/A - -------------------------------------------------------------------------------- D 0 3,000 6,000 3,000 6,000 - -------------------------------------------------------------------------------- E 0.00% N/A N/A 2.88% 5.77% - -------------------------------------------------------------------------------- F 0 0 2,000 N/A N/A - -------------------------------------------------------------------------------- G 100,000 100,000 98,000 97,115 94,231 - -------------------------------------------------------------------------------- H 104,000 101,000 98,000 101,000 98,000 - -------------------------------------------------------------------------------- I 4,000 1,000 0 3,885 3,769 - -------------------------------------------------------------------------------- J 40% 40% 40% 40% 40% - -------------------------------------------------------------------------------- K 1,600 400 0 1,554 1,508 - -------------------------------------------------------------------------------- L 105,600 101,400 98,000 102,554 99,508 - -------------------------------------------------------------------------------- * The Death Benefit is the greater of the Account Value or any applicable death benefit. Appendix VI: Protection Plus(SM) example F-1 Appendix VII: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- The following information is a summary of the states where the Accumulator(R) Select(SM) contract or certain features and/or benefits are either not available as of the date of this Prospectus or vary from the contract's features and benefits as previously described in this Prospectus. Certain features and/or benefits may have been approved in your state after your contract was issued and can not be added. Please contact your financial professional for more information about availability in your state. See also the "Contract Variations" appendix later in this Prospectus for information about the availability of certain features and their charges, if applicable, under your contract. STATES WHERE CERTAIN ACCUMULATOR(R) SELECT(SM) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- ---------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ---------------------------------------------------------------------------------------------------------------- CALIFORNIA See "Contract features and benefits"--"Your right to If you reside in the state of California and you are age 60 and cancel within a certain number of days" older at the time the contract is issued, you may return your vari- able annuity contract within 30 days from the date that you receive it and receive a refund as described below. If you allocate your entire initial contribution to the money market account (and/or guaranteed interest option, if available), the amount of your refund will be equal to your contribution less interest, unless you make a transfer, in which case the amount of your refund will be equal to your account value on the date we receive your request to cancel at our processing office. This amount could be less than your initial contribution. If you allo- cate any portion of your initial contribution to the variable investment options (other than the money market account) and/or fixed maturity options, your refund will be equal to your account value on the date we receive your request to cancel at our processing office. - ---------------------------------------------------------------------------------------------------------------- FLORIDA See "Transfers of ownership, collateral assignments, The second paragraph in this loans and borrowing" in "More information" section is deleted. - ---------------------------------------------------------------------------------------------------------------- ILLINOIS See "Selecting an annuity payout option" under "Your Annuity payments may be elected annuity payout options" in "Accessing your money" twelve months from the con- tract date. - ---------------------------------------------------------------------------------------------------------------- MARYLAND Fixed maturity options Not Available Guaranteed principal benefit option1 and Guaranteed principal benefit option 2 Not Available - ---------------------------------------------------------------------------------------------------------------- MASSACHUSETTS Automatic investment program Not Available Annual administrative charge The annual administrative charge will not be deducted from amounts allocated to the Guaranteed interest option. - ---------------------------------------------------------------------------------------------------------------- MINNESOTA See "Principal Protector(SM)" in "Contract features and Principal Protector(SM) is benefits" and "Beneficiary continuation option" in discontinued if the Beneficiary "Payment of death benefit" continuation option is elected. - ---------------------------------------------------------------------------------------------------------------- NEW YORK Greater of the 6% Roll-Up or Annual Ratchet Guaran- Not Available (you have a choice teed minimum death benefit of the standard death benefit or the Annual Ratchet to age 85 guaranteed minimum death benefit), as described earlier in this Prospectus. Guaranteed minimum death benefit/guaranteed mini- Not Available mum income benefit roll-up benefit base reset Guaranteed minimum income benefit no lapse guar- Not Available antee - ----------------------------------------------------------------------------------------------------------------
G-1 Appendix VII: State contract availability and/or variations of certain features and benefits
- ---------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ---------------------------------------------------------------------------------------------------------------- NEW YORK, Principal Protector(SM) Not Available CONTINUED Protection Plus(SM) Not Available See "Insufficient account value" in "Determining your If your account value in the contract's value" variable investment options and the fixed maturity options is insufficient to pay the annual administrative charge, or either enhanced death benefit charge, and you have no account value in the guaranteed interest option, your contract will terminate without value, and you will lose any applicable benefits. See "Charges and expenses" earlier in this Prospectus. See "The amount applied to purchase an annuity The amount applied to purchase payout option" in "Accessing your money" an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any market value adjustments. See "Charges and expenses" With regard to the Annual administrative, Annual Ratchet to age 85 death benefit, Guaranteed principal benefit option 2 and Guaranteed minimum income benefit charges, respectively, we will deduct the related charge, as follows for each: we will deduct the charge from your value in the variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). Deductions from the fixed maturity options (including the Special 10 year fixed maturity option) cannot cause the credited net interest for the contract year to fall below 1.5%. With regard to the Annual administrative, and either enhanced death benefit charge only, if your account value in the variable investment options and the fixed maturity options is insufficient to pay the applicable charge, and you have no account value in the guaranteed interest option, your contract will terminate with out value and you will lose any applicable guaranteed benefits. Please see "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. See "Annuity maturity date" in "Accessing your The maturity date by which you must take a lump sum with- money" drawal or select an annuity payout option is as follows: Maximum Issue age Annuitization age --------- ----------------- 0-80 90 81 91 82 92 83 93 84 94 85 95 Please see this section earlier in this Prospectus for more information. - ----------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-2
- ---------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ---------------------------------------------------------------------------------------------------------------- PENNSYLVANIA Contributions Your contract refers to contributions as premiums. Contribution age limitations If the annuitant was 0-75 at contract issue, the maximum contribution age is 85. See "Annuity maturity date" in "Accessing your The maturity date by which you money" must take a lump sum with- drawal or select an annuity payout option is as follows: Maximum Issue age annuitization age --------- ----------------- 0-75 85 76 86 77 87 78-80 88 81-85 90 Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code limits may result in adverse tax consequences. Please consult your tax adviser before taking a loan that exceeds the Internal Revenue Code limits. - ---------------------------------------------------------------------------------------------------------------- PUERTO RICO IRA, Roth IRA, Inherited IRA, QP and Rollover TSA Not Available contracts Beneficiary continuation option (IRA) Not Available Tax Information -- Special rules for NQ contracts Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico source income of Puerto Rico residents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable portion of amounts distributed from a contract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S. tax paid. Depending on your personal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. - ---------------------------------------------------------------------------------------------------------------- TEXAS See "Annual administrative charge" in "Charges and The annual administrative charge will not be deducted from expenses" amounts allocated to the Guaranteed interest option. - ---------------------------------------------------------------------------------------------------------------- UTAH See "Transfers of ownership, collateral assignments, The second paragraph in this section is deleted. loans and borrowing" in "More information" - ---------------------------------------------------------------------------------------------------------------- VERMONT Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code limits may result in adverse tax consequences. Please consult your tax adviser before taking a loan that exceeds the Internal Revenue Code limits. - ---------------------------------------------------------------------------------------------------------------- WASHINGTON Guaranteed interest option (for contracts issued from Not Available approximately December 2004 to December 2006) Investment simplifier -- Fixed-dollar option and Inter- Not Available est sweep option Fixed maturity options Not Available Guaranteed Principal Benefit Options 1 and 2 Not Available Income Manager(R) payout option Not Available - ----------------------------------------------------------------------------------------------------------------
G-3 Appendix VII: State contract availability and/or variations of certain features and benefits
- ---------------------------------------------------------------------------------------------------------------- State Features and Benefits Availability or Variation - ---------------------------------------------------------------------------------------------------------------- WASHINGTON, Protection Plus(SM) Not Available CONTINUED See "Guaranteed minimum death benefit" in "Con- You have a choice of the standard tract features and benefits" death benefit, the Annual Ratchet to age 85 enhanced death benefit, or the Greater of 4% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. See "Annual administrative charge" in "Charges and The annual administrative charge expenses" will be deducted from the value in the variable investment options on a pro rata basis. - ----------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features and benefits G-4 Appendix VIII: Contract Variations - -------------------------------------------------------------------------------- The contract described in this Prospectus is no longer sold. You should note that your contract's options, features and charges may vary from what is described in this Prospectus depending on the approximate date on which you purchased your contract. You may not change your contract or its features after issue. This Appendix reflects contract variations that differ from what is described in this Prospectus but may have been in effect at the time your contract was issued. If you purchased your contract during the "Approximate Time Period" below, the noted variation may apply to you. In addition, options and/or features may vary among states in light of applicable regulations or state approvals. Any such state variations are generally not included here but instead included in Appendix VII earlier in this section. For more information about state variations applicable to you, as well as particular features, charges and options available under your contract based upon when you purchased it, please contact your financial professional and/or refer to your contract.
- ---------------------------------------------------------------------------------------------------------------------------- Approximate Time Period Feature/Benefit Variation - ---------------------------------------------------------------------------------------------------------------------------- April 1, 2002 - April 4, 2002 Types of contracts QP defined contribution contracts were available. - ---------------------------------------------------------------------------------------------------------------------------- April 2002 - May 2002 See "Transferring your account value" in The fifth bullet is deleted in its entirety "Transferring your money among investment options" - ---------------------------------------------------------------------------------------------------------------------------- April 4, 2002 - June 2002 Owner and annuitant requirements Non-Natural owners are not permitted. - ---------------------------------------------------------------------------------------------------------------------------- April 2002 - November 2002 Inherited IRA beneficiary Continuation Unavailable -- accordingly, all references in contract this Prospectus to "Inherited IRA beneficiary Continuation contract" are deleted in their entirety - ---------------------------------------------------------------------------------------------------------------------------- April 2002 - February 2003 Guaranteed minimum income benefit The fee for this benefit is 0.45% Annual Ratchet to age 85 The fee for this benefit is 0.20% 6% Roll-Up to age 85 The fee for this benefit is 0.35% The Greater of 6% Roll-Up to age 85 of the The fee for this benefit is 0.45% Annual Ratchet to age 85 - ---------------------------------------------------------------------------------------------------------------------------- April 2002 - September 2003 The guaranteed principal benefits GPB 2 -- unavailable GPB 1 known as Principal assurance GPB 1 is available with both systematic and substantially equal withdrawals GPB 1 available with the Guaranteed minimum income benefit Spousal protection Unavailable -- accordingly, all references in this Prospectus to "Spousal protection" are deleted in their entirety Maximum contributions The maximum contributions permitted under all Accumulator series contracts with the same owner or annuitant is $1,500,000. Guaranteed minimum death benefit maximum 84 issue age - ----------------------------------------------------------------------------------------------------------------------------
H-1 Appendix VIII: Contract Variations
- ---------------------------------------------------------------------------------------------------------------------------- April 2002 - September 2003, The maximum issue age for this benefit was continued Protection Plus 79. - ---------------------------------------------------------------------------------------------------------------------------- For issue ages 71-79, the applicable death benefit will be multiplied by 25% In calculating the death benefit, contributions are decreased for withdrawals on a pro rata basis Guaranteed option charges If the contract is surrendered or annuitized or the death benefit is paid on a date other than the contract date anniversary, we will not deduct a pro rata portion of the charge for any applicable guaranteed benefit Withdrawals treated as surrenders We will not treat a withdrawal that results in a cash value of less than $500 as a request for a surrender. We will not terminate your contract if you do not make contributions for three contract years. Guaranteed minimum income benefit option Subject to state availability, this option guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or an Income Manager(R) level payment life with a period certain payout option Known as the Living Benefit Systematic withdrawals Your systematic withdrawal may not exceed 1.20% (monthly), 3.60% (quarterly) or 15% (annually) of account value - ---------------------------------------------------------------------------------------------------------------------------- April 2002 - July 2004 Principal Protector(SM) benefit Unavailable - accordingly, all references in this Prospectus to "Principal Protector" are deleted in their entirety. - ---------------------------------------------------------------------------------------------------------------------------- April 2002 - December 2004 Termination of guaranteed benefits Your guaranteed benefits will not automatically terminate if you change ownership of your NQ contract. Ownership Transfer of NQ If you transfer ownership of your NQ contract, your guaranteed benefit options will not be automatically terminated - ---------------------------------------------------------------------------------------------------------------------------- April 2002 - January 2005 No lapse guarantee Unavailable. - ---------------------------------------------------------------------------------------------------------------------------- April 2002 - October 2005 Roll-Up benefit base reset Unavailable - ---------------------------------------------------------------------------------------------------------------------------- April 2002 - current Guaranteed interest option Your lifetime minimum interest rate is either 1.5%, 2.25% or 3.0% (depending on the state and time where your contract was issued). - ---------------------------------------------------------------------------------------------------------------------------- March 2003 - September 2003 Annual Ratchet to age 85 The fee for this benefit is 0.30% 6% Roll-Up to age 85 The fee for this benefit is 0.45% The Guaranteed minimum income benefit The fee for this benefit is 0.60% - ----------------------------------------------------------------------------------------------------------------------------
Appendix VIII: Contract Variations H-2
- ---------------------------------------------------------------------------------------------------------------------------- Guaranteed minimum income benefit and Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit: September 2003 - January 2004 o Benefit base crediting rate o Fee table Effect of withdrawals on your Greater of the - ---------------------------------------------------------------------------------------------------------------------------- 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit September 2003 - present 6% Roll-Up to age 85 enhanced death benefit - ---------------------------------------------------------------------------------------------------------------------------- January 2004 - present The Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit - ---------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------- September 2003 - January 2004 The effective annual interest credited to the applicable benefit base is 5%.* Accordingly, all references in this Prospectus to the "6% Roll-Up benefit base" are deleted in their entirety and replaced with "5% Roll-Up benefit base." Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit charge: 0.50%.* Guaranteed minimum income benefit charge: 0.55%* Withdrawals will reduce each of the benefit bases on a pro rata basis only. - ---------------------------------------------------------------------------------------------------------------------------- September 2003 - present Unavailable - accordingly all references are deleted in their entirety. - ---------------------------------------------------------------------------------------------------------------------------- January 2004 - present Unavailable - accordingly all references are deleted in their entirety. - ----------------------------------------------------------------------------------------------------------------------------
* Contract owners who elected the Guaranteed minimum income benefit and/or the Greater of the 5% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit had a limited opportunity to change to the new versions of these benefits, as they are described in "Contract features and benefits" and "Accessing your money," earlier in this Prospectus. H-3 Appendix VIII: Contract Variations Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to obtain an Accumulator(R) Select(SM) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) Select(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 ................................................................................. Please send me an Accumulator(R) Select(SM) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip x1891/Select '02/'04, OR, '04(NY), '06/'06.5, and '07 Series Accumulator(R) Select(SM) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing, or taking any other action under your contract. You should read the prospectuses for each Trust which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) SELECT(SM)? Accumulator(R) Select(SM) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option or fixed maturity options ("investment options"). There is no withdrawal charge under the contract. All features and benefits may not be available in all contracts and from all selling broker-dealers. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street Small o EQ/Ariel Appreciation II Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - --------------------------------------------------------------------------------
* The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option and the fixed maturity options, which are discussed later in this Prospectus. If you elect the Guaranteed withdrawal benefit for life, your investment options will be limited to the guaranteed interest option and certain permitted variable investment option(s). The permitted variable investment options are described later in this Prospectus. TYPES OF CONTRACTS. We offer the contracts for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). o Traditional and Roth Inherited IRA beneficiary continuation contract ("Inherited IRA") (direct transfer contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $25,000 is required to purchase a contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547, or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01884/Select '04 NY Series (R-4/15) Contents of this Prospectus - -------------------------------------------------------------------------------- ACCUMULATOR(R) SELECT(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) Select(SM) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 11 - -------------------------------------------------------------------------------- Example 14 Condensed financial information 17 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 18 - -------------------------------------------------------------------------------- How you can purchase and contribute to your contract 18 Owner and annuitant requirements 21 How you can make your contributions 21 What are your investment options under the contract? 21 Portfolios of the Trusts 22 Allocating your contributions 28 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 31 Annuity purchase factors 31 Guaranteed minimum income benefit option 31 Guaranteed minimum death benefit 34 Guaranteed withdrawal benefit for life ("GWBL") 34 Inherited IRA beneficiary continuation contract 38 Your right to cancel within a certain number of days 39 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 40 - -------------------------------------------------------------------------------- Your account value and cash value 40 Your contract's value in the variable investment options 40 Your contract's value in the guaranteed interest option 40 Your contract's value in the fixed maturity options 40 Insufficient account value 40 - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 41 - -------------------------------------------------------------------------------- Transferring your account value 41 Disruptive transfer activity 41 Rebalancing your account value 42 - ---------------------- "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 44 - -------------------------------------------------------------------------------- Withdrawing your account value 44 How withdrawals are taken from your account value 46 How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2 46 How withdrawals affect your GWBL 46 Withdrawals treated as surrenders 46 Loans under Rollover TSA contracts 47 Surrendering your contract to receive its cash value 47 When to expect payments 48 Your annuity payout options 48 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 51 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 51 Charges that the Trusts deduct 52 Group or sponsored arrangements 52 Other distribution arrangements 53 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 54 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit if GWBL is not elected 54 Your beneficiary and payment of benefit if GWBL is elected 54 Beneficiary continuation option 57 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 60 - -------------------------------------------------------------------------------- Overview 60 Buying a contract to fund a retirement arrangement 60 Transfers among investment options 60 Taxation of nonqualified annuities 60 Individual retirement arrangements (IRAs) 62 Tax-sheltered annuity contracts (TSAs) 71 Federal and state income tax withholding and information reporting 76 Impact of taxes to AXA Equitable 77 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 78 - -------------------------------------------------------------------------------- About our Separate Account No. 49 78 About the Trusts 78 About our fixed maturity options 78 About the general account 79 About other methods of payment 80 Dates and prices at which contract events occur 80 About your voting rights 81 About legal proceedings 81 Financial statements 81 Transfers of ownership, collateral assignments, loans and borrowing 81 Distribution of the contracts 82 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 84 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Market value adjustment example B-1 III -- Enhanced death benefit example C-1 IV -- Hypothetical illustrations D-1 V -- Guaranteed principal benefit example E-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page in Term Prospectus 6% Roll-Up to age 85 31 12 month dollar cost averaging 29 account value 40 administrative charge 51 annual administrative charge 52 Annual Ratchet to age 85 enhanced death benefit 31 annuitant 18 annuitization 48 annuity maturity date 49 annuity payout options 48 annuity purchase factors 31 automatic investment program 80 AXA Allocation Portfolios cover beneficiary if GWBL is not elected 54 beneficiary if GWBL is elected 56 Beneficiary continuation option ("BCO") 57 business day 80 cash value 40 charges for state premium and other applicable taxes 52 contract date 21 contract date anniversary 21 contract year 21 contributions to Roth IRAs 68 regular contributions 68 rollovers and transfers 69 conversion rollover contributions 69 contributions to traditional IRAs 63 regular contributions 63 rollovers and transfers 64 disruptive transfer activity 41 distribution charge 51 EQAccess 7 ERISA 53 Fixed-dollar option 30 fixed maturity options 27 free look 39 general account 79 general dollar cost averaging 30 guaranteed interest option 27 Guaranteed minimum death benefit 34 Guaranteed minimum death benefit charge 52 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 31 Guaranteed minimum income benefit 32 Guaranteed minimum income benefit charge 52 Guaranteed principal benefits 28 GWBL benefit base 35 GWBL benefit base Annual Ratchet charge 52 Guaranteed withdrawal benefit for life ("GWBL") 34 Guaranteed withdrawal benefit for life charge 52 IRS 60 Inherited IRA cover investment options cover Investment simplifier 30 Lifetime minimum distribution withdrawals 45 loan reserve account 47 loans under Rollover TSA 47 market adjusted amount 27 market timing 41 maturity dates 27 market value adjustment 27 maturity value 27 Mortality and expense risks charge 51 NQ cover partial withdrawals 44 permitted variable investment options 21 Portfolio cover processing office 7 rate to maturity 27 Rebalancing 42 Rollover IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 28 Separate Account No. 49 78 Spousal protection 55 Standard death benefit 31 substantially equal withdrawals 45 Successor owner and annuitant 55 Systematic withdrawals 45 TOPS 7 Trusts 78 traditional IRA cover TSA cover unit 40 variable investment options 21 wire transmittals and electronic applications 80 To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract. Your financial professional can provide further explanation about your contract or supplemental materials.
- ----------------------------------------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - ----------------------------------------------------------------------------------------------------------------- fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit - -----------------------------------------------------------------------------------------------------------------
4 Index of key words and phrases
- ----------------------------------------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - ----------------------------------------------------------------------------------------------------------------- Guaranteed minimum death benefit Guaranteed death benefit Guaranteed minimum income benefit Guaranteed Income Benefit guaranteed interest option Guaranteed Interest Account. Guaranteed withdrawal benefit for life Guaranteed withdrawal benefit GWBL benefit base Guaranteed withdrawal benefit for life benefit base Guaranteed annual withdrawal amount Guaranteed withdrawal benefit for life Annual withdrawal amount Excess withdrawal Guaranteed withdrawal benefit for life Excess withdrawal - -----------------------------------------------------------------------------------------------------------------
Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) Select(SM) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) Select(SM) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) Select(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) Select(SM) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year, and any calendar quarter in which there was a transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility to exercise the Guaranteed minimum income benefit. - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options (not available through EQAccess); o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors, you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or the Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of any transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any Who is AXA Equitable? 7 act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts (employer or plan approval required); (7) requests for withdrawals or surrenders from contracts with the Guaranteed withdrawal benefit for life ("GWBL"); (8) tax withholding elections; (9) election of the beneficiary continuation option; (10) IRA contribution recharacterizations; (11) Section 1035 exchanges; (12) direct transfers and rollovers; (13) exercise of the Guaranteed minimum income benefit; (14) death claims; (15) change in ownership (NQ only); (16) purchase by, or change of ownership to, a non-natural owner; (17) enrollment in our "automatic required minimum distribution (RMD) service;" (18) requests to opt out of or back into the annual ratchet of the Guaranteed withdrawal benefit for life ("GWBL") benefit base; and (19) requests for enrollment in either our Maximum payment plan or Customized payment plan under the Guaranteed withdrawal benefit for life ("GWBL"). WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; (3) general dollar cost averaging (including the fixed dollar and interest sweep options); and (4) 12-month dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging (including the fixed dollar and interest sweep options); (3) 12 month dollar cost averaging; (4) substantially equal withdrawals; (5) systematic withdrawals; and (6) the date annuity payments are to begin. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners, both must sign. 8 Who is AXA Equitable? Accumulator(R) Select(SM) at a glance -- key features - ------------------------------------------------------------------------------------------------------------------------------------ Professional investment Accumulator(R) Select(SM)'s variable investment options invest in different Portfolios managed management by professional investment advisers. - ------------------------------------------------------------------------------------------------------------------------------------ Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2 only). ---------------------------------------------------------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - ------------------------------------------------------------------------------------------------------------------------------------ Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among investment options inside the contract. ---------------------------------------------------------------------------------------------------------- If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA), or tax sheltered annuity (TSA) you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before purchasing one of these contracts, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities compared with any other investment that you may use in connection with your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during the annuitant's life once income benefit you elect to annuitize the contract. - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed withdrawal The Guaranteed withdrawal benefit for life option ("GWBL") guarantees that you can take withdrawals of up benefit for life to a maximum amount each contract year (your "Guaranteed annual withdrawal amount") beginning at owner age 59-1/2 or later. Withdrawals are taken from your account value and continue during your lifetime even if your account value falls to zero (unless it is caused by a withdrawal that exceeds your Guaranteed annual withdrawal amount). - ------------------------------------------------------------------------------------------------------------------------------------ Contribution amounts o Initial minimum: $25,000 o Additional minimum: $500 (NQ and Rollover TSA) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $1,000 (Inherited IRA contracts) $50 (IRA contracts) Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million ($500,000 for owners or annuitants who are age 81 and older at contract issue). We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. See "How you can purchase and contribute to your contract" in "Contract features and benefits" later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Select(SM) at a glance -- key features 9 - ------------------------------------------------------------------------------------------------------------------------------------ Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required; not available under contracts with GWBL) o Contract surrender o Maximum payment plan (only under contracts with GWBL) o Customized payment plan (only under contracts with GWBL) You may incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ------------------------------------------------------------------------------------------------------------------------------------ Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - ------------------------------------------------------------------------------------------------------------------------------------ Additional features* o Guaranteed minimum death benefit options o Guaranteed principal benefit options o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually and annually) o Free transfers o Spousal continuation o Spousal protection (NQ only if GWBL is not elected) o Successor owner/annuitant (if GWBL is not elected) o Beneficiary continuation option - ------------------------------------------------------------------------------------------------------------------------------------ Fees and charges o Please see "Fee table" later in this section for complete details. - ------------------------------------------------------------------------------------------------------------------------------------ Annuitant issue ages NQ: 0-85 (if GWBL is not elected) Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85 Inherited IRA: 0-70 - ------------------------------------------------------------------------------------------------------------------------------------ Owner and annuitant issue NQ, Rollover IRA, Roth Conversion IRA, Rollover TSA: 56-85 ages (if GWBL is elected) - ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available at certain ages. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional or call us, if you have questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund of your account value within a certain number of days. Please see "Your right to cancel within a certain number of days" later in this Prospectus for additional information. Other contracts We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. A version of this contract (that includes credits) may be available to eligible employees of AXA Equitable and financial professionals and their spouses with modified optional benefits and/or reduced fees and charges. If you are an employee or financial professional of AXA Equitable, you should contact your human resources representative for more information. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. 10 Accumulator(R) Select(SM) at a glance -- key features Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying and owning the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay if you purchase a Variable Immediate Annuity payout option. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes, may also apply. Charges for certain features shown in the fee table are mutually exclusive. - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value at the time you request certain transactions - ------------------------------------------------------------------------------------------------------------------------------------ Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - ------------------------------------------------------------------------------------------------------------------------------------ The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses. - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value on each contract date anniversary - ------------------------------------------------------------------------------------------------------------------------------------ Maximum annual administrative charge(1) If your account value on a contract date anniversary is less than $50,000(2) $ 30 If your account value on a contract date anniversary is $50,000 or more $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks 1.10%(3) Administrative 0.25% Distribution 0.35% ------- Total annual expenses 1.70% - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value each year if you elect any of the following optional benefits - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(1) on each contract date anniversary for which the benefit is in effect.) Standard death benefit 0.00% Annual Ratchet to age 85 0.25% of the Annual Ratchet to age 85 benefit base - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed principal benefit charge for option 2 (calculated as a percentage of the account value. Deducted annually(1) on the first 10 contract date anniversaries.) 0.50% - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum income benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(1) on each contract date anniversary for which the benefit is in effect.) 0.65% - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed withdrawal benefit for life benefit charge (calculated as a percentage of the GWBL benefit base. Deducted annually(1) on each contract date anniversary). 0.65% (for the Single life and Joint life option) 0.65% - ------------------------------------------------------------------------------------------------------------------------------------ If your GWBL benefit base ratchets, we reserve the right to increase your charge up to: 0.80% (for the Single life and Joint life option) Please see "Guaranteed withdrawal benefit for life" in "Contract features and benefits" for more information about this feature, including its benefit base and the Annual Ratchet provision, and "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses," both in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------ Net loan interest charge -- Rollover TSA contracts only (calculated and deducted daily as a percentage of the outstanding loan amount) 2.00%(4) - ------------------------------------------------------------------------------------------------------------------------------------
Fee table 11 You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------ Portfolio operating expenses expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ ------- other expenses)(5) 0.63% 3.56%
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------ Manage- ment 12b-1 Other Portfolio Name Fees(6) Fees(7) Expenses(8) - ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation 0.10% 0.25% 0.17% AXA Conservative Allocation 0.10% 0.25% 0.21% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% AXA Moderate Allocation 0.10% 0.25% 0.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Acquired Fund Fees and Total Net Expenses Annual Fee Waiv- Annual (Under- Expenses ers and/or Expenses lying (Before Expense (After Portfo- Expense Reimburse- Expense Portfolio Name lios)(9) Limitation) ments(10) Limitations) - ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust: - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% - ------------------------------------------------------------------------------------------------------------------------------------
12 Fee table This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------ Manage- ment 12b-1 Other Portfolio Name Fees(6) Fees(7) Expenses(8) - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Acquired Fund Fees and Total Net Expenses Annual Fee Waiv- Annual (Under- Expenses ers and/or Expenses lying (Before Expense (After Portfo- Expense Reimburse- Expense Portfolio Name lios)(9) Limitation) ments(10) Limitations) - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust: - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(11) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate -- 1.36% (0.10)% 1.26% - ------------------------------------------------------------------------------------------------------------------------------------
Notes: (1) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. (2) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, if applicable, the charge is $30 for each contract year. (3) These charges compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. (4) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (5) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (6) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's Shareholders. See footnotes (10) and (11) for any expense limitation agreement information. (7) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. (8) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (10) and (11) for any expense limitation agreement information. (9) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed portfolio does not invest in underlying portfolios. (10) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements AXA Equitable has agreed to Fee table 13 waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolio in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below: ---------------------------------------------- Portfolio Name ---------------------------------------------- Multimanager Aggressive Equity 0.97% ---------------------------------------------- Multimanager Health Care 1.67% ---------------------------------------------- Multimanager Large Cap Core Equity 1.34% ---------------------------------------------- Multimanager Large Cap Growth 1.29% ---------------------------------------------- Multimanager Large Cap Value 1.26% ---------------------------------------------- Multimanager Mid Cap Growth 1.52% ---------------------------------------------- Multimanager Mid Cap Value 1.53% ---------------------------------------------- Multimanager Small Cap Growth 1.35% ---------------------------------------------- Multimanager Small Cap Value 1.45% ---------------------------------------------- Multimanager Technology 1.67% ---------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% ---------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% ---------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% ---------------------------------------------- EQ/AllianceBernstein Value 0.87% ---------------------------------------------- EQ/Ariel Appreciation II 1.09% ---------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% ---------------------------------------------- EQ/Davis New York Venture 1.25% ---------------------------------------------- EQ/Evergreen Omega 1.12% ---------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% ---------------------------------------------- EQ/GAMCO Small Company Value 1.10% ---------------------------------------------- EQ/International Core PLUS 1.05% ---------------------------------------------- EQ/Large Cap Core PLUS 0.83% ---------------------------------------------- EQ/Large Cap Growth PLUS 0.82% ---------------------------------------------- EQ/Legg Mason Value Equity 0.97% ---------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% ---------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% ---------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% ---------------------------------------------- EQ/Mid Cap Value PLUS 0.81% ---------------------------------------------- EQ/Montag & Caldwell Growth 1.13% ---------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% ---------------------------------------------- EQ/UBS Growth and Income 1.04% ---------------------------------------------- EQ/Van Kampen Comstock 0.99% ---------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% ---------------------------------------------- (11) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and adminis tration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the Guaranteed minimum income benefit with the Annual Ratchet to age 85 enhanced death benefit) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.004% of contract value. The fixed maturity options, guaranteed interest option and the 12 month dollar cost averaging program are not covered by the example. However, the annual administrative charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options, guaranteed interest option and the 12 month dollar cost averaging program. A market value adjustment (positive or negative) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representa- 14 Fee table tion of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Fee table 15
- ----------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period - ----------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years AXA PREMIER VIP TRUST: - ----------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 1,766.00 $ 2,757.00 $ 5,420.00 AXA Conservative Allocation N/A $ 1,707.00 $ 2,663.00 $ 5,248.00 AXA Conservative-Plus Allocation N/A $ 1,723.00 $ 2,688.00 $ 5,294.00 AXA Moderate Allocation N/A $ 1,735.00 $ 2,708.00 $ 5,330.00 AXA Moderate-Plus Allocation N/A $ 1,747.00 $ 2,728.00 $ 5,366.00 Multimanager Aggressive Equity N/A $ 1,643.00 $ 2,558.00 $ 5,055.00 Multimanager Core Bond N/A $ 1,634.00 $ 2,543.00 $ 5,027.00 Multimanager Health Care N/A $ 1,839.00 $ 2,875.00 $ 5,631.00 Multimanager High Yield N/A $ 1,634.00 $ 2,543.00 $ 5,027.00 Multimanager International Equity N/A $ 1,778.00 $ 2,777.00 $ 5,455.00 Multimanager Large Cap Core Equity N/A $ 1,738.00 $ 2,713.00 $ 5,339.00 Multimanager Large Cap Growth N/A $ 1,744.00 $ 2,723.00 $ 5,357.00 Multimanager Large Cap Value N/A $ 1,729.00 $ 2,698.00 $ 5,312.00 Multimanager Mid Cap Growth N/A $ 1,799.00 $ 2,811.00 $ 5,517.00 Multimanager Mid Cap Value N/A $ 1,796.00 $ 2,806.00 $ 5,508.00 Multimanager Small Cap Growth N/A $ 1,805.00 $ 2,821.00 $ 5,535.00 Multimanager Small Cap Value N/A $ 1,772.00 $ 2,767.00 $ 5,437.00 Multimanager Technology N/A $ 1,839.00 $ 2,875.00 $ 5,631.00 - ----------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 1,584.00 $ 2,463.00 $ 4,876.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,593.00 $ 2,478.00 $ 4,904.00 EQ/AllianceBernstein International N/A $ 1,674.00 $ 2,608.00 $ 5,147.00 EQ/AllianceBernstein Large Cap Growth N/A $ 1,717.00 $ 2,678.00 $ 5,276.00 EQ/AllianceBernstein Quality Bond N/A $ 1,597.00 $ 2,483.00 $ 4,914.00 EQ/AllianceBernstein Small Cap Growth N/A $ 1,667.00 $ 2,598.00 $ 5,129.00 EQ/AllianceBernstein Value N/A $ 1,618.00 $ 2,518.00 $ 4,980.00 EQ/Ariel Appreciation II N/A $ 1,710.00 $ 2,668.00 $ 5,257.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,399.00 $ 3,754.00 $ 7,111.00 EQ/BlackRock Basic Value Equity N/A $ 1,609.00 $ 2,503.00 $ 4,952.00 EQ/BlackRock International Value N/A $ 1,707.00 $ 2,663.00 $ 5,248.00 EQ/Boston Advisors Equity Income N/A $ 1,674.00 $ 2,608.00 $ 5,147.00 EQ/Calvert Socially Responsible N/A $ 1,671.00 $ 2,603.00 $ 5,138.00 EQ/Capital Guardian Growth N/A $ 1,646.00 $ 2,563.00 $ 5,064.00 EQ/Capital Guardian Research N/A $ 1,634.00 $ 2,543.00 $ 5,027.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,634.00 $ 2,543.00 $ 5,027.00 EQ/Davis New York Venture N/A $ 1,717.00 $ 2,678.00 $ 5,276.00 EQ/Equity 500 Index N/A $ 1,516.00 $ 2,351.00 $ 4,665.00 EQ/Evergreen International Bond N/A $ 1,667.00 $ 2,598.00 $ 5,129.00 EQ/Evergreen Omega N/A $ 1,677.00 $ 2,613.00 $ 5,157.00 EQ/FI Mid Cap N/A $ 1,649.00 $ 2,568.00 $ 5,073.00 EQ/Franklin Income N/A $ 1,723.00 $ 2,688.00 $ 5,294.00 EQ/Franklin Small Cap Value N/A $ 1,732.00 $ 2,703.00 $ 5,321.00 EQ/Franklin Templeton Founding Strategy N/A $ 1,805.00 $ 2,821.00 $ 5,535.00 EQ/GAMCO Mergers and Acquisitions N/A $ 1,735.00 $ 2,708.00 $ 5,330.00 EQ/GAMCO Small Company Value N/A $ 1,671.00 $ 2,603.00 $ 5,138.00 EQ/International Core PLUS N/A $ 1,689.00 $ 2,633.00 $ 5,193.00 EQ/International Growth N/A $ 1,744.00 $ 2,723.00 $ 5,357.00 EQ/JPMorgan Core Bond N/A $ 1,572.00 $ 2,443.00 $ 4,838.00 EQ/JPMorgan Value Opportunities N/A $ 1,627.00 $ 2,533.00 $ 5,008.00 EQ/Large Cap Core PLUS N/A $ 1,637.00 $ 2,548.00 $ 5,036.00 EQ/Large Cap Growth PLUS N/A $ 1,634.00 $ 2,543.00 $ 5,027.00 EQ/Legg Mason Value Equity N/A $ 1,652.00 $ 2,573.00 $ 5,083.00 EQ/Long Term Bond N/A $ 1,562.00 $ 2,427.00 $ 4,809.00 EQ/Lord Abbett Growth and Income N/A $ 1,649.00 $ 2,568.00 $ 5,073.00 EQ/Lord Abbett Large Cap Core N/A $ 1,664.00 $ 2,593.00 $ 5,120.00 EQ/Lord Abbett Mid Cap Value N/A $ 1,661.00 $ 2,588.00 $ 5,111.00 EQ/Marsico Focus N/A $ 1,701.00 $ 2,653.00 $ 5,230.00 - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- If you surrender or do not surrender your contract at the end of the applicable time period - ----------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ----------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 463.00 $ 1,416.00 $ 2,407.00 $ 5,070.00 AXA Conservative Allocation $ 443.00 $ 1,357.00 $ 2,313.00 $ 4,898.00 AXA Conservative-Plus Allocation $ 448.00 $ 1,373.00 $ 2,338.00 $ 4,944.00 AXA Moderate Allocation $ 452.00 $ 1,385.00 $ 2,358.00 $ 4,980.00 AXA Moderate-Plus Allocation $ 456.00 $ 1,397.00 $ 2,378.00 $ 5,016.00 Multimanager Aggressive Equity $ 421.00 $ 1,293.00 $ 2,208.00 $ 4,705.00 Multimanager Core Bond $ 417.00 $ 1,284.00 $ 2,193.00 $ 4,677.00 Multimanager Health Care $ 488.00 $ 1,489.00 $ 2,525.00 $ 5,281.00 Multimanager High Yield $ 417.00 $ 1,284.00 $ 2,193.00 $ 4,677.00 Multimanager International Equity $ 467.00 $ 1,428.00 $ 2,427.00 $ 5,105.00 Multimanager Large Cap Core Equity $ 453.00 $ 1,388.00 $ 2,363.00 $ 4,989.00 Multimanager Large Cap Growth $ 455.00 $ 1,394.00 $ 2,373.00 $ 5,007.00 Multimanager Large Cap Value $ 450.00 $ 1,379.00 $ 2,348.00 $ 4,962.00 Multimanager Mid Cap Growth $ 474.00 $ 1,449.00 $ 2,461.00 $ 5,167.00 Multimanager Mid Cap Value $ 473.00 $ 1,446.00 $ 2,456.00 $ 5,158.00 Multimanager Small Cap Growth $ 476.00 $ 1,455.00 $ 2,471.00 $ 5,185.00 Multimanager Small Cap Value $ 465.00 $ 1,422.00 $ 2,417.00 $ 5,087.00 Multimanager Technology $ 488.00 $ 1,489.00 $ 2,525.00 $ 5,281.00 - ----------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 401.00 $ 1,234.00 $ 2,113.00 $ 4,526.00 EQ/AllianceBernstein Intermediate Government Securities $ 404.00 $ 1,243.00 $ 2,128.00 $ 4,554.00 EQ/AllianceBernstein International $ 431.00 $ 1,324.00 $ 2,258.00 $ 4,797.00 EQ/AllianceBernstein Large Cap Growth $ 446.00 $ 1,367.00 $ 2,328.00 $ 4,926.00 EQ/AllianceBernstein Quality Bond $ 405.00 $ 1,247.00 $ 2,133.00 $ 4,564.00 EQ/AllianceBernstein Small Cap Growth $ 429.00 $ 1,317.00 $ 2,248.00 $ 4,779.00 EQ/AllianceBernstein Value $ 412.00 $ 1,268.00 $ 2,168.00 $ 4,630.00 EQ/Ariel Appreciation II $ 444.00 $ 1,360.00 $ 2,318.00 $ 4,907.00 EQ/AXA Rosenberg Value Long/Short Equity $ 685.00 $ 2,049.00 $ 3,404.00 $ 6,761.00 EQ/BlackRock Basic Value Equity $ 409.00 $ 1,259.00 $ 2,153.00 $ 4,602.00 EQ/BlackRock International Value $ 443.00 $ 1,357.00 $ 2,313.00 $ 4,898.00 EQ/Boston Advisors Equity Income $ 431.00 $ 1,324.00 $ 2,258.00 $ 4,797.00 EQ/Calvert Socially Responsible $ 430.00 $ 1,321.00 $ 2,253.00 $ 4,788.00 EQ/Capital Guardian Growth $ 422.00 $ 1,296.00 $ 2,213.00 $ 4,714.00 EQ/Capital Guardian Research $ 417.00 $ 1,284.00 $ 2,193.00 $ 4,677.00 EQ/Caywood-Scholl High Yield Bond $ 417.00 $ 1,284.00 $ 2,193.00 $ 4,677.00 EQ/Davis New York Venture $ 446.00 $ 1,367.00 $ 2,328.00 $ 4,926.00 EQ/Equity 500 Index $ 378.00 $ 1,166.00 $ 2,001.00 $ 4,315.00 EQ/Evergreen International Bond $ 429.00 $ 1,317.00 $ 2,248.00 $ 4,779.00 EQ/Evergreen Omega $ 432.00 $ 1,327.00 $ 2,263.00 $ 4,807.00 EQ/FI Mid Cap $ 423.00 $ 1,299.00 $ 2,218.00 $ 4,723.00 EQ/Franklin Income $ 448.00 $ 1,373.00 $ 2,338.00 $ 4,944.00 EQ/Franklin Small Cap Value $ 451.00 $ 1,382.00 $ 2,353.00 $ 4,971.00 EQ/Franklin Templeton Founding Strategy $ 476.00 $ 1,455.00 $ 2,471.00 $ 5,185.00 EQ/GAMCO Mergers and Acquisitions $ 452.00 $ 1,385.00 $ 2,358.00 $ 4,980.00 EQ/GAMCO Small Company Value $ 430.00 $ 1,321.00 $ 2,253.00 $ 4,788.00 EQ/International Core PLUS $ 436.00 $ 1,339.00 $ 2,283.00 $ 4,843.00 EQ/International Growth $ 455.00 $ 1,394.00 $ 2,373.00 $ 5,007.00 EQ/JPMorgan Core Bond $ 396.00 $ 1,222.00 $ 2,093.00 $ 4,488.00 EQ/JPMorgan Value Opportunities $ 415.00 $ 1,277.00 $ 2,183.00 $ 4,658.00 EQ/Large Cap Core PLUS $ 419.00 $ 1,287.00 $ 2,198.00 $ 4,686.00 EQ/Large Cap Growth PLUS $ 417.00 $ 1,284.00 $ 2,193.00 $ 4,677.00 EQ/Legg Mason Value Equity $ 424.00 $ 1,302.00 $ 2,223.00 $ 4,733.00 EQ/Long Term Bond $ 393.00 $ 1,212.00 $ 2,077.00 $ 4,459.00 EQ/Lord Abbett Growth and Income $ 423.00 $ 1,299.00 $ 2,218.00 $ 4,723.00 EQ/Lord Abbett Large Cap Core $ 428.00 $ 1,314.00 $ 2,243.00 $ 4,770.00 EQ/Lord Abbett Mid Cap Value $ 427.00 $ 1,311.00 $ 2,238.00 $ 4,761.00 EQ/Marsico Focus $ 441.00 $ 1,351.00 $ 2,303.00 $ 4,880.00 - -----------------------------------------------------------------------------------------------------
16 Fee table
- ----------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period - ----------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS N/A $ 1,649.00 $ 2,568.00 $ 5,073.00 EQ/Money Market N/A $ 1,538.00 $ 2,387.00 $ 4,732.00 EQ/Montag & Caldwell Growth N/A $ 1,677.00 $ 2,613.00 $ 5,157.00 EQ/Mutual Shares N/A $ 1,741.00 $ 2,718.00 $ 5,348.00 EQ/Oppenheimer Global N/A $ 1,851.00 $ 2,894.00 $ 5,666.00 EQ/Oppenheimer Main Street Opportunity N/A $ 1,802.00 $ 2,816.00 $ 5,526.00 EQ/Oppenheimer Main Street Small Cap N/A $ 1,827.00 $ 2,855.00 $ 5,596.00 EQ/PIMCO Real Return N/A $ 1,612.00 $ 2,508.00 $ 4,961.00 EQ/Short Duration Bond N/A $ 1,578.00 $ 2,453.00 $ 4,857.00 EQ/Small Company Index N/A $ 1,519.00 $ 2,356.00 $ 4,674.00 EQ/T. Rowe Price Growth Stock N/A $ 1,686.00 $ 2,628.00 $ 5,184.00 EQ/Templeton Growth N/A $ 1,753.00 $ 2,738.00 $ 5,384.00 EQ/UBS Growth and Income N/A $ 1,680.00 $ 2,618.00 $ 5,166.00 EQ/Van Kampen Comstock N/A $ 1,646.00 $ 2,563.00 $ 5,064.00 EQ/Van Kampen Emerging Markets Equity N/A $ 1,827.00 $ 2,855.00 $ 5,596.00 EQ/Van Kampen Mid Cap Growth N/A $ 1,661.00 $ 2,588.00 $ 5,111.00 EQ/Van Kampen Real Estate N/A $ 1,741.00 $ 2,718.00 $ 5,348.00 - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- If you surrender or do not surrender your contract at the end of the applicable time period - ----------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS $ 423.00 $ 1,299.00 $ 2,218.00 $ 4,723.00 EQ/Money Market $ 385.00 $ 1,188.00 $ 2,037.00 $ 4,382.00 EQ/Montag & Caldwell Growth $ 432.00 $ 1,327.00 $ 2,263.00 $ 4,807.00 EQ/Mutual Shares $ 454.00 $ 1,391.00 $ 2,368.00 $ 4,998.00 EQ/Oppenheimer Global $ 492.00 $ 1,501.00 $ 2,544.00 $ 5,316.00 EQ/Oppenheimer Main Street Opportunity $ 475.00 $ 1,452.00 $ 2,466.00 $ 5,176.00 EQ/Oppenheimer Main Street Small Cap $ 484.00 $ 1,477.00 $ 2,505.00 $ 5,246.00 EQ/PIMCO Real Return $ 410.00 $ 1,262.00 $ 2,158.00 $ 4,611.00 EQ/Short Duration Bond $ 399.00 $ 1,228.00 $ 2,103.00 $ 4,507.00 EQ/Small Company Index $ 379.00 $ 1,169.00 $ 2,006.00 $ 4,324.00 EQ/T. Rowe Price Growth Stock $ 435.00 $ 1,336.00 $ 2,278.00 $ 4,834.00 EQ/Templeton Growth $ 458.00 $ 1,403.00 $ 2,388.00 $ 5,034.00 EQ/UBS Growth and Income $ 433.00 $ 1,330.00 $ 2,268.00 $ 4,816.00 EQ/Van Kampen Comstock $ 422.00 $ 1,296.00 $ 2,213.00 $ 4,714.00 EQ/Van Kampen Emerging Markets Equity $ 484.00 $ 1,477.00 $ 2,505.00 $ 5,246.00 EQ/Van Kampen Mid Cap Growth $ 427.00 $ 1,311.00 $ 2,238.00 $ 4,761.00 EQ/Van Kampen Real Estate $ 454.00 $ 1,391.00 $ 2,368.00 $ 4,998.00 - -----------------------------------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix IV at the end of this Prospectus. CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. Fee table 17 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT You may purchase a contract by making payments to us that we call "contributions." We require a minimum initial contribution of $25,000 for you to purchase a contract. You may make additional contributions of at least $500 each for NQ and Rollover TSA contracts and $50 for Rollover IRA and Roth Conversion contracts and $1000 for Inherited IRA contracts, subject to limitations noted below. The following table summarizes our rules regarding contributions to your contract. All ages in the table refer to the age of the annuitant named in the contract. If the Guaranteed withdrawal benefit for life is elected, both the owner and the annuitant named in the contract must meet the issue age requirements shown in the table, and contributions are based on the age of the older of the original owner and annuitant. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000 ($500,000 for owners or annuitants who are ages 81 and older at contract issue). We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We may accept less than the minimum initial contribution under a contract if an aggregate amount of contracts purchased at the same time by an individual (including spouse) meets the minimum. - -------------------------------------------------------------------------------- The "owner" is the person who is the measuring life for GWBL. The "annuitant" is the person who is the measuring life for all other contract benefits. The annuitant is not necessarily the contract owner. - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------- Available Minimum Contract type for issue ages contributions - -------------------------------------------------------------------------------------- NQ 0 through 85 o $25,000 (initial) o $500 (additional) o $100 monthly and $300 quarterly under our automatic investment program (additional). - -------------------------------------------------------------------------------------- Rollover IRA 20 through 85 o $25,000 (initial) o $50 (additional) - -------------------------------------------------------------------------------------- Contract type Source of contributions Limitations on contributions+ - -------------------------------------------------------------------------------------- NQ o After-tax money. o No additional contributions after attainment of age 86 o Paid to us by check or or, if later, the first contract transfer of contract value in date anniversary. a tax-deferred exchange under Section 1035 of the Internal Revenue Code. - -------------------------------------------------------------------------------------- Rollover IRA o Eligible rollover distribu- o No rollover or direct transfer tions from 403(b) plans, contributions after attain- qualified plans, and govern- ment of age 86 or, if later, mental employer 457(b) the first contract date anni- plans. versary. o Rollovers from another o Contributions after age 70-1/2 traditional individual must be net of required retirement arrangement. minimum distributions. o Direct custodian-to- o Although we accept regular custodian transfers from IRA contributions (limited to another traditional indi- $5,000) under the Rollover vidual retirement IRA contracts, we intend arrangement. that this contract be used primarily for rollover and o Regular IRA contributions. direct transfer contributions. o Additional catch-up o Additional catch-up contri- contributions. butions of up to $1000 per calendar year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - --------------------------------------------------------------------------------------
18 Contract features and benefits
- ---------------------------------------------------------------- Available Minimum Contract type for issue ages contributions - ---------------------------------------------------------------- Roth Conversion 20 through 85 o $25,000 (initial) IRA o $50 (additional) - ---------------------------------------------------------------- Rollover TSA* 20 through 85 o $25,000 (initial) o $500 (additional) - -------------------------------------------------------------------------------------- Contract type Source of contributions Limitations on contributions(+) - -------------------------------------------------------------------------------------- Roth Conversion o Rollovers from another o No additional rollover or IRA Roth IRA. direct transfer contributions after attainment of age 86 o Rollovers from a "desig- or, if later, the first contract nated Roth contribution date anniversary. account" under a 401(k) plan or 403(b) plan. o Conversion rollovers after age 70-1/2 must be net of o Conversion rollovers from a required minimum distributions traditional IRA or other for the traditional IRA eligible retirement plan. or other eligible retirement plan which is the source of o Direct transfers from the conversion rollover. another Roth IRA. o You cannot roll over funds from a traditional IRA or o Regular Roth IRA other eligible retirement contributions. plan if your adjusted gross income is $100,000 or more. o Additional catch-up contributions. o Although we accept regular Roth IRA contributions (limited to $5,000), under the Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contributions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribution is made. - -------------------------------------------------------------------------------------- Rollover TSA* o With documentation of o No additional rollover or employer or plan approval, direct transfer contributions and limited to pre-tax after attainment of age 86 funds, direct plan-to-plan or, if later, the first contract transfers from another date anniversary. 403(b) plan or contract exchanges from another o Contributions after age 70-1/2 403(b) contract under the must be net of any required same plan. minimum distributions. o With documentation of o We do not accept employer- employer or plan approval, remitted contributions. and limited to pre-tax funds, eligible rollover o We do not accept after-tax distributions from other contributions, including 403(b) plans, qualified designated Roth contributions. plans, governmental employer 457(b)plans or traditional IRAs. - --------------------------------------------------------------------------------------
Contract features and benefits 19
- -------------------------------------------------------------------------------------- Available Minimum Contract type for issue ages contributions - -------------------------------------------------------------------------------------- Inherited IRA 0-70 o $25,000 (initial) Beneficiary Continuation o $1,000 (additional) Contract (traditional IRA or Roth IRA) - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- Contract type Source of contributions Limitations on contributions+ - -------------------------------------------------------------------------------------- Inherited IRA o Direct custodian-to- o Any additional contributions Beneficiary custodian transfers of your must be from the same type Continuation interest as a death benefi- of IRA of the same deceased Contract ciary of the deceased owner. (traditional IRA owner's traditional or Roth IRA) individual retirement o Non-spousal beneficiary arrangement or Roth IRA to direct rollover contributions an IRA of the same type. from qualified plans, 403(b) plans and governmental employer 457(b) plans may be made to a traditional Inherited IRA contract under specified circumstances. - --------------------------------------------------------------------------------------
+ If you purchase Guaranteed principal benefit option 2, no contributions are permitted after the six month period beginning on the contract date. For the Guaranteed withdrawal ben efit for life option, additional contributions are not permitted after the later of: (i) the end of the first contract year, and (ii) the date you make your first withdrawal. * Rollover TSA contracts may not be available from all selling broker-dealers. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. 20 Contract features and benefits OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. We do not permit partnerships or limited liability corporations to be owners. This contract is not available for purchase by Charitable Remainder Trusts. We also reserve the right to prohibit availability of this contract to other non-natural owners. Only natural persons can be joint owners. If the Spousal protection feature is elected, the spouses must be joint owners, one of the spouses must be the annuitant and both must be named as the only primary beneficiaries. If the Spousal continuation feature is available under your contract, for Single life contracts, the surviving spouse must be the sole primary beneficiary for it to apply. The determination of spousal status is made under applicable state law; however, in the event of a conflict between federal and state law, we follow federal rules. In general, we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your state. For NQ contracts in which the Guaranteed withdrawal benefit for life is elected (with a single owner, Joint life, or a non-natural owner) that are purchased through an exchange that is not taxable under Section 1035 of the Internal Revenue Code, we permit joint annuitants. We also permit joint annuitants in non-exchange sales if you elect the Guaranteed withdrawal benefit for life on a Joint life basis, and the contract is owned by a non-natural owner. In all cases, the joint annuitants must be spouses. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. See Inherited IRA beneficiary continuation contract later in this section for Inherited IRA owner and annuitant requirements. Certain benefits under your contract, as described later in this Prospectus, are based on the age of the owner, if GWBL is elected. If the owner of the contract is not a natural person, these benefits will be based on the age of the annuitant. Under contracts in which GWBL is not elected, all benefits are based on the age of the annuitant. In this Prospectus, when we use the terms owner and joint owner, we intend these to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If GWBL is elected, the terms owner and successor owner are intended to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept initial and additional contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealers. Additional contributions may also be made under our automatic investment program. These methods of payment are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period after that date is "a contract year". The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- Your initial contribution must generally be accompanied by an application and any other form we need to process the payments. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain this information. If we are unable to obtain all of the information we require within five business days after we receive an incomplete application or form, we will inform the financial professional submitting the application on your behalf. We will then return the contribution to you unless you specifically direct us to keep your contribution until we receive the required information. The contribution will be applied as of the date we receive the missing information. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option and the fixed maturity options. If you elect the Guaranteed withdrawal benefit for life, your investment options will be limited to the guaranteed interest option and the following variable investment options: the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio ("permitted variable investment options"). VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. Contract features and benefits 21 PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features including the Guaranteed withdrawal benefit for life which restricts allocations to the permitted variable investment options. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- -------------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. - -------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. - -------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a ALLOCATION greater emphasis on current income. - -------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. - -------------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, ALLOCATION with a greater emphasis on capital appreciation. - -------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. EQUITY - -------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital appreciation, consistent with a prudent level of risk. - -------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. - -------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current income and capital appreciation. - -------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. EQUITY - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. CORE EQUITY - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS o AXA Equitable ALLOCATION - -------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION o AXA Equitable - -------------------------------------------------------------------------------------- AXA MODERATE-PLUS o AXA Equitable ALLOCATION - -------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - -------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND o BlackRock Financial Management, Inc. o Pacific Investment Management Company LLC - -------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - -------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD o Pacific Investment Management Company LLC o Post Advisory Group, LLC - -------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - --------------------------------------------------------------------------------------
22 Contract features and benefits
- -------------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. GROWTH - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. VALUE - -------------------------------------------------------------------------------------- MULTIMANAGER MID CAP Long-term growth of capital. GROWTH - -------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE Long-term growth of capital. - -------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. GROWTH - -------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. VALUE - -------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY Long-term growth of capital. - -------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. MON STOCK - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with MEDIATE GOVERNMENT relative stability of principal. SECURITIES - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. NATIONAL - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. CAP GROWTH - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with BOND moderate risk to capital. - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. CAP GROWTH - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. - -------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. - -------------------------------------------------------------------------------------- EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear LONG/SHORT EQUITY markets using strategies that are designed to limit exposure to general equity market risk. - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - -------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - -------------------------------------------------------------------------------------- MULTIMANAGER MID CAP o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - -------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - -------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - -------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - -------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - -------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- o AllianceBernstein L.P. MON STOCK - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- o AllianceBernstein L.P. MEDIATE GOVERNMENT SECURITIES - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- o AllianceBernstein L.P. NATIONAL - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE o AllianceBernstein L.P. CAP GROWTH - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY o AllianceBernstein L.P. BOND - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL o AllianceBernstein L.P. CAP GROWTH - -------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE o AllianceBernstein L.P. - -------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II o Ariel Capital Management, LLC - -------------------------------------------------------------------------------------- EQ/AXA ROSENBERG VALUE o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY - --------------------------------------------------------------------------------------
Contract features and benefits 23
- -------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, EQUITY income. - -------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of VALUE income, accompanied by growth of capital. - -------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to INCOME achieve an above-average and consistent total return. - -------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. RESPONSIBLE - -------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. - -------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. RESEARCH - -------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. YIELD BOND - -------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. - -------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - -------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. BOND - -------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. - -------------------------------------------------------------------------------------- EQ/FI MID CAP Seeks to achieve long-term growth of capital. - -------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects for capital appreciation. - -------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. - -------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily seeks FOUNDING STRATEGY income. - -------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. ACQUISITIONS - -------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. VALUE - -------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. - -------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. - -------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with mod- erate risk to capital and maintenance of liquidity. - -------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. OPPORTUNITIES - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE o BlackRock Investment Management, LLC EQUITY - -------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL o BlackRock Investment Management VALUE International Limited - -------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY o Boston Advisors, LLC INCOME - -------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - -------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH o Capital Guardian Trust Company - -------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company RESEARCH - -------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH o Caywood-Scholl Capital Management YIELD BOND - -------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE o Davis Selected Advisers, L.P. - -------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX o AllianceBernstein L.P. - -------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - -------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA o Evergreen Investment Management Company, LLC - -------------------------------------------------------------------------------------- EQ/FI MID CAP o Fidelity Management & Research Company - -------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME o Franklin Advisers, Inc. - -------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE o Franklin Advisory Services, LLC - -------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON o AXA Equitable FOUNDING STRATEGY - -------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND o GAMCO Asset Management Inc. ACQUISITIONS - -------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY o GAMCO Asset Management Inc. VALUE - -------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - -------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH o MFS Investment Management - -------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND o JPMorgan Investment Management Inc. - -------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE o JPMorgan Investment Management Inc. OPPORTUNITIES - --------------------------------------------------------------------------------------
24 Contract features and benefits
- -------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- ondary objective to seek reasonable current income. For purposes of this Portfolio, the words "reasonable current income" mean moderate income. - -------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. - -------------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. - -------------------------------------------------------------------------------------- EQ/LONG TERM BOND Seeks to maximize income and capital appreciation through investment in long-maturity debt obligations. - -------------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of INCOME income without excessive fluctuation in market value. - -------------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of CORE income with reasonable risk. - -------------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. - -------------------------------------------------------------------------------------- EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. - -------------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. - -------------------------------------------------------------------------------------- EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve its assets and maintain liquidity. - -------------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. GROWTH - -------------------------------------------------------------------------------------- EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- sionally be short-term, and secondarily, income. - -------------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. - -------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. OPPORTUNITY - -------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. SMALL CAP - -------------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with preservation of real capital and prudent investment man- agement. - -------------------------------------------------------------------------------------- EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility of principal. - -------------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the deduction of Portfolio expenses) the total return of the Russell 2000 Index. - -------------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and STOCK secondarily, income. - -------------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS o AXA Equitable o Institutional Capital LLC o Mellon Capital Management Corporation - -------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - -------------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY o Legg Mason Capital Management, Inc. - -------------------------------------------------------------------------------------- EQ/LONG TERM BOND o BlackRock Financial Management, Inc. - -------------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND o Lord, Abbett & Co. LLC INCOME - -------------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP o Lord, Abbett & Co. LLC CORE - -------------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE o Lord, Abbett & Co. LLC - -------------------------------------------------------------------------------------- EQ/MARSICO FOCUS o Marsico Capital Management, LLC - -------------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - -------------------------------------------------------------------------------------- EQ/MONEY MARKET o The Dreyfus Corporation - -------------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL o Montag & Caldwell, Inc. GROWTH EQ/MUTUAL SHARES o Franklin Mutual Advisers, LLC - -------------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL o OppenheimerFunds, Inc. - -------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. OPPORTUNITY - -------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. SMALL CAP - -------------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN o Pacific Investment Management Company, LLC - -------------------------------------------------------------------------------------- EQ/SHORT DURATION BOND o BlackRock Financial Management, Inc. - -------------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX o AllianceBernstein L.P. - -------------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH o T. Rowe Price Associates, Inc. STOCK - -------------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH o Templeton Global Advisors Limited - --------------------------------------------------------------------------------------
Contract features and benefits 25
- -------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - -------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation with income as a secondary consideration. - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. MARKETS EQUITY - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. GROWTH - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- term capital appreciation. - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - -------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME o UBS Global Asset Management (Americas) Inc. - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK o Morgan Stanley Investment Management Inc. - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING o Morgan Stanley Investment Management Inc. MARKETS EQUITY - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP o Morgan Stanley Investment Management Inc. GROWTH - -------------------------------------------------------------------------------------- EQ/VAN KAMPEN REAL ESTATE o Morgan Stanley Investment Management Inc. - --------------------------------------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. 26 Contract features and benefits GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges and any optional benefit charges. Your lifetime minimum rate ranges from 1.00% to 3.00%. The data page for your contract shows the lifetime minimum rate. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75%. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfers to and from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." - -------------------------------------------------------------------------------- Fixed maturity options range from one to ten years to maturity. - -------------------------------------------------------------------------------- Under the Special 10 year fixed maturity option, additional contributions will have the same maturity date as your initial contribution (see "the Guaranteed Principal benefits" below.) The rate to maturity you will receive for each additional contribution is the rate to maturity in effect for new contributions allocated to that fixed maturity option on the date we apply your contribution. On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you apply for an Accumulator(R) Select(SM) contract, a 60-day rate lock-in will apply from the date the application is signed. Any contributions received and designated for a fixed maturity option during this period will receive the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever is greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from any of the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value. If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008, the next available maturity date was February 15, 2015. If no fixed maturity options are available we will transfer your maturity value to the EQ/Money Market option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value Contract features and benefits 27 adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract.The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options, (adjusted to reflect a similar maturity date) and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix II at the end of this Prospectus provides an example of how the market value adjustment is calculated. ALLOCATING YOUR CONTRIBUTIONS You may choose from among three ways to allocate your contributions under your contract: self-directed, the guaranteed principal benefits or dollar cost averaging. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, guaranteed interest option and fixed maturity options. No more than 25% of any contribution may be allocated to the guaranteed interest option. Allocations must be in whole percentages and you may change your allocations at any time. The total of your allocations into all available investment options must equal 100%. If the annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. THE GUARANTEED PRINCIPAL BENEFITS We offer a guaranteed principal benefit ("GPB") with two options. You may only elect one of the GPBs. Neither GPB is available under Inherited IRA contracts. We will not offer either GPB when the rate to maturity for the applicable fixed maturity option is 3%. If you elect either GPB, you may not elect the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, the systematic withdrawals option or the substantially equal withdrawals options. Both GPB options allow you to allocate a portion of your contribution or contributions to the variable investment options, while ensuring that your account value will at least equal your contributions, adjusted for withdrawals and transfers, on a specified date. GPB Option 2 generally provides you with the ability to allocate more of your contributions to the variable investment options than could be allocated using GPB Option 1. You may elect GPB Option 1 only if the annuitant is age 80 or younger when the contract is issued (after age 75, only the 7-year fixed maturity option is available). You may elect GPB Option 2 only if the annuitant is age 75 or younger when the contract is issued. If you are purchasing an IRA or Rollover TSA contract, before you either purchase GPB Option 2 or elect GPB Option 1 with a maturity year that would extend beyond the year in which you will reach age 70-1/2, you should consider whether your value in the variable investment options, guaranteed interest option and permissible funds outside this contract are sufficient to meet your required minimum distributions. See "Tax information" later in this Prospectus. If you elect GPB Option 2 and change ownership of the contract, GPB Option 2 will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. GUARANTEED PRINCIPAL BENEFIT OPTION 1. Under GPB Option 1, you select a fixed maturity option at the time you sign your application. We specify the portion of your initial contribution to be allocated to that fixed maturity option in an amount that will cause the maturity value to equal the amount of your entire initial contribution on the fixed maturity option's maturity date. The percentage of your contribution allocated to the fixed maturity option will be calculated based upon the rate to maturity then in effect for the fixed maturity option you choose. Your contract will contain information on the amount of your contribution allocated to the fixed maturity option. If you make any withdrawals or transfers from the fixed maturity option before the option's maturity date, the amount in the fixed maturity option will be adjusted and may no longer grow to equal your initial contribution 28 Contract features and benefits under GPB Option 1. The maturity date you select generally may not be later than 10 years, or earlier than 7 years from your contract date. You may allocate the rest of your initial contribution to the investment options however you choose, other than the Investment simplifier. (If you elect the General or 12 month dollar cost averaging program, the remainder of your initial contribution (that is, amounts other than those allocated to the fixed maturity option under GPB Option 1) must be allocated to that dollar cost averaging program). Upon the maturity date of the fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." There is no charge for GPB Option 1. GUARANTEED PRINCIPAL BENEFIT OPTION 2. You may purchase GPB Option 2 at the time you apply for your contract. IF YOU PURCHASE GPB OPTION 2, YOU MAY NOT MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE RATE TO MATURITY ON THE SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore, any discussion in this Prospectus that involves any additional contributions after the first six months will be inapplicable. We specify the portion of your initial contribution, and any additional permitted contributions, to be allocated to a special 10 year fixed maturity option. Your contract will contain information on the percentage of applicable contributions allocated to the Special 10 year fixed maturity option. You may allocate the rest of your contributions among the investment options (other than the Special 10 year fixed maturity option) however you choose, as permitted under your contract, and other than the Investment simplifier. (If you elect the General or 12 month dollar cost averaging program, the remainder of all contributions (that is, amounts other than those allocated to the Special 10 year fixed maturity option) must be allocated to that dollar cost averaging program). The Special 10 year fixed maturity option will earn interest at the specified rate to maturity then in effect. If on the 10th contract date anniversary, your annuity account value is less than the amount that is guaranteed under GPB Option 2, we will increase your annuity account value to be equal to the guaranteed amount under GPB Option 2. Any such additional amounts added to your annuity account value will be allocated to the EQ/Money Market investment option. After the maturity date of the Special 10 year fixed maturity option, the guarantee under GPB Option 2 will terminate. Upon the maturity date of the Special 10 year fixed maturity option, you will be provided with the same notice and the same choices with respect to the maturity value as described above under "Your choices at the maturity date." The guaranteed amount under GPB Option 2 is equal to your initial contribution adjusted for any additional permitted contributions, transfers out of the Special 10 year fixed maturity option and withdrawals from the contract (see "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus). Any transfers or withdrawals from the Special 10 year fixed maturity option will also be subject to a market value adjustment (see "Market value adjustment" under "Fixed maturity options" above in this section). Once you purchase the Guaranteed principal benefit option 2, you may not voluntarily terminate this benefit. GPB Option 2 will terminate if the contract terminates before the maturity date of the Special 10 year fixed maturity option. If the owner and the annuitant are different people and the owner dies before the maturity date of the Special 10 year fixed maturity option, we will continue GPB Option 2 only if the contract can continue through the maturity date of the Special 10 year fixed maturity option. If the contract cannot so continue, we will terminate GPB Option 2. GPB Option 2 will continue where there is a successor owner/annuitant. GPB Option 2 will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a fee associated with GPB Option 2 (see "Charges and expenses" later in this Prospectus). You should note that the purchase of GPB Option 2 is not appropriate if you want to make additional contributions to your contract beyond the first six months after your contract is issued. If you later decide that you would like to make additional contributions to the Accumulator(R) Select(SM) contract, we may permit you to purchase another contract. If we do, however, you should note that we do not reduce or waive any of the charges on the new contract, nor do we guarantee that the features available under this contract will be available under the new contract. This means that you might end up paying more with respect to certain charges than if you had simply purchased a single contract (for example, the administrative charge). The purchase of GPB Option2 is also not appropriate if you plan on terminating your contract before the maturity date of the Special 10 year fixed maturity option. In addition, because we prohibit contributions to your contract after the first six months, certain contract benefits that are dependent upon contributions or account value will be limited (for example, the guaranteed death benefit). You should also note that if you intend to allocate a large percentage of your contributions to the guaranteed interest option or other fixed maturity options, the purchase of GPB Option 2 may not be appropriate because of the guarantees already provided by these options. An example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract is included in Appendix V later in this Prospectus. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options or the guaranteed interest option. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- 12 MONTH DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the EQ/Money Market option into any of the other variable Contract features and benefits 29 investment options available under your contract. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life.You may elect to participate in the 12 month dollar cost averaging program at any time subject to the age limitation on contributions described earlier in this Prospectus. Contributions into the account for 12 month dollar cost averaging may not be transfers from other investment options. You must allocate your entire initial contribution into the EQ/Money Market option if you are selecting the 12 month dollar cost averaging program at application to purchase an Accumulator(R) Select(SM) contract; thereafter, initial allocations to any new 12 month dollar cost averaging program time period must be at least $2,000 and any subsequent contribution to that same time period must be at least $250. You may only have one time period in effect at any time. We will transfer your value in the EQ/Money Market option into the other variable investment options that you select over the next 12 months or such other period we may offer. Once the time period then in effect has run, you may then select to participate in the dollar cost averaging program for an additional time period. At that time, you may also select a different allocation for transfers to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, the transfer date will be the same day of the month as the contract date, but not later than the 28th. For a 12 month dollar cost averaging program selected after application, the first transfer date and each subsequent transfer date for the time period selected will be one month from the date the first contribution is made into the 12 month dollar cost averaging program, but not later than the 28th of the month. All amounts will be transferred out by the end of the time period then in effect. Under this program we will not deduct the mortality and expense risks, administrative, and distribution charges from assets in the EQ/Money Market option. You may not transfer amounts to the EQ/Money Market option established for this program that are not part of the 12 month dollar cost averaging program. The only amounts that should be transferred from the EQ/Money Market option are your regularly scheduled transfers to the other variable investment options. If you request to transfer or withdraw any other amounts from the EQ/Money Market option, we will transfer all of the value that you have remaining in the account for 12 month dollar cost averaging to the investment options according to the allocation percentages we have on file for you. You may ask us to cancel your participation at any time. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. If you elect the Guaranteed withdrawal benefit for life, general dollar cost averaging is not available. INVESTMENT SIMPLIFIER Fixed-dollar option. Under this option you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Transfers may be made on a monthly, quarterly or annual basis. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. The fixed-dollar option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. Interest sweep option. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. On the last day of each month, we check to see whether you have at least $7,500 in the guaranteed interest option. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not currently participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Under the Option I rebalancing program, you may participate in any of the dollar cost averaging programs except general dollar cost averaging and 12 30 Contract features and benefits month dollar cost averaging. If you elect a GPB, you may also elect the 12 month or General dollar cost averaging program. If you elect either of these programs, everything other than amounts allocated to the fixed maturity option under the GPB must be allocated to that dollar cost averaging program. You may still elect the Investment simplifier for amounts transferred from investment options (other than the fixed maturity option under the GPB you have elected), and, for GPB Option 1, you may also elect Investment simplifier for subsequent contributions. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" immediately below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit and the death benefits as described in this section. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make. The amount of the deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. 6% ROLL-UP TO AGE 85 (USED FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make. The amount of the deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The effective annual roll-up rate credited to this benefit base is: o 6% with respect to the variable investment options (other than EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond) and monies allocated to the 12 month dollar cost averaging program; and o 3% with respect to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond, the fixed maturity options, the Special 10 year fixed maturity option, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up on the contract date anniversary following the annuitant's 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: o your initial contribution to the contract (plus any additional contributions), or o your highest account value on any contract date anniversary up to the contract date anniversary following the annuitant's 85th birthday, if GWBL is not elected (following the owner's or older spouse's (for Joint life contracts) 85th birthday if GWBL is elected), plus any contributions made since the most recent ratchet, less o a deduction that reflects any withdrawals you make. The amount of the deduction is described under "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus. GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6% Roll-Up to age 85 or the benefit base, computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed in "Guaranteed minimum income benefit option" below and annuity payout options are discussed in "Accessing your money" later in this Prospectus. Your contract specifies different guaranteed annuity purchase factors for the Guaranteed minimum income benefit and the annuity payout options. We may provide more favorable current annuity purchase factors for the annuity payout options. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in certain instances. GUARANTEED MINIMUM INCOME BENEFIT OPTION The Guaranteed minimum income benefit is available if the annuitant is age 20 through 75 at the time the contract is issued. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in Contract features and benefits 31 "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. If you are purchasing this contract as an Inherited IRA or if you elect a GPB option or the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit is not available. For IRA and Rollover TSA contracts, owners over age 60 at contract issue should consider the impact of the minimum distributions required by tax law in relation to the withdrawal limitations under the Guaranteed minimum income benefit. See "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. If the owner and annuitant are different in an NQ contract, there may be circumstances where the benefit may not be exercisable after an owner's death. If you elect the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the annuitant's age as follows:
- -------------------------------------- Level payments - -------------------------------------- Period certain years Annuitant's -------------------- age at exercise IRAs NQ - -------------------------------------- 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - --------------------------------------
We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit should be regarded as a safety net only. It provides income protection if you elect an income payout while the annuitant is alive. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base at guaranteed annuity purchase factors, or (ii) the income provided by applying your account value at our then current annuity purchase factors. For Rollover TSA contracts only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. Before you elect the Guaranteed minimum income benefit, you should consider the fact that it provides a form of insurance and is based on conservative actuarial factors. The guaranteed annuity purchase factors we use to determine your payout annuity benefit under the Guaranteed minimum income benefit are more conservative than the guaranteed annuity purchase factors we use for our standard payout annuity options. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the Guaranteed minimum income benefit payout annuity will be smaller than each periodic payment under our standard payout annuity options. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the Guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male annuitant age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, 32 Contract features and benefits withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options (including the Special 10 year fixed maturity option) or the loan reserve account.
- ---------------------------------------------------------- Guaranteed minimum income Contract date benefit -- annual income anniversary at exercise payable for life - ---------------------------------------------------------- 10 $11,891 15 $18,597 - ----------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us, along with all required information, within 30 days following your contract date anniversary in order to exercise this benefit. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payout contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death or, if later, then end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income benefit during your life and the annuitant's life, as follows: o If the annuitant was at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If the annuitant was at least age 45 and no older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after the annuitant is age 60. o If the annuitant was at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's 85th birthday; (ii) if the annuitant was age 75 when the contract was issued, the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following the annuitant's attainment of age 85; (iii) for Accumulator(R) Select(SM) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Select(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (iv) a successor owner/annuitant may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original annuitant could have exercised the benefit. In addition, the successor owner/annuitant must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The successor owner/annuitant's age on the date of the annuitant's death replaces the annuitant's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules. If you elect Spousal Protection and the spouse who is the annuitant dies, the above rules apply if the contract is continued by the surviving spouse as the successor owner annuitant; and (v) if you are the owner but not the annuitant and you die prior to exercise, then the following applies: o A successor owner who is not the annuitant may not be able to exercise the guaranteed minimum income benefit without causing a tax problem. You should consider naming the annuitant as successor owner, or if you do not name a successor owner, as the sole primary beneficiary. You should carefully review your successor owner and/or beneficiary designations at least one year prior to the first contract date anniversary on which you could exercise the benefit. o If the successor owner is the annuitant, the guaranteed minimum income benefit continues only if the benefit could be exercised under the rules described above on a contract date anniversary that is within one year following the owner's death. This would be the only opportunity for the successor owner to exercise. If the guaranteed minimum income benefit cannot be exercised within this timeframe, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. o If you designate your surviving spouse as successor owner, the guaranteed minimum income benefit continues and your surviving spouse may exercise the benefit according to the rules described above even if your spouse is not the annuitant and even if the benefit is exercised more than one year after your death. If your surviving spouse dies prior to exercise, the rule described in the previous bullet applies. Contract features and benefits 33 o A successor owner or beneficiary that is a trust or other non- natural person may not exercise the benefit; in this case, the benefit will terminate and the charge for it will no longer apply as of the date we receive proof of your death and any required information. See "When an NQ contract owner dies before the annuitant" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT Your contract provides a standard death benefit. If you do not elect the Annual Ratchet to age 85 enhanced death benefit described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions adjusted for any withdrawals and any taxes that apply. The standard death benefit is the only death benefit available for annuitants ages 76 through 85 at issue (or owner ages 76 through 85 at issue, if GWBL is elected). Once your contract is issued, you may not change or voluntarily terminate your death benefit. If you elect the Annual Ratchet to age 85 enhanced death benefit, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment, OR your the Annual Ratchet to age 85 enhanced death benefit on the date of the annuitant's death (adjusted for any subsequent withdrawals and taxes that apply), whichever provides the higher amount. If you elect GWBL, the death benefit is payable upon the owner's death or the second to die of the owner and successor owner (or upon the annuitant's death or the second to die of the joint annuitants, under a contract with a non-natural owner). If you elect the Spousal protection option, the Guaranteed minimum death benefit is based on the age of the older spouse, who may or may not be the annuitant, for the life of the contract. See "Spousal protection" in "Payment of death benefit" later in this Prospectus for more information. If you elect the Annual Ratchet to age 85 death benefit option and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, the Annual Ratchet to age 85 enhanced death benefit will be replaced with the standard death benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANT AGES 0 THROUGH 75 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; AND 0 THROUGH 70 AT ISSUE OF INHERITED IRA CONTRACTS. The Annual Ratchet to age 85 enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL") For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL") guarantees that you can take withdrawals up to a maximum amount per year (your "Guaranteed annual withdrawal amount"). GWBL is only available at issue. This benefit is not available at issue ages younger than 56. The GWBL is not available if you have elected Guaranteed minimum income benefit, either Guaranteed principal benefit option or Spousal protection. You may elect one of our automated payment plans or you may take partial withdrawals. All withdrawals reduce your account value and Guaranteed minimum death benefit. See "Accessing your money" later in this Prospectus. Your investment options will be limited to the guaranteed interest option and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this Prospectus. Although you may make withdrawals from your contract prior to reaching age 59-1/2, such a withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount and therefore significantly reduce or eliminate the value of the GWBL. Please see "Effect of Excess withdrawals" below. You may buy this benefit on a single life ("Single life") or a joint life ("Joint life") basis. Under a Joint life contract, lifetime withdrawals are guaranteed for the life of both the owner and successor owner. For Joint life contracts, a successor owner may be named at contract issue only. The successor owner must be the owner's spouse. If you and the successor owner are no longer married, you may either: (i) drop the original successor owner or (ii) replace the original successor owner with your new spouse. This can only be done before the later of age 59-1/2 or when the first withdrawal is made from the contract. If the successor owner is dropped before the later of age 59-1/2 or when the first withdrawal is made from the contract, the Applicable percentage will be based on the owner's life on a Single life basis. After the later of age 59-1/2 or when the first withdrawal is made, the successor owner can be dropped but cannot be replaced. If the successor owner is dropped after the later of age 59-1/2 or when the first withdrawal is made, the Applicable percentage will continue to be based on the Joint life tier described later in this Prospectus. For NQ contracts, you have the option to designate the successor owner as a joint owner. 34 Contract features and benefits For Joint life contracts owned by a non-natural owner, a joint annuitant may be named at contract issue only. The annuitant and joint annuitant must be spouses. If the annuitant and joint annuitant are no longer married, you may either: (i) drop the joint annuitant or (ii) replace the original joint annuitant with the annuitant's new spouse. This can only be done before the later of age 59-1/2 or when the first withdrawal is made. If the joint annuitant is dropped before the later of age 59-1/2 or when the first withdrawal is made from the contract, the Applicable percentage will be based on the annuitant's life on a Single life basis. After the later of age 59-1/2 or when the first withdrawal is made, the joint annuitant may be dropped but cannot be replaced. If the joint annuitant is dropped after the later of age 59-1/2 or when the first withdrawal is made, the Applicable percentage will continue to be based on the Joint life tier described later in this Prospectus. Joint life TSA contracts are not permitted. This benefit is not available under an Inherited IRA contract. Loans are not available under TSA contracts. See "Owner and Annuitant requirements" earlier in this Prospectus. The charge for the GWBL benefit will be deducted from your account value on each contract date anniversary. Please see "Guaranteed withdrawal benefit for life charge" later in this Prospectus for a description of the charge. You should not purchase this benefit if: o You plan to take withdrawals prior to age 59-1/2 or in excess of your Guaranteed annual withdrawal amount because those withdrawals may significantly reduce or eliminate the value of the benefit (see "Effect of Excess withdrawals" below in this section); o You are not interested in taking withdrawals prior to the contract's maturity date; o You are using the contract to fund a Rollover TSA contract where withdrawal restrictions will apply; or o You plan to take withdrawals prior to age 59-1/2, as the taxable amount of the withdrawal will be includible in income and subject to an additional 10% federal income tax penalty, as discussed later in this Prospectus. The Federal Defense of Marriage Act precludes same-sex married couples, domestic partners, and civil union partners from being considered married under federal law. Such individuals, therefore, are not entitled to the favorable tax treatment accorded spouses under federal tax law. As a result, mandatory distributions from the contract must be made after the death of the first individual. Accordingly, the GWBL will have little or no value to the surviving same-gender spouse or partner. You should consult with your tax adviser for more information on this subject. For traditional IRAs and TSA contracts, you may take your lifetime required minimum distributions ("RMDs") without losing the value of the GWBL benefit, provided you comply with the conditions described under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, this benefit may have limited usefulness for you and you should consider whether it is appropriate. Please consult your tax adviser. GWBL BENEFIT BASE At issue, your GWBL benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL benefit base increases by any subsequent contributions. o Your GWBL benefit base may be increased on each contract date anniversary, as described below under "Annual ratchet" and "7% deferral bonus." o Your GWBL benefit base may be increased by the 200% Initial GWBL benefit base guarantee, as described later in this Prospectus. o Your GWBL benefit base is not reduced by withdrawals except any withdrawal made prior to age 59-1/2 and those withdrawals that cause total withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess withdrawals" below in this section. GUARANTEED ANNUAL WITHDRAWAL AMOUNT Your initial Guaranteed annual withdrawal amount is equal to a percentage of the GWBL benefit base. The initial applicable percentage ("Applicable percentage") is based on the owner's age at the time of the first withdrawal made at or after age 59-1/2. For Joint life contracts, the initial Applicable percentage is based on the age of the younger owner or successor owner, at the time of the first withdrawal made at or after age 59-1/2. If your GWBL benefit base ratchets, as described below in this section under "Annual ratchet," on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. The Applicable percentages are as follows:
- --------------------------------------------- Age Applicable percentage* - --------------------------------------------- Single life Joint life - --------------------------------------------- 59-1/2-75 5.0% 4.5% 76-85 6.0% 5.5% 86 and older 7.0% 6.5% - ---------------------------------------------
* Prior to age 59-1/2, the Applicable percentage is 0%. Under a Joint life contract, if the owner or successor owner dies prior to the first withdrawal being taken from the contract at or after age 59-1/2, the survivor may notify us to change the status of the contract to a Single life contract, and the Applicable percentage will be based on the survivor's life on a Single life basis. If the owner or successor owner dies after the first withdrawal is taken from the contract at or after age 59-1/2, the Applicable percentage will continue to be on a Joint life basis. We will recalculate the Guaranteed annual withdrawal amount on each contract date anniversary and as of the date of any subsequent contribution or Excess withdrawal, as described below under "Effect of Excess withdrawals" and "Subsequent contributions." The withdrawal amount is guaranteed never to decrease as long as there are no Excess withdrawals. Contract features and benefits 35 Your Guaranteed annual withdrawals are not cumulative. If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. EFFECT OF EXCESS WITHDRAWALS An Excess withdrawal is caused when you withdraw any amount before age 59-1/2 or more than your Guaranteed annual withdrawal amount in any contract year. For any withdrawal made prior to age 59-1/2 and any withdrawal that causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, the entire amount of that withdrawal and each subsequent withdrawal in that contract year are considered Excess withdrawals. An Excess withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount. If you make an Excess withdrawal, we will recalculate your GWBL benefit base and the Guaranteed annual withdrawal amount, as follows: o The GWBL benefit base is reset as of the date of the Excess with drawal to equal the lesser of: (i) the GWBL benefit base immediately prior to the Excess withdrawal and (ii) the account value immediately following the Excess withdrawal. o The Guaranteed annual withdrawal amount is recalculated to equal the Applicable percentage multiplied by the reset GWBL benefit base. You should not purchase this contract if you plan to take withdrawals in excess of your Guaranteed annual withdrawal amount as such withdrawals may significantly reduce or eliminate the value of the GWBL benefit. If your account value is less than your GWBL benefit base (due, for example, to negative market performance), an Excess withdrawal, even one that is only slightly more than your Guaranteed annual withdrawal amount, can significantly reduce your GWBL benefit base and the Guaranteed annual withdrawal amount. For example, assume your GWBL benefit base is $100,000 and your account value is $80,000 when you decide to begin taking withdrawals at age 65. Your Guaranteed annual withdrawal amount is equal to $5,000 (5.0% of $100,000). You take an initial withdrawal of $8,000. Since your GWBL benefit base is immediately reset to equal the lesser of your GWBL benefit base prior to the Excess withdrawal ($100,000) and your account value immediately following the Excess withdrawal ($80,000 minus $8,000), your GWBL benefit base is now $72,000. In addition, your Guaranteed annual withdrawal amount is reduced to $3,600 (5.0% of $72,000), instead of the original $5,000. See "How withdrawals affect your GWBL" later in this Prospectus. You should note that an Excess withdrawal that reduces your account value to zero terminates the contract, including all benefits, without value. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA or TSA and participate in our Automatic RMD service, an automatic withdrawal under that program will not cause an Excess withdrawal, even if it exceeds your Guaranteed annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. Loans are not available under Rollover TSA contracts if GWBL is elected. ANNUAL RATCHET Your GWBL benefit base is recalculated on each contract date anniversary to equal the greater of: (i) the account value and (ii) the most recent GWBL benefit base. If your account value is greater, we will ratchet up your GWBL benefit base to equal your account value. If your GWBL benefit base ratchets on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. Your Guaranteed annual withdrawal amount will also be increased, if applicable, to equal your Applicable percentage times your new GWBL benefit base. If your GWBL benefit base ratchets, we may increase the charge for the benefit. Once we increase the charge, it is increased for the life of the contract. We will permit you to opt out of the ratchet if the charge increases. If you choose to opt out, your charge will stay the same but your GWBL benefit base will no longer ratchet. Upon request, we will permit you to accept a GWBL benefit base ratchet with the charge increase on a subsequent contract date anniversary. For a description of the charge increase, see "Guaranteed withdrawal benefit for life benefit charge" later in this Prospectus. 7% DEFERRAL BONUS At no additional charge, in each contract year in which you have not taken a withdrawal, we will increase your GWBL benefit base by an amount equal to 7% of your total contributions. This 7% deferral bonus is applicable for the life of the contract, subject to certain restrictions. We will apply the 7% deferral bonus to your GWBL benefit base on each contract date anniversary until you make a withdrawal from your contract. In a contract year following an Annual Ratchet (described above), the deferral bonus will be applied to your GWBL benefit base on each contract date anniversary until you make a withdrawal. However, no deferral bonus is applied on a contract date anniversary on which an Annual Ratchet occurs. Once you make a withdrawal, we will not apply the deferral bonus in future years unless you meet one of the exceptions that would allow you to continue to receive the deferral bonus. Those exceptions are described as follows: o You are eligible to receive the 7% deferral bonus for any of your first ten contract years that you have not taken a withdrawal, even if you had taken a withdrawal in a prior year. For example, if you take your first withdrawal in the second contract year, you are still eligible to receive the deferral bonus in contract years three through ten. The deferral bonus is not applied in the contract year in which a withdrawal was made. o You are eligible to receive the 7% deferral bonus to your GWBL benefit base on a contract date anniversary during the ten years following an Annual Ratchet, as long as no withdrawal is made in the same contract year. If a withdrawal is made during this ten-year period, no deferral bonus is applied in the contract year in which the withdrawal was made. 36 Contract features and benefits If the Annual Ratchet occurs on any contract date anniversary, for the next and subsequent contract years, the deferral bonus will be 7% of the most recent ratcheted GWBL benefit base, plus any subsequent contributions. If the GWBL benefit base is reduced due to an Excess withdrawal, the 7% deferral bonus will be calculated using the reset GWBL benefit base, plus any applicable contributions. The 7% deferral bonus generally excludes contributions made in the prior 12 months. In the first contract year, the deferral bonus is determined using all contributions received in the first 90 days of the contract year. On any contract date anniversary on which you are eligible for a 7% deferral bonus, we will calculate the applicable bonus amount. If, when added to the current GWBL benefit base, the amount is greater than your account value, that amount will become your new GWBL benefit base but, as this adjustment is the result of the 7% deferral bonus rather than the Annual Ratchet, a new ten-year period, as described above, is not started by this adjustment to the GWBL benefit base. If that amount is less than or equal to your account value, your GWBL benefit base will be ratcheted to equal your account value (if higher), and the 7% deferral bonus will not apply. If you opt out of the Annual Ratchet (as discussed immediately above), the 7% deferral bonus will still apply. MATURITY DATE. The last deferral bonus will be applicable on the contract's maturity date. (See "Annuity maturity date" under "Accessing your money" later in this Prospectus.) 200% INITIAL GWBL BENEFIT BASE GUARANTEE If you have not taken a withdrawal from the contract before the later of (i) the tenth contract date anniversary, or (ii) the contract date anniversary following the owner's (or younger joint life's) attained age 70, the GWBL benefit base will be increased to equal 200% of contributions made to the contract during the first 90 days, plus 100% of any subsequent contributions received after the first 90 days. There will be no increase if your GWBL benefit base already exceeds this initial GWBL benefit base guarantee. This is the only time that this special increase to the GWBL benefit base is available. However, you will continue to be eligible for the 7% deferral bonuses following this one-time increase. SUBSEQUENT CONTRIBUTIONS Subsequent contributions are not permitted after the later of: (i) the end of the first contract year and (ii) the date the first withdrawal is taken. Anytime you make an additional contribution, your GWBL benefit base will be increased by the amount of the contribution. Your Guaranteed annual withdrawal amount will be equal to the Applicable percentage of the increased GWBL benefit base. GUARANTEED MINIMUM DEATH BENEFIT There are two guaranteed minimum death benefits available if you elect the GWBL option: (i) the Standard death benefit, which is available at no additional charge for owner issue ages 56-85, and (ii) the Annual Ratchet to Age 85 death benefit, which is available for an additional charge for owner issue ages 56-75. For Joint life contracts, both spouses must meet the issue age requirements. See "Guaranteed minimum death benefit" earlier in this Prospectus for more information. EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO If your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no further payments or benefits. If an Excess withdrawal results in a withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. However, if your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, please note the following: o Your contract terminates and you will receive a supplementary life annuity contract setting forth your continuing benefits. The owner of the contract will be the owner and annuitant. The successor owner, if applicable, will be the joint annuitant. If the owner is non-natural, the annuitant and joint annuitant, if applicable, will be the same as under your contract. o No subsequent contributions will be permitted. o If you were taking withdrawals through the "Maximum payment plan," we will continue the scheduled withdrawal payments on the same basis. o If you were taking withdrawals through the "Customized payment plan" or in unscheduled partial withdrawals, we will pay the balance of the Guaranteed annual withdrawal amount for that contract year in a lump sum. Payment of the Guaranteed annual withdrawal amount will begin on the next contract date anniversary. o Payments will continue at the same frequency for Single or Joint life contracts, as applicable, or annually if automatic payments were not being made. o Any guaranteed minimum death benefit remaining under the original contract will be carried over to the supplementary life annuity contract. The death benefit will no longer grow and will be reduced on a dollar-for-dollar basis as payments are made. If there is any remaining death benefit upon the death of the owner and successor owner, if applicable, we will pay it to the beneficiary. o The charge for the Guaranteed withdrawal benefit for life benefit and the Annual Ratchet to age 85 enhanced death benefit will no longer apply. o If at the time of your death the Guaranteed annual withdrawal amount was being paid to you as a supplementary life annuity contract, your beneficiary may not elect the Beneficiary continuation option. OTHER IMPORTANT CONSIDERATIONS o This benefit is not appropriate if you do not intend to take withdrawals prior to annuitization. o Excess withdrawals can significantly reduce or completely eliminate the value of the GWBL. See "Effect of Excess withdrawals" above in Contract features and benefits 37 this section and "How withdrawals affect your GWBL" in "Accessing your money" later in this Prospectus. o Withdrawals are not considered as annuity payments for tax purposes, and may be subject to an additional 10% Federal income tax penalty before age 59-1/2. See "Tax information" in your Prospectus. o All withdrawals reduce your account value and Guaranteed minimum death benefit. See "How withdrawals are taken from your account value" and "How withdrawals affect your Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. o The GWBL benefit terminates if the contract is continued under the beneficiary continuation option or under the Spousal continuation feature if the spouse is not the successor owner. o If you surrender your contract to receive its cash value and your cash value is greater than your Guaranteed annual withdrawal amount, all benefits under the contract will terminate, including the GWBL benefit. o If you transfer ownership of this contract, you terminate the GWBL benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," in your Prospectus for more information. o Withdrawals are available under other annuity contracts we offer and this contract without purchasing a withdrawal benefit. o For IRA and TSA contracts, if you have to take a required minimum distribution ('`RMD") and it is your first withdrawal under the contract, the RMD will be considered your "first withdrawal" for the purposes of establishing your GWBL Applicable percentage. o If you elect GWBL on a Joint life basis and subsequently get divorced, your divorce will not automatically terminate the contract. For both Joint life and Single life contracts, it is possible that the terms of your divorce decree could significantly reduce or completely eliminate the value of this benefit. INHERITED IRA BENEFICIARY CONTINUATION CONTRACT This contract is available to an individual beneficiary of a traditional IRA or a Roth IRA where the deceased owner held the individual retirement account or annuity (or Roth individual retirement account or annuity) with an insurance company or financial institution other than AXA Equitable. The purpose of the inherited IRA beneficiary continuation contract is to permit the beneficiary to change the funding vehicle that the deceased owner selected ("original IRA") while taking the required minimum distribution payments that must be made to the beneficiary after the deceased owner's death. See the discussion of required minimum distributions under "Tax information." This contract is intended only for beneficiaries who want to take payments at least annually over their life expectancy. These payments generally must begin (or must have begun) no later than December 31 of the calendar year following the year the deceased owner died. This contract is not suitable for beneficiaries electing the "5-year rule." See "Beneficiary continuation option for IRA and Roth IRA contracts" under "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. You should discuss with your tax adviser your own personal situation. Please speak with your financial professional for further information. The inherited IRA beneficiary continuation contract can only be purchased by a direct transfer of the beneficiary's interest under the deceased owner's original IRA. The owner of the inherited IRA beneficiary continuation contract is the individual who is the beneficiary of the original IRA. (Certain trusts with only individual beneficiaries will be treated as individuals for this purpose). The contract must also contain the name of the deceased owner. In this discussion, "you" refers to the owner of the inherited IRA beneficiary continuation contract. The inherited IRA beneficiary continuation contract can be purchased whether or not the deceased owner had begun taking required minimum distribution payments during his or her life from the original IRA or whether you had already begun taking required minimum distribution payments of your interest as a beneficiary from the deceased owner's original IRA. You should discuss with your own tax adviser when payments must begin or must be made. Under the inherited IRA beneficiary continuation contract: o You must receive payments at least annually (but can elect to receive payments monthly or quarterly). Payments are generally made over your life expectancy determined in the calendar year after the deceased owner's death and determined on a term certain basis. o You must receive payments from this contract even if you are receiving payments from another IRA of the deceased owner in an amount that would otherwise satisfy the amount required to be distributed from this contract. o The beneficiary of the original IRA will be the annuitant under the inherited IRA beneficiary continuation contract. In the case where the beneficiary is a "see-through trust," the oldest beneficiary of the trust will be the annuitant. o An inherited IRA beneficiary continuation contract is not available for annuitants over age 70. o The initial contribution must be a direct transfer from the deceased owner's original IRA and is subject to minimum contribution amounts. See "How you can purchase and contribute to your contract" earlier in this section. o Subsequent contributions of at least $1,000 are permitted but must be direct transfers of your interest as a beneficiary from another IRA with a financial institution other than AXA Equitable, where the deceased owner is the same as under the original IRA contract. o You may make transfers among the investment options. o You may choose at any time to withdraw all or a portion of the account value. Any partial withdrawal must be at least $300. o The Guaranteed minimum income benefit, Guaranteed with drawal benefit for life, successor owner/annuitant feature, 12-month dollar cost averaging program, automatic investment 38 Contract features and benefits program, GPB Options 1 and 2 and systematic withdrawals are not available under the Inherited IRA beneficiary continuation contract. o If you die, we will pay to a beneficiary that you choose the greater of the annuity account value or the applicable death benefit. o Upon your death, your beneficiary has the option to continue tak ing required minimum distributions based on your remaining life expectancy or to receive any remaining interest in the contract in a single sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If your beneficiary elects to continue to take distributions, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value as of the date we receive satisfactory proof of death and any required instructions, information and forms. If you had elected the Annual Ratchet to age 85 death benefit, it will no longer be in effect and the charge for the benefit will stop. The Guaranteed minimum death benefit will also no longer be in effect. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If for any reason you are not satisfied with your contract, you may return it to us for a refund. We will refund the full amount of your contribution.To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. Under certain circumstances this "free look" period may be longer. For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. If you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office, or your financial professional, can provide you with the cancellation instructions. In addition to the cancellation right described above, you have the right to surrender your contract, rather than cancel it. Please see "Surrendering your contract to receive its cash value," later in this Prospectus. Surrendering your contract may yield results different than canceling your contract, including a greater potential for taxable income. In some cases, your cash value upon surrender may be greater than your contributions to the contract. Please see "Tax information," later in this Prospectus. Contract features and benefits 39 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; and (iv) the loan reserve account (applicable to Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less: (i) the total amount or a pro rata portion of the annual administrative charge, as well as optional benefit charges; and (ii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) decreased to reflect a withdrawal; (iii) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, if applicable, when we deduct the enhanced death benefit, Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, and/or GPB Option 2 benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest option at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. INSUFFICIENT ACCOUNT VALUE If your account value in the variable investment options and the fixed maturity options is insufficient to pay the annual administrative charge, or any applicable charges for the guaranteed benefits, and you have no account value in the guaranteed interest option, your contract will terminate without value, and you will lose any applicable guaranteed benefits. See "Charges and expenses" later in this Prospectus. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. If you elect the Guaranteed withdrawal benefit for life and your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary life annuity contract, even if your GWBL benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, the benefit will still have value. See "Contract features and benefits" earlier in this Prospectus. 40 Determining your contract's value 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer to a fixed maturity option that has a rate to maturity of 3%. o You may not transfer any amount to the 12-month dollar cost averaging program. o If the annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If the annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied, the rate to maturity is 3%. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment and affect your GPB. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the annuity account value being allocated to the guaranteed interest option, based on the annuity account value as of the previous business day. o No transfers are permitted into the Special 10 year fixed maturity option. In addition, we reserve the right to restrict transfers among variable investment options, including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option and the interest sweep option dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the investment options in the prior contract year; or (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values Transferring your money among investment options 41 occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We offer rebalancing, which you can use to automatically reallocate your account value among your investment options. We currently offer two options: "Option I" and "Option II." Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semiannually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers between the guaranteed interest option and the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into, 42 Transferring your money among investment options or a transfer out of the guaranteed interest option to initiate the rebalancing program will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. You may not elect Option I if you are participating in general dollar cost averaging or 12 month dollar cost averaging. You may not elect Option II if you are participating in any dollar cost averaging program. If you elect a benefit that limits your variable investment options, those limitations will also apply to the rebalancing programs. Transferring your money among investment options 43 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. If you withdraw more than 90% of your contract's current cash value, we will treat it as a request to surrender your contract for its cash value. See "Surrendering your contract to receive its cash value" below. For the potential tax consequences of withdrawals, see "Tax information" later in this Prospectus. Please see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus and "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" and "How withdrawals affect your GWBL," below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate.
- -------------------------------------------------------------------------------- Method of withdrawal - -------------------------------------------------------------------------------- Automatic Lifetime payment Pre-age required plans 59-1/2 sub- minimum (GWBL System- stantially distribu- Contract only) Partial atic equal tion - -------------------------------------------------------------------------------- NQ Yes Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes Yes Roth Conversion IRA Yes Yes Yes Yes No - -------------------------------------------------------------------------------- Rollover TSA* Yes Yes Yes No Yes - -------------------------------------------------------------------------------- Inherited IRA No Yes No No ** - --------------------------------------------------------------------------------
* Employer or plan approval required for all transactions. Your ability to take with drawals, or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. ** This contract pays out post-death required minimum distributions. See "Inherited beneficiary contract" in "Contract, features and benefits" earlier in this Prospectus. AUTOMATIC PAYMENT PLANS (For contracts with GWBL only) You may take automatic withdrawals under either the Maximum payment plan or the Customized payment plan, as described below. Under either plan, you may take withdrawals on a monthly, quarterly or annual basis. You may change the payment frequency of your withdrawals at any time, and the change will become effective on the next contract date anniversary. You may elect either the Maximum payment plan or the Customized payment plan at any time after you become eligible to receive Guaranteed annual withdrawals. You must wait at least 28 days from contract issue before automatic payments begin. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will increase following any Annual Ratchet, 7% deferral bonus or by the one-time 200% Initial GWBL Benefit base guarantee. If you elect the Maximum payment plan and start monthly or quarterly payments after the beginning of a contract year, the payments you take that year will be less than your Guaranteed annual withdrawal amount. If you take a partial withdrawal while the Maximum payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will not be increased following any Annual Ratchet, 7% deferral bonus or by the one-time 200% Initial GWBL Benefit base guarantee. You must elect to change the scheduled payment amount. It is important to note that if you elect the Customized payment plan and start monthly or quarterly withdrawals after the beginning of a contract year, you could select scheduled payment amounts that would cause an Excess withdrawal. If your selected scheduled payment would cause an Excess withdrawal, we will notify you. As discussed earlier in this Prospectus, Excess withdrawals may significantly reduce the value of the Guaranteed withdrawal benefit for life benefit. If you take a partial withdrawal while the Customized payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. Any request for a partial withdrawal will terminate your participation in either the Maximum payment plan or Customized payment plan, if applicable. 44 Accessing your money SYSTEMATIC WITHDRAWALS (All contracts except Inherited IRAs) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required). You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. This option is not available if you have elected a guaranteed principal benefit or the Guaranteed withdrawal benefit for life. SUBSTANTIALLY EQUAL WITHDRAWALS (All Rollover IRA and Roth Conversion IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. The substantially equal withdrawal option is not available if you have elected a guaranteed principal benefit or the Guaranteed withdrawal benefit for life. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA and Rollover TSA contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or the Guaranteed minimum income benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH GWBL. Generally, if you elect our Automatic RMD service, any lifetime required minimum distribution payment we make to you under our Automatic RMD service will not be treated as an Excess withdrawal. If you elect either the Maximum payment plan or the Customized payment plan AND our Automatic RMD service, we will make an extra payment, if necessary, on December 1st that will equal your lifetime required minimum distribution less all payments made through November 30 and any scheduled December payment. The combined Accessing your money 45 automatic plan payments and lifetime required minimum distribution payment will not be treated as Excess withdrawals, if applicable. However, if you take any partial withdrawals in addition to your lifetime required minimum distribution and automatic payment plan payments, your applicable automatic payment plan will be terminated. The partial withdrawal may cause an Excess withdrawal. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. Further, your GWBL benefit base and Guaranteed annual withdrawal amount may be reduced. See "Effect of Excess Withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you elect our Automatic RMD service and elect to take your Guaranteed annual withdrawal amount in partial withdrawals without electing one of our available automatic payment plans, we will make a payment, if necessary, on December 1st that will equal your required minimum distribution less all withdrawals made through November 30th. If prior to December 1st you make a partial withdrawal that exceeds your Guaranteed annual withdrawal amount, but not your RMD amount, that partial withdrawal will be treated as an Excess withdrawal, as well as any subsequent partial withdrawals made during the same contract year. However, if by December 1st your withdrawals have not exceeded your RMD amount, the RMD payment we make to you will not be treated as an Excess withdrawal. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options and the guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option). HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2 In general, withdrawals (including RMDs) will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000 - $16,000). Transfers out of the Special 10 year fixed maturity option will reduce the GPB Option 2 amount on a pro rata basis. In addition, if you make a contract withdrawal from the Special 10 year fixed maturity option, we will reduce your GPB Option 2 in a similar manner; however, the reduction will reflect both a transfer out of the Special 10 year fixed maturity option and a withdrawal from the contract. Therefore, the reduction in the GPB Option 2 is greater when you take a contract withdrawal from the Special 10 year fixed maturity option than it would be if you took the withdrawal from another investment option. Similar to the example above, if your account value is $30,000 and you withdraw $12,000 from the Special 10 year fixed maturity option, you have withdrawn 40% of your account value. If your GPB Option 2 benefit was $40,000 before the withdrawal, the reduction to reflect the transfer out of the Special 10 year fixed maturity option would equal $16,000 ($40,000 x .40). The amount used to calculate the reduction to reflect the withdrawal from the contract is $24,000 ($40,000 - $16,000). The reduction to reflect the withdrawal would equal $9,600 ($24,000 x .40), and your new benefit after the withdrawal would be $14,400 ($24,000 - $9,600). With respect to the Guaranteed minimum income benefit, withdrawals will reduce the benefit's 6% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6% or less of the 6% Roll-Up benefit base on the most recent contract date anniversary. Additional contributions made during the contract year do not affect the amount of withdrawals that can be taken on a dollar-for-dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6% of the benefit base on the most recent anniversary, that entire withdrawal and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6% Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for the Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. HOW WITHDRAWALS AFFECT YOUR GWBL Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes cumulative withdrawals in a contract year to exceed the Guaranteed annual withdrawal amount. As the Guaranteed annual withdrawal amount before age 59-1/2 is zero, any withdrawal you make before that age will exceed the Guaranteed annual withdrawal amount, and will be considered an Excess withdrawal. Excess withdrawals can significantly reduce your GWBL benefit base and Guaranteed annual withdrawal amount. For more information, see "Effect of Excess withdrawals" and "Other important considerations" under "Guaranteed withdrawal benefit for life ("GWBL") " in "Contract features and benefits" in this Prospectus. WITHDRAWALS TREATED AS SURRENDERS If you request to withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. In addition, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or 46 Accessing your money if you make a withdrawal that would result in a cash value of less than $500. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is an Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to an Excess withdrawal. In other words, if you take an Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Guaranteed withdrawal benefit for life " in "Contract features and benefits," earlier in this Prospectus for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." If you elect the GWBL option or a GPB, loans are not permitted. You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan, including any accrued and unpaid loan interest, will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the loan reserve account. Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. A market value adjustment will apply to withdrawals from the fixed maturity options (including the Special 10 year fixed maturity option). If the amounts are withdrawn from the Special 10 year fixed maturity option, the guaranteed benefit will be adversely affected. See "How withdrawals (and transfers out of the Special 10 year fixed maturity option) affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Guaranteed principal benefit option 2" earlier in this section. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE If you do not elect GWBL, you may surrender your contract to receive its cash value at any time while the annuitant is living and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. If you elect GWBL, you may surrender your contract to receive its cash value at any time while an owner is living and before you begin to receive annuity payments. All benefits under the contract will terminate as of the date we receive the required information, including the Guaranteed withdrawal benefit for life (if applicable) if your cash value is greater than your Guaranteed annual withdrawal amount remaining that year. If your cash value is not greater than your Guaranteed annual withdrawal amount remaining that year, then you will receive a supplementary life annuity contract. For more information, please see "Effect of your account value falling to zero" under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits", and "Annuity benefit" under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. Accessing your money 47 WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of which sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option and fixed maturity options (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Select(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) Select(SM) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Select(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Select(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the owner's and annuitant's ages at contract issue. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect the Guaranteed withdrawal benefit for life and choose to annuitize your contract, the Guaranteed withdrawal benefit for life will terminate without value even if your GWBL benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under GWBL. See "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus for further information. - -------------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------------- Income Manager(R) payout options Life annuity with period certain (available for annuitants age 83 Period certain annuity or less at contract issue) - --------------------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. 48 Accessing your money FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). For Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the Rollover TSA contract. You may choose to apply only part of the account value of your Accumulator(R) Select(SM) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) Select(SM). For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income benefit option, different payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose, and the timing of your purchase as it relates to any market value adjustments. If amounts in a fixed maturity option are used to purchase any annuity payout option, prior to the maturity date, a market value adjustment will apply. SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin but it may not be earlier than thirteen months from the Accumulator(R) Select(SM) contract date. Except with respect to the Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. In no event will you ever receive payments under a fixed option or an initial payment under a variable option of less than the minimum amounts guaranteed by the contract. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) annuity payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date based on the annuitant's age by which you must either take a lump sum payment or select an annuity payout option. We will send a notice with the annual statement one year prior to the maturity age. If you elect the Guaranteed withdrawal benefit for life and your contract is annuitized at maturity, we will offer an annuity payout option that guarantees you will receive payments for life that are at least equal to what you would have received under the Guaranteed withdrawal benefit for life. You will not be able to take withdrawals in addition to the payments under this annuity payout option. You will still be able to surrender the contract at any time for the remaining account value. As described in "Contract features and benefits" under "Guaranteed withdrawal benefit for life ("GWBL")" earlier in this Prospectus, these payments will have the potential to increase with favorable investment performance. Any remaining Guaranteed minimum death benefit value will be transferred to the annuity payout Accessing your money 49 contract as your "minimum death benefit." If the Annual Ratchet to age 85 enhanced death benefit had been elected, its value as of the date the annuity payout contract is issued will become your minimum death benefit. The minimum death benefit will be reduced pro rata by each payment. If you die while there is any minimum death benefit remaining, it will be paid to your beneficiary. The maturity date by which you must take a lump sum payment or select an annuity payout option is as follows:
- ------------------------------- Maximum Issue age Annuitization age - ------------------------------- 0-80 90 81 91 82 92 83 93 84 94 85 95 - -------------------------------
50 Accessing your money 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o On each contract date anniversary, a charge for each optional benefit that you elect. o On the first 10 contract date anniversaries -- a charge for GPB Option 2, if you elect this optional benefit. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section . The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES MORTALITY AND EXPENSE RISKS CHARGE. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard death benefit. The daily charge is equivalent to an annual rate of 1.10% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. ADMINISTRATIVE CHARGE. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. DISTRIBUTION CHARGE. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.35% of the net assets in each variable investment option. HOW CERTAIN CHARGES ARE DEDUCTED With regard to the annual administrative, Annual Ratchet to age 85 enhanced death benefit, Guaranteed principal benefit option 2 and Guaranteed minimum income benefit charges, respectively, we will deduct the related charge, as follows for each: we will deduct the charge from your value in the variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (other than the Special 10 year fixed maturity option) in the order of the earliest maturity date(s) first. If such fixed maturity option amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging (not available if the Guaranteed principal benefit option is elected). If such amounts are still insufficient, we will deduct any remaining portion from the Special 10 year fixed maturity option. If the contract is surrendered or annuitized or a death benefit is paid, on a date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options (including the Special 10 year fixed maturity option). Deductions from the fixed maturity options (including the Special 10 year fixed maturity option) cannot cause the credited net interest for the contract year to fall below 1.50%. With regard to the annual administrative, the Annual Ratchet to age 85 enhanced death benefit and the Guaranteed minimum income benefit charges only, if your account value in the variable investment Charges and expenses 51 options and the fixed maturity options is insufficient to pay the applicable charge, and you have no account value in the guaranteed interest option, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. For more information, see "How certain charges are deducted" earlier in this section. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. For more information, see "How certain charges are deducted" earlier in this section. STANDARD DEATH BENEFIT. There is no additional charge for the standard death benefit. GUARANTEED PRINCIPAL BENEFIT OPTION 2 If you purchase GPB Option 2, we deduct a charge annually from your account value on the first 10 contract date anniversaries. The charge is equal to 0.50% of the account value. For more information, see "How certain charges are deducted" earlier in this section. GUARANTEED MINIMUM INCOME BENEFIT CHARGE If you elect the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary after the annuitant reaches 85, whichever occurs first. The charge is equal to 0.65% of the applicable benefit base in effect on the contract date anniversary. For more information, see "How certain charges are deducted" earlier in this section. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE CHARGE If you elect the Guaranteed withdrawal benefit for life ("GWBL"), we deduct a charge annually as a percentage of your GWBL benefit base on each contract date anniversary. If you elect the Single Life or Joint Life options, the charge is equal to 0.65%. We will deduct this charge from your value in the permitted variable investment options on a pro rata basis. If the contract is surrendered, annuitized, or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value in the permitted variable investment options is insufficient to pay this charge, and you have no account value in the guaranteed interest option, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract's value" earlier in this Prospectus. GWBL BENEFIT BASE ANNUAL RATCHET CHARGE If your GWBL benefit base ratchets, we reserve the right to raise the charge at the time of an Annual Ratchet. The maximum charge is 0.80%. The increased charge, if any will apply as of the contract date anniversary on which your GWBL benefit base ratchets and on all contract date anniversaries thereafter. We will permit you to opt out of the ratchet if the charge increases. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY ANNUITIZATION PAYOUT OPTION ADMINISTRATIVE FEE We currently deduct a fee of $350 from the amount to be applied to the Variable Immediate Annuity annuitization payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the mortality and expense risks charge or change the minimum initial 52 Charges and expenses contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to 12b-1 fees. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. Charges and expenses 53 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT IF GWBL IS NOT ELECTED You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfer to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit), as of the date we receive satisfactory proof of the annuitant's death, any required instructions for the method of payment, information and forms necessary to effect payment. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the annuitant's death, adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. EFFECT OF THE ANNUITANT'S DEATH If the annuitant dies before the annuity payments begin, we will pay the death benefit to your beneficiary. Generally, the death of the annuitant terminates the contract. However, a surviving spouse, who is the sole primary beneficiary, of the deceased owner/annuitant can choose to be treated as the successor owner/annuitant and continue the contract. The Successor owner/ annuitant feature is only available under NQ and individually owned IRA (other than Inherited IRAs) contracts. See "Inherited IRA beneficiary continuation contract" in "Contracts features and benefits," earlier in this Prospectus. For NQ and all types of IRA contracts, a beneficiary may be able to have limited ownership as discussed under "Beneficiary continuation option" below. WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT Under certain conditions the owner changes after the original owner's death for purposes of receiving required distributions from the contract. When you are not the annuitant under an NQ contract and you die before annuity payments begin, unless you specify otherwise, the beneficiary named to receive this death benefit upon the annuitant's death will become the successor owner. If you do not want this beneficiary to be the successor owner, you should name a specific successor owner. You may name a successor owner at any time during your life by sending satisfactory notice to our processing office. If the contract is jointly owned and the first owner to die is not the annuitant, the surviving owner becomes the sole contract owner. This person will be considered the successor owner for purposes of the distribution rules described in this section. The surviving owner automatically takes the place of any other beneficiary designation. You should carefully consider the following if you have elected the Guaranteed minimum income benefit and you are the owner, but not the annuitant. Because the payments under the Guaranteed minimum income benefit are based on the life of the annuitant, and the federal tax law required distributions described below are based on the life of the successor owner, a successor owner who is not also the annuitant may not be able to exercise the Guaranteed minimum income benefit, if you die before annuity payments begin. Therefore, one year before you become eligible to exercise the Guaranteed minimum income benefit, you should consider the effect of your beneficiary designations on potential payments after your death. For more information, see "Exercise rules," under "Guaranteed minimum income benefit option," in "Contract features and benefits" earlier in this Prospectus. Unless the surviving spouse of the owner who has died (or in the case of a joint ownership situation, the surviving spouse of the first owner to die) is the successor owner for this purpose, the entire interest in the contract must be distributed under the following rules: o The cash value of the contract must be fully paid to the successor owner (new owner) within five years after your death (the "5-year rule"), or in a joint ownership situation, the death of the first owner to die. 54 Payment of death benefit o The successor owner may instead elect to receive the cash value as a life annuity (or payments for a period certain of not longer than the successor owner's life expectancy). Payments must begin within one year after the non-annuitant owner's death. Unless this alternative is elected, we will pay any cash value five years after your death (or the death of the first owner to die). o A successor owner should consider naming a new beneficiary. If the surviving spouse is the successor owner or joint owner, the spouse may elect to continue the contract. No distributions are required as long as the surviving spouse and annuitant are living. An eligible successor owner, including a surviving joint owner after the first owner dies, may elect the beneficiary continuation option for NQ contracts discussed in "Beneficiary continuation option" below. HOW DEATH BENEFIT PAYMENT IS MADE We will pay the death benefit to the beneficiary in the form of the annuity payout option you have chosen. If you have not chosen an annuity payout option as of the time of the annuitant's death, the beneficiary will receive the death benefit in a single sum. Payment of the death benefit in a lump sum terminates all rights and any applicable guarantees under the contract, including the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, and the Guaranteed principal benefit Options 1 and 2. Subject to any exceptions in the contract, our rules and any applicable requirements under federal income tax rules, the beneficiary may elect to apply the death benefit to one or more annuity payout options we offer at the time. See "Your annuity payout options" in "Accessing your money" earlier in this Prospectus. Please note that any annuity payout option chosen may not extend beyond the life expectancy of the beneficiary. SUCCESSOR OWNER AND ANNUITANT. If you are both the contract owner and the annuitant, and your spouse is the sole primary beneficiary or the joint owner, then your spouse may elect to receive the death benefit or continue the contract as successor owner/annuitant. The successor owner/annuitant must be 85 or younger as of the date of the non-surviving spouse's death. The determination of spousal status is made under applicable state law; however, in the event of a conflict between federal and state law, we follow federal rules. If your surviving spouse decides to continue the contract, then as of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary to effect the Successor owner/annuitant feature, we will increase the account value to equal your elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. We will determine whether your applicable Guaranteed minimum death benefit option will continue as follows: o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 84 or younger at death, the guaranteed minimum death benefit continues based upon the option that was elected by the original owner/annuitant and will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 75 or younger on the date of the original owner/annuitant's death, and the original owner/ annuitant was age 85 or older at death, we will reinstate the Guaranteed minimum death benefit that was elected by the original owner/annuitant. The benefit will continue to grow according to its terms until the contract date anniversary following the date the successor owner/annuitant reaches age 85. o If the successor owner/annuitant is age 76 or over on the date of the original owner/annuitant's death, the Guaranteed minimum death benefit will no longer grow, and we will no longer charge for the benefit. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For information on the operation of the successor owner/annuitant feature with the Guaranteed minimum income benefit, see "Exercise of Guaranteed minimum income benefit" under "Guaranteed minimum income benefit option" in "Contract features and benefits," earlier in this Prospectus. SPOUSAL PROTECTION. Spousal protection is available for NQ contracts only. This feature permits spouses who are joint contract owners to increase the account value to equal the guaranteed minimum death benefit, if higher, upon the death of either spouse. This account value "step up" occurs even if the surviving spouse was the named annuitant. If you and your spouse jointly own the contract and one of you is the named annuitant, you may elect the Spousal protection option at the time you purchase your contract at no additional charge. Both spouses must be between the ages of 20 and 70 at the time the contract is issued and must each be named the primary beneficiary in the event of the other's death. The annuitant's age is generally used for the purpose of determining contract benefits. However, for the Annual Ratchet to age 85 enhanced death benefit, the benefit is based on the older spouse's age. The older spouse may or may not be the annuitant. If the annuitant dies prior to annuitization, the surviving spouse may elect to receive the death benefit, or, if eligible, continue the contract as the sole owner/annuitant by electing the successor owner/ annuitant option. If the non-annuitant spouse dies prior to annuitization, the surviving spouse continues the contract automatically as the sole owner/annuitant. In either case, the contract would continue, as follows: o As of the date we receive due proof of the spouse's death, the account value will be reset to equal the Guaranteed minimum death benefit as of the date of the non-surviving spouse's death, if higher. o The Guaranteed minimum death benefit continues to be based on the older spouse's age for the life of the contract, even if the younger spouse is originally or becomes the sole owner/annuitant. Payment of death benefit 55 o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the successor owner/annuitant, if applicable. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. We will not allow Spousal protection to be added after contract issue. If there is a change in owner or primary beneficiary, the Spousal protection benefit will be terminated. If you divorce but do not change the owner or primary beneficiary, Spousal protection continues. YOUR BENEFICIARY AND PAYMENT OF BENEFIT IF GWBL IS ELECTED You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under Joint life contracts, the surviving spouse is considered the beneficiary, and will take the place of any other beneficiary. Under a contract with a non-natural owner that has joint annuitants, the surviving annuitant is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value or, if greater, the applicable Guaranteed minimum death benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) as of the date we receive satisfactory proof of the owner's (or the second to die of the owner and successor owner's, if applicable) death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the owner's (or the second to die of the owner and successor owner's, if applicable) death adjusted for any subsequent withdrawals. - -------------------------------------------------------------------------------- Under contracts with GWBL, the terms Owner and Successor Owner are intended to be references to Annuitant and Joint Annuitant, respectively if the contract has a non-natural owner. - -------------------------------------------------------------------------------- Subject to applicable laws and regulations, you may impose restrictions on the timing and manner of the payment of the death benefit to your beneficiary. For example, your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period and (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law. In general, if the annuitant dies, the owner (or successor owner, if applicable and the owner is also deceased) will become the annuitant, and the death benefit is not payable. If the contract had joint annuitants, it will become a single annuitant contract. EFFECT OF THE OWNER'S DEATH In general, if the owner dies while the contract is in force, the contract terminates and the applicable death benefit is paid. For Joint Life contracts with GWBL, the death benefit is paid to the beneficiary at the death of the second to die of the owner and successor owner, as applicable. There are various circumstances, however, in which the contract can be continued by a successor owner or under a Beneficiary continuation option. For individually owned Joint life contracts, the successor owner becomes the sole owner upon the death of the owner. If you are the sole owner and your spouse is the sole primary beneficiary, your surviving spouse can continue the contract as a successor owner, under "Spousal continuation" or under our Beneficiary continuation option, as discussed below. Upon the death of the owner, for single owner contracts or, in the case of Joint life contracts, upon the death of the second of the owner or successor owner to die, if the beneficiary is not the surviving spouse, federal income tax rules generally require payments of amounts under the contract to be made within five years of an owner's death (the "5-year rule"). In certain cases, an individual beneficiary may opt to receive payments over his/her life (or over a period not in excess of his/her life expectancy) if payments commence within one year of the owner's death. Any such election must be made in accordance with our rules at the time of death. If the beneficiary of a contract with one owner continues the contract under the 5-year rule, in general, all guaranteed benefits and their charges will end. For more information on non-spousal joint owner contract continuation, see the section immediately below. NON-SPOUSAL JOINT LIFE CONTRACT CONTINUATION This section applies only with regard to Joint life contracts in which the successor owner has joint ownership rights and the owner and successor owner have divorced, but the successor owner has been neither dropped nor replaced or the contract has not been split, as described in the contract. Upon the death of either the owner or the successor owner, the survivor becomes the surviving owner. The cash value of the contract must be paid to the surviving owner within five years. The surviving owner may instead elect to receive a life annuity, provided payments begin within one year of the deceased owner's or successor owner's death. If the life annuity is elected, the contract and all benefits terminate. 56 Payment of death benefit If the surviving owner dies within five years of the owner or successor owner (as applicable), and the contract has continued in force, the guaranteed minimum death benefit will be paid to the beneficiary. If the successor owner did not have joint ownership rights as discussed in this Prospectus, then in the case of the death of the successor owner where the contract was not split after a divorce, the contract continues as is with the sole owner. However, if the owner dies first, then the cash value must be distributed to the successor owner as described above. SPOUSAL CONTINUATION If you are the contract owner under a Single life contract and your spouse is the sole primary beneficiary, your spouse may elect to continue the contract as successor owner upon your death. Spousal beneficiaries who are not also the Joint life must be 85 or younger as of the date of the deceased spouse's death in order to continue the contract under Spousal continuation. If you own a Joint life contract and your spouse survives you, the contract will automatically continue upon your death. For Single life contracts, the spouse beneficiary may elect to receive the death benefit or continue the contract, as follows: o As of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary, we will increase the account value to equal your Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. o No additional contributions will be permitted. o The Guaranteed minimum death benefit will continue, as follows: o if you elected the Standard death benefit it will continue o if you elected the Annual Ratchet to age 85 enhanced death benefit, and your spouse is age 75 or younger as of the date of your death and you were 84 or younger at death, the death benefit and charge will continue based on your spouse's age. If you were age 85 or older at death, we will reinstate the Annual Ratchet to age 85 enhanced death benefit. The benefit base which had previously been frozen at age 85 will now continue to grow until the contract date anniversary following the date your surviving spouse reaches age 85. If your spouse is 76 or older as of the date of your death, we will discontinue the death benefit and charge; however, we will freeze the benefit base as of the date of your death (reduced pro rata for any subsequent withdrawals), and pay it upon your spouse's death. o The Guaranteed withdrawal benefit for life and its charge will terminate. For Joint life contracts: o No death benefit is payable until the death of the surviving spouse. Your guaranteed minimum death benefit (and charge, if applicable) continues. o if you elected the Annual Ratchet to age 85 enhanced death benefit, the benefit base will continue to ratchet until the contract date anniversary following the surviving spouse's age 85. o The right to make additional contributions under the contract is not affected by your death. o The Guaranteed withdrawal benefit for life and its charge will remain in effect. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. If you divorce, Spousal continuation does not apply. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. For Joint life contracts with GWBL, the Beneficiary continuation option is only available after the death of the second owner. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the Payment of death benefit 57 beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, the Annual Ratchet to age 85 enhanced death benefit or GPB Option 2 under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a portion of the account value. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as the Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. If the owner and annuitant are different and the owner dies before the annuitant, for purposes of this discussion, "beneficiary" refers to the successor owner. For a discussion of successor owner, see "When an NQ contract owner dies before the annuitant" earlier in this section. This feature must be elected within 9 months following the date of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts (regardless of whether the owner and annuitant are the same person): o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, the Annual Ratchet to age 85 enhanced death benefit or GPB Option 2 under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any 58 Payment of death benefit remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If you are both the owner and annuitant under a contract in which GWBL is not elected, or if the deceased is the owner under a contract in which GWBL is elected: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the annuity account value to equal the applicable death benefit if such death benefit is greater than such account value, adjusted for any subsequent withdrawals. If the owner and annuitant under a contract in which GWBL is not elected are not the same person: o If the beneficiary continuation option is elected, the beneficiary automatically becomes the new annuitant of the contract, replacing the existing annuitant. o The annuity account value will not be reset to the death benefit amount. If a contract in which GWBL is not elected is jointly owned: o The surviving owner supersedes any other named beneficiary and may elect the beneficiary continuation option. o If the deceased joint owner was also the annuitant, see "If you are both the owner and annuitant under a contract in which GWBL is not elected, or if the deceased is the owner under a contract in which GWBL is elected" earlier in this section. o If the deceased joint owner was not the annuitant, see "If the owner and annuitant under a contract in which GWBL is not elected are not the same person" earlier in this section. Payment of death benefit 59 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Select(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted based on these options. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax, and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, the amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Select(SM)'s 12-month dollar cost-averaging, choice of death benefits, the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit, selection of variable investment options, guaranteed interest option, fixed maturity options and its choices of pay-out options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, the guaranteed minimum income benefit and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. 60 Tax information TAXATION OF LIFETIME WITHDRAWALS IF YOU ELECT GUARANTEED WITHDRAWAL BENEFIT FOR LIFE We treat Guaranteed annual withdrawal amounts and other withdrawals as non-annuity payments for income tax purposes. These withdrawals are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. It reduces the investment in the contract. ANNUITY PAYMENTS Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus, as well as GMIB and other annuitization payments that are based on life or life expectancy, are considered annuity payments for tax purposes. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your "investment in the contract." Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. CONTRACTS PURCHASED THROUGH EXCHANGES You may purchase your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that is the source of the funds you are using to purchase the NQ contract is another nonqualified deferred annuity contract (or life insurance or endowment contract). o The owner and the annuitant are the same under the source contract and the Accumulator(R) Select(SM) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must be the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carries over to the Accumulator(R) Select(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between carriers, and provision of cost basis information may be required to process this type of an exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. The IRS has not specifically addressed the tax treatment of the Spousal protection benefit. Please consult with your tax adviser before electing this feature. BENEFICIARY CONTINUATION OPTION We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for NQ contracts. See the discussion "Beneficiary continuation option for NQ Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2"; o scheduled payments, any additional withdrawals under "Withdrawal Option 2", or contract surrenders under "Withdrawal Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the Withdrawal Option selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before Tax information 61 all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling specifically does not address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or any withdrawal that might be taken). Before electing the beneficiary continuation option feature, the individuals you designate as beneficiary or successor owner should discuss with their tax advisers the consequences of such elections. The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Account 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Account 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Account 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Account 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets for the benefit of the IRA owner. The assets funding the account typically include mutual funds and/or individual stocks and/or securities in a custodial account and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may purchase the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We also offer the Inherited IRA for payment of post-death required minimum distributions in traditional IRA and Roth IRA. We currently do not offer traditional IRA contracts for use as employer-funded SEP IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS requires you to have before you purchase an IRA. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). We have not applied for an opinion letter from the IRS to approve the respective forms of the Accumulator(R) Select(SM) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. We have received IRS opinion letters approving the respective forms of a similar traditional IRA and Roth IRA endorsement for use as a traditional and Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the 62 Tax information merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) Select(SM) traditional and Roth IRA contracts. We have submitted a form similar to the Inherited IRA beneficiary continuation contract has not been submitted to the IRS for approval as to form for use as a traditional IRA and Roth IRA, respectively. We do not know if and when any such approval may be granted. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS You can cancel any version of the Accumulator(R) Select(SM) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel within a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS) CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types of contributions to a traditional IRA: o regular contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS LIMITS ON CONTRIBUTIONS. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 anytime during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch up contributions" of up to $1,000 to your traditional IRA. SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored-tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions." That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits to deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). Tax information 63 To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted -------------------- X regular = deductible divided by $10,000 contribution contribution for the year limit ADDITIONAL "SAVER'S CREDIT" FOR CONTRIBUTIONS TO A TRADITIONAL IRA OR ROTH IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000 ($53,000, after cost of living indexing adjustment for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution, and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum dollar per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. ROLLOVER AND TRANSFER CONTRIBUTIONS TO TRADITIONAL IRAS Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. ROLLOVERS FROM "ELIGIBLE RETIREMENT PLANS" OTHER THAN TRADITIONAL IRAS Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: 64 Tax information "required minimum distributions" after age 70-1/2 or retirement o from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN TRADITIONAL IRAS Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVER AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. EXCESS CONTRIBUTIONS Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contri bution amount for the applicable taxable year); or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. RECHARACTERIZATIONS Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. Tax information 65 TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, a 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. REQUIRED MINIMUM DISTRIBUTIONS BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing. Please consult your tax adviser concerning applicability of these complex rules to your situation. LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. WHEN YOU HAVE TO TAKE THE FIRST LIFETIME REQUIRED MINIMUM DISTRIBUTION. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1-April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year--the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to 66 Tax information an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON THE METHOD YOU CHOOSE? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. SPOUSAL CONTINUATION If the contract is continued under Spousal continuation, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. Tax information 67 SUCCESSOR OWNER AND ANNUITANT If your spouse is the sole primary beneficiary and elects to become the successor owner and annuitant, no death benefit is payable until your surviving spouse's death. The required minimum distribution rules are applied as if your surviving spouse is the contract owner. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH IRA death benefits are taxed the same as IRA distributions. BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special fed eral income tax definition); or o used to pay medical insurance premiums for unemployed indi viduals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special fed eral income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies using an IRS-approved distribution method). To meet this last exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" above. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under this option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Select(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. CONTRIBUTIONS TO ROTH IRAS Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eli gible retirement plans ("conversion" rollover contributions); or o tax-free rollover contributions from other Roth individual retire ment arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. REGULAR CONTRIBUTIONS TO ROTH IRAS LIMITS ON REGULAR CONTRIBUTIONS. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion under "Special rules for spouses" earlier in this section under traditional IRAs. 68 Tax information If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment); o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. WHEN YOU CAN MAKE CONTRIBUTIONS. Same as traditional IRAs. DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible. ROLLOVERS AND DIRECT TRANSFERS WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make rollover transactions between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. CONVERSION ROLLOVER CONTRIBUTIONS TO ROTH IRAS In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting -- a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. Tax information 69 The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. RECHARACTERIZATIONS You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. HOW TO RECHARACTERIZE. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. DISTRIBUTIONS FROM ROTH IRAS Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. 70 Tax information QUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contribu tions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. REQUIRED MINIMUM DISTRIBUTIONS DURING LIFE Lifetime required minimum distributions do not apply. REQUIRED MINIMUM DISTRIBUTIONS AT DEATH Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the required beginning date. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS Same as traditional IRA. EXCESS CONTRIBUTIONS Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. EARLY DISTRIBUTION PENALTY TAX Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." Tax information 71 - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) SELECT(SM) TSA CONTRACT Because the Accumulator(R) Select(SM) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Select(SM) TSA contract are extremely limited as described below. Accumulator(R) Select(SM) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Select(SM) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Select(SM) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Select(SM) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, 72 Tax information all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) annuity contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) Select(SM) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Select(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; Tax information 73 o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Select(SM) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" in this Prospectus, as well as GMIB and other annuitization payments that are based on the annuitant's life or life expectancy, are considered annuity payments for tax purposes. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and 74 Tax information (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Select(SM) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Select(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Select(SM) Rollover TSA contract on the form used to establish the TSA, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in Tax information 75 effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribu tion from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a TSA. If a non-periodic distribution from a qualified plan or TSA is not an eli- 76 Tax information gible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. MANDATORY WITHHOLDING FROM TSA DISTRIBUTIONS Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from TSAs are subject to mandatory 20% withholding. All distributions from a TSA are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. Tax information 77 8. More information - -------------------------------------------------------------------------------- ABOUT OUR SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. The results of Separate Account's operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within Separate Account No. 49 invests solely in class B/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from, the Separate Account or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling its shares. All dividends and other distributions on Trust shares are reinvested in full. The Board of Trustees of the Trusts may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan and other aspects of its operations, appears in the prospectuses for each Trust which generally accompany this Prospectus, or in their respective SAIs which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below:
- -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Maturity Maturity Date of as of Price Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 2013 3.00%* $ 86.25 - --------------------------------------------------------------------------------
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- -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Maturity Maturity Date of as of Price Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2014 3.00%* $ 83.73 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - --------------------------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw all of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMOs maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. See Appendix II at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) above would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity option, the "current rate to maturity" will be determined by using a widely-published Index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "non-unitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and fixed maturity options, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. More information 79 We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept initial and subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information provided through certain broker-dealers with which we have established electronic facilities. In any such cases, you must sign our Acknowledgement of Receipt form. Where we require a signed application, the above procedures do not apply and no financial transactions will be permitted until we receive the signed application and have issued the contract. Where we issue a contract based on information provided through electronic facilities, we require an Acknowledgement of Receipt form, and financial transactions are only permitted if you request them in writing, sign the request and have it signature guaranteed, until we receive the signed Acknowledgement of Receipt form. After your contract has been issued, additional contributions may be transmitted by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. After your contract has been issued, additional contributions may be transmitted by wire. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, Inherited IRA Beneficiary Continuation (traditional IRA or Roth IRA) or Rollover TSA contracts, nor is it available with GPB Option 2. The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. For contracts with GWBL, AIP will be automatically terminated after the later of: (i) the end of the first contract year, or (ii) the date the first withdrawal is taken. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your 80 More information broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the contribution. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; or o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in each prospectus for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustees or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. One result of proportional voting is that a small number of contract owners may control the outcome of a vote. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or the distributions of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive written notification of any change at our processing office. Loans are not available under your NQ contract. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. More information 81 For NQ contracts only, if you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, Guaranteed withdrawal benefit for life, and/or Guaranteed principal benefit option 2 ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. However, the Benefit will not terminate if the ownership of the contract is transferred to: (i) a family member (as defined in the contract); (ii) a trust created for the benefit of a family member or members; (iii) a trust qualified under section 501(c) of the Internal Revenue Code; or (iv) a successor by operation of law, such as an executor or guardian. The Guaranteed withdrawal benefit for life will not terminate if the ownership of the contract is transferred from a non-natural owner to an individual but the contract will continue to be based on the annuitant's life. The Guaranteed withdrawal benefit for life will also not terminate if you transfer your individually-owned contract to a trust held for your (or your and your immediate family's) benefit; the Guaranteed withdrawal benefit for life will continue to be based on your life. If you were not the annuitant under the individually-owned contract in which the Guaranteed withdrawal benefit for life is elected, you will become the annuitant under the new contract. Please speak with your financial professional for further information. For NQ contracts, if there is a change in owner, the Guaranteed withdrawal benefit for life will be terminated. However, if ownership is changed from a non-natural owner to an individual, the Guaranteed withdrawal benefit for life will not terminate and the benefit will continue to be determined by the annuitant. You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available (except for Rollover TSA contracts for which employer or plan approval is required) and you cannot assign Rollover IRA, Roth Conversion IRA or Rollover TSA contracts as security for a loan or other obligation. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA or Rollover TSA contract (employer or plan approval required) to another similar arrangement under federal income tax rules. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 0.60% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 7.50% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset- 82 More information based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker-dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) Select(SM) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. More information 83 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Guaranteed Interest Account with Market Value Adjustment (the "Registration Statement"). This Prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Guaranteed Interest Account with Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a web site that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to The AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www. axa-equitable.com. 84 Incorporation of certain documents by reference Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.70%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------------------- 2007 2006 - ----------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.05 $ 14.43 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,377 3,109 - ----------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.76 $ 11.31 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,454 1,800 - ----------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.40 $ 11.96 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,753 3,022 - ----------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 48.27 $ 46.21 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,098 2,325 - ----------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.45 $ 13.82 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 23,506 14,705 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ----------------------------------------------------------------------------------------------------------------------------- Unit value $243.48 $ 239.38 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 65 73 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.82 $ 17.92 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 404 376 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.41 $ 17.67 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,236 1,508 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.62 $ 6.80 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,050 1,042 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.06 $ 15.63 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 626 590 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 20.14 $ 17.56 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 443 462 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.31 $ 17.38 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,123 2,507 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.99 $ 11.31 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 227 123 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.07 $ 10.91 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 383 13,017 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.45 $ 11.72 $ 10.66 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,519 656 32 - ----------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.82 $ 10.74 $ 10.30 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,000 281 1 - ----------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.19 $ 11.02 $ 10.41 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,176 414 84 - ----------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 42.61 $ 41.36 $ 38.70 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,725 893 383 - ----------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.28 $ 11.71 $ 10.66 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,917 2,788 46 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 219.99 $ 214.55 $ 191.26 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 73 64 29 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.67 $ 17.76 $ 17.72 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 481 416 458 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.55 $ 12.84 $ 11.05 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,037 649 530 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.96 $ 6.16 $ 5.78 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,055 981 856 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.31 $ 15.27 $ 14.97 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 573 555 512 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.39 $ 14.95 $ 13.34 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 372 312 478 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.57 $ 14.06 $ 12.60 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,363 2,169 1,481 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.35 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 40 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.94 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 784 -- -- - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------- 2002 - ----------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 33.05 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 86 - ----------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 130.09 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 9 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.65 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 259 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.32 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 142 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 4.77 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 341 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.71 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 198 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.63 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 121 - ----------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.96 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 530 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - -----------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, - ----------------------------------------------------------------------------------------------------------------------------- 2007 2006 - ----------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 23.24 $ 23.37 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 842 856 - ----------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 23.97 $ 22.13 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,136 1052 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.71 $ 6.59 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 571 504 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.71 $ 8.81 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 373 353 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.14 $ 12.67 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,289 1,484 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.71 $ 12.72 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,063 1,393 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.12 $ 11.01 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 180 225 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.05 $ 10.84 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,189 216 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 29.54 $ 28.64 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,547 1,418 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.64 $ 9.90 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 476 185 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.49 $ 8.67 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 249 215 - ----------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.35 $ 12.57 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,166 1,890 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.45 $ 10.42 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,574 368 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.71 $ 10.81 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 421 38 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.49 -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,805 -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.75 $ 11.56 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 337 193 - ----------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 27.67 $ 25.76 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 618 233 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.66 $ 19.43 $ 17.87 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 849 802 502 - ----------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.91 $ 16.44 $ 13.75 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 782 522 441 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.78 $ 5.54 -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 326 15 -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.51 $ 7.96 $ 7.82 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 314 204 249 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.00 $ 11.62 $ 11.20 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 351 160 164 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.55 $ 11.08 $ 10.16 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,585 1,200 776 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.37 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 81 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 25.31 $ 24.66 $ 22.76 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,604 1,386 1,074 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.74 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 8 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.33 $ 8.15 $ 7.75 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 280 377 218 - ----------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.47 $ 10.97 $ 9.62 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,556 1,391 883 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.48 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 77 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 22.05 $ 21.50 -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 79 9 -- - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------- 2002 - ----------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.86 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 184 - ----------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.92 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 161 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.22 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 42 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.19 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 40 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.86 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 200 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.11 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 399 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.70 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 32 - ----------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.81 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 285 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - -----------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, - ----------------------------------------------------------------------------------------------------------------------------- 2007 2006 - ----------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.01 $ 14.13 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,289 3,208 - ----------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.18 $ 14.17 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 665 269 - ----------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.07 $ 13.88 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,473 1,477 - ----------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.08 $ 15.53 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 288 351 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.50 $ 10.28 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 458 510 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.57 $ 14.58 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 492 192 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.32 $ 11.17 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 809 532 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.54 $ 9.98 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 248 135 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.39 $ 12.18 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 369 308 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.70 $ 11.67 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 442 196 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.15 $ 12.29 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 888 591 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.08 $ 16.13 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,346 2,714 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.40 $ 16.96 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,069 1,156 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 27.65 $ 26.86 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,051 1102 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.66 $ 4.77 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 657 83 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.69 $ 10.70 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,727 258 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.51 $ 11.08 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 674 83 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, - ----------------------------------------------------------------------------------------------------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.06 $ 10.47 $ 9.38 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,337 1,926 1,026 - ----------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.47 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 56 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.57 $ 13.50 $ 13.20 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,527 1,343 1,175 - ----------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.12 $ 12.84 $ 11.78 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 347 370 307 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.26 $ 8.79 $ 8.03 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 603 610 598 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.76 $ 12.84 $ 11.60 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 184 149 93 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.63 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 144 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.98 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 173 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.57 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 83 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.54 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 84 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.12 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 290 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.01 $ 13.79 $ 12.69 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,354 1,938 1,510 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.34 $ 14.02 $ 12.10 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,107 1,007 636 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 26.15 $ 25.92 $ 26.17 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 845 349 434 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 4.49 $ 4.34 -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 72 22 -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------- 2002 - ----------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.19 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 282 - ----------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.99 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 441 - ----------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.45 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 128 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.69 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 229 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.12 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 38 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.85 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 386 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.24 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 237 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 26.47 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 630 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - -----------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, - ----------------------------------------------------------------------------------------------------------------------------- 2007 2006 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.10 $ 10.92 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 154 20 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.70 $ 11.09 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 277 19 - ----------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.72 $ 9.78 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,235 730 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.53 $ 10.17 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 262 202 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.02 $ 16.60 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 713 744 - ----------------------------------------------------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.30 $ 15.46 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 401 47 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.78 $ 10.75 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 853 178 - ----------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.04 $ 6.07 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 89 104 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.36 $ 11.85 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 539 602 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 25.45 $ 18.23 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,726 1239 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.95 $ 13.26 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 782 297 - ----------------------------------------------------------------------------------------------------------------------------- EQ Van Kampen Real Estate - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.27 -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,440 -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 60.62 $ 55.37 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 56 47 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.80 $ 11.30 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,494 2,030 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.72 $ 11.87 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 390 400 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 30.68 $ 30.26 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 526 758 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.39 $ 16.64 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,047 1,030 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.91 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 286 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.96 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 60 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.35 $ 14.00 $ 12.10 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 596 575 449 - ----------------------------------------------------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.39 $ 16.03 -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 41 6 -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.41 $ 5.05 -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 69 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.40 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 296 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.53 $ 10.37 $ 8.53 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 755 609 457 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.34 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 179 -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ Van Kampen Real Estate - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 53.59 $ 50.38 $ 45.72 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 25 28 10 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.08 $ 11.07 $ 10.84 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,611 1,424 1,202 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.49 $ 10.93 $ 9.91 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 338 284 143 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 28.00 $ 27.64 $ 25.87 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 755 771 557 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.51 $ 11.90 $ 10.27 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 783 806 360 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------- 2002 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.44 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 122 - ----------------------------------------------------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.56 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 69 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- EQ Van Kampen Real Estate - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 33.82 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.63 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 628 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.87 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 57 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 21.48 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 125 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.78 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 135 - -----------------------------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------------------- 2007 2006 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.50 $ 12.11 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 473 453 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.35 $ 9.47 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 881 1,014 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.37 $ 14.10 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,210 1,363 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.81 $ 10.74 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 934 1,035 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.46 $ 13.68 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 805 1010 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.71 $ 8.54 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 788 475 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.88 $ 19.05 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 748 1201 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.10 $ 10.41 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 597 350 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------- 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.85 $ 10.34 $ 9.59 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 353 272 238 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.62 $ 9.10 $ 8.68 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 980 876 792 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.02 $ 11.42 $ 10.15 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,238 1,242 726 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.96 $ 9.35 $ 8.52 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,075 1,055 731 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.13 $ 11.49 $ 10.15 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 876 1,011 560 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.89 $ 7.46 -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 242 59 -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.69 $ 16.22 $ 14.09 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 991 884 641 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.87 $ 9.02 $ 8.74 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 311 306 98 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------- 2002 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.61 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 104 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.76 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 408 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.88 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 316 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.18 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 292 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.34 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 206 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value -- - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.43 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 270 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.64 - ----------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 14 - -----------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-5 Appendix II: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00% ("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000 is made four years later on February 15, 2012(a)
- ---------------------------------------------------------------------------------------------------------- Hypothetical assumed rate to maturity ("j" in the calculations below) February 15, 2012 - ---------------------------------------------------------------------------------------------------------- 5.00% 9.00% - ---------------------------------------------------------------------------------------------------------- As of February 15, 2012 before withdrawal - ---------------------------------------------------------------------------------------------------------- (1) Market adjusted amount(b) $141,389 $121,737 - ---------------------------------------------------------------------------------------------------------- (2) Fixed maturity amount(c) $131,104 $131,104 - ---------------------------------------------------------------------------------------------------------- (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) On February 15, 2012 after $50,000 withdrawal - ---------------------------------------------------------------------------------------------------------- (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ---------------------------------------------------------------------------------------------------------- (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ---------------------------------------------------------------------------------------------------------- (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ---------------------------------------------------------------------------------------------------------- (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ---------------------------------------------------------------------------------------------------------- (8) Maturity value(d) $111,099 $101,287 - ----------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ where j is either 5% or 9% (1+j)(D/365) (1+j)(1,461/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ________________ = ___________________ (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) x (1+0.07)(1,461/365)
B-1 Appendix II: Market value adjustment example Appendix III: Enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the Annual Ratchet to age 85 enhanced death benefit if elected. The following illustrates the Annual Ratchet to age 85 enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option, the fixed maturity options or the Special 10 year fixed maturity option), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the Annual Ratchet to age 85 enhanced death benefit for an annuitant age 45 would be calculated as follows:
- -------------------------------------------------------------------------------- End of contract Annual Ratchet to age 85 year Account value benefit base - -------------------------------------------------------------------------------- 1 $105,000 $ 105,000(1) - -------------------------------------------------------------------------------- 2 $115,500 $ 115,500(1) - -------------------------------------------------------------------------------- 3 $129,360 $ 129,360(1) - -------------------------------------------------------------------------------- 4 $103,488 $ 129,360(2) - -------------------------------------------------------------------------------- 5 $113,837 $ 129,360(2) - -------------------------------------------------------------------------------- 6 $127,497 $ 129,360(2) - -------------------------------------------------------------------------------- 7 $127,497 $ 129,360(2) - --------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. ANNUAL RATCHET TO AGE 85 (1) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (2) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. Appendix III: Enhanced death benefit example C-1 Appendix IV: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Select(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying Portfolios (as described below), the corresponding net annual rates of return would be (2.93)%, and 3.07% for the Accumulator(R) Select(SM) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges but they do not reflect the charges we deduct from your account value annually for the optional Guaranteed minimum death benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return would be lower; however, the values shown in the following tables reflect all contract charges. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. D-1 Appendix IV: Hypothetical illustrations Variable deferred annuity Accumulator(R) Select(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Annual Ratchet to age 85 Guaranteed minimum death benefit Guaranteed minimum income benefit
Lifetime Annual Annual Ratchet to Guaranteed Minimum Income Benefit age 85 Guaranteed ---------------------------------- Minimum Guaranteed Hypothetical Account Value Cash Value Benefit Death Total Death Benefit Income Income Contract ------------------- ------------------- ------------------- ------------------- ----------------- ---------------- Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% Age --------- --------- --------- --------- --------- --------- --------- --------- --------- -------- -------- -------- ------- 60 1 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A 61 2 95,646 101,612 95,646 101,612 100,000 101,612 100,000 101,612 N/A N/A N/A N/A 62 3 91,399 103,219 91,399 103,219 100,000 103,219 100,000 103,219 N/A N/A N/A N/A 63 4 87,253 104,820 87,253 104,820 100,000 104,820 100,000 104,820 N/A N/A N/A N/A 64 5 83,202 106,411 83,202 106,411 100,000 106,411 100,000 106,411 N/A N/A N/A N/A 65 6 79,241 107,989 79,241 107,989 100,000 107,989 100,000 107,989 N/A N/A N/A N/A 66 7 75,362 109,552 75,362 109,552 100,000 109,552 100,000 109,552 N/A N/A N/A N/A 67 8 71,561 111,096 71,561 111,096 100,000 111,096 100,000 111,096 N/A N/A N/A N/A 68 9 67,831 112,616 67,831 112,616 100,000 112,616 100,000 112,616 N/A N/A N/A N/A 69 10 64,166 114,110 64,166 114,110 100,000 114,110 100,000 114,110 N/A N/A N/A N/A 74 15 81,370 121,644 81,370 121,644 100,000 121,644 100,000 121,644 14,266 14,266 14,266 14,266 79 20 58,989 127,137 58,989 127,137 100,000 127,137 100,000 127,137 20,393 20,393 20,393 20,393 84 25 37,306 130,197 37,306 130,197 100,000 130,197 100,000 130,197 34,821 34,821 34,821 34,821 89 30 27,621 142,898 27,621 142,898 100,000 130,408 100,000 130,408 N/A N/A N/A N/A 94 35 21,908 160,392 21,908 160,392 100,000 130,408 100,000 130,408 N/A N/A N/A N/A 95 36 20,880 164,164 20,880 164,164 100,000 130,408 100,000 130,408 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. Appendix IV: Hypothetical illustrations D-2 Appendix V: Guaranteed principal benefit example - -------------------------------------------------------------------------------- For purposes of these examples, we assume that there is an initial contribution of $100,000, made to the contract on February 15, 2008. We also assume that no additional contributions, no transfers among options and no withdrawals from the contract are made. For GPB Option 1, the example also assumes that a 10 year fixed maturity option is chosen. The hypothetical gross rates of return with respect to amounts allocated to the variable investment options are 0%, 6% and 10%. The numbers below reflect the deduction of all applicable separate account and contract charges and also reflect the charge for GPB Option 2. Also, for any given performance of your variable investment options, GPB Option 1 produces higher account values than GPB Option 2 unless investment performance has been significantly positive. The examples should not be considered a representation of past or future expenses. Similarly, the annual rates of return assumed in the example are not an estimate or guarantee of future investment performance. - ------------------------------------------------------------------------------------------------------ Assuming 100% Assuming in variable 100% in Under GPB Under GPB investment FMO Option 1 Option 2 options - ------------------------------------------------------------------------------------------------------ Amount allocated to FMO on February 15, 2008 based upon a 4.01% rate to maturity 100,000 67,470 40,000 -- - ------------------------------------------------------------------------------------------------------ Initial account value allocated to the variable investment options on February 15, 2008 0 32,530 60,000 100,000 - ------------------------------------------------------------------------------------------------------ Account value in the fixed maturity option on February 15, 2018 148,215 100,000 59,286 0 - ------------------------------------------------------------------------------------------------------ Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018 , assuming a 0% gross rate of return) 148,215 124,162 100,000* 74,276 - ------------------------------------------------------------------------------------------------------ Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018 , assuming a 6% gross rate of return) 148,215 144,016 133,718** 135,308 - ------------------------------------------------------------------------------------------------------ Annuity account value (computed by adding together the value at the maturity date of the applicable fixed maturity option plus the value of amounts in the variable investment options on February 15, 2018 , assuming a 10% gross rate of return) 148,215 164,411 168,972** 198,006 - ------------------------------------------------------------------------------------------------------
* Since the annuity account value is less than the alternate benefit under GPB Option 2, the annuity account value is adjusted upward to the guaranteed amount or an increase of $499 in this example ** Since the annuity account value is greater than the alternate benefit under GPB Option 2, GPB Option 2 will not affect the annuity account value. E-1 Appendix V: Guaranteed principal benefit example Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 2 HOW TO OBTAIN AN ACCUMULATOR(R) SELECT(SM) STATEMENT OF ADDITIONAL INFORMATION FOR SEPARATE ACCOUNT NO. 49 Send this request form to: Accumulator(R) Select(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Please send me an Accumulator(R) Select(SM) SAI FOR SEPARATE ACCOUNT NO. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip x1888/Select '02/'04, OR, '04 (NY), '06/'06.5 and '07 Series Accumulator(R) Select(SM) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing, or taking any other action under your contract. You should read the prospectuses for each Trust which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) SELECT(SM)? Accumulator(R) Select(SM) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option or fixed maturity options ("investment options"). There is no withdrawal charge under the contract. Certain features and benefits described in this Prospectus may vary in your state; all features and benefits may not be available in all contracts, in all states or from all selling broker-dealers. Please see Appendix VI later in this Prospectus for more information on state availability and/or variations of certain features and benefits. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street Small o EQ/Ariel Appreciation II Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Value." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option and the fixed maturity options, which are discussed later in this Prospectus. If you elect the Guaranteed withdrawal benefit for life or a Principal guarantee benefit, your investment options will be limited to the guaranteed interest option and certain permitted variable investment option(s). The permitted variable investment options are described later in this Prospectus. TYPES OF CONTRACTS. We offer the contracts for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). o Traditional and Roth Inherited IRA beneficiary continuation contract ("Inherited IRA") (direct transfer contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $25,000 is required to purchase a contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. X01917/Select '06/'06.5 Series (R-4/15) Contents of this Prospectus - -------------------------------------------------------------------------------- ACCUMULATOR(R) SELECT(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) Select(SM) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 11 - -------------------------------------------------------------------------------- Example 15 Condensed financial information 18 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 19 - -------------------------------------------------------------------------------- How you can purchase and contribute to your contract 19 Owner and annuitant requirements 22 How you can make your contributions 22 What are your investment options under the contract? 22 Portfolios of the Trusts 23 Allocating your contributions 29 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 30 Annuity purchase factors 32 Guaranteed minimum income benefit option 32 Guaranteed minimum death benefit 34 Guaranteed withdrawal benefit for life ("GWBL") 36 Principal guarantee benefits 39 Inherited IRA beneficiary continuation contract 40 Your right to cancel within a certain number of days 41 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 42 - -------------------------------------------------------------------------------- Your account value and cash value 42 Your contract's value in the variable investment options 42 Your contract's value in the guaranteed interest option 42 Your contract's value in the fixed maturity options 42 Insufficient account value 42 - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 43 - -------------------------------------------------------------------------------- Transferring your account value 43 Disruptive transfer activity 43 Rebalancing your account value 44 - ---------------------- "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 45 - -------------------------------------------------------------------------------- Withdrawing your account value 45 How withdrawals are taken from your account value 47 How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits 47 How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit 47 Withdrawals treated as surrenders 47 Loans under Rollover TSA contracts 48 Surrendering your contract to receive its cash value 48 When to expect payments 49 Your annuity payout options 49 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 52 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 52 Charges that the Trusts deduct 54 Group or sponsored arrangements 54 Other distribution arrangements 54 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 55 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 55 Beneficiary continuation option 57 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 59 - -------------------------------------------------------------------------------- Overview 59 Buying a contract to fund a retirement arrangement 59 Transfers among investment options 59 Taxation of nonqualified annuities 59 Individual retirement arrangements (IRAs) 61 Tax-sheltered annuity contracts (TSAs) 70 Federal and state income tax withholding and information reporting 75 Impact of taxes to AXA Equitable 76 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 77 - -------------------------------------------------------------------------------- About our Separate Account No. 49 77 About the Trusts 77 About our fixed maturity options 77 About the general account 78 About other methods of payment 79 Dates and prices at which contract events occur 79 About your voting rights 80 About legal proceedings 80 Financial statements 80 Transfers of ownership, collateral assignments, loans and borrowing 80 About Custodial IRAs 81 Distribution of the contracts 81 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 83 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Market value adjustment example B-1 III -- Enhanced death benefit example C-1 IV -- Hypothetical illustrations D-1 V -- Earnings enhancement benefit example E-1 VI -- State contract availability and/or variations of certain features and benefits F-1 VII -- Contract Variations G-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page in Term Prospectus 6% Roll-Up to age 85 31 12 month dollar cost averaging 29 account value 42 administrative charge 52 annual administrative charge 52 Annual Ratchet 38 Annual Ratchet to age 85 enhanced death benefit 31 annuitant 19 annuitization 49 annuity maturity date 50 annuity payout options 49 annuity purchase factors 32 automatic annual reset program 31 automatic customized reset program 31 automatic investment program 79 AXA Allocation portfolios cover beneficiary 55 Beneficiary continuation option ("BCO") 57 business day 79 cash value 42 charges for state premium and other applicable taxes 54 contract date 22 contract date anniversary 22 contract year 22 contributions to Roth IRAs 67 regular contributions 67 rollovers and transfers 68 conversion contributions 68 contributions to traditional IRAs 62 regular contributions 62 rollovers and transfers 63 disruptive transfer activity 43 distribution charge 52 Earnings enhancement benefit 35 Earnings enhancement benefit charge 54 EQAccess 7 ERISA 54 Fixed-dollar option 30 fixed maturity options 28 free look 41 general account 78 general dollar cost averaging 30 guaranteed interest option 28 Guaranteed minimum death benefit 34 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 30 Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset option 31 Guaranteed minimum income benefit 32 Guaranteed minimum income benefit charge 53 Guaranteed minimum income benefit "no lapse guarantee" 33 Guaranteed withdrawal benefit for life ("GWBL") 9 Guaranteed withdrawal benefit for life charge 54 GWBL benefit base 37 IRA cover IRS 59 Inherited IRA cover investment options cover Investment Simplifier 30 Lifetime minimum distribution withdrawals 46 loan reserve account 48 loans under Rollover TSA 48 market adjusted amount 28 market timing 43 maturity dates 28 market value adjustment 28 maturity value 28 Mortality and expense risks charge 52 NQ cover one-time reset option 31 partial withdrawals 45 permitted variable investment options 22 Portfolio cover Principal guarantee benefits 39 processing office 7 rate to maturity 28 Rebalancing 44 Rollover IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 29 Separate Account No. 49 77 Spousal continuation 56 Standard death benefit 30 substantially equal withdrawals 46 Systematic withdrawals 45 TOPS 7 Trusts 77 traditional IRA cover TSA cover unit 42 variable investment options 22 wire transmittals and electronic applications 79 To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract. Your financial professional can provide further explanation about your contract or supplemental materials. 4 Index of key words and phrases
- ------------------------------------------------------------------------------------------------------------------------------------ Prospectus Contract or Supplemental Materials - ------------------------------------------------------------------------------------------------------------------------------------ fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guaranteed minimum income benefit Guaranteed Income Benefit guaranteed interest option Guaranteed Interest Account Guaranteed withdrawal benefit for life Guaranteed withdrawal benefit GWBL benefit base Guaranteed withdrawal benefit for life benefit base Guaranteed annual withdrawal amount Guaranteed withdrawal benefit for life Annual withdrawal amount Excess withdrawal Guaranteed withdrawal benefit for life Excess withdrawal - ------------------------------------------------------------------------------------------------------------------------------------
Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - ------------------------------------------------------ FOR CORRESPONDENCE WITH CHECKS: - ------------------------------------------------------ FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) Select(SM) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) Select(SM) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - ------------------------------------------------------ FOR CORRESPONDENCE WITHOUT CHECKS: - ------------------------------------------------------ FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) Select(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) Select(SM) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - ------------------------------------------------------ REPORTS WE PROVIDE: - ------------------------------------------------------ o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year, and any calendar quarter in which there was a transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility for GWBL deferral bonuses and eligibility to exercise the Guaranteed minimum income benefit and/or the Roll-Up benefit base reset option. - ------------------------------------------------------ TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - ------------------------------------------------------ TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options (not available through EQAccess); o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors, you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or the Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of your transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. Who is AXA Equitable? 7 We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts; (5) spousal consent for loans under Rollover TSA contracts (employer or plan approval required); (6) requests for withdrawals or surrenders from Rollover TSA contracts (employer or plan approval required) and contracts with the Guaranteed withdrawal benefit for life ("GWBL"); (7) tax withholding elections; (8) election of the beneficiary continuation option; (9) IRA contribution recharacterizations; (10) Section 1035 exchanges; (11) direct transfers and rollovers; (12) exercise of the Guaranteed minimum income benefit; (13) requests to reset your Roll-Up benefit base (for contracts that have both the Guaranteed minimum income benefit and the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit); (14) requests to opt out of or back into the annual ratchet of the Guaranteed withdrawal benefit for life ("GWBL") benefit base; (15) death claims; (16) change in ownership (NQ only, if available under your contract); (17) purchase by, or change of ownership to, a nonnatural owner; (18) requests for enrollment in either our Maximum payment plan or Customized payment plan under the Guaranteed withdrawal benefit for life ("GWBL"); and (19) requests to reset the guaranteed minimum value for contracts with a Principal guarantee benefit. WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; (3) general dollar cost averaging (including the fixed dollar and interest sweep options); and (4) 12 month dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging (including the fixed dollar and interest sweep options); (3) 12 month dollar cost averaging; (4) substantially equal withdrawals; (5) systematic withdrawals; and (6) the date annuity payments are to begin. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION AT LEAST 30 CALENDAR DAYS PRIOR TO YOUR CONTRACT DATE ANNIVERSARY: (1) automatic annual reset program; and (2) automatic customized reset program. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners both must sign. 8 Who is AXA Equitable? Accumulator(R) Select(SM) at a glance -- key features - -------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------------ Professional investment Accumulator(R) Select(SM)'s variable investment options invest in different Portfolios managed management by professional investment advisers. - ------------------------------------------------------------------------------------------------------------------------------------ Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. ---------------------------------------------------------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed interest o Principal and interest guarantees. option o Interest rates set periodically. - ------------------------------------------------------------------------------------------------------------------------------------ Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. o No tax on transfers among investment options inside the contract. ---------------------------------------------------------------------------------------------------------- If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA), or tax sheltered annuity (TSA) you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before purchasing one of these contracts, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities compared with any other investment that you may use in connection with your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during your life once you elect income benefit to annuitize the contract. - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed withdrawal The Guaranteed withdrawal benefit for life option ("GWBL"), guarantees that you can take withdrawals of benefit for life up to a maximum amount each contract year (your "Guaranteed annual withdrawal amount") beginning at age 45. Withdrawals are taken from your account value and continue during your lifetime even if your account value falls to zero (unless it is caused by a withdrawal that exceeds your Guaranteed annual withdrawal amount). - ------------------------------------------------------------------------------------------------------------------------------------ Contribution amounts o Initial minimum: $25,000 o Additional minimum: $500 (NQ and Rollover TSA) $100 monthly and $300 quarterly under our automatic investment program (NQ contracts) $1,000 (Inherited IRA contracts) $50 (IRA contracts) Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million ($500,000 for owners or annuitants who are age 81 and older at contract issue unless you elect GWBL) under all Accumulator(R) series contracts with the same owner or annuitant. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. See "How you can purchase and contribute to your contract" in "Contract features and benefits" later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Select(SM) at a glance -- key features 9 - ------------------------------------------------------------------------------------------------------------------------------------ Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender o Maximum payment plan (only under contracts with GWBL) o Customized payment plan (only under contracts with GWBL) You may incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ------------------------------------------------------------------------------------------------------------------------------------ Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option) - ------------------------------------------------------------------------------------------------------------------------------------ Additional features o Guaranteed minimum death benefit options o Principal guarantee benefits o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually and annually) o Free transfers o Earnings enhancement benefit, an optional death benefit available under certain contracts o Spousal continuation o Beneficiary continuation option o Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset. - ------------------------------------------------------------------------------------------------------------------------------------ Fees and charges Please see "Fee table" later in this section for complete details. - ------------------------------------------------------------------------------------------------------------------------------------ Owner and annuitant NQ: 0-85 issue ages Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85 Inherited IRA: 0-70 - ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available in your state or at certain ages. Please see Appendix VI later in this Prospectus for more information on state availability and/or variations of certain features and benefits. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions in the contract. Please feel free to speak with your financial professional or call us, if you have questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund within a certain number of days. Please see "Your right to cancel within a certain number of days" later in this Prospectus for additional information. Other contracts We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts, based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. 10 Accumulator(R) Select(SM) at a glance -- key features Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying and owning the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay if you purchase a Variable Immediate Annuity payout option. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply.
- ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value at the time you request certain transactions - ------------------------------------------------------------------------------------------------------------------------------------ Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $350 - ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not the underlying trust portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value on each contract date anniversary - ------------------------------------------------------------------------------------------------------------------------------------ Maximum annual administrative charge(1) If your account value on a contract date anniversary is less than $50,000(2) $30 If your account value on a contract date anniversary is $50,000 or more $0 - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks 1.10%(3) Administrative 0.25% Distribution 0.35% ------- Total Separate account annual expenses 1.70% - ------------------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value each year if you elect any of the following optional benefits - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(1) on each contract date anniversary for which the benefit is in effect.) Standard death benefit and GWBL Standard death benefit 0.00% Annual Ratchet to age 85 0.25% Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85* (for certain contracts) 0.60% (for certain other contracts) 0.65% GWBL Enhanced death benefit 0.30% * Please see Appendix VII later in this Prospectus for more information. - ------------------------------------------------------------------------------------------------------------------------------------ Principal guarantee benefits charge (calculated as a percentage of the account value. Deducted annually(1) on each contract date anniversary for which the benefit is in effect.) 100% Principal guarantee benefit 0.50% 125% Principal guarantee benefit 0.75% - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum income benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(1) on each contract date anniversary for which the benefit is in effect.) 0.65% - ------------------------------------------------------------------------------------------------------------------------------------ Earnings enhancement benefit charge (calculated as a percentage of the account value. Deducted annually(1) on each contract date anniversary for which the benefit is in effect.) 0.35% - ------------------------------------------------------------------------------------------------------------------------------------
Fee table 11 - ------------------------------------------------------------------------------------------------------------------------------------ Guaranteed withdrawal benefit for life benefit charge 0.60% for the Single Life option (calculated as a percentage of the GWBL benefit base. Deducted 0.75% for the Joint Life option annually(1) on each contract date anniversary.) If your GWBL benefit base ratchets, we reserve the right to increase 0.75% for the Single Life option your charge up to: 0.90% for the Joint Life option Please see "Guaranteed withdrawal benefit for life" in "Contract features and benefits" for more information about this feature, including its benefit base and the Annual Ratchet provision, and "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses," both later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------------------ Net loan interest charge -- Rollover TSA contracts only (calculated and deducted daily as a percentage of the outstanding loan amount) 2.00%(4) - ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------ Portfolio operating expenses expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ ------- other expenses)(5) 0.63% 3.56%
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- --------------------------------------------------------------------------------------------------------------------- Manage- ment 12b-1 Other Portfolio Name Fees(6) Fees(7) Expenses(8) - --------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - --------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.10% 0.25% 0.17% AXA Conservative Allocation 0.10% 0.25% 0.21% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% AXA Moderate Allocation 0.10% 0.25% 0.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - --------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- Total Acquired Annual Fund Fees Expenses Fee Waiv- Net Annual and (Before ers and/or Expenses Expenses Expense Expense (After (Underlying Limita- Reimburse- Expense Portfolio Name Portfolios)(9) tions) ments(10) Limitations) - --------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - --------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - --------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities -- 0.88% -- 0.88% EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% - ---------------------------------------------------------------------------------------------------------------------
12 Fee table This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- --------------------------------------------------------------------------------------------------------------------- Manage- ment 12b-1 Other Portfolio Name Fees(6) Fees(7) Expenses(8) - --------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- Total Acquired Annual Fund Fees Expenses Fee Waiv- Net Annual and (Before ers and/or Expenses Expenses Expense Expense (After (Underlying Limita- Reimburse- Expense Portfolio Name Portfolios)(9) tions) ments(10) Limitations) - --------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(11) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate -- 1.36% (0.10)% 1.26% - ---------------------------------------------------------------------------------------------------------------------
Notes: (1) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. (2) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, if applicable, the charge is $30 for each contract year. (3) These charges compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. Fee table 13 (4) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (5) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (6) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's Shareholders. See footnotes (10) and (11) for any expense limitation agreement information. (7) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. (8) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (10) and (11) for any expense limitation agreement information. (9) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (10) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce portfolio expenses, the net expenses would be as shown in the table below:
--------------------------------------------- Portfolio Name --------------------------------------------- Multimanager Aggressive Equity 0.97% --------------------------------------------- Multimanager Health Care 1.67% --------------------------------------------- Multimanager Large Cap Core Equity 1.34% --------------------------------------------- Multimanager Large Cap Growth 1.29% --------------------------------------------- Multimanager Large Cap Value 1.26% --------------------------------------------- Multimanager Mid Cap Growth 1.52% --------------------------------------------- Multimanager Mid Cap Value 1.53% --------------------------------------------- Multimanager Small Cap Growth 1.35% --------------------------------------------- Multimanager Small Cap Value 1.45% --------------------------------------------- Multimanager Technology 1.67% --------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% --------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% --------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% --------------------------------------------- EQ/AllianceBernstein Value 0.87% --------------------------------------------- EQ/Ariel Appreciation II 1.09% --------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% --------------------------------------------- EQ/Davis New York Venture 1.25% --------------------------------------------- EQ/Evergreen Omega 1.12% --------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% --------------------------------------------- EQ/GAMCO Small Company Value 1.10% --------------------------------------------- EQ/International Core PLUS 1.05% --------------------------------------------- EQ/Large Cap Core PLUS 0.83% --------------------------------------------- EQ/Large Cap Growth PLUS 0.82% --------------------------------------------- EQ/Legg Mason Value Equity 0.97% --------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% --------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% --------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% --------------------------------------------- EQ/Mid Cap Value PLUS 0.81% --------------------------------------------- EQ/Montag & Caldwell Growth 1.13% --------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% --------------------------------------------- EQ/UBS Growth and Income 1.04% --------------------------------------------- EQ/Van Kampen Comstock 0.99% --------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% ---------------------------------------------
(11) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and adminis tration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. 14 Fee table EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the enhanced death benefit that provides for the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 and the Earnings enhancement benefit with either the Guaranteed minimum income benefit (with the annual reset feature) or the 125% Principal guarantee benefit) would pay in the situations illustrated. Each value in the expense example was calculated with the Guaranteed minimum income benefit except for the AXA Moderate Allocation portfolio. The AXA Moderate Allocation portfolio is calculated with either the Guaranteed minimum income benefit or the 125% Principal guarantee benefit depending on which benefit yielded the higher expenses. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.004% of contract value. The fixed maturity options, guaranteed interest option and the 12 month dollar cost averaging program are not covered by the example. However, the annual administrative charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options, guaranteed interest option and the 12 month dollar cost averaging program. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated, and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Fee table 15
- -------------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period ------------------------------------------------------------ Portfolio Name 1 year 3 years 5 years 10 years - -------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - -------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 1,888.00 $ 2,956.00 $ 5,785.00 AXA Conservative Allocation N/A $ 1,831.00 $ 2,864.00 $ 5,621.00 AXA Conservative-Plus Allocation N/A $ 1,846.00 $ 2,888.00 $ 5,665.00 AXA Moderate Allocation N/A $ 1,874.00 $ 2,910.00 $ 5,699.00 AXA Moderate-Plus Allocation N/A $ 1,870.00 $ 2,927.00 $ 5,734.00 Multimanager Aggressive Equity N/A $ 1,767.00 $ 2,761.00 $ 5,435.00 Multimanager Core Bond N/A $ 1,757.00 $ 2,746.00 $ 5,408.00 Multimanager Health Care N/A $ 1,961.00 $ 3,072.00 $ 5,989.00 Multimanager High Yield N/A $ 1,757.00 $ 2,746.00 $ 5,408.00 Multimanager International Equity N/A $ 1,901.00 $ 2,976.00 $ 5,820.00 Multimanager Large Cap Core Equity N/A $ 1,861.00 $ 2,912.00 $ 5,708.00 Multimanager Large Cap Growth N/A $ 1,867.00 $ 2,922.00 $ 5,725.00 Multimanager Large Cap Value N/A $ 1,852.00 $ 2,898.00 $ 5,682.00 Multimanager Mid Cap Growth N/A $ 1,922.00 $ 3,009.00 $ 5,879.00 Multimanager Mid Cap Value N/A $ 1,919.00 $ 3,005.00 $ 5,871.00 Multimanager Small Cap Growth N/A $ 1,928.00 $ 3,019.00 $ 5,896.00 Multimanager Small Cap Value N/A $ 1,895.00 $ 2,966.00 $ 5,803.00 Multimanager Technology N/A $ 1,961.00 $ 3,072.00 $ 5,989.00 - -------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 1,708.00 $ 2,667.00 $ 5,263.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,718.00 $ 2,681.00 $ 5,291.00 EQ/AllianceBernstein International N/A $ 1,797.00 $ 2,810.00 $ 5,524.00 EQ/AllianceBernstein Large Cap Growth N/A $ 1,840.00 $ 2,878.00 $ 5,647.00 EQ/AllianceBernstein Quality Bond N/A $ 1,721.00 $ 2,686.00 $ 5,300.00 EQ/AllianceBernstein Small Cap Growth N/A $ 1,791.00 $ 2,800.00 $ 5,506.00 EQ/AllianceBernstein Value N/A $ 1,742.00 $ 2,721.00 $ 5,363.00 EQ/Ariel Appreciation II N/A $ 1,834.00 $ 2,869.00 $ 5,630.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,516.00 $ 3,936.00 $ 7,408.00 EQ/BlackRock Basic Value Equity N/A $ 1,733.00 $ 2,706.00 $ 5,336.00 EQ/BlackRock International Value N/A $ 1,831.00 $ 2,864.00 $ 5,621.00 EQ/Boston Advisors Equity Income N/A $ 1,797.00 $ 2,810.00 $ 5,524.00 EQ/Calvert Socially Responsible N/A $ 1,794.00 $ 2,805.00 $ 5,515.00 EQ/Capital Guardian Growth N/A $ 1,770.00 $ 2,766.00 $ 5,444.00 EQ/Capital Guardian Research N/A $ 1,757.00 $ 2,746.00 $ 5,408.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,757.00 $ 2,746.00 $ 5,408.00 EQ/Davis New York Venture N/A $ 1,840.00 $ 2,878.00 $ 5,647.00 EQ/Equity 500 Index N/A $ 1,641.00 $ 2,557.00 $ 5,060.00 EQ/Evergreen International Bond N/A $ 1,791.00 $ 2,800.00 $ 5,506.00 EQ/Evergreen Omega N/A $ 1,800.00 $ 2,815.00 $ 5,533.00 EQ/FI Mid Cap N/A $ 1,773.00 $ 2,770.00 $ 5,453.00 EQ/Franklin Income N/A $ 1,846.00 $ 2,888.00 $ 5,665.00 EQ/Franklin Small Cap Value N/A $ 1,855.00 $ 2,903.00 $ 5,691.00 EQ/Franklin Templeton Founding Strategy N/A $ 1,928.00 $ 3,019.00 $ 5,896.00 EQ/GAMCO Mergers and Acquisitions N/A $ 1,858.00 $ 2,908.00 $ 5,699.00 EQ/GAMCO Small Company Value N/A $ 1,794.00 $ 2,805.00 $ 5,515.00 EQ/International Core PLUS N/A $ 1,812.00 $ 2,834.00 $ 5,568.00 EQ/International Growth N/A $ 1,867.00 $ 2,922.00 $ 5,725.00 EQ/JPMorgan Core Bond N/A $ 1,696.00 $ 2,647.00 $ 5,227.00 EQ/JPMorgan Value Opportunities N/A $ 1,751.00 $ 2,736.00 $ 5,390.00 EQ/Large Cap Core PLUS N/A $ 1,761.00 $ 2,751.00 $ 5,417.00 EQ/Large Cap Growth PLUS N/A $ 1,757.00 $ 2,746.00 $ 5,408.00 EQ/Legg Mason Value Equity N/A $ 1,776.00 $ 2,775.00 $ 5,462.00 EQ/Long Term Bond N/A $ 1,687.00 $ 2,632.00 $ 5,199.00 EQ/Lord Abbett Growth and Income N/A $ 1,773.00 $ 2,770.00 $ 5,453.00 EQ/Lord Abbett Large Cap Core N/A $ 1,788.00 $ 2,795.00 $ 5,498.00 EQ/Lord Abbett Mid Cap Value N/A $ 1,785.00 $ 2,790.00 $ 5,489.00 EQ/Marsico Focus N/A $ 1,825.00 $ 2,854.00 $ 5,603.00 EQ/Mid Cap Value PLUS N/A $ 1,773.00 $ 2,770.00 $ 5,453.00 - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- If you surrender or do not surrender your contract at the end of the applicable time period ------------------------------------------------------------ Portfolio Name 1 year 3 years 5 years 10 years - -------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - -------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 505.00 $ 1,538.00 $ 2,606.00 $ 5,435.00 AXA Conservative Allocation $ 485.00 $ 1,481.00 $ 2,514.00 $ 5,271.00 AXA Conservative-Plus Allocation $ 490.00 $ 1,496.00 $ 2,538.00 $ 5,315.00 AXA Moderate Allocation $ 504.00 $ 1,524.00 $ 2,560.00 $ 5,349.00 AXA Moderate-Plus Allocation $ 498.00 $ 1,520.00 $ 2,577.00 $ 5,384.00 Multimanager Aggressive Equity $ 463.00 $ 1,417.00 $ 2,411.00 $ 5,085.00 Multimanager Core Bond $ 460.00 $ 1,407.00 $ 2,396.00 $ 5,058.00 Multimanager Health Care $ 530.00 $ 1,611.00 $ 2,722.00 $ 5,639.00 Multimanager High Yield $ 460.00 $ 1,407.00 $ 2,396.00 $ 5,058.00 Multimanager International Equity $ 509.00 $ 1,551.00 $ 2,626.00 $ 5,470.00 Multimanager Large Cap Core Equity $ 495.00 $ 1,511.00 $ 2,562.00 $ 5,358.00 Multimanager Large Cap Growth $ 497.00 $ 1,517.00 $ 2,572.00 $ 5,375.00 Multimanager Large Cap Value $ 492.00 $ 1,502.00 $ 2,548.00 $ 5,332.00 Multimanager Mid Cap Growth $ 516.00 $ 1,572.00 $ 2,659.00 $ 5,529.00 Multimanager Mid Cap Value $ 515.00 $ 1,569.00 $ 2,655.00 $ 5,521.00 Multimanager Small Cap Growth $ 518.00 $ 1,578.00 $ 2,669.00 $ 5,546.00 Multimanager Small Cap Value $ 507.00 $ 1,545.00 $ 2,616.00 $ 5,453.00 Multimanager Technology $ 530.00 $ 1,611.00 $ 2,722.00 $ 5,639.00 - -------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 443.00 $ 1,358.00 $ 2,317.00 $ 4,913.00 EQ/AllianceBernstein Intermediate Government Securities $ 446.00 $ 1,368.00 $ 2,331.00 $ 4,941.00 EQ/AllianceBernstein International $ 473.00 $ 1,447.00 $ 2,460.00 $ 5,174.00 EQ/AllianceBernstein Large Cap Growth $ 488.00 $ 1,490.00 $ 2,528.00 $ 5,297.00 EQ/AllianceBernstein Quality Bond $ 447.00 $ 1,371.00 $ 2,336.00 $ 4,950.00 EQ/AllianceBernstein Small Cap Growth $ 471.00 $ 1,441.00 $ 2,450.00 $ 5,156.00 EQ/AllianceBernstein Value $ 454.00 $ 1,392.00 $ 2,371.00 $ 5,013.00 EQ/Ariel Appreciation II $ 486.00 $ 1,484.00 $ 2,519.00 $ 5,280.00 EQ/AXA Rosenberg Value Long/Short Equity $ 727.00 $ 2,166.00 $ 3,586.00 $ 7,058.00 EQ/BlackRock Basic Value Equity $ 451.00 $ 1,383.00 $ 2,356.00 $ 4,986.00 EQ/BlackRock International Value $ 485.00 $ 1,481.00 $ 2,514.00 $ 5,271.00 EQ/Boston Advisors Equity Income $ 473.00 $ 1,447.00 $ 2,460.00 $ 5,174.00 EQ/Calvert Socially Responsible $ 472.00 $ 1,444.00 $ 2,455.00 $ 5,165.00 EQ/Capital Guardian Growth $ 464.00 $ 1,420.00 $ 2,416.00 $ 5,094.00 EQ/Capital Guardian Research $ 460.00 $ 1,407.00 $ 2,396.00 $ 5,058.00 EQ/Caywood-Scholl High Yield Bond $ 460.00 $ 1,407.00 $ 2,396.00 $ 5,058.00 EQ/Davis New York Venture $ 488.00 $ 1,490.00 $ 2,528.00 $ 5,297.00 EQ/Equity 500 Index $ 420.00 $ 1,291.00 $ 2,207.00 $ 4,710.00 EQ/Evergreen International Bond $ 471.00 $ 1,441.00 $ 2,450.00 $ 5,156.00 EQ/Evergreen Omega $ 474.00 $ 1,450.00 $ 2,465.00 $ 5,183.00 EQ/FI Mid Cap $ 465.00 $ 1,423.00 $ 2,420.00 $ 5,103.00 EQ/Franklin Income $ 490.00 $ 1,496.00 $ 2,538.00 $ 5,315.00 EQ/Franklin Small Cap Value $ 493.00 $ 1,505.00 $ 2,553.00 $ 5,341.00 EQ/Franklin Templeton Founding Strategy $ 518.00 $ 1,578.00 $ 2,669.00 $ 5,546.00 EQ/GAMCO Mergers and Acquisitions $ 494.00 $ 1,508.00 $ 2,558.00 $ 5,349.00 EQ/GAMCO Small Company Value $ 472.00 $ 1,444.00 $ 2,455.00 $ 5,165.00 EQ/International Core PLUS $ 478.00 $ 1,462.00 $ 2,484.00 $ 5,218.00 EQ/International Growth $ 497.00 $ 1,517.00 $ 2,572.00 $ 5,375.00 EQ/JPMorgan Core Bond $ 439.00 $ 1,346.00 $ 2,297.00 $ 4,877.00 EQ/JPMorgan Value Opportunities $ 457.00 $ 1,401.00 $ 2,386.00 $ 5,040.00 EQ/Large Cap Core PLUS $ 461.00 $ 1,411.00 $ 2,401.00 $ 5,067.00 EQ/Large Cap Growth PLUS $ 460.00 $ 1,407.00 $ 2,396.00 $ 5,058.00 EQ/Legg Mason Value Equity $ 466.00 $ 1,426.00 $ 2,425.00 $ 5,112.00 EQ/Long Term Bond $ 435.00 $ 1,337.00 $ 2,282.00 $ 4,849.00 EQ/Lord Abbett Growth and Income $ 465.00 $ 1,423.00 $ 2,420.00 $ 5,103.00 EQ/Lord Abbett Large Cap Core $ 470.00 $ 1,438.00 $ 2,445.00 $ 5,148.00 EQ/Lord Abbett Mid Cap Value $ 469.00 $ 1,435.00 $ 2,440.00 $ 5,139.00 EQ/Marsico Focus $ 483.00 $ 1,475.00 $ 2,504.00 $ 5,253.00 EQ/Mid Cap Value PLUS $ 465.00 $ 1,423.00 $ 2,420.00 $ 5,103.00 - --------------------------------------------------------------------------------------------------------
16 Fee table
- -------------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period ----------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - -------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------------------------------------- EQ/Money Market N/A $ 1,662.00 $ 2,592.00 $ 5,125.00 EQ/Montag & Caldwell Growth N/A $ 1,800.00 $ 2,815.00 $ 5,533.00 EQ/Mutual Shares N/A $ 1,864.00 $ 2,917.00 $ 5,717.00 EQ/Oppenheimer Global N/A $ 1,973.00 $ 3,091.00 $ 6,022.00 EQ/Oppenheimer Main Street Opportunity N/A $ 1,925.00 $ 3,014.00 $ 5,888.00 EQ/Oppenheimer Main Street Small Cap N/A $ 1,949.00 $ 3,053.00 $ 5,955.00 EQ/PIMCO Real Return N/A $ 1,736.00 $ 2,711.00 $ 5,345.00 EQ/Short Duration Bond N/A $ 1,702.00 $ 2,657.00 $ 5,245.00 EQ/Small Company Index N/A $ 1,644.00 $ 2,562.00 $ 5,070.00 EQ/T. Rowe Price Growth Stock N/A $ 1,809.00 $ 2,829.00 $ 5,559.00 EQ/Templeton Growth N/A $ 1,876.00 $ 2,937.00 $ 5,751.00 EQ/UBS Growth and Income N/A $ 1,803.00 $ 2,820.00 $ 5,542.00 EQ/Van Kampen Comstock N/A $ 1,770.00 $ 2,766.00 $ 5,444.00 EQ/Van Kampen Emerging Markets Equity N/A $ 1,949.00 $ 3,053.00 $ 5,955.00 EQ/Van Kampen Mid Cap Growth N/A $ 1,785.00 $ 2,790.00 $ 5,489.00 EQ/Van Kampen Real Estate N/A $ 1,864.00 $ 2,917.00 $ 5,717.00 - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- If you surrender or do not surrender your contract at the end of the applicable time period ----------------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - -------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------------------------------------- EQ/Money Market $ 427.00 $ 1,312.00 $ 2,242.00 $ 4,775.00 EQ/Montag & Caldwell Growth $ 474.00 $ 1,450.00 $ 2,465.00 $ 5,183.00 EQ/Mutual Shares $ 496.00 $ 1,514.00 $ 2,567.00 $ 5,367.00 EQ/Oppenheimer Global $ 534.00 $ 1,623.00 $ 2,741.00 $ 5,672.00 EQ/Oppenheimer Main Street Opportunity $ 517.00 $ 1,575.00 $ 2,664.00 $ 5,538.00 EQ/Oppenheimer Main Street Small Cap $ 526.00 $ 1,599.00 $ 2,703.00 $ 5,605.00 EQ/PIMCO Real Return $ 452.00 $ 1,386.00 $ 2,361.00 $ 4,995.00 EQ/Short Duration Bond $ 441.00 $ 1,352.00 $ 2,307.00 $ 4,895.00 EQ/Small Company Index $ 421.00 $ 1,294.00 $ 2,212.00 $ 4,720.00 EQ/T. Rowe Price Growth Stock $ 477.00 $ 1,459.00 $ 2,479.00 $ 5,209.00 EQ/Templeton Growth $ 500.00 $ 1,526.00 $ 2,587.00 $ 5,401.00 EQ/UBS Growth and Income $ 475.00 $ 1,453.00 $ 2,470.00 $ 5,192.00 EQ/Van Kampen Comstock $ 464.00 $ 1,420.00 $ 2,416.00 $ 5,094.00 EQ/Van Kampen Emerging Markets Equity $ 526.00 $ 1,599.00 $ 2,703.00 $ 5,605.00 EQ/Van Kampen Mid Cap Growth $ 469.00 $ 1,435.00 $ 2,440.00 $ 5,139.00 EQ/Van Kampen Real Estate $ 496.00 $ 1,514.00 $ 2,567.00 $ 5,367.00 - --------------------------------------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix IV at the end of this Prospectus. Fee table 17 CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. 18 Fee table 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT You may purchase a contract by making payments to us that we call "contributions." We require a minimum initial contribution of $25,000 for you to purchase a contract. You may make additional contributions of at least $500 each for NQ and Rollover TSA contracts and $50 for Rollover IRA and Roth Conversion contracts and $1000 for Inherited IRA contracts, subject to limitations noted below. The following table summarizes our rules regarding contributions to your contract. Both the owner and the annuitant named in the contract must meet the issue age requirements shown in the table, and contributions are based on the age of the older of the original owner and annuitant. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000 ($500,000 for owners or annuitants who are age 81 and older at contract issue unless you elect GWBL). We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We may accept less than the minimum initial contribution under a contract if an aggregate amount of contracts purchased at the same time by an individual (including spouse) meets the minimum. - -------------------------------------------------------------------------------- The "owner" is the person who is the named owner in the contract and, if an individual, is the measuring life for determining contract benefits. The "annuitant" is the person who is the measuring life for determining the contract's maturity date. The annuitant is not necessarily the contract owner. Where the owner of a contract is non-natural, the annuitant is the measuring life for determining contract benefits. - --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------- Available Contract for owner and Minimum type annuitant ages contributions - ----------------------------------------------------------------------------------------------------- NQ 0 through 85 o $25,000 (initial) o $500 (additional) o $100 monthly and $300 quarterly under our automatic investment program (additional) - ----------------------------------------------------------------------------------------------------- Rollover IRA 20 through 85 o $25,000 (initial) o $50 (additional) - ----------------------------------------------------------------------------------------------------- Contract Limitations on type Source of contributions contributions(+) - ----------------------------------------------------------------------------------------------------- NQ o After-tax money. o No additional contributions after attainment of age 86 or, if later, the o Paid to us by check or transfer of first contract date anniversary.* contract value in a tax-deferred exchange under Section 1035 of the Internal Revenue Code. - ----------------------------------------------------------------------------------------------------- Rollover IRA o Eligible rollover distributions from o No rollover or direct transfer contri- 403(b) plans, qualified plans, and butions after attainment of age 86 governmental employer 457(b) or, if later, the first contract date plans. anniversary.* o Rollovers from another traditional o Contributions after age 70-1/2 must individual retirement arrangement. be net of required minimum distributions. o Direct custodian-to-custodian transfers from another traditional o Although we accept regular IRA individual retirement arrangement. contributions (limited to $5,000) under Rollover IRA contracts, we o Regular IRA contributions. intend that this contract be used primarily for rollover and direct o Additional catch-up contributions. transfer contributions. o Additional catch-up contributions of up to $1000 per calendar year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - -----------------------------------------------------------------------------------------------------
Contract features and benefits 19
- ----------------------------------------------------------------------------------------------------- Available Contract for owner and Minimum type annuitant ages contributions - ----------------------------------------------------------------------------------------------------- Roth Conversion 20 through 85 o $25,000 (initial) IRA o $50 (additional) - ----------------------------------------------------------------------------------------------------- Inherited IRA 0-70 o $25,000 (initial) Beneficiary o $1,000 (additional) Continuation Contract (traditional IRA or Roth IRA) - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- Contract Limitations on type Source of contributions contributions(+) - ----------------------------------------------------------------------------------------------------- Roth Conversion o Rollovers from another Roth IRA. o No additional rollover or direct IRA transfer contributions after attain- o Rollovers from a "designated Roth ment of age 86 or, if later, the first contribution account" under a contract date anniversary.* 401(k) plan or 403(b) plan. o Conversion rollovers after age 70-1/2 o Conversion rollovers from a tradi- must be net of required minimum tional IRA or other eligible distributions for the traditional IRA retirement plan. or other eligible retirement plan which is the source of the o Direct transfers from another Roth conversion rollover. IRA. o Regular Roth IRA contributions. o You cannot roll over funds from a traditional IRA or other eligible o Additional catch-up contributions. retirement plan if your adjusted gross income is $100,000 or more. o Although we accept regular Roth IRA contributions (limited to $5,000) under the Roth IRA con- tracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contributions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribution is made. - ----------------------------------------------------------------------------------------------------- Inherited IRA o Direct custodian-to-custodian o Any additional contributions must Beneficiary transfers of your interest as a be from the same type of IRA of the Continuation death beneficiary of the deceased same deceased owner. Contract owner's traditional individual (traditional IRA retirement arrangement or Roth o Non-spousal beneficiary direct or Roth IRA) IRA to an IRA of the same type. rollover contributions from qualified plans, 403(b) plans and govern- mental employer 457(b) plans may be made to a traditional Inherited IRA contract under specified circum- stances. - -----------------------------------------------------------------------------------------------------
20 Contract features and benefits
- ----------------------------------------------------------------------------------------------------- Available Contract for owner and Minimum type annuitant ages contributions - ----------------------------------------------------------------------------------------------------- Rollover TSA** 20 through 85 o $25,000 (initial) o $500 (additional) - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- Contract Limitations on type Source of contributions contributions(+) - ----------------------------------------------------------------------------------------------------- Rollover TSA** o With documentation of employer o No additional rollover or direct or plan approval, and limited to transfer contributions after attain- pre-tax funds, direct plan-to-plan ment of age 86 or, if later, the first transfers from another 403(b) plan contract date anniversary.* or contract exchanges from o Contributions after age 70-1/2 must another 403(b) contract under the be net of any required minimum same plan. distributions. o With documentation of employer o We do not accept employer- or plan approval, and limited to remitted contributions. pre-tax funds, eligible rollover o We do not accept after-tax contri- distributions from other 403(b) butions, including designated Roth plans, qualified plans, governmental contributions. employer 457(b) plans or traditional IRAs. - -----------------------------------------------------------------------------------------------------
+ Additional contributions may not be permitted under certain conditions in your state. Please see Appendix VI later in the Prospectus to see if additional contributions are permitted in your state. If you are participating in a Principal guarantee benefit, contributions will only be permitted for the first six months after the contract is issued and no further contributions will be permitted for the life of the contract. For the Guaranteed withdrawal benefit for life option, additional contributions are not permitted after the later of: (i) the end of the first contract year, and (ii) the date you make your first withdrawal. * Please see Appendix VI later in this Prospectus for state variations. ** May not be available from all Selling broker-dealers. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. Contract features and benefits 21 OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. We do not permit partnerships or limited liability corporations to be owners. We also reserve the right to prohibit availability of this contract to other non-natural owners. Only natural persons can be joint owners. For the Spousal continuation feature to apply, the spouses must either be joint owners, or, for Single life contracts, the surviving spouse must be the sole primary beneficiary. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. This contract is not available for purchase by Charitable Remainder Trusts. In general, we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your state. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. See Inherited IRA beneficiary continuation contract later in this section for Inherited IRA owner and annuitant requirements. Certain benefits under your contract, as described later in this Prospectus, are based on the age of the owner. If the owner of the contract is not a natural person, these benefits will be based on the age of the annuitant. If the contract is jointly owned and GWBL has not been elected, benefits are based on the age of the older joint owner. In this Prospectus, when we use the term "owner." we intend this to be a reference to the annuitant if the contract has a non-natural owner. If GWBL is elected, the terms "owner" and "successor owner" are intended to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. We do not permit joint annuitants unless you elect the Guaranteed withdrawal benefit for life on a Joint life basis and the contract is owned by a non-natural owner. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept initial and additional contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealers. Additional contributions may also be made under our automatic investment program. These methods of payment are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- Your initial contribution must generally be accompanied by an application and any other form we need to process the payments. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain that information. If we are unable to obtain all of the information we require within five business days after we receive an incomplete application or form, we will inform the financial professional submitting the application on your behalf. We will then return the contribution to you unless you specifically direct us to keep your contribution until we receive the required information. The contribution will be applied as of the date we receive the missing information. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option and the fixed maturity options. If you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit, your investment options will be limited to the guaranteed interest option and the following variable investment options: the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio ("permitted variable investment options"). If you elect the 125% Principal guarantee benefit, your investment options will be limited to the guaranteed interest option and the AXA Moderate Allocation Portfolio. VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. 22 Contract features and benefits PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risk associated with certain guaranteed features, including those optional benefits that restrict allocations to the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- --------------------------------------------------------------------------------------- AXA Premier VIP Trust Portfolio Name Objective - --------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. - --------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. - --------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a ALLOCATION greater emphasis on current income. - --------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. - --------------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, ALLOCATION with a greater emphasis on capital appreciation. - --------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. EQUITY - --------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital appreciation, consistent with a prudent level of risk. - --------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. - --------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current income and capital appreciation. - --------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. EQUITY - --------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - --------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION o AXA Equitable - --------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION o AXA Equitable - --------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS o AXA Equitable - --------------------------------------------------------------------------------------- ALLOCATION AXA MODERATE ALLOCATION o AXA Equitable - --------------------------------------------------------------------------------------- AXA MODERATE-PLUS o AXA Equitable ALLOCATION - --------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - --------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND o BlackRock Financial Management, Inc. o Pacific Investment Management Company LLC - --------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - --------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD o Pacific Investment Management Company LLC o Post Advisory Group, LLC - --------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - ---------------------------------------------------------------------------------------
Contract features and benefits 23
- ------------------------------------------------------------------------------------------------------------------------------------ AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
- --------------------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - --------------------------------------------------------------------------------------------------- EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear LONG/SHORT EQUITY markets using strategies that are designed to limit exposure to general equity market risk. - --------------------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, EQUITY income. - --------------------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of VALUE income, accompanied by growth of capital. - --------------------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to INCOME achieve an above-average and consistent total return. - --------------------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. RESPONSIBLE - --------------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. - --------------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. RESEARCH - --------------------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. YIELD BOND - --------------------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. - --------------------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - --------------------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. BOND - --------------------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. - --------------------------------------------------------------------------------------------------- EQ/FI MID CAP Seeks to achieve long-term growth of capital. - --------------------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects for capital appreciation. - --------------------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. - --------------------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily seeks FOUNDING STRATEGY income. - --------------------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. ACQUISITIONS - --------------------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. VALUE - --------------------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. - --------------------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. - --------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - --------------------------------------------------------------------------------------------------- EQ/AXA ROSENBERG VALUE o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY - --------------------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE o BlackRock Investment Management, LLC EQUITY - --------------------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL o BlackRock Investment Management VALUE International Limited - --------------------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY o Boston Advisors, LLC INCOME - --------------------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - --------------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH o Capital Guardian Trust Company - --------------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company RESEARCH - --------------------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH o Caywood-Scholl Capital Management YIELD BOND - --------------------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE o Davis Selected Advisers, L.P. - --------------------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX o AllianceBernstein L.P. - --------------------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - --------------------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA o Evergreen Investment Management Company, LLC - --------------------------------------------------------------------------------------------------- EQ/FI MID CAP o Fidelity Management & Research Company - --------------------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME o Franklin Advisers, Inc. - --------------------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE o Franklin Advisory Services, LLC - --------------------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON o AXA Equitable FOUNDING STRATEGY - --------------------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND o GAMCO Asset Management Inc. ACQUISITIONS - --------------------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY o GAMCO Asset Management Inc. VALUE - --------------------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - --------------------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH o MFS Investment Management - ---------------------------------------------------------------------------------------------------
Contract features and benefits 25
- --------------------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - --------------------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with mod- erate risk to capital and maintenance of liquidity. - --------------------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. OPPORTUNITIES - --------------------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- ondary objective to seek reasonable current income. For purposes of this Portfolio, the words "reasonable current income" mean moderate income. - --------------------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. - --------------------------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. - --------------------------------------------------------------------------------------------------- EQ/LONG TERM BOND Seeks to maximize income and capital appreciation through investment in long-maturity debt obligations. - --------------------------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of INCOME income without excessive fluctuation in market value. - --------------------------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of CORE income with reasonable risk. - --------------------------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. - --------------------------------------------------------------------------------------------------- EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. - --------------------------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. - --------------------------------------------------------------------------------------------------- EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve its assets and maintain liquidity. - --------------------------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. GROWTH - --------------------------------------------------------------------------------------------------- EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occasionally be short-term, and secondarily, income. - --------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. - --------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. OPPORTUNITY - --------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. SMALL CAP - --------------------------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with preservation of real capital and prudent investment management. - --------------------------------------------------------------------------------------------------- EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility of principal. - --------------------------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the deduction of Portfolio expenses) the total return of the Russell 2000 Index. - --------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - --------------------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND o JPMorgan Investment Management Inc. - --------------------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE o JPMorgan Investment Management Inc. OPPORTUNITIES - --------------------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS o AXA Equitable o Institutional Capital LLC o Mellon Capital Management Corporation - --------------------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - --------------------------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY o Legg Mason Capital Management, Inc. - --------------------------------------------------------------------------------------------------- EQ/LONG TERM BOND o BlackRock Financial Management, Inc. - --------------------------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND o Lord, Abbett & Co. LLC INCOME - --------------------------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP o Lord, Abbett & Co. LLC CORE - --------------------------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE o Lord, Abbett & Co. LLC - --------------------------------------------------------------------------------------------------- EQ/MARSICO FOCUS o Marsico Capital Management, LLC - --------------------------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - --------------------------------------------------------------------------------------------------- EQ/MONEY MARKET o The Dreyfus Corporation - --------------------------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL o Montag & Caldwell, Inc. GROWTH - --------------------------------------------------------------------------------------------------- EQ/MUTUAL SHARES o Franklin Mutual Advisers, LLC - --------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL o OppenheimerFunds, Inc. - --------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. OPPORTUNITY - --------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET o OppenheimerFunds, Inc. SMALL CAP - --------------------------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN o Pacific Investment Management Company, LLC - --------------------------------------------------------------------------------------------------- EQ/SHORT DURATION BOND o BlackRock Financial Management, Inc. - --------------------------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX o AllianceBernstein L.P. - ---------------------------------------------------------------------------------------------------
26 Contract features and benefits
- --------------------------------------------------------------------------------------------------- EQ Advisors Trust Portfolio Name Objective - --------------------------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and STOCK secondarily, income. - --------------------------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. - --------------------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation with income as a secondary consideration. - --------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. - --------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. MARKETS EQUITY - --------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. GROWTH - --------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- term capital appreciation. - --------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name applicable) - --------------------------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH o T. Rowe Price Associates, Inc. STOCK - --------------------------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH o Templeton Global Advisors Limited - --------------------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME o UBS Global Asset Management (Americas) Inc. - --------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK o Morgan Stanley Investment Management Inc. - --------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING o Morgan Stanley Investment Management Inc. MARKETS EQUITY - --------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP o Morgan Stanley Investment Management Inc. GROWTH - --------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN REAL ESTATE o Morgan Stanley Investment Management Inc. - ---------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks, and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The prospectuses should be read carefully before investing. Contract features and benefits 27 GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges and any optional benefit charges. See Appendix VI later in this Prospectus for state variations. Depending on the state where your contract is issued, your lifetime minimum rate ranges from 1.00% to 3.00%. The data page for your contract shows the lifetime minimum rate. Check with your financial professional as to which rate applies in your state. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75% or 3.00%, depending on your lifetime minimum rate. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfers to and from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional or see Appendix VI later in this Prospectus to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options range from one to ten years to maturity. - -------------------------------------------------------------------------------- On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for owner and annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you apply for an Accumulator(R) Select(SM) contract, a 60-day rate lock-in will apply from the date the application is signed. Any contributions received and designated for a fixed maturity option during this period will receive the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever is greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from any of the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value. If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008, the next available maturity date was February 15, 2015. If no fixed maturity options are available we will transfer your maturity value to the EQ/Money Market option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable 28 Contract features and benefits market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options, (adjusted to reflect a similar maturity date) and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix II at the end of this Prospectus provides an example of how the market value adjustment is calculated. ALLOCATING YOUR CONTRIBUTIONS You may choose between self-directed and dollar cost averaging to allocate your contributions under your contract. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, guaranteed interest option (subject to restrictions in certain states--see Appendix VI later in this Prospectus for state variations) and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. No more than 25% of any contribution may be allocated to the guaranteed interest option. The total of your allocations into all available investment options must equal 100%. If an owner or annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options or the guaranteed interest option. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- 12 MONTH DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the EQ/Money Market option into any of the other variable investment options. You may elect to participate in the 12 month dollar cost averaging program at any time subject to the age limitation on contributions described earlier in this Prospectus. Contributions into the account for 12 month dollar cost averaging may not be transfers from other investment options. You must allocate your entire initial contribution into the EQ/Money Market option if you are selecting the 12 month dollar cost averaging program at application to purchase an Accumulator(R) Select(SM) contract; thereafter, initial allocations to any new 12 month dollar cost averaging program time period must be at least $2,000 and any subsequent contribution to that same time period must be at least $250. You may only have one time period in effect at any time. We will transfer your value in the EQ/Money Market option into the other variable investment options that you select over the next 12 months or such other period we may offer. Once the time period then in effect has run, you may then select to participate in the dollar cost averaging program for an additional time period. At that time, you may also select a different allocation for transfers to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Currently, the transfer date will be the same day of the month as the contract date, but not later than the 28th. For a 12 month dollar cost averaging program selected after application, the first transfer date and each subsequent transfer date for the time period selected will be one month from the date the first contribution is made into the 12 month dollar cost averaging program, but not later than the 28th of the month. All amounts will be transferred out by the end of the time period then in effect. Under this program we will not deduct the mortality and expense risks, administrative, and distribution charges from assets in the EQ/Money Market option. Contract features and benefits 29 You may not transfer amounts to the EQ/Money Market option established for this program that are not part of the 12 month dollar cost averaging program. The only amounts that should be transferred from the EQ/Money Market option are your regularly scheduled transfers to the other variable investment options. If you request to transfer or withdraw any other amounts from the EQ/Money Market option, we will transfer all of the value that you have remaining in the account for 12 month dollar cost averaging to the investment options according to the allocation percentages we have on file for you. You may ask us to cancel your participation at any time. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. If you are participating in a Principal guarantee benefit, the general dollar cost averaging program is not available. If you elect the Guaranteed withdrawal benefit for life, general dollar cost averaging is not available. INVESTMENT SIMPLIFIER FIXED-DOLLAR OPTION. Under this option you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. The fixed-dollar option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. INTEREST SWEEP OPTION. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life or the 100% Principal guarantee benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not participate in any dollar cost averaging program if you are participating in either rebalancing program. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits, see "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" immediately below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier programs. Not all dollar cost averaging programs are available in all states (see Appendix VI later in this Prospectus for more information on state availability). GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE This section does not apply if you elect GWBL. For information about the GWBL Enhanced death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit and the death benefits as described in this section. The benefit base for the Guaranteed minimum income benefit and any enhanced death benefit will be calculated as described below in this section whether these options are elected individually or in combination. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less 30 Contract features and benefits o a deduction that reflects any withdrawals you make. The amount of the deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. 6% ROLL-UP TO AGE 85 (USED FOR THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make. The amount of the deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The effective annual roll-up rate credited to this benefit base is: o 6% with respect to the variable investment options (other than EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond) and monies allocated to the 12 month dollar cost averaging program; the effective annual rate may be 4% in some states. Please see Appendix VI later in this Prospectus to see what applies in your state; and o 3% with respect to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, and EQ/Short Duration Bond, the fixed maturity options, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up on the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday. For contracts with non-natural owners, the benefit base stops rolling up on the contract date anniversary following the annuitant's 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, AND THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: o your initial contribution to the contract (plus any additional contributions), or o your highest account value on any contract date anniversary up to the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday, plus any contributions made since the most recent Annual Ratchet, less o a deduction that reflects any withdrawals you make. The amount of the deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. For contracts with non-natural owners, the last contract date anniversary a ratchet could occur is based on the annuitant's age. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6% Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. In Washington a different roll-up rate applies to the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. See Appendix VI later in this Prospectus. GUARANTEED MINIMUM DEATH BENEFIT/GUARANTEED MINIMUM INCOME BENEFIT ROLL-UP BENEFIT BASE RESET. If both the Guaranteed minimum income benefit AND the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit (the "Greater of enhanced death benefit") are elected, you may reset the Roll-Up benefit base for these guaranteed benefits to equal the account value on any contract date anniversary until the contract date anniversary following age 75, if your contract has an annual reset. If your contract has a five year reset, you may reset the Roll-Up benefit base for these guaranteed benefits to equal the account value on any 5th or later contract date anniversary until the contract date anniversary following age 75. The reset amount would equal the account value as of the contract date anniversary on which you reset your Roll-Up benefit base. The 6% Roll-Up continues to age 85 on any reset benefit base. We will send you a notice in each year that the Roll-Up benefit base is eligible to be reset, and you will have 30 days from your contract date anniversary to reset your Roll-Up benefit base. If your contract is eligible for an annual reset and your request to reset your Roll-Up benefit base is received at our processing office more than 30 days after your contract date anniversary, your Roll-Up benefit base will reset on the next contract date anniversary on which you are eligible for a reset. If your contract is eligible for an annual reset, you may choose one of the three available reset methods: one-time reset option, automatic annual reset program or automatic customized reset program. - -------------------------------------------------------------------------------- ONE-TIME RESET OPTION - resets your Roll-Up benefit base on a single contract date anniversary. AUTOMATIC ANNUAL RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary you are eligible for a reset. AUTOMATIC CUSTOMIZED RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary, if eligible, for the period you designate. - -------------------------------------------------------------------------------- If you wish to cancel your elected reset program, your request must be received by our processing office at least 30 days prior to your contract date anniversary to terminate your reset program for such contract date anniversary. Cancellation requests received after this window will be applied the following year. A reset cannot be cancelled after it has occurred. For more information, see "How to reach us" earlier in this Contract features and benefits 31 Prospectus. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset until the next contract date anniversary or for five years, depending upon the reset period available under your contract. Please see Appendix VII later in this Prospectus for more information on the reset feature available under your contract. If after your death your spouse continues the contract and your contract has an annual reset, the benefit base will be eligible to be reset on each contract date anniversary, if applicable. However if your contract has a five year reset, the benefit base will be eligible to be reset either five years from the contract date or from the last reset date, if applicable. The last age at which the benefit base is eligible to be reset is the contract date anniversary following owner (or older joint owner, if applicable) age 75. For contracts with non-natural owners, reset eligibility is based on the annuitant's age. It is important to note that once you have reset your Roll-Up benefit base, a new waiting period to exercise the Guaranteed minimum income benefit will apply from the date of reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset; you may not exercise until the tenth contract date anniversary following the reset. See "Exercise rules" under "Guaranteed minimum income benefit option" below for more information. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the exercise waiting period. Also, even when there is no additional charge when you reset your Roll-Up benefit base, the total dollar amount charged on future contract date anniversaries may increase as a result of the reset since the charges may be applied to a higher benefit base than would have been otherwise applied. See "Charges and expenses" in the Prospectus. If you are a traditional IRA or TSA contract owner, before you reset your Roll-Up benefit base, please consider the effect of the 10-year exercise waiting period on your requirement to take lifetime required minimum distributions with respect to this contract. If you must begin taking lifetime required minimum distributions during the 10-year waiting period, you may want to consider taking the annual lifetime required minimum distribution calculated for this contract from another traditional IRA or TSA contract that you maintain. If you withdraw the lifetime required minimum distribution from this contract, and the required minimum distribution is more than 6% of the reset benefit base, the withdrawal would cause a pro-rata reduction in the benefit base. Alternatively, resetting the benefit base to a larger amount would make it less likely that the required minimum distributions would exceed the 6% threshold. See "Lifetime required minimum distribution withdrawals" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money." Also, see "Required minimum distributions" under "Individual retirement arrangements (IRAs)" and "Tax-sheltered annuity contracts (TSAs)" in "Tax information" later in this Prospectus. The Roll-Up benefit base for both the "Greater of" enhanced death benefit and the Guaranteed minimum income benefit are reset simultaneously when you request a Roll-Up benefit base reset. You cannot elect a Roll-Up benefit base reset for one benefit and not the other. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed in "Guaranteed minimum income benefit option" below and annuity payout options are discussed in "Accessing your money" later in this Prospectus. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the owner's (and any joint owner's) age and sex in certain instances. Your contract may specify different guaranteed annuity purchase factors for the Guaranteed minimum income benefit and the annuity payout options. We may provide more favorable current annuity purchase factors for the annuity payout options. GUARANTEED MINIMUM INCOME BENEFIT OPTION The Guaranteed minimum income benefit is available if the owner is age 20 through 75 at the time the contract is issued. If the contract is jointly owned, the Guaranteed minimum income benefit will be calculated on the basis of the older owner's age. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. If you are purchasing this contract as an Inherited IRA, or if you elect a Principal guarantee benefit or the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit is not available. For IRA, QP and Rollover TSA contracts, owners over age 60 at contract issue should consider the impact of the minimum distributions required by tax law in relation to the withdrawal limitations under the Guaranteed minimum income benefit. See "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. If you elect the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option, subject to state availability. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the owner's age as follows: - -------------------------------------- Level payments - -------------------------------------- Period certain years Owner's --------------------- age at exercise IRAs NQ - -------------------------------------- 75 and younger 10 10 76 9 10 - -------------------------------------- 32 Contract features and benefits - -------------------------------------- Level payments - -------------------------------------- Period certain years Owner's --------------------- age at exercise IRAs NQ - -------------------------------------- 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - -------------------------------------- We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit should be regarded as a safety net only. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base to guaranteed annuity purchase factors, or (ii) the income provided by applying your account value to our then current annuity purchase factors. For Rollover TSA only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than -1/12 or -1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. Before you elect the Guaranteed minimum income benefit, you should consider the fact that it provides a form of insurance and is based on conservative actuarial factors. For certain contracts, the guaranteed annuity purchase factors we use to determine your payout annuity benefit under the Guaranteed minimum income benefit are more conservative than the guaranteed annuity purchase factors we use for our standard payout annuity options. This means that, assuming the same amount is applied to purchase the benefit and that we use guaranteed annuity purchase factors to compute the benefit, each periodic payment under the Guaranteed minimum income benefit payout annuity will be smaller than each periodic payment under our standard payout annuity options. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. GUARANTEED MINIMUM INCOME BENEFIT "NO LAPSE GUARANTEE". In general, if your account value falls to zero (except as discussed below, if your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days), the Guaranteed minimum income benefit will be exercised automatically, based on the owner's (or older joint owner's, if applicable) current age and benefit base, as follows: o You will be issued a supplementary contract based on a single life with a maximum 10 year period certain. Payments will be made annually starting one year from the date the account value fell to zero. o You will have 30 days from when we notify you to change the payout option and/or the payment frequency. Please note that we will not automatically exercise the Guaranteed minimum income benefit, as described above, if you have a TSA contract and withdrawal restrictions apply. The no lapse guarantee will terminate under the following circumstances: o If your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year); o If your aggregate withdrawals during any contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days); o Upon owner (or older joint owner, if applicable) reaching age 85. Please note that if you participate in our Automatic RMD service, an automatic withdrawal under that program will not cause the no lapse guarantee to terminate even if a withdrawal causes your total contract year withdrawals to exceed 6% of your Roll-Up benefit base. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the Guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male owner age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed Contract features and benefits 33 interest option, the fixed maturity options or the loan reserve account. - -------------------------------------------------------------------------------- Guaranteed mini- Guaranteed mini- mum income benefit mum income benefit -- annual income -- annual income payable for life (for payable for life contracts with the (for contracts with Contract date five year Roll-Up the annual Roll-Up anniversary at benefit base reset benefit base reset exercise feature). feature). - -------------------------------------------------------------------------------- 10 $11,891 $10,065 15 $18,597 $15,266 - -------------------------------------------------------------------------------- EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us, along with all required information, within 30 days following your contract date anniversary in order to exercise this benefit. Upon exercise of the Guaranteed minimum income benefit, the owner will become the annuitant, and the contract will be annuitized on the basis of the owner's life. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payout contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death or, if later, then end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. Eligibility to exercise the Guaranteed minimum income benefit is based on the owner's (or older joint owner's, if applicable) age as follows: o If you were at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If you were at least age 45 and no older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after age 60. o If you were at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your 85th birthday; (ii) if you were age 75 when the contract was issued or the Roll-Up benefit base was reset, the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your attainment of age 85; (iii) for Accumulator(R) Select(SM) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Select(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (iv) if you reset the Roll-Up benefit base (as described earlier in this section), your new exercise date will be the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the waiting period; (v) a spouse beneficiary or younger spouse joint owner under Spousal continuation may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original owner could have exercised the benefit. In addition, the spouse beneficiary or younger spouse joint owner must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The spouse beneficiary or younger spouse joint owner's age on the date of the owner's death replaces the owner's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules. (vi) if the contract is jointly owned, you can elect to have the Guaranteed minimum income benefit paid either: (a) as a joint life benefit or (b) as a single life benefit paid on the older owner's age; and (vii) if the contract is owned by a trust or other non-natural person, eligibility to elect or exercise the Guaranteed minimum income benefit is based on the annuitant's age, rather than the owner's. See "Effect of the owner's death" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. Your contract provides a standard death benefit. If you do not elect one of the enhanced death benefits described below, the death benefit is equal to your account value (without adjustment for any otherwise 34 Contract features and benefits applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions adjusted for any withdrawals. The standard death benefit is the only death benefit available for owners (or older joint owners, if applicable) ages 76 through 85 at issue. Once your contract is issued, you may not change or voluntarily terminate your death benefit. If you elect one of the enhanced death benefits, (not including the GWBL Enhanced death benefit) the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, information and forms necessary to effect payment, OR your elected enhanced death benefit on the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals, whichever provides the higher amount. See "Payment of death benefit" later in this Prospectus for more information. Any of the enhanced death benefits or the standard death benefit can be elected by themselves or with the Guaranteed minimum income benefit. If you elect one of the enhanced death benefit options described below and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, any enhanced death benefit elected will be replaced with the standard death benefit. For contracts with non-natural owners, the death benefit will be payable upon the death of the annuitant. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR OWNER (OR OLDER JOINT OWNER, IF APPLICABLE) AGES 0 THROUGH 75 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; AND 0 THROUGH 70 AT ISSUE OF INHERITED IRA CONTRACTS. FOR CONTRACTS WITH NON-NATURAL OWNERS, THE AVAILABLE DEATH BENEFITS ARE BASED ON THE ANNUITANT'S AGE. Subject to state availability, you may elect one of the following enhanced death benefits (see Appendix VI later in this Prospectus for state availability of these benefits): o Annual Ratchet to age 85. o The Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85. Each enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Once you have made your enhanced death benefit election, you may not change it. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus for more information on these guaranteed benefits. See Appendix III later in this Prospectus for an example of how we calculate an enhanced death benefit. EARNINGS ENHANCEMENT BENEFIT Subject to state and contract availability (see Appendix VI later in this Prospectus for state availability of these benefits), if you are purchasing a contract under which the Earnings enhancement benefit is available, you may elect the Earnings enhancement benefit at the time you purchase your contract. The Earnings enhancement benefit provides an additional death benefit as described below. See the appropriate part of "Tax information" later in this Prospectus for the potential tax consequences of electing to purchase the Earnings enhancement benefit in an NQ, IRA or Rollover TSA contract. Once you purchase the Earnings enhancement benefit , you may not voluntarily terminate this feature. If you elect the Guaranteed withdrawal benefit for life, the Earnings enhancement benefit is not available. If you elect the Earnings enhancement benefit option described below and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the owner (or older joint owner, if applicable) is 70 or younger when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is 70 or younger when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 40% of: the greater of: o the account value or o any applicable death benefit decreased by: o total net contributions For purposes of calculating your Earnings enhancement benefit, the following applies: (i) "Net contributions" are the total contributions made (or, if applicable, the total amount that would otherwise have been paid as a death benefit had the spouse beneficiary or younger spouse joint owner not continued the contract plus any subsequent contributions) adjusted for each withdrawal that exceeds your Earnings enhancement benefit earnings. "Net contributions" are reduced by the amount of that excess. Earnings enhancement benefit earnings are equal to (a) minus (b) where (a) is the greater of the account value and the death benefit immediately prior to the withdrawal, and (b) is the net contributions as adjusted by any prior withdrawals; and (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable Guaranteed minimum death benefit as of the date of death. If the owner (or older joint owner, if applicable) is age 71 through 75 when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is between the ages of 71 and 75 when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 25% of: Contract features and benefits 35 the greater of: o the account value or o any applicable death benefit decreased by: o total net contributions The value of the Earnings enhancement benefit is frozen on the first contract date anniversary after the owner (or older joint owner, if applicable) turns age 80, except that the benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce the benefit by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If the benefit is $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and the benefit after the withdrawal would be $24,000 ($40,000 - $16,000). For contracts with non-natural owners, your eligibility to elect the Earnings enhancement benefit will be based on the annuitant's age. For an example of how the Earnings enhancement death benefit is calculated, please see Appendix V. For contracts continued under Spousal continuation, upon the death of the spouse (or older spouse, in the case of jointly owned contracts), the account value will be increased by the value of the Earnings enhancement benefit as of the date we receive due proof of death. The benefit will then be based on the age of the surviving spouse as of the date of the deceased spouse's death for the remainder of the contract. If the surviving spouse is age 76 or older, the benefit will terminate and the charge will no longer be in effect. The spouse may also take the death benefit (increased by the Earnings enhancement benefit) in a lump sum. See "Spousal continuation" in "Payment of death benefit" later in this Prospectus for more information. The Earnings enhancement benefit must be elected when the contract is first issued: neither the owner nor the successor owner can add it subsequently. Ask your financial professional or see Appendix VI later in this Prospectus to see if this feature is available in your state. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL") For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL") guarantees that you can take withdrawals up to a maximum amount per year (your "Guaranteed annual withdrawal amount"). GWBL is only available at issue. This benefit is not available at issue ages younger than 45. GWBL is not available if you have elected the Guaranteed minimum income benefit, the Earnings enhancement benefit or one of our Principal guarantee benefits, described later in this Prospectus. You may elect one of our automated payment plans or you may take partial withdrawals. All withdrawals reduce your account value and Guaranteed minimum death benefit. See "Accessing your money" later in this Prospectus. Your investment options will be limited to the guaranteed interest option and the permitted variable investment options. Also, the 12 month and general dollar cost averaging programs are not available if you elect GWBL. See "What are your investment options under the contract?" earlier in this section. You may buy this benefit on a single life ("Single life") or a joint life ("Joint life") basis. Under a Joint life contract, lifetime withdrawals are guaranteed for the life of both the owner and successor owner (or annuitant and joint annuitant, as applicable). For Joint life contracts, a successor owner may be named at contract issue only. The successor owner must be the owner's spouse. If you and the successor owner are no longer married, you may either: (i) drop the original successor owner or (ii) replace the original successor owner with your new spouse. This can only be done before the first withdrawal is made from the contract. After the first withdrawal, the successor owner can be dropped but cannot be replaced. If the successor owner is dropped after withdrawals begin, the charge will continue based on a Joint life basis. For NQ contracts, you have the option to designate the successor owner as a joint owner. For Joint life contracts owned by a non-natural owner, a joint annuitant may be named at contract issue only. The annuitant and joint annuitant must be spouses. If the annuitant and joint annuitant are no longer married, you may either: (i) drop the joint annuitant or (ii) replace the original joint annuitant with the annuitant's new spouse. This can only be done before the first withdrawal. After the first withdrawal, the joint annuitant may be dropped but cannot be replaced. If the joint annuitant is dropped after withdrawals begin, the charge continues based on a Joint life basis. Joint annuitants are not permitted under any other contracts. Joint life TSA contracts are not permitted. This benefit is not available under an Inherited IRA contract. The cost of the GWBL benefit will be deducted from your account value on each contract date anniversary. Please see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus for a description of the charge. You should not purchase this benefit if: o You plan to take withdrawals in excess of your Guaranteed annual withdrawal amount because those withdrawals may significantly reduce or eliminate the value of the benefit (see "Effect of Excess withdrawals" below in this section); o You are not interested in taking withdrawals prior to the contract's maturity date; o You are using the contract to fund a Rollover TSA contract where withdrawal restrictions will apply; or. o You plan to use it for withdrawals prior to age 59-1/2, as the taxable amount of the withdrawal will be includible in income and subject to an additional 10% federal income tax penalty, as discussed later in this Prospectus. The Federal Defense of Marriage Act precludes same-sex married couples, domestic partners, and civil union partners from being considered married under federal law. Such individuals, therefore, are not entitled to the favorable tax treatment accorded spouses under federal tax law. As a result, mandatory distributions from the contract must be made after the death of the first individual. Accordingly, the GWBL will 36 Contract features and benefits have little or no value to the surviving same-gender spouse or partner. You should consult with your tax adviser for more information on this subject. For traditional IRAs and TSA contracts, you may take your lifetime required minimum distributions ("RMDs") without losing the value of the GWBL benefit, provided you comply with the conditions described under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, this benefit may have limited usefulness for you and you should consider whether it is appropriate. Please consult your tax adviser. GWBL BENEFIT BASE At issue, your GWBL benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL benefit base increases by any subsequent contributions. o Your GWBL benefit base may be increased on each contract date anniversary, as described below under "Annual ratchet" and "5% deferral bonus." o Your GWBL benefit base is not reduced by withdrawals except those withdrawals that cause total withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess withdrawals" below in this section. GUARANTEED ANNUAL WITHDRAWAL AMOUNT Your initial Guaranteed annual withdrawal amount is equal to a percentage of the GWBL benefit base. The initial applicable percentage ("Applicable percentage") is based on the owner's age at the time of the first withdrawal. For Joint life contracts, the initial Applicable percentage is based on the age of the owner or successor owner, whoever is younger at the time of the first withdrawal. For contracts held by non-natural owners, the initial Applicable percentage is based on the annuitant's age or the younger annuitant's age, if applicable, at the time of the first withdrawal. If your GWBL benefit base ratchets, as described below in this section under "Annual ratchet," on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. The Applicable percentages are as follows: - ------------------------------------------ Age Applicable percentage - ------------------------------------------ 45-64 4.0% 65-74 5.0% 75-84 6.0% 85 and older 7.0% - ------------------------------------------ We will recalculate the Guaranteed annual withdrawal amount on each contract date anniversary and as of the date of any subsequent contribution or Excess withdrawal, as described below under "Effect of Excess withdrawals" and "Subsequent contributions." The withdrawal amount is guaranteed never to decrease as long as there are no Excess withdrawals. Your Guaranteed annual withdrawals are not cumulative. If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. EFFECT OF EXCESS WITHDRAWALS An Excess withdrawal is caused when you withdraw more than your Guaranteed annual withdrawal amount in any contract year. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, the entire amount of that withdrawal and each subsequent withdrawal in that contract year are considered Excess withdrawals. An Excess withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount. If you make an Excess withdrawal, we will recalculate your GWBL benefit base and the Guaranteed annual withdrawal amount, as follows: o The GWBL benefit base is reset as of the date of the Excess withdrawal to equal the lesser of: (i) the GWBL benefit base immediately prior to the Excess withdrawal and (ii) the account value immediately following the Excess withdrawal. o The Guaranteed annual withdrawal amount is recalculated to equal the Applicable percentage multiplied by the reset GWBL benefit base. You should not purchase this contract if you plan to take withdrawals in excess of your Guaranteed annual withdrawal amount as such withdrawals may significantly reduce or eliminate the value of the GWBL benefit. If your account value is less than your GWBL benefit base (due, for example, to negative market performance), an Excess withdrawal, even one that is only slightly more than your Guaranteed annual withdrawal amount, can significantly reduce your GWBL benefit base and the Guaranteed annual withdrawal amount. For example, assume your GWBL benefit base is $100,000 and your account value is $80,000 when you decide to begin taking withdrawals at age 65. Your Guaranteed annual withdrawal amount is equal to $5,000 (5.0% of $100,000). You take an initial withdrawal of $8,000. Since your GWBL benefit base is immediately reset to equal the lesser of your GWBL benefit base prior to the Excess withdrawal ($100,000) and your account value immediately following the Excess withdrawal ($80,000 minus $8,000), your GWBL benefit base is now $72,000. In addition, your Guaranteed annual withdrawal amount is reduced to $3,600 (5.0% of $72,000), instead of the original $5,000. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. You should note that an Excess withdrawal that reduces your account value to zero terminates the contract, including all benefits, without value. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA or TSA and participate in our Automatic RMD service, an automatic withdrawal under that program will not cause an Excess withdrawal, even if it exceeds your Guaranteed annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. Loans are not available under Rollover TSA contracts if GWBL is elected. Contract features and benefits 37 ANNUAL RATCHET Your GWBL benefit base is recalculated on each contract date anniversary to equal the greater of: (i) the account value and (ii) the most recent GWBL benefit base. If your account value is greater, we will ratchet up your GWBL benefit base to equal your account value. If your GWBL benefit base ratchets on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. Your Guaranteed annual withdrawal amount will also be increased, if applicable, to equal your Applicable percentage times your new GWBL benefit base. If your GWBL benefit base ratchets, we may increase the charge for the benefit. Once we increase the charge, it is increased for the life of the contract. We will permit you to opt out of the ratchet if the charge increases. If you choose to opt out, your charge will stay the same but your GWBL benefit base will no longer ratchet. Upon request, we will permit you to accept a GWBL benefit base ratchet with the charge increase on a subsequent contract date anniversary. For a description of the charge increase, see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus. 5% DEFERRAL BONUS At no additional charge, during the first ten contract years, in each year you have not taken a withdrawal, we will increase your GWBL benefit base by an amount equal to 5% of your total contributions. If the Annual Ratchet (as discussed immediately above) occurs on any contract date anniversary, for the next and subsequent contract years, the bonus will be 5% of the most recent ratcheted GWBL benefit base plus any subsequent contributions. If the GWBL benefit base is reduced due to an Excess withdrawal, the 5% deferral bonus will be calculated using the reset GWBL benefit base plus any applicable contributions. The deferral bonus generally excludes contributions made in the prior 12 months. In the first contract year, the deferral bonus is determined using all contributions received in the first 90 days of the contract year. On any contract date anniversary on which you are eligible for a bonus, we will calculate the applicable bonus amount. If, when added to the current GWBL benefit base, the amount is greater than your account value, that amount will become your new GWBL benefit base. If that amount is less than or equal to your account value, your GWBL benefit base will be ratcheted to equal your account value, and the 5% deferral bonus will not apply. If you opt out of the Annual Ratchet (as discussed immediately above), the 5% deferral bonus will still apply. SUBSEQUENT CONTRIBUTIONS Subsequent contributions are not permitted after the later of: (i) the end of the first contract year and (ii) the date the first withdrawal is taken. Anytime you make an additional contribution, your GWBL benefit base will be increased by the amount of the contribution. Your Guaranteed annual withdrawal amount will be equal to the Applicable percentage of the increased GWBL benefit base. GWBL GUARANTEED MINIMUM DEATH BENEFIT There are two guaranteed minimum death benefits available if you elect the GWBL option: (i) the GWBL Standard death benefit, which is available at no additional charge for owner issue ages 45-85, and (ii) the GWBL Enhanced death benefit, which is available for an additional charge for owner issue ages 45-75. Please see Appendix VI later in this Prospectus to see if these guaranteed death benefits are available in your state. The GWBL Standard death benefit is equal to the GWBL Standard death benefit base. The GWBL Standard death benefit base is equal to your initial contribution and any additional contributions less a deduction that reflects any withdrawals you make (see "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus). The GWBL Enhanced death benefit is equal to the GWBL Enhanced death benefit base. Your initial GWBL Enhanced death benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL Enhanced death benefit base increases by any subsequent contribution; o Your GWBL Enhanced death benefit base increases to equal your account value if your GWBL benefit base is ratcheted, as described above in this section; o Your GWBL Enhanced death benefit base increases by any 5% deferral bonus, as described above in this section; o Your GWBL Enhanced death benefit base decreases by an amount which reflects any withdrawals you make See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. The death benefit is equal to your account value (adjusted for any pro rata optional benefit charges) as of the date we receive satisfactory proof of death, any required instructions for method of payment, information and forms necessary to effect payment or the applicable GWBL Guaranteed minimum death benefit on the date of the owner's death (adjusted for any subsequent withdrawals), whichever provides a higher amount. EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO If your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no further payments or benefits. If an Excess withdrawal results in a withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. However, if your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, please note the following: o Your Accumulator(R) Select(SM) contract terminates and you will receive a supplementary life annuity contract setting forth your continuing benefits. The owner of the Accumulator(R) Select(SM) contract will be the owner and annuitant. The successor owner, if applicable, will be 38 Contract features and benefits the joint annuitant. If the owner is non-natural, the annuitant and joint annuitant, if applicable, will be the same as under your Accumulator(R) Select(SM) contract. o No subsequent contributions will be permitted. o If you were taking withdrawals through the "Maximum payment plan," we will continue the scheduled withdrawal payments on the same basis. o If you were taking withdrawals through the "Customized payment plan" or in unscheduled partial withdrawals, we will pay the balance of the Guaranteed annual withdrawal amount for that contract year in a lump sum. Payment of the Guaranteed annual withdrawal amount will begin on the next contract date anniversary. o Payments will continue at the same frequency for Single or Joint life contracts, as applicable, or annually if automatic payments were not being made. o Any guaranteed minimum death benefit remaining under the original contract will be carried over to the supplementary life annuity contract. The death benefit will no longer grow and will be reduced on a dollar for dollar basis as payments are made. If there is any remaining death benefit upon the death of the owner and successor owner, if applicable, we will pay it to the beneficiary. o The charge for the Guaranteed withdrawal benefit for life and the GWBL Enhanced death benefit will no longer apply. o If at the time of your death the Guaranteed annual withdrawal amount was being paid to you as a supplementary life annuity contract, your beneficiary may not elect the Beneficiary continuation option. OTHER IMPORTANT CONSIDERATIONS o This benefit is not appropriate if you do not intend to take withdrawals prior to annuitization. o Excess withdrawals can significantly reduce or completely eliminate the value of the GWBL and GWBL Enhanced death benefit. See "Effect of Excess withdrawals" above in this section and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o Withdrawals are not considered annuity payments for tax purposes, and may be subject to an additional 10% Federal income tax penalty if they are taken before age 59-1/2. See "Tax information" later in this Prospectus. o All withdrawals reduce your account value and Guaranteed minimum death benefit. See "How withdrawals are taken from your account value" and "How withdrawals affect your Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. o The GWBL benefit terminates if the contract is continued under the beneficiary continuation option or under the Spousal continuation feature if the spouse is not the successor owner. o If you surrender your contract to receive its cash value and your cash value is greater than your Guaranteed annual withdrawal amount, all benefits under the contract will terminate, including the GWBL benefit. o If you transfer ownership of this contract, you terminate the GWBL benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information" later in this Prospectus for more information. o Withdrawals are available under other annuity contracts we offer and this contract without purchasing a withdrawal benefit. o For IRA and TSA contracts, if you have to take a required minimum distribution ("RMD") and it is your first withdrawal under the contract, the RMD will be considered your "first withdrawal" for the purposes of establishing your GWBL Applicable percentage. o If you elect GWBL on a Joint life basis and subsequently get divorced, your divorce will not automatically terminate the contract. For both Joint life and Single life contracts, it is possible that the terms of your divorce decree could significantly reduce or completely eliminate the value of this benefit. PRINCIPAL GUARANTEE BENEFITS We offer two 10-year Principal guarantee benefits at an additional charge: the 100% Principal guarantee benefit and the 125% Principal guarantee benefit. You may only elect one Principal guarantee benefit ("PGB"). 100% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 100% Principal guarantee benefit is equal to your initial contribution and additional permitted contributions, adjusted for withdrawals. Under the 100% Principal guarantee benefit, your investment options are limited to the guaranteed interest option and the permitted variable investment options. 125% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 125% Principal guarantee benefit is equal to 125% of your initial contribution and additional permitted contributions, adjusted for withdrawals. Under the 125% Principal guarantee benefit, your investment options are limited to the guaranteed interest option and the AXA Moderate Allocation portfolio. Under both Principal guarantee benefits, if, on the 10th contract date anniversary (or later if you've exercised a reset as explained below) ("benefit maturity date"), your account value is less than the guaranteed amount, we will increase your account value to equal the applicable guaranteed amount. Any such additional amounts added to your account value will be allocated pursuant to the allocation instructions for additional contributions we have on file. After the benefit maturity date, the guarantee will terminate. Contract features and benefits 39 You have the option to reset (within 30 days following each applicable contract date anniversary) the guaranteed amount to the account value or 125% of the account value, as applicable, as of your fifth and later contract date anniversaries. If you exercise this option, you are eligible for another reset on each fifth and later contract date anniversary after the last reset up to the contract date anniversary following an owner's 85th birthday. If you elect to reset the guaranteed amount, your benefit maturity date will be extended to be the 10th contract date anniversary after the anniversary on which you reset the guaranteed amount. This extension applies each time you reset the guaranteed amount. Neither PGB is available under Inherited IRA contracts. If you elect either PGB, you may not elect the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, the systematic withdrawals option or the substantially equal withdrawals options. Also, the 12 month dollar cost averaging program is not available if you elect one of the PGB options. If you purchase a PGB, you may not make additional contributions to your contract after six months from the contract issue date. If you are planning to take required minimum distributions from this contract, this benefit may not be appropriate. See "Tax information" later in this Prospectus. If you elect a PGB and change ownership of the contract, your PGB will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Once you purchase a PGB, you may not voluntarily terminate this benefit. Your PGB will terminate if the contract terminates before the benefit maturity date, as defined below. If you die before the benefit maturity date and the contract continues, we will continue the PGB only if the contract can continue through the benefit maturity date. If the contract cannot so continue, we will terminate your PGB and the charge. See "Non-spousal joint owner contract continuation" in "Payment of death benefit" later in this Prospectus. The PGB will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a charge for the Principal guarantee benefits (see "Charges and expenses" later in this Prospectus). You should note that the purchase of a PGB is not appropriate if you want to make additional contributions to your contract beyond the first six months after your contract is issued. The purchase of a PGB is also not appropriate if you plan on terminating your contract before the benefit maturity date. The purchase of a PGB may not be appropriate if you plan on taking withdrawals from your contract before the benefit maturity date. Withdrawals from your contract before the benefit maturity date reduce the guaranteed amount under a PGB on a pro rata basis. You should also note that if you intend to allocate a large percentage of your contributions to the guaranteed interest option, the purchase of a PGB may not be appropriate because of the guarantees already provided by this option at no additional charge. Please note that loans (applicable to TSA contracts only) are not permitted under either PGB. INHERITED IRA BENEFICIARY CONTINUATION CONTRACT This contract is available to an individual beneficiary of a traditional IRA or a Roth IRA where the deceased owner held the individual retirement account or annuity (or Roth individual retirement account or annuity) with an insurance company or financial institution other than AXA Equitable. The purpose of the inherited IRA beneficiary continuation contract is to permit the beneficiary to change the funding vehicle that the deceased owner selected ("original IRA") while taking the required minimum distribution payments that must be made to the beneficiary after the deceased owner's death. See the discussion of required minimum distributions under "Tax information." This contract is intended only for beneficiaries who want to take payments at least annually over their life expectancy. These payments generally must begin (or must have begun) no later than December 31 of the calendar year following the year the deceased owner died. This contract is not suitable for beneficiaries electing the "5-year rule." See "Beneficiary continuation option for IRA and Roth IRA contracts" under "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. You should discuss with your tax adviser your own personal situation. This contract may not be available in all states. Please speak with your financial professional for further information. The inherited IRA beneficiary continuation contract can only be purchased by a direct transfer of the beneficiary's interest under the deceased owner's original IRA. The owner of the inherited IRA beneficiary continuation contract is the individual who is the beneficiary of the original IRA. (Certain trusts with only individual beneficiaries will be treated as individuals for this purpose). The contract must also contain the name of the deceased owner. In this discussion, "you" refers to the owner of the inherited IRA beneficiary continuation contract. The inherited IRA beneficiary continuation contract can be purchased whether or not the deceased owner had begun taking required minimum distribution payments during his or her life from the original IRA or whether you had already begun taking required minimum distribution payments of your interest as a beneficiary from the deceased owner's original IRA. You should discuss with your own tax adviser when payments must begin or must be made. Under the inherited IRA beneficiary continuation contract: o You must receive payments at least annually (but can elect to receive payments monthly or quarterly). Payments are generally made over your life expectancy determined in the calendar year after the deceased owner's death and determined on a term certain basis. o You must receive payments from this contract even if you are receiving payments from another IRA of the deceased owner in an amount that would otherwise satisfy the amount required to be distributed from this contract. o The beneficiary of the original IRA will be the annuitant under the inherited IRA beneficiary continuation contract. In the case where the beneficiary is a "see-through trust," the oldest beneficiary of the trust will be the annuitant. 40 Contract features and benefits o An inherited IRA beneficiary continuation contract is not available for owners over age 70. o The initial contribution must be a direct transfer from the deceased owner's original IRA and is subject to minimum contribution amounts. See "How you can purchase and contribute to your contract" earlier in this section. o Subsequent contributions of at least $1,000 are permitted but must be direct transfers of your interest as a beneficiary from another IRA with a financial institution other than AXA Equitable, where the deceased owner is the same as under the original IRA contract. o You may make transfers among the investment options. o You may choose at any time to withdraw all or a portion of the account value. Any partial withdrawal must be at least $300. o The Guaranteed minimum income benefit, Spousal continuation, 12-month dollar cost averaging program, automatic investment program, Principal guarantee benefits, the Guaranteed withdrawal benefit for life and systematic withdrawals are not available under the Inherited IRA beneficiary continuation contract. o If you die, we will pay to a beneficiary that you choose the greater of the account value or the applicable death benefit. o Upon your death, your beneficiary has the option to continue taking required minimum distributions based on your remaining life expectancy or to receive any remaining interest in the contract in a single sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If your beneficiary elects to continue to take distributions, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value as of the date we receive satisfactory proof of death and any required instructions, information and forms. If you had elected any enhanced death benefits, they will no longer be in effect and charges for such benefits will stop. The Guaranteed minimum death benefit will also no longer be in effect. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law requires, this "free look" period may be longer. Other state variations may apply. Please contact your financial professional and/or see Appendix VI to find out what applies in your state. Generally, your refund will be the same as any other surrender and you will receive your account value (less loan reserve account under Rollover TSA contracts) under the contract on the day we receive notification of your decision to cancel the contract, which will reflect (i) any investment gain or loss in the variable investment options (less the daily charges we deduct), (ii) any guaranteed interest in the guaranteed interest option, and (iii) any positive or negative market value adjustments in the fixed maturity options through the date we receive your contract. Some states, however, require that we refund the full amount of your contribution (not reflecting (i), (ii) or (iii) above). For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. If you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office, or your financial professional, can provide you with the cancellation instructions. In addition to the cancellation right described above, you have the right to surrender your contract rather than cancel it. Please see "Surrendering your contract to receive its cash value," later in this Prospectus. Surrendering your contract may yield results different than canceling your contract, including a greater potential for taxable income. In some cases, your cash value upon surrender may be greater than your contributions to the contract. Please see "Tax information," later in this Prospectus. Contract features and benefits 41 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; and (iv) the loan reserve account (applicable to TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less: (i) the total amount or a pro rata portion of the annual administrative charge, as well as optional benefit charges; and (ii) the amount of any outstanding loan plus accrued interest (applicable to TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) decreased to reflect a withdrawal; (iii) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (iv) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a TSA contract. In addition, when we deduct the enhanced death benefit, Guaranteed minimum income benefit, Principal guarantee benefits, Guaranteed withdrawal benefit for life and/or Earnings enhancement benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest option at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. ---------------------------------- INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all your rights under your contract and any applicable guaranteed benefits, except as discussed below. See Appendix VI later in this Prospectus for any state variations with regard to terminating your contract. GUARANTEED MINIMUM INCOME BENEFIT NO LAPSE GUARANTEE. In certain circumstances, even if your account value falls to zero, your Guaranteed minimum income benefit will still have value. Please see "Contract features and benefits" earlier in this Prospectus for information on this feature. PRINCIPAL GUARANTEE BENEFITS. If you take no withdrawals, and your account value is insufficient to pay charges, we will not terminate your contract if you are participating in a PGB. Your contract will remain in force and we will pay your guaranteed amount at the benefit maturity date. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. If you elect the Guaranteed withdrawal benefit for life and your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary life annuity contract, even if your GWBL benefit base is greater than zero. If, however, your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, the benefit will still have value. See "Contract features and benefits" earlier in this Prospectus. 42 Determining your contract's value 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer to a fixed maturity option that has a rate to maturity of 3%. o You may not transfer any amount to the 12-month dollar cost averaging program. o If an owner or annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the account value being allocated to the guaranteed interest option, based on the account value as of the previous business day. In addition, we reserve the right to restrict transfers among variable investment options including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option and interest sweep option dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the Investment options in the prior contract year; or (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, Transferring your money among investment options 43 which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We currently offer two rebalancing programs that you can use to automatically reallocate your account value among your investment options. Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semi-annually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers from the guaranteed interest option to the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into or out of the guaranteed interest option to initiate the rebalancing program will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. You may not elect either rebalancing program if you are participating in any dollar cost averaging program. If you elect a benefit that limits your variable investment options, those limitations will also apply to the rebalancing programs. 44 Transferring your money among investment options 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. Please see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. - -------------------------------------------------------------------------------- Method of withdrawal ---------------------------------------------------------------- Automatic Pre-age Lifetime payment 59-1/2 required plans substan- minimum (GWBL System- tially distribu- Contract only) Partial atic equal tion - -------------------------------------------------------------------------------- NQ Yes Yes Yes No No - -------------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes Yes - -------------------------------------------------------------------------------- Roth Conversion IRA Yes Yes Yes Yes No - -------------------------------------------------------------------------------- Rollover TSA* Yes Yes Yes No Yes - -------------------------------------------------------------------------------- Inherited IRA No Yes No No ** - -------------------------------------------------------------------------------- * Employer or plan approval required for all transactions. Your ability to take with drawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. ** This contract pays out post-death required minimum distributions. See "Inherited beneficiary contract" in "Contract, features and benefits" earlier in this Prospectus. AUTOMATIC PAYMENT PLANS (For contracts with GWBL only) You may take automatic withdrawals under either the Maximum payment plan or the Customized payment plan, as described below. Under either plan, you may take withdrawals on a monthly, quarterly or annual basis. You may change the payment frequency of your withdrawals at any time, and the change will become effective on the next contract date anniversary. You may elect either the Maximum payment plan or the Customized payment plan at any time. You must wait at least 28 days from contract issue before automatic payments begin. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will increase following any Annual Ratchet or 5% deferral bonus. If you elect the Maximum payment plan and start monthly or quarterly payments after the beginning of a contract year, the payments you take that year will be less than your Guaranteed annual withdrawal amount. If you take a partial withdrawal while the Maximum payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will not be increased following any Annual Ratchet or 5% deferral bonus. You must elect to change the scheduled payment amount. It is important to note that if you elect the Customized payment plan and start monthly or quarterly withdrawals after the beginning of a contract year, you could select scheduled payment amounts that would cause an Excess withdrawal. If your selected scheduled payment would cause an Excess withdrawal, we will notify you. As discussed earlier in the Prospectus, Excess withdrawals may significantly reduce the value of the Guaranteed withdrawal benefit for life benefit. See "Effect of Excess withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you take a partial withdrawal while the Customized payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required). The minimum amount you may withdraw is $300. Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. Any request for a partial withdrawal will terminate your participation in either the Maximum payment plan or Customized payment plan, if applicable. SYSTEMATIC WITHDRAWALS (All contracts except Inherited IRAs) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required). Accessing your money 45 You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. SUBSTANTIALLY EQUAL WITHDRAWALS (All Rollover IRA and Roth Conversion IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. The substantially equal withdrawal program is not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA and Rollover TSA contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH GWBL. Generally, if you elect our Automatic RMD service, any lifetime required minimum distribution payment we make to you under our Automatic RMD service will not be treated as an Excess withdrawal. If you elect either the Maximum payment plan or the Customized payment plan AND our Automatic RMD service, we will make an extra payment, if necessary, on December 1st that will equal your lifetime required minimum distribution less all payments made through November 30 and any scheduled December payment. The combined automatic plan payments and lifetime required minimum distribution payment will not be treated as Excess withdrawals, if applicable. However, if you take any partial withdrawals in addition to your lifetime required minimum distribution and automatic payment plan payments, your applicable automatic payment plan will be terminated. Also, the partial withdrawals may cause an Excess withdrawal. You 46 Accessing your money may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. Further, your GWBL benefit base and Guaranteed annual withdrawal amount may be reduced. See "Effect of Excess Withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you elect our Automatic RMD service and elect to take your Guaranteed annual withdrawal amount in partial withdrawals without electing one of our available automatic payment plans, we will make a payment, if necessary, on December 1st that will equal your required minimum distribution less all withdrawals made through November 30th. If prior to December 1st you make a partial withdrawal that exceeds your Guaranteed annual withdrawal amount, but not your RMD amount, that partial withdrawal will be treated as an Excess withdrawal, as well as any subsequent partial withdrawals made during the same contract year. However, if by December 1st your withdrawals have not exceeded your RMD amount, the RMD payment we make to you will not be treated as an Excess withdrawal. FOR CONTRACTS WITH THE GUARANTEED MINIMUM INCOME BENEFIT. The no lapse guarantee will not be terminated if a required minimum distribution payment using our automatic RMD service causes your cumulative withdrawals in the contract year to exceed 6% of the Roll- Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received within the first 90 days). Owners of tax-qualified contracts (IRA and TSA) generally should not reset the Roll-Up benefit base if lifetime required minimum distributions must begin before the end of the new exercise waiting period. See "Guaranteed minimum death benefit/Guaranteed minimum income benefit Roll-Up benefit base reset." in "Contract features and benefits" earlier in this Prospectus. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options, and the guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options in the order of the earliest maturity date(s) first. If the contract is surrendered or annuitized or a death benefit is paid, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to withdrawals from the fixed maturity options. HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND PRINCIPAL GUARANTEE BENEFITS In general, withdrawals (including RMDs) will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000 - $16,000). With respect to the Guaranteed minimum income benefit and the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, withdrawals will reduce each of the benefits' 6% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6% or less of the 6% Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. For this purpose, in the first contract year, all contributions received in the first 90 days after contract issue will be considered to have been received on the first day of the contract year. In subsequent contract years, additional contributions made during the contract year do not affect the amount of withdrawals that can be taken on a dollar-for-dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6% of the benefit base on the most recent anniversary, that entire withdrawal (including RMDs) and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6% Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for each Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. HOW WITHDRAWALS AFFECT YOUR GWBL AND GWBL GUARANTEED MINIMUM DEATH BENEFIT Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes cumulative withdrawals in a contract year to exceed the Guaranteed annual withdrawal amount. Withdrawals that exceed the Guaranteed annual withdrawal amount, however, can significantly reduce your GWBL benefit base and Guaranteed annual withdrawal amount. For more information, see "Effect of Excess withdrawals" and "Other important considerations" under "Our Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus. Your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a dollar-for-dollar basis up to the Guaranteed annual withdrawal amount. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, however, your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a pro rata basis. If the reduced GWBL Enhanced death benefit base is greater than your account value (after the Excess withdrawal), we will further reduce your GWBL Enhanced death benefit base to equal your account value. WITHDRAWALS TREATED AS SURRENDERS If you request to withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. In addition, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. The rules in the preceding sentence do not apply if the Guaranteed minimum income benefit no lapse guarantee is in effect on your Accessing your money 47 contract. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is an Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to an Excess withdrawal. In other words, if you take an Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Guaranteed withdrawal benefit for life" in "Contract features and benefits," earlier in this Prospectus, for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." If you elect the GWBL option or a PGB, loans are not permitted. You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see Appendix VI later in this Prospectus for any state restrictions you may be subject to if you take a loan from a Rollover TSA contract. Also, see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan, including any accrued but unpaid loan interest, will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the "loan reserve account." Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment may apply. If such fixed maturity amounts are insufficient, we will deduct all or a portion of the loan from the account for 12-month dollar cost averaging. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while an owner is living (or for contracts with non-natural owners while the annuitant is living) and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of the date we receive the required information, including the Guaranteed withdrawal benefit for life (if applicable) if your cash value is greater than your Guaranteed annual withdrawal amount remaining that year. If your cash value is not greater than your Guaranteed annual withdrawal amount remaining that year, then you will receive a supplementary life annuity contract. For more information, please see "Effect of your account value falling to zero" in "Contract features and benefits" earlier in this Prospectus. Also, if the Guaranteed minimum income benefit no lapse guarantee is in effect, the benefit will terminate without value if your cash value plus any other withdrawals taken in the contract year exceed 6% of the Roll-Up benefit base (as of the beginning of the contract year). For more information, please see "Insufficient account value" in "Determining your contract value" and Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus. You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. 48 Accessing your money WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as a result of sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option and fixed maturity options (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery or wire transfer service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Select(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) Select(SM) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Select(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Select(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. Please see Appendix VI later in this Prospectus for variations that may apply in your state. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the owner's and annuitant's ages at contract issue. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect the Guaranteed withdrawal benefit for life and choose to annuitize your contract, the Guaranteed withdrawal benefit for life will terminate without value even if your GWBL benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under GWBL. See "Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus for further information. - -------------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------------- Income Manager(R) payout options Life annuity with period certain (available for owners and annu- Period certain annuity itants age 83 or less at contract issue) - -------------------------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. Accessing your money 49 FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). For Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the Rollover TSA contract. You may choose to apply only part of the account value of your Accumulator(R) Select(SM) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) Select(SM). For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income option, different payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies depending on the payout option that you choose. If amounts in a fixed maturity option are used to purchase any annuity payout option prior to the maturity date, a market value adjustment will apply. SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin but it may not be earlier than thirteen months from the Accumulator(R) Select(SM) contract date. Except with respect to the Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments, or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is based on the age of the original annuitant at contract issue and cannot be changed even if you name a new annuitant. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elect the Guaranteed withdrawal benefit for life and your contract is annuitized at maturity, we will offer an annuity payout option that guarantees you will receive payments for life that are at least equal to what you would have received under the Guaranteed withdrawal benefit for life. You will not be able to take withdrawals in addition to the payments under this annuity payout option. You will 50 Accessing your money still be able to surrender the contract at any time for the remaining account value. As described in "Contract features and benefits" under "Guaranteed withdrawal benefit for life," these payments will have the potential to increase with favorable investment performance. Any remaining Guaranteed minimum death benefit value will be transferred to the annuity payout contract as your "minimum death benefit." If the enhanced death benefit had been elected, its value as of the date the annuity payout contract is issued will become your minimum death benefit, and it will continue to ratchet annually if your account value is greater than your minimum death benefit base. The minimum death benefit will be reduced dollar for dollar by each payment. If you die while there is any minimum death benefit remaining, it will be paid to your beneficiary. Please see Appendix VI later in this Prospectus for variations that may apply in your state. Accessing your money 51 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o On each contract date anniversary, a charge for each optional benefit that you elect: a death benefit (other than the Standard and GWBL Standard death benefit); the Guaranteed minimum income benefit; the Guaranteed withdrawal benefit for life; and the Earnings enhancement benefit. o On any contract date anniversary on which you are participating in a PGB -- a charge for a PGB. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section . The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard guaranteed minimum death benefit. The daily charge is equivalent to an annual rate of 1.10% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. Administrative charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.35% of the net assets in each variable investment option. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VI later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if available) in the order of the earliest maturity date(s) first. If those amounts are insufficient, we will deduct all or a portion of the charge from the account for 12 month dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaran- 52 Charges and expenses teed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to either 0.65% or 0.60% of the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 benefit base, depending upon when or where you purchased your contract. Please see Appendix VII later in this Prospectus for more information on the Guaranteed minimum death benefit charge applicable to your contract. GWBL ENHANCED DEATH BENEFIT. This death benefit is only available if you elect the GWBL option. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary. The charge is equal to 0.30% of the GWBL Enhanced death benefit base. We will deduct this charge from your value in the variable investment options (or, if applicable, the permitted variable investment options) and the guaranteed interest option on a pro rata basis (see Appendix VI later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are still insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if applicable) in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If those amounts are insufficient, we will deduct all or a portion of the charge from the account for 12 month dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. STANDARD DEATH BENEFIT AND GWBL STANDARD DEATH BENEFIT. There is no additional charge for these standard death benefits. PRINCIPAL GUARANTEE BENEFITS CHARGE If you purchase a PGB, we deduct a charge annually from your account value on each contract date anniversary on which you are participating in a PGB. The charge is equal to 0.50% of the account value for the 100% Principal guarantee benefit and 0.75% of the account value for the 125% Principal guarantee benefit. We will continue to deduct the charge until your benefit maturity date. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option (see Appendix VI later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. GUARANTEED MINIMUM INCOME BENEFIT CHARGE If you elect the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary after the owner (or older joint owner, if applicable) reaches age 85, whichever occurs first. The charge is equal to 0.65% of the applicable benefit base in effect on the contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis (see Appendix VI later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are still insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If those amounts are insufficient, we will deduct all or a portion of the charge from the account for 12 month dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. EARNINGS ENHANCEMENT BENEFIT CHARGE If you elect the Earnings enhancement benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.35% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If those amounts are insufficient, we will deduct all or a portion of the charge from the account for 12 month dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Charges and expenses 53 GUARANTEED WITHDRAWAL BENEFIT FOR LIFE BENEFIT CHARGE If you elect the Guaranteed withdrawal benefit for life ("GWBL"), we deduct a charge annually as a percentage of your GWBL benefit base on each contract date anniversary. If you elect the Single Life option, the charge is equal to 0.60%. If you elect the Joint Life option, the charge is equal to 0.75%. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option on a pro rata basis. (See Appendix VI later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state.) If those amounts are insufficient, we will deduct all or a portion of the charge from the account for 12 month dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. GWBL BENEFIT BASE ANNUAL RATCHET CHARGE. If your GWBL benefit base ratchets, we reserve the right to raise the charge at the time of an Annual Ratchet. The maximum charge for the Single Life option is 0.75%. The maximum charge for the Joint Life option is 0.90%. The increased charge, if any, will apply as of the contract date anniversary on which your GWBL benefit base ratchets and on all contract date anniversaries thereafter. We will permit you to opt out of the ratchet if the charge increases. For Joint life contracts, if the successor owner or joint annuitant is dropped before you take your first withdrawal, we will adjust the charge at that time to reflect a Single life. If the successor owner or joint annuitant is dropped after withdrawals begin, the charge will continue based on a Joint life basis. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE We deduct a fee of $350 from the amount to be applied to the variable Immediate Annuity payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or shares of unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the mortality and expense risks charge or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to the 12b-1 fee. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. 54 Charges and expenses 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. In either case, the death benefit is increased by any amount applicable under the Earnings enhancement benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) and any amount applicable under the Earnings enhancement benefit, as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. Your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. In general, if the annuitant dies, the owner (or older joint owner, if applicable) will become the annuitant, and the death benefit is not payable. EFFECT OF THE OWNER'S DEATH In general, if the owner dies while the contract is in force, the contract terminates and the applicable death benefit is paid. If the contract is jointly owned, the death benefit is payable upon the death of the older owner. If the contract has a non-natural owner, the death benefit is payable upon the death of the annuitant. For Joint life contracts with GWBL, the death benefit is paid to the beneficiary at the death of the second to die of the owner and successor owner, or the annuitant and joint annuitant, as applicable. There are various circumstances, however, in which the contract can be continued by a successor owner or under a Beneficiary continuation option ("BCO"). For contracts with spouses who are joint owners, the surviving spouse will automatically be able to continue the contract under the "Spousal continuation" feature or under our Beneficiary continuation option, as discussed below. For contracts with non-spousal joint owners, the joint owner will be able to continue the contract as a successor owner subject to the limitations discussed below under "Non-spousal joint owner contract continuation." If you are the sole owner and your spouse is the sole primary beneficiary, your surviving spouse can continue the contract as a successor owner as discussed below, under "Spousal continuation" or under our Beneficiary continuation option, as discussed below. If the beneficiary is not the surviving spouse or if the surviving joint owner is not the surviving spouse, federal income tax rules generally require payments of amounts under the contract to be made within five years of an owner's death (the "5-year rule"). In certain cases, an individual beneficiary or non-spousal surviving joint owner may opt to receive payments over his/her life (or over a period not in excess of his/her life expectancy) if payments commence within one year of the owner's death. Any such election must be made in accordance with our rules at the time of death. If the beneficiary of a contract with one owner or a younger non-spousal joint owner continues the contract under the 5-year rule, in general, all guaranteed benefits and their charges will end. If a PGB election is in effect upon your death with a benefit maturity date of less than five years from the date of death, it will remain in effect. For more information on non-spousal joint owner contract continuation, see the section immediately below. NON-SPOUSAL JOINT OWNER CONTRACT CONTINUATION Upon the death of either owner, the surviving joint owner becomes the sole owner. Any death benefit (if the older owner dies first) or cash value (if the younger owner dies first) must be fully paid to the surviving joint owner within five years. The surviving owner may instead elect to Payment of death benefit 55 receive a life annuity, provided payments begin within one year of the deceased owner's death. If the life annuity is elected, the contract and all benefits terminate. If the older owner dies first, we will increase the account value to equal the Guaranteed minimum death benefit, if higher, and by the value of the Earnings enhancement benefit. The surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the Guaranteed minimum death benefit and charge and the Guaranteed minimum income benefit and charge will then be discontinued. No additional contributions will be permitted. If the younger owner dies first, the surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the death benefit is not payable, and the Guaranteed minimum death benefit and the Earnings enhancement benefit, if applicable, will continue without change. If the Guaranteed minimum income benefit cannot be exercised within the period required by federal tax laws, the benefit and charge will terminate as of the date we receive proof of death. No additional contributions will be permitted. Upon the death of either owner, if the surviving owner elects the 5-year rule and a PGB was in effect upon the owner's death with a maturity date of more than five years from the date of death, we will terminate the benefit and the charge. SPOUSAL CONTINUATION If you are the contract owner and your spouse is the sole primary beneficiary or you jointly own the contract with your spouse, your spouse may elect to continue the contract as successor owner upon your death. Spousal beneficiaries (who are not also joint owners) must be 85 or younger as of the date of the deceased spouse's death in order to continue the contract under Spousal continuation. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. The younger spouse joint owner (for NQ contracts only) or the spouse beneficiary (under a Single owner contract), may elect to receive the death benefit or continue the contract, as follows: o As of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary, we will increase the account value to equal the elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit, and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. o The applicable Guaranteed minimum death benefit option may continue as follows: o If the surviving spouse is age 75 or younger on the date of your death, and you were age 84 or younger at death, the Guaranteed minimum death benefit you elected continues and will continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. o If the surviving spouse is age 75 or younger on the date of your death, and you were age 85 or older at death, we will reinstate the Guaranteed minimum death benefit you elected. The benefit base (which had previously been frozen at age 85) will now continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. o If the surviving spouse is age 76 or over on the date of your death, the Guaranteed minimum death benefit and charge will be discontinued. o If the Guaranteed minimum death benefit continues, the Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset, if applicable, will be based on the surviving spouse's age at the time of your death. The next available reset will be based on the contract issue date or last reset, as applicable. o For single owner contracts with the GWBL Enhanced death benefit, we will discontinue the benefit and charge. However, we will freeze the GWBL Enhanced death benefit base as of the date of your death (less subsequent withdrawals), and pay it upon your spouse's death. o The Earnings enhancement benefit will be based on the surviving spouse's age at the date of the deceased spouse's death for the remainder of the life of the contract. If the benefit had been previously frozen because the older spouse had attained age 80, it will be reinstated if the surviving spouse is age 75 or younger. The benefit is then frozen on the contract date anniversary after the surviving spouse reaches age 80. If the surviving spouse is age 76 or older, the benefit and charge will be discontinued. o If elected, PGB continues and is based on the same benefit maturity date and guaranteed amount that was guaranteed. o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the surviving spouse's age at the date of the deceased spouse's death. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If you elect the Guaranteed withdrawal benefit for life on a Joint life basis, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. No additional contributions will be permitted. If you elect the Guaranteed withdrawal benefit for life on a Single life basis, the benefit and charge will terminate. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner 56 Payment of death benefit of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For jointly owned NQ contracts, if the younger spouse dies first no death benefit is paid, and the contract continues as follows: o The Guaranteed minimum death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit continue to be based on the older spouse's age for the life of the contract. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. o If a PGB had been elected, the benefit continues and is based on the same benefit maturity date and guaranteed amount. o If you elect the Guaranteed withdrawal benefit for life, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. If you divorce, Spousal continuation does not apply. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state availability. Please speak with your financial professional or see Appendix VI later in this Prospectus for further information. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. For Joint life contracts with GWBL, BCO is only available after the death of the second owner. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit, adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o The beneficiary replaces the deceased owner as annuitant. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a portion of the account value. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as Inherited annuity, may only be elected when the NQ Payment of death benefit 57 contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. For purposes of this discussion, "beneficiary" refers to the successor owner. This feature must be elected within 9 months following the date of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts: o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If the deceased is the owner or the older joint owner: o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the Beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value plus any amount applicable under the Earnings enhancement benefit, adjusted for any subsequent withdrawals. If the deceased is the younger non-spousal joint owner: o The annuity account value will not be reset to the death benefit amount. 58 Payment of death benefit 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Select(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax, and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, the amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Select(SM)'s 12 month dollar cost averaging, choice of death benefits, the Guaranteed withdrawal for life benefit, the Guaranteed minimum income benefit, selection of variable investment options, guaranteed interest option, fixed maturity options and its choices of pay-out options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. TAXATION OF LIFETIME WITHDRAWALS IF YOU ELECT GUARANTEED WITHDRAWAL BENEFIT FOR LIFE We treat Guaranteed annual withdrawals and other withdrawals as non-annuity payments for income tax purposes. These withdrawals are Tax information 59 taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. It reduces the investment in the contract. ANNUITY PAYMENTS Guaranteed annual withdrawals that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus, as well as GMIB and other annuitization payments that are based on life or life expectancy, are considered annuity payments for tax purposes. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your unrecovered investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. EARNINGS ENHANCEMENT BENEFIT In order to enhance the amount of the death benefit to be paid at the owner's death, you may purchase an Earnings enhancement benefit rider for your NQ contract. Although we regard this benefit as an investment protection feature which is part of the contract and which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Earnings enhancement benefit rider is not part of the contract. In such a case the charges for the Earnings enhancement benefit rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable, and for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, AXA Equitable would take all reasonable steps to attempt to avoid this result, which could include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES You may purchase your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that is the source of the funds you are using to purchase the NQ contract is another nonqualified deferred annuity contract (or life insurance or endowment contract). o The owner and the annuitant are the same under the source contract and the Accumulator(R) Select(SM) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must be the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carries over to the Accumulator(R) Select(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between carriers, and provision of cost basis information may be required to process this type of an exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. BENEFICIARY CONTINUATION OPTION We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for a prior similar version of the NQ contract. See the discussion "Beneficiary continuation option for NQ Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: 60 Tax information o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2"; o scheduled payments, any additional withdrawals under "Withdrawal Option 2", or contract surrenders under "Withdrawal Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the Withdrawal Option selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling specifically does not address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or any withdrawal that might be taken). The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Account 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Account 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Account 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Account 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets for the benefit of the IRA owner. The assets funding the account typically include mutual funds and/or individual stocks and/or securities in a custodial account and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may purchase the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We also offer the Inherited IRA for payment of post-death required minimum distributions from traditional IRAs and Roth IRAs. We currently do not offer traditional IRA contracts for use as employer-funded SEP-IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS requires you to have before you purchase an IRA. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custo- Tax information 61 dial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). AXA Equitable has applied for opinion letters from the IRS to approve the respective forms of the Accumulator(R) Select(SM) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. It is not clear if and when any such approval may be received. We have in the past received IRS opinion letters approving the respective forms of similar traditional IRA and Roth IRA endorsements for use as a traditional and Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) Select(SM) traditional and Roth IRA contracts. AXA Equitable has also submitted the respective forms of the Accumulator(R) Select(SM) Inherited IRA beneficiary continuation contract to the IRS for approval as to form for use as a traditional IRA or Roth IRA, respectively. We do not know if and when any such approval may be granted. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS You can cancel any version of the Accumulator(R) Select(SM) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel within a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS) CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o regular contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS LIMITS ON CONTRIBUTIONS. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch up contributions" of up to $1,000 to your traditional IRA. SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 per year to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored-tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions." That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. 62 Tax information Cost of living indexing adjustments apply to the income limits on deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000 after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000 after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000 after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted -------------------- X regular = deductible divided by $10,000 contribution contribution for the year limit ADDITIONAL "SAVER'S CREDIT" FOR CONTRIBUTIONS TO A TRADITIONAL IRA OR ROTH IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000 ($53,000 after cost of living adjustments for 2008). The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution, and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. ROLLOVER AND TRANSFER CONTRIBUTIONS TO TRADITIONAL IRAS Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. ROLLOVERS FROM "ELIGIBLE RETIREMENT PLANS" OTHER THAN TRADITIONAL IRAS Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death ben- Tax information 63 eficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN TRADITIONAL IRAS Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. EXCESS CONTRIBUTIONS Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contribution amount for the applicable taxable year); or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: 64 Tax information (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. RECHARACTERIZATIONS Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. REQUIRED MINIMUM DISTRIBUTIONS BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing. Please consult your tax adviser concerning applicability of these complex rules to your situation. LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. WHEN YOU HAVE TO TAKE THE FIRST LIFETIME REQUIRED MINIMUM DISTRIBUTION. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1-April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year--the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. Tax information 65 HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON THE METHOD YOU CHOOSE? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If 66 Tax information the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. SPOUSAL CONTINUATION If the contract is continued under spousal continuation, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH IRA death benefits are taxed the same as IRA distributions. BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special federal income tax definition); or o used to pay medical insurance premiums for unemployed individuals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special federal income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies using an IRS-approved distribution method). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. To meet the substantially equal periodic payment exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" above. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under this option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Select(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. CONTRIBUTIONS TO ROTH IRAS Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eligible retirement plan ("conversion rollover" contributions); or o tax-free rollover contributions from other Roth individual retirement arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. REGULAR CONTRIBUTIONS TO ROTH IRAS LIMITS ON REGULAR CONTRIBUTIONS. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the par- Tax information 67 ticular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion under "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. WHEN YOU CAN MAKE CONTRIBUTIONS. Same as traditional IRAs. DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible. ROLLOVERS AND DIRECT TRANSFERS WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make rollovers between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. CONVERSION ROLLOVER CONTRIBUTIONS TO ROTH IRAS In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally 68 Tax information fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting -- a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. RECHARACTERIZATIONS You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. HOW TO RECHARACTERIZE. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. DISTRIBUTIONS FROM ROTH IRAS Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; Tax information 69 o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. QUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contributions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. REQUIRED MINIMUM DISTRIBUTIONS DURING LIFE Lifetime required minimum distributions do not apply. REQUIRED MINIMUM DISTRIBUTIONS AT DEATH Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the Required Beginning Date. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS Same as traditional IRA. EXCESS CONTRIBUTIONS Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. EARLY DISTRIBUTION PENALTY TAX Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are 70 Tax information the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) SELECT(SM) TSA CONTRACT Because the Accumulator(R) Select(SM) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Select(SM) TSA contract are extremely limited as described below. Accumulator(R) Select(SM) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the 403(b) annuity contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Select(SM) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Select(SM) TSA contract. AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Select(SM) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Select(SM) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. Tax information 71 ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) Select(SM) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Select(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; 72 Tax information o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Select(SM) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" in this Prospectus, as well as GMIB and other annuitization payments that are based on the annuitant's life or life expectancy, are considered annuity payments for tax purposes. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: Tax information 73 (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Select(SM) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Select(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Select(SM) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA contract whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. 74 Tax information If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribution from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. Tax information 75 As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA contract. If a non-periodic distribution from a qualified plan or TSA contract is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSA contracts are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. 76 Tax information 8. More information - -------------------------------------------------------------------------------- ABOUT OUR SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of Separate Account's operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although the Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within Separate Account No. 49 invests solely in class IB/B shares issued by the corresponding portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from the Separate Account or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling its shares. All dividends and other distributions on Trust shares are reinvested in full. The Board of Trustees of the Trusts may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan and other aspects of its operations, appears in the prospectuses for each Trust which generally accompany this Prospectus, or in their respective SAIs which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below: - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 2013 3.00%* $ 86.25 2014 3.00%* $ 83.73 - -------------------------------------------------------------------------------- More information 77 - -------------------------------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------------------------------- 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - -------------------------------------------------------------------------------- * Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw all of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMOs maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. See Appendix II at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) above would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity option, the "current rate to maturity" will be determined by using a widely-published Index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and fixed maturity options, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. 78 More information We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept initial and subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information provided through certain broker-dealers with which we have established electronic facilities. In any such cases, you must sign our Acknowledgement of Receipt form. Where we require a signed application, the above procedures do not apply and no financial transactions will be permitted until we receive the signed application and have issued the contract. Where we issue a contract based on information provided through electronic facilities, we require an Acknowledgement of Receipt form, and financial transactions are only permitted if you request them in writing, sign the request and have it signature guaranteed, until we receive the signed Acknowledgement of Receipt form. After your contract has been issued, additional contributions may be transmitted by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. After your contract has been issued, additional contributions may be transmitted by wire. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ contract on a monthly or quarterly basis. AIP is not available for Rollover IRA, Roth Conversion IRA, Inherited IRA Beneficiary Continuation (traditional IRA and Roth IRA) or Rollover TSA contracts. Please see Appendix VI later in this Prospectus to see if the automatic investment program is available in your state. The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options and available fixed maturity options. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. For contracts with GWBL, AIP will be automatically terminated after the later of : (i) the end of the first contract year, or (ii) the date the first withdrawal is taken. For contracts with PGB, AIP will be automatically terminated at the end of the first six months. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed More information 79 to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; or o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in each prospectus for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustees or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or the distributions of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive written notification of any change at our processing office. You cannot assign your NQ contract as collateral or security for a loan. Loans are also not available under your NQ contract. In some cases, an 80 More information assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. For NQ contracts only, subject to regulatory approval, if you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, the Earnings enhancement benefit, a PGB, and/or the Guaranteed withdrawal for life ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. However, the Benefit will not terminate if the ownership of the contract is transferred from a non-natural owner to an individual but the contract will continue to be based on the annuitant's life. Please speak with your financial professional for further information. See Appendix VI later in this Prospectus for any state variations with regard to terminating any benefits under your contract. You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available (except for Rollover TSA contracts, subject to plan or employer approval) and you cannot assign Rollover IRA, Roth Conversion IRA or Rollover TSA contracts as security for a loan or other obligation. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA or Rollover TSA contract to another similar arrangement under federal income tax rules. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 1.00% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 2.00% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker- dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. More information 81 The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) Select(SM) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. 82 More information 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This Prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa- equitable.com. Incorporation of certain documents by reference 83 Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.70%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.05 $ 14.43 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,377 3,109 - ------------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.76 $ 11.31 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,454 1,800 - ------------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.40 $ 11.96 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,753 3,022 - ------------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 48.27 $ 46.21 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,098 2,325 - ------------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.45 $ 13.82 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 23,506 14,705 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------- Unit value $243.48 $ 239.38 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 65 73 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.82 $ 17.92 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 404 376 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.41 $ 17.67 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,236 1,508 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.62 $ 6.80 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,050 1,042 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.06 $ 15.63 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 626 590 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 20.14 $ 17.56 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 443 462 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.31 $ 17.38 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,123 2,507 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.99 $ 11.31 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 227 123 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.07 $ 10.91 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 383 13,017 - ------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 23.24 $ 23.37 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 842 856 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------ 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.45 $ 11.72 $ 10.66 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,519 656 32 - ------------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.82 $ 10.74 $ 10.30 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,000 281 1 - ------------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.19 $ 11.02 $ 10.41 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,176 414 84 - ------------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 42.61 $ 41.36 $ 38.70 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,725 893 383 - ------------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.28 $ 11.71 $ 10.66 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,917 2,788 46 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 219.99 $ 214.55 $ 191.26 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 73 64 29 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.67 $ 17.76 $ 17.72 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 481 416 458 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.55 $ 12.84 $ 11.05 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,037 649 530 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.96 $ 6.16 $ 5.78 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,055 981 856 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.31 $ 15.27 $ 14.97 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 573 555 512 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.39 $ 14.95 $ 13.34 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 372 312 478 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.57 $ 14.06 $ 12.60 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,363 2,169 1,481 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.35 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 40 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.94 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 784 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.66 $ 19.43 $ 17.87 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 849 802 502 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------- 2002 - ------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 33.05 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 86 - ------------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 130.09 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 9 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.65 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 259 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.32 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 142 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 4.77 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 341 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.71 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 198 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.63 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 121 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.96 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 530 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.86 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 184 - -------------------------------------------------------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 23.97 $ 22.13 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,136 1052 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.71 $ 6.59 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 571 504 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.71 $ 8.81 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 373 353 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.14 $ 12.67 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,289 1,484 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.71 $ 12.72 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,063 1,393 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.12 $ 11.01 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 180 225 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.05 $ 10.84 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,189 216 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 29.54 $ 28.64 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,547 1,418 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.64 $ 9.90 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 476 185 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.49 $ 8.67 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 249 215 - ------------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.35 $ 12.57 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,166 1,890 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.45 $ 10.42 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,574 368 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.71 $ 10.81 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 421 38 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.49 -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,805 -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.75 $ 11.56 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 337 193 - ------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 27.67 $ 25.76 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 618 233 - ------------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.01 $ 14.13 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,289 3,208 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------ 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.91 $ 16.44 $ 13.75 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 782 522 441 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.78 $ 5.54 -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 326 15 -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.51 $ 7.96 $ 7.82 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 314 204 249 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.00 $ 11.62 $ 11.20 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 351 160 164 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.55 $ 11.08 $ 10.16 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,585 1,200 776 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.37 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 81 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 25.31 $ 24.66 $ 22.76 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,604 1,386 1,074 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.74 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 8 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.33 $ 8.15 $ 7.75 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 280 377 218 - ------------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.47 $ 10.97 $ 9.62 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,556 1,391 883 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.48 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 77 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 22.05 $ 21.50 -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 79 9 -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.06 $ 10.47 $ 9.38 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,337 1,926 1,026 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------- 2002 - ------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.92 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 161 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.22 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 42 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.19 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 40 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.86 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 200 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.11 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 399 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.70 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 32 - ------------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.81 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 285 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.19 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 282 - -------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.18 $ 14.17 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 665 269 - ------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.07 $ 13.88 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,473 1,477 - ------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.08 $ 15.53 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 288 351 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.50 $ 10.28 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 458 510 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.57 $ 14.58 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 492 192 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.32 $ 11.17 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 809 532 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.54 $ 9.98 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 248 135 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.39 $ 12.18 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 369 308 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.70 $ 11.67 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 442 196 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.15 $ 12.29 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 888 591 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.08 $ 16.13 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,346 2,714 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.40 $ 16.96 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,069 1,156 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 27.65 $ 26.86 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,051 1102 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.66 $ 4.77 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 657 83 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.69 $ 10.70 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,727 258 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.51 $ 11.08 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 674 83 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.10 $ 10.92 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 154 20 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------ 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.47 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 56 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.57 $ 13.50 $ 13.20 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,527 1,343 1,175 - ------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.12 $ 12.84 $ 11.78 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 347 370 307 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.26 $ 8.79 $ 8.03 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 603 610 598 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.76 $ 12.84 $ 11.60 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 184 149 93 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.63 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 144 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.98 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 173 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.57 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 83 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.54 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 84 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.12 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 290 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.01 $ 13.79 $ 12.69 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,354 1,938 1,510 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.34 $ 14.02 $ 12.10 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,107 1,007 636 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 26.15 $ 25.92 $ 26.17 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 845 349 434 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 4.49 $ 4.34 -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 72 22 -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------------------------- 2002 - ------------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.99 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 441 - ------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.45 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 128 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.69 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 229 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.12 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 38 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.85 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 386 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.24 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 237 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 26.47 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 630 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - -------------------------------------------------------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------------- 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.70 $ 11.09 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 277 19 - ------------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.72 $ 9.78 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,235 730 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.53 $ 10.17 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 262 202 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.02 $ 16.60 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 713 744 - ------------------------------------------------------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.30 $ 15.46 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 401 47 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.78 $ 10.75 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 853 178 - ------------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.04 $ 6.07 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 89 104 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.36 $ 11.85 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 539 602 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 25.45 $ 18.23 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,726 1239 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.95 $ 13.26 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 782 297 - ------------------------------------------------------------------------------------------------------------------------------- EQ Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.27 -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,440 -- - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 60.62 $ 55.37 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 56 47 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.80 $ 11.30 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,494 2,030 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.72 $ 11.87 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 390 400 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 30.68 $ 30.26 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 526 758 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.39 $ 16.64 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,047 1,030 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.50 $ 12.11 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 473 453 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.91 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 286 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.96 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 60 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.35 $ 14.00 $ 12.10 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 596 575 449 - ------------------------------------------------------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.39 $ 16.03 -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 41 6 -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.41 $ 5.05 -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 69 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.40 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 296 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.53 $ 10.37 $ 8.53 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 755 609 457 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.34 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 179 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 53.59 $ 50.38 $ 45.72 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 25 28 10 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.08 $ 11.07 $ 10.84 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,611 1,424 1,202 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.49 $ 10.93 $ 9.91 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 338 284 143 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 28.00 $ 27.64 $ 25.87 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 755 771 557 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.51 $ 11.90 $ 10.27 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 783 806 360 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.85 $ 10.34 $ 9.59 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 353 272 238 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------------------------- 2002 EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.44 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 122 - ------------------------------------------------------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.56 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 69 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- EQ Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 33.82 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.63 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 628 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.87 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 57 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 21.48 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 125 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.78 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 135 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.61 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 104 - -------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------ 2007 2006 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.35 $ 9.47 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 881 1,014 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.37 $ 14.10 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,210 1,363 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.81 $ 10.74 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 934 1,035 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.46 $ 13.68 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 805 1010 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.71 $ 8.54 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 788 475 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.88 $ 19.05 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 748 1201 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.10 $ 10.41 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 597 350 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------- 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.62 $ 9.10 $ 8.68 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 980 876 792 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.02 $ 11.42 $ 10.15 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,238 1,242 726 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.96 $ 9.35 $ 8.52 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,075 1,055 731 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.13 $ 11.49 $ 10.15 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 876 1,011 560 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.89 $ 7.46 -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 242 59 -- - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.69 $ 16.22 $ 14.09 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 991 884 641 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.87 $ 9.02 $ 8.74 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 311 306 98 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------- 2002 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.76 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 408 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.88 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 316 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.18 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 292 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.34 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 206 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.43 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 270 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.64 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 14 - -------------------------------------------------------------------------------------------------------------------------------
A-5 Appendix I: Condensed financial information Appendix II: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00% ("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000 is made four years later on February 15, 2012(a).
- --------------------------------------------------------------------------------------------------------- Hypothetical assumed rate to maturity ("j" in the calculations below) February 15, 2012 -------------------------------- 5.00% 9.00% - --------------------------------------------------------------------------------------------------------- As of February 15, 2012 before withdrawal - --------------------------------------------------------------------------------------------------------- (1) Market adjusted amount(b) $141,389 $121,737 - --------------------------------------------------------------------------------------------------------- (2) Fixed maturity amount(c) $131,104 $131,104 - --------------------------------------------------------------------------------------------------------- (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - --------------------------------------------------------------------------------------------------------- On February 15, 2012 after $50,000 withdrawal - --------------------------------------------------------------------------------------------------------- (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - --------------------------------------------------------------------------------------------------------- (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - --------------------------------------------------------------------------------------------------------- (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - --------------------------------------------------------------------------------------------------------- (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - --------------------------------------------------------------------------------------------------------- (8) Maturity value(d) $111,099 $101,287 - ---------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ---------------- = ---------------- where j is either 5% or 9% (1+j)(D/365) (1+j)(1,461/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ---------------- = ------------------- (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount x (1+h)(D/365) = ($84,741 or $77,257) x (1+0.07)(1,461/365)
Appendix II: Market value adjustment example B-1 Appendix III: Enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the enhanced death benefit, if elected. The following illustrates the enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/AllianceBernstein Intermediate Government Securities, EQ/Money Market, EQ/Short Duration Bond, the guaranteed interest option or the fixed maturity options), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the enhanced death benefit for an owner age 45 would be calculated as follows:
- ------------------------------------------------------------------------------------------------------- End of contract 6% Roll-Up to age 85 Annual Ratchet to age 85 GWBL Enhanced year Account value benefit base benefit base death benefit base - ------------------------------------------------------------------------------------------------------- 1 $105,000 $ 106,000(4) $ 105,000(1) $ 105,000(5) - ------------------------------------------------------------------------------------------------------- 2 $115,500 $ 112,360(3) $ 115,500(1) $ 115,500(5) - ------------------------------------------------------------------------------------------------------- 3 $129,360 $ 119,102(3) $ 129,360(1) $ 129,360(5) - ------------------------------------------------------------------------------------------------------- 4 $103,488 $ 126,248(3) $ 129,360(2) $ 135,828(6) - ------------------------------------------------------------------------------------------------------- 5 $113,837 $ 133,823(4) $ 129,360(2) $ 142,296(6) - ------------------------------------------------------------------------------------------------------- 6 $127,497 $ 141,852(4) $ 129,360(2) $ 148,764(6) - ------------------------------------------------------------------------------------------------------- 7 $127,497 $ 150,363(4) $ 129,360(2) $ 155,232(6) - -------------------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. ANNUAL RATCHET TO AGE 85 (1) At the end of contract years 1 through 3, the Annual Ratchet to 85 enhanced death benefit is equal to the current account value. (2) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown would be the greater of the amounts shown under the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. (3) At the end of contract years 2 through 4, the enhanced death benefit will be the enhanced Annual Ratchet to age 85. (4) At the end of contract years 1 and 5 through 7, the enhanced death benefit will be based on the 6% Roll-Up to age 85. GWBL ENHANCED DEATH BENEFIT This example assumes no withdrawals. The GWBL Enhanced death benefit is a guaranteed minimum death benefit that is only available if you elect the Guaranteed withdrawal benefit for life. If you plan to take withdrawals during any of the first seven contract years, this illustration is of limited usefulness to you. (5) At the end of contract years 1 through 3, the GWBL Enhanced death benefit is equal to the current account value. (6) At the end of contract years 4 through 7, the GWBL Enhanced death benefit is greater than the current account. C-1 Appendix III: Enhanced death benefit example Appendix IV: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85" enhanced death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Select(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying Portfolios (as described below), the corresponding net annual rates of return would be (2.93)%, 3.07% for the Accumulator(R) Select(SM) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges but they do not reflect the charges we deduct from your account value annually for the enhanced death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return shown would be lower; however, the values shown in the following tables reflect the following contract charges: the "Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85" enhanced death benefit charge, the Earnings enhancement benefit charge, the Guaranteed minimum income benefit charge and any applicable administrative charge. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this Prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. Appendix IV: Hypothetical illustrations D-1 Variable deferred annuity Accumulator(R) Select(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 Guaranteed minimum death benefit Earnings enhancement benefit Guaranteed minimum income benefit
Greater of 6% Roll- Up to age 85 or the Lifetime Annual Annual Ratchet to Guaranteed Minimum Income Benefit age 85 Guaranteed Total Death Benefit ---------------------------------- Minimum with the Earnings Guaranteed Hypothetical Account Value Cash Value Death Benefit enhancement benefit Income Income Contract ------------------- ------------------- ------------------- ------------------- ----------------- ---------------- Age Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% --------- --------- --------- --------- --------- --------- --------- --------- --------- -------- -------- -------- ------- 60 1 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A 61 2 95,352 101,331 95,352 101,331 106,000 106,000 108,400 108,400 N/A N/A N/A N/A 62 3 90,774 102,616 90,774 102,616 112,360 112,360 117,304 117,304 N/A N/A N/A N/A 63 4 86,257 103,848 86,257 103,848 119,102 119,102 126,742 126,742 N/A N/A N/A N/A 64 5 81,796 105,020 81,796 105,020 126,248 126,248 136,747 136,747 N/A N/A N/A N/A 65 6 77,382 106,126 77,382 106,126 133,823 133,823 147,352 147,352 N/A N/A N/A N/A 66 7 73,007 107,157 73,007 107,157 141,852 141,852 158,593 158,593 N/A N/A N/A N/A 67 8 68,665 108,105 68,665 108,105 150,363 150,363 170,508 170,508 N/A N/A N/A N/A 68 9 64,348 108,962 64,348 108,962 159,385 159,385 183,139 183,139 N/A N/A N/A N/A 69 10 60,048 109,718 60,048 109,718 168,948 168,948 196,527 196,527 N/A N/A N/A N/A 74 15 38,424 111,596 38,424 111,596 226,090 226,090 276,527 276,527 13,520 13,520 13,520 13,520 79 20 15,885 109,073 15,885 109,073 302,560 302,560 383,584 383,584 20,272 20,272 20,272 20,272 84 25 0 99,937 0 99,937 0 404,893 0 493,179 0 32,391 0 32,391 89 30 0 96,398 0 96,398 0 429,187 0 517,472 N/A N/A N/A N/A 94 35 0 95,458 0 95,458 0 429,187 0 517,472 N/A N/A N/A N/A 95 36 0 95,255 0 95,255 0 429,187 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a policy would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual policy years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. D-2 Appendix IV: Hypothetical illustrations Appendix V: Earnings enhancement benefit example - -------------------------------------------------------------------------------- The following illustrates the calculation of a death benefit that includes Earnings enhancement benefit for an owner age 45. The example assumes a contribution of $100,000 and no additional contributions. Where noted, a single withdrawal in the amount shown is also assumed. The calculation is as follows:
No withdrawal $3000 withdrawal $6000 withdrawal ---------------------------------------------------------------------------------------------------------------- A Initial contribution 100,000 100,000 100,000 ---------------------------------------------------------------------------------------------------------------- B Death benefit: prior to withdrawal.* 104,000 104,000 104,000 ---------------------------------------------------------------------------------------------------------------- Earnings enhancement benefit earnings: death C benefit less net contributions (prior to the withdrawal in 4,000 4,000 4,000 D). B minus A. ---------------------------------------------------------------------------------------------------------------- D Withdrawal 0 3,000 6,000 ---------------------------------------------------------------------------------------------------------------- Excess of the withdrawal over the Earnings E enhancement benefit earnings 0 0 2,000 greater of D minus C or zero ---------------------------------------------------------------------------------------------------------------- Net contributions (adjusted for the withdrawal in D) F 100,000 100,000 98,000 A minus E ---------------------------------------------------------------------------------------------------------------- Death benefit (adjusted for the withdrawal in D) G 104,000 101,000 98,000 B minus D ---------------------------------------------------------------------------------------------------------------- Death benefit less net contributions H 4,000 1,000 0 G minus F ---------------------------------------------------------------------------------------------------------------- I Earnings enhancement benefit factor 40% 40% 40% ---------------------------------------------------------------------------------------------------------------- Earnings enhancement benefit J 1,600 400 0 H times I ---------------------------------------------------------------------------------------------------------------- Death benefit: including Earnings enhancement benefit K 105,600 101,400 98,000 G plus J ----------------------------------------------------------------------------------------------------------------
* The death benefit is the greater of the account value or any applicable death benefit. Appendix V: Earnings enhancement benefit example E-1 Appendix VI: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- The following information is a summary of the states where the Accumulator(R) Select(SM) contract or certain features and/or benefits are either not available as of the date of this Prospectus or vary from the contract's features and benefits as previously described in this Prospectus. STATES WHERE CERTAIN ACCUMULATOR(R) SELECT(SM) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- CALIFORNIA See "Contract features and benefits"--"Your right to can- cel within a certain number of days" - -------------------------------------------------------------------------------- PENNSYLVANIA Contributions Required disclosure for Pennsylvania customers - -------------------------------------------------------------------------------- PUERTO RICO IRA, Roth IRA, Inherited IRA and Rollover TSA contracts Beneficiary continuation option (IRA) Tax Information -- Special rules for NQ contracts - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- CALIFORNIA If you reside in the state of California and you are age 60 and older at the time the contract is issued, you may return your variable annuity contract within 30 days from the date that you receive it and receive a refund as described below. If you allocate your entire initial contribution to the EQ/Money Market option (and/or guaranteed interest option, if available), the amount of your refund will be equal to your contribution less interest, unless you make a trans- fer, in which case the amount of your refund will be equal to your account value on the date we receive your request to cancel at our processing office. This amount could be less than your initial contribution. If the Principal guarantee ben- efit or Guaranteed withdrawal benefit for life is elected, the investment allocation during the 30 day free look period is limited to the guaranteed interest option. If you allocate any portion of your initial contribution to the variable invest- ment options (other than the EQ/Money Market option) and/or fixed maturity options, your refund will be equal to your account value on the date we receive your request to cancel at our processing office. - -------------------------------------------------------------------------------- PENNSYLVANIA Your contract refers to contributions as premiums. Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. - -------------------------------------------------------------------------------- PUERTO RICO Not Available Not Available Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico source income of Puerto Rico resi- dents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable portion of amounts distributed from a con- tract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S. tax paid. Depending on your per- sonal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. - --------------------------------------------------------------------------------
F-1 Appendix VI: State contract availability and/or variations of certain features and benefits
- -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- TEXAS See "Charges that AXA Equitable deducts" under "Annual administrative charge" in "Charges and expenses" - -------------------------------------------------------------------------------- WASHINGTON Guaranteed interest option Investment simplifier -- Fixed-dollar option and Interest sweep option Fixed maturity options Income Manager(SM) payout option Earnings enhancement benefit "Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit" See "Guaranteed minimum death benefit charge" in "Fee table" and in "Charges and expenses" See "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" in "Contract features and benefits" See "Guaranteed minimum death benefit/Guaranteed minimum income benefit roll-up benefit base reset" in "Contract features and benefits" See "Guaranteed minimum death benefit" in "Contract features and benefits" - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- TEXAS We will deduct the annual administrative charge, on a pro rata basis, only from your value in the variable investment options. We will not deduct this charge from your value in the guaranteed interest option. - -------------------------------------------------------------------------------- WASHINGTON Not available Not available Not available Not available Not available All references to this feature are deleted in their entirety. You have the choice of the following guaranteed minimum death benefits: the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85; the Annual Ratchet to age 85; the Standard death benefit; the GWBL Enhanced death benefit; or the GWBL Standard death benefit. The charge for the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 is 0.60% o If you elect the 6% Guaranteed minimum income benefit with the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, the variable investment options (other than those variable investment options that roll up to 3%) and the account for 12 month dollar cost averaging program will roll up at an annual rate of 6% for the Guaranteed minimum income benefit base and 4% for the 4% Roll-Up to age 85 benefit base. o If you elect the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, with- out the Guaranteed minimum income benefit, the variable investment options (other than those variable investment options that roll up to 3%) and the account for 12 month dollar cost averaging program will roll up at an annual rate of 4% for the 4% Roll-Up to age 85 benefit base. Your "Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit" benefit base will reset only if your account value is greater than your Guaranteed minimum income benefit roll-up benefit base. You have a choice of the standard death benefit, the Annual Ratchet to age 85 enhanced death benefit, or the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. - --------------------------------------------------------------------------------
Appendix VI: State contract availability and/or variations of certain features and benefits F-2
- -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- WASHINGTON See "Annual administrative charge" in "Charges and (CONT.) expenses" See "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefit" in "Accessing your money" - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- WASHINGTON The second paragraph of this section is replaced with the (CONT.) following: The annual administrative charge will be deducted from the value in the variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the account for 12 month dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of that charge for the year. The first sentence of the third paragraph is replaced with the following: With respect to the Guaranteed minimum income benefit and the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, withdrawals (including any applicable withdrawal charges) will reduce each of the benefits' Roll-Up to age 85 benefit base on a dollar-for- dollar basis, as long as the sum of the withdrawals in a contract year is 6% or less of each benefit's Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. With respect to the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, if elected without the Guaranteed minimum income benefit, withdrawals (including any applicable with- drawal charges) will reduce the 4% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6% or less of the 4% Roll-Up to age 85 benefit base on the contract issue date or the most recent contract date anniversary, if later. - --------------------------------------------------------------------------------
F-3 Appendix VI: State contract availability and/or variations of certain features and benefits Appendix VII: Contract variations - -------------------------------------------------------------------------------- You should note that your contract's options, features and charges may vary from what is described in this Prospectus depending on the approximate date on which you purchased your contract. You may not change your contract or its features after issue. This Appendix reflects contract variations that differ from what is described in this Prospectus but may have been in effect at the time your contract was issued. If you purchased your contract during the "Approximate Time Period" below, the noted variation may apply to you. In addition, options and/or features may vary among states in light of applicable regulations or state approvals. Any such state variations are generally not included here but instead included in Appendix VI earlier in this section. For more information about state variations applicable to you, as well as particular features, charges and options available under your contract based upon when you purchased it, please contact your financial professional and/or refer to your contract.
- ------------------------------------------------------------------------------------------------------------------------------------ Approximate Time Period Feature/Benefit Variation - ------------------------------------------------------------------------------------------------------------------------------------ July 10, 2006 - January 15, 2007 Greater of 6% Roll-Up to age 85 or Annual The fee for this benefit is 0.60%. Ratchet to age 85 enhanced death benefit Guaranteed minimum death benefit/ The Roll-Up benefit base is eligible for reset Guaranteed minimum income benefit roll-up every five years. benefit base reset - ------------------------------------------------------------------------------------------------------------------------------------ January 16, 2007 - present Greater of 6% Roll-Up to age 85 or Annual The fee for this benefit is 0.65%. Ratchet to age 85 enhanced death benefit Guaranteed minimum death benefit/ The Roll-Up benefit base is eligible for reset Guaranteed minimum income benefit roll-up annually. benefit base reset - ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII: Contract variations G-1 Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to obtain an Accumulator(R) Select(SM) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) Select(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Please send me an Accumulator(R) Select(SM) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip X1891/Select '02/'04, OR, '04(NY), '06/'06.5 and '07 Series Accumulator(R) Select(SM) A combination variable and fixed deferred annuity contract PROSPECTUS DATED MAY 1, 2008 Please read and keep this Prospectus for future reference. It contains important information that you should know before purchasing, or taking any other action under your contract. You should read the prospectuses for each Trust which contain important information about the portfolios. - -------------------------------------------------------------------------------- WHAT IS THE ACCUMULATOR(R) SELECT(SM)? Accumulator(R) Select(SM) is a deferred annuity contract issued by AXA Equitable Life Insurance Company. It provides for the accumulation of retirement savings and for income. The contract offers income and death benefit protection. It also offers a number of payout options. You invest to accumulate value on a tax-deferred basis in one or more of our variable investment options, the guaranteed interest option or fixed maturity options ("investment options"). There is no withdrawal charge under the contract. Certain features and benefits described in this Prospectus may vary in your state; all features and benefits may not be available in all contracts, in all states or from all selling broker-dealers. Please see Appendix VI later in this Prospectus for more information on state availability and/or variations of certain features and benefits. - -------------------------------------------------------------------------------- Variable investment options - -------------------------------------------------------------------------------- o AXA Aggressive Allocation* o EQ/Large Cap Growth PLUS(3) o AXA Conservative Allocation* o EQ/Legg Mason Value Equity o AXA Conservative-Plus Allocation* o EQ/Long Term Bond o AXA Moderate Allocation* o EQ/Lord Abbett Growth and Income o AXA Moderate-Plus Allocation* o EQ/Lord Abbett Large Cap Core o EQ/AllianceBernstein Common Stock o EQ/Lord Abbett Mid Cap Value o EQ/AllianceBernstein Intermediate o EQ/Marsico Focus Government Securities o EQ/Mid Cap Value PLUS(4) o EQ/AllianceBernstein International o EQ/Money Market o EQ/AllianceBernstein Large Cap o EQ/Montag & Caldwell Growth Growth o EQ/Mutual Shares o EQ/AllianceBernstein Quality Bond o EQ/Oppenheimer Global o EQ/AllianceBernstein Small Cap o EQ/Oppenheimer Main Street Growth Opportunity o EQ/AllianceBernstein Value o EQ/Oppenheimer Main Street o EQ/Ariel Appreciation II Small Cap o EQ/AXA Rosenberg Value Long/Short o EQ/PIMCO Real Return Equity o EQ/Short Duration Bond o EQ/BlackRock Basic Value Equity o EQ/Small Company Index o EQ/BlackRock International Value o EQ/T. Rowe Price Growth Stock o EQ/Boston Advisors Equity Income o EQ/Templeton Growth o EQ/Calvert Socially Responsible o EQ/UBS Growth and Income o EQ/Capital Guardian Growth o EQ/Van Kampen Comstock o EQ/Capital Guardian Research o EQ/Van Kampen Emerging Markets o EQ/Caywood-Scholl High Yield Bond Equity o EQ/Davis New York Venture o EQ/Van Kampen Mid Cap Growth o EQ/Equity 500 Index o EQ/Van Kampen Real Estate o EQ/Evergreen International Bond o Multimanager Aggressive Equity o EQ/Evergreen Omega o Multimanager Core Bond o EQ/FI Mid Cap o Multimanager Health Care o EQ/Franklin Income o Multimanager High Yield o EQ/Franklin Small Cap Value o Multimanager International Equity o EQ/Franklin Templeton Founding o Multimanager Large Cap Core Equity Strategy o Multimanager Large Cap Growth o EQ/GAMCO Mergers and Acquisitions o Multimanager Large Cap Value o EQ/GAMCO Small Company Value o Multimanager Mid Cap Growth o EQ/International Core PLUS(1) o Multimanager Mid Cap Value o EQ/International Growth o Multimanager Small Cap Growth o EQ/JPMorgan Core Bond o Multimanager Small Cap Value o EQ/JPMorgan Value Opportunities o Multimanager Technology o EQ/Large Cap Core PLUS(2) - -------------------------------------------------------------------------------- * The "AXA Allocation" portfolios. (1) Formerly named "MarketPLUS International Core." (2) Formerly named "MarketPLUS Large Cap Core." (3) Formerly named "MarketPLUS Large Cap Growth." (4) Formerly named "MarketPLUS Mid Cap Growth." You may allocate amounts to any of the variable investment options. Each variable investment option is a subaccount of Separate Account No. 49. Each variable investment option, in turn, invests in a corresponding securities portfolio ("Portfolio") of the AXA Premier VIP Trust or the EQ Advisors Trust (the "Trusts"). Your investment results in a variable investment option will depend on the investment performance of the related Portfolio. You may also allocate amounts to the guaranteed interest option, the fixed maturity options and the account for the special money market dollar cost averaging, which are discussed later in this Prospectus. If you elect a Principal guarantee benefit, the Guaranteed withdrawal benefit for life or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, your investment options will be limited to the guaranteed interest option, the account for the special money market dollar cost averaging and certain permitted variable investment option(s). The permitted variable investment options are described later in this Prospectus. TYPES OF CONTRACTS. We offer the contracts for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o An individual retirement annuity ("IRA"), either traditional IRA or Roth IRA. We offer one version of the traditional IRA: "Rollover IRA." We also offer one version of the Roth IRA: "Roth Conversion IRA." o Traditional and Roth Inherited IRA beneficiary continuation contract ("Inherited IRA") (direct transfer and specified direct rollover contributions only). o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") -- ("Rollover TSA") (Rollover and direct transfer contributions only; employer or plan approval required). A contribution of at least $25,000 is required to purchase a contract. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The statement of additional information ("SAI") dated May 1, 2008, is part of the registration statement. The SAI is available free of charge. You may request one by writing to our processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling 1-800-789-7771. The SAI has been incorporated by reference into this Prospectus. This Prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this Prospectus. The SEC has not approved or disapproved these securities or determined if this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense. The contracts are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are subject to investment risks and possible loss of principal. x01911/Select '07 Series (R-4/15) Contents of this Prospectus - -------------------------------------------------------------------- - -------------------------------------------------------------------------------- ACCUMULATOR(R) SELECT(SM) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 6 How to reach us 7 Accumulator(R) Select(SM) at a glance -- key features 9 - -------------------------------------------------------------------------------- FEE TABLE 11 - -------------------------------------------------------------------------------- Example 15 Condensed financial information 18 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 19 - -------------------------------------------------------------------------------- How you can purchase and contribute to your contract 19 Owner and annuitant requirements 23 How you can make your contributions 23 What are your investment options under the contract? 23 Portfolios of the Trusts 25 Allocating your contributions 31 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 33 Annuity purchase factors 34 Guaranteed minimum income benefit 34 Guaranteed minimum death benefit 37 Guaranteed withdrawal benefit for life ("GWBL") 38 Principal guarantee benefits 42 Inherited IRA beneficiary continuation contract 43 Your right to cancel within a certain number of days 43 - -------------------------------------------------------------------------------- 2. DETERMINING YOUR CONTRACT'S VALUE 45 - -------------------------------------------------------------------------------- Your account value and cash value 45 Your contract's value in the variable investment options 45 Your contract's value in the guaranteed interest option 45 Your contract's value in the fixed maturity options 45 Insufficient account value 45 - -------------------------------------------------------------------------------- 3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 47 - -------------------------------------------------------------------------------- Transferring your account value 47 Disruptive transfer activity 47 Rebalancing your account value 48 - ---------------------- "We," "our," and "us" refer to AXA Equitable. When we address the reader of this Prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. 2 Contents of this Prospectus - -------------------------------------------------------------------------------- 4. ACCESSING YOUR MONEY 50 - -------------------------------------------------------------------------------- Withdrawing your account value 50 How withdrawals are taken from your account value 52 How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits 52 How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit 52 Withdrawals treated as surrenders 52 Loans under Rollover TSA contracts 53 Surrendering your contract to receive its cash value 53 When to expect payments 54 Your annuity payout options 54 - -------------------------------------------------------------------------------- 5. CHARGES AND EXPENSES 57 - -------------------------------------------------------------------------------- Charges that AXA Equitable deducts 57 Charges that the Trusts deduct 59 Group or sponsored arrangements 60 Other distribution arrangements 60 - -------------------------------------------------------------------------------- 6. PAYMENT OF DEATH BENEFIT 61 - -------------------------------------------------------------------------------- Your beneficiary and payment of benefit 61 Beneficiary continuation option 63 - -------------------------------------------------------------------------------- 7. TAX INFORMATION 66 - -------------------------------------------------------------------------------- Overview 66 Buying a contract to fund a retirement arrangement 66 Transfers among investment options 66 Taxation of nonqualified annuities 66 Individual retirement arrangements (IRAs) 68 Tax-sheltered annuity contracts (TSAs) 78 Federal and state income tax withholding and information reporting 82 Impact of taxes to AXA Equitable 83 - -------------------------------------------------------------------------------- 8. MORE INFORMATION 84 - -------------------------------------------------------------------------------- About our Separate Account No. 49 84 About the Trusts 84 About our fixed maturity options 84 About the general account 85 About other methods of payment 86 Dates and prices at which contract events occur 86 About your voting rights 87 About legal proceedings 87 Financial statements 87 Transfers of ownership, collateral assignments, loans and borrowing 87 About Custodial IRAs 88 Distribution of the contracts 88 - -------------------------------------------------------------------------------- 9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 90 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- I -- Condensed financial information A-1 II -- Market value adjustment example B-1 III -- Enhanced death benefit example C-1 IV -- Hypothetical illustrations D-1 V -- Earnings enhancement benefit example E-1 VI -- State contract availability and/or variations of certain features and benefits F-1 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- Contents of this Prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this Prospectus. Page in Term Prospectus 3% Roll-Up to age 85 33 6% Roll-Up to age 85 33 6-1/2% Roll-Up to age 85 33 account value 45 administrative charge 57 annual administrative charge 57 Annual Ratchet 40 Annual Ratchet to age 85 enhanced death benefit 33 annuitant 19 annuitization 54 annuity maturity date 55 annuity payout options 54 annuity purchase factors 34 automatic annual reset program 34 automatic customized reset program 34 automatic investment program 86 AXA Allocation portfolios cover beneficiary 61 Beneficiary continuation option ("BCO") 63 business day 86 cash value 45 charges for state premium and other applicable taxes 59 contract date 23 contract date anniversary 23 contract year 23 contributions to Roth IRAs 74 regular contributions 75 rollovers and transfers 75 conversion contributions 76 contributions to traditional IRAs 69 regular contributions 69 rollovers and transfers 70 disruptive transfer activity 47 distribution charge 57 Earnings enhancement benefit 38 Earnings enhancement benefit charge 59 EQAccess 7 ERISA 60 Fixed-dollar option 32 fixed maturity options 30 free look 44 general account 85 General dollar cost averaging 32 guaranteed interest option 30 Guaranteed minimum death benefit 37 Guaranteed minimum death benefit and Guaranteed minimum income benefit base 33 Guaranteed minimum income benefit 34 Guaranteed minimum income benefit and the Roll-Up benefit base reset option 33 Guaranteed minimum income benefit charge 58 Guaranteed minimum income benefit "no lapse guarantee" 35 Guaranteed withdrawal benefit for life ("GWBL") 38 Guaranteed withdrawal benefit for life charge 59 GWBL benefit base 39 IRA cover Page in Term Prospectus IRS 66 Inherited IRA cover investment options cover Investment Simplifier 32 Lifetime minimum distribution withdrawals 51 loan reserve account 53 loans under Rollover TSA 53 market adjusted amount 30 market timing 47 maturity dates 30 market value adjustment 30 maturity value 30 Mortality and expense risks charge 57 NQ cover one-time reset option 34 partial withdrawals 50 permitted variable investment options 23 Portfolio cover Principal guarantee benefits 42 processing office 7 rate to maturity 30 Rebalancing 48 Rollover IRA cover Roth IRA cover SAI cover SEC cover self-directed allocation 31 Separate Account No. 49 84 Special money market dollar cost averaging 31 Spousal continuation 62 Standard death benefit 33 substantially equal withdrawals 51 Systematic withdrawals 50 TOPS 7 Trusts 84 traditional IRA cover TSA cover unit 45 variable investment options 24 wire transmittals and electronic applications 86 4 Index of key words and phrases To make this Prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in this Prospectus as in the contract. Your financial professional can provide further explanation about your contract or supplemental materials.
- ---------------------------------------------------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - ---------------------------------------------------------------------------------------------------------------------------- fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials) variable investment options Investment Funds account value Annuity Account Value rate to maturity Guaranteed Rates unit Accumulation Unit Guaranteed minimum death benefit Guaranteed death benefit Guaranteed minimum income benefit Guaranteed Income Benefit guaranteed interest option Guaranteed Interest Account Guaranteed withdrawal benefit for life Guaranteed withdrawal benefit GWBL benefit base Guaranteed withdrawal benefit for life benefit base Guaranteed annual withdrawal amount Guaranteed withdrawal benefit for life Annual withdrawal amount Excess withdrawal Guaranteed withdrawal benefit for life Excess withdrawal - ----------------------------------------------------------------------------------------------------------------------------
Index of key words and phrases 5 Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. 6 Who is AXA Equitable? HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - ------------------------------------------------------ FOR CORRESPONDENCE WITH CHECKS: - ------------------------------------------------------ FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) Select(SM) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) Select(SM) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - ------------------------------------------------------ FOR CORRESPONDENCE WITHOUT CHECKS: - ------------------------------------------------------ FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) Select(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) Select(SM) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - ------------------------------------------------------ REPORTS WE PROVIDE: - ------------------------------------------------------ o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year, and any calendar quarter in which there was a transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility for GWBL deferral bonuses and eligibility to exercise the Guaranteed minimum income benefit and/or the Roll-Up benefit base reset option. - ------------------------------------------------------ TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - ------------------------------------------------------ TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options (not available through EQAccess); o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors, you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or the Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of your transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Who is AXA Equitable? 7 Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" later in this Prospectus). - ------------------------------------------------------ CUSTOMER SERVICE REPRESENTATIVE: - ------------------------------------------------------ You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time. WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE PROVIDE FOR THAT PURPOSE: (1) authorization for telephone transfers by your financial professional (available only for contracts distributed through AXA Distributors); (2) conversion of a traditional IRA to a Roth Conversion IRA contract; (3) election of the automatic investment program; (4) requests for loans under Rollover TSA contracts (employer or plan approval required); (5) spousal consent for loans under Rollover TSA contracts; (6) requests for withdrawals or surrenders from Rollover TSA contracts (employer or plan approval required) and contracts with the Guaranteed withdrawal benefit for life ("GWBL"); (7) tax withholding elections; (8) election of the beneficiary continuation option; (9) IRA contribution recharacterizations; (10) Section 1035 exchanges; (11) direct transfers and rollovers; (12) exercise of the Guaranteed minimum income benefit; (13) requests to reset your Roll-Up benefit base by electing one of the following: one-time reset option, automatic annual reset program or automatic customized reset program; (14) requests to opt out of or back into the annual ratchet of the Guaranteed withdrawal benefit for life ("GWBL") benefit base; (15) death claims; (16) change in ownership (NQ only, if available under your contract); (17) requests for enrollment in either our Maximum payment plan or Customized payment plan under the Guaranteed withdrawal benefit for life ("GWBL"); (18) purchase by, or change of ownership to, a nonnatural owner; (19) requests to reset the guaranteed minimum value for contracts with a Principal guarantee benefit; and (20) requests to collaterally assign your NQ contract. WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) beneficiary changes; (2) contract surrender and withdrawal requests; (3) general dollar cost averaging (including the fixed dollar and interest sweep options); and (4) special money market dollar cost averaging. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION: (1) automatic investment program; (2) general dollar cost averaging (including the fixed dollar and interest sweep options); (3) special money market dollar cost averaging; (4) substantially equal withdrawals; (5) systematic withdrawals; and (6) the date annuity payments are to begin. TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION AT LEAST 30 CALENDAR DAYS PRIOR TO YOUR CONTRACT DATE ANNIVERSARY: (1) automatic annual reset program; and (2) automatic customized reset program. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests would normally be the owner. If there are joint owners both must sign. 8 Who is AXA Equitable? Accumulator(R) Select(SM) at a glance -- key features - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------ Professional investment Accumulator(R) Select(SM)'s variable investment options invest in different Portfolios managed management by professional investment advisers. - ------------------------------------------------------------------------------------------------------------------------ Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to availability). o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. ---------------------------------------------------------------------------------------------- If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity option. If you surrender your contract, a market value adjustment also applies. - ------------------------------------------------------------------------------------------------------------------------ Guaranteed interest o Principal and interest guarantees. o Interest rates set periodically. - ------------------------------------------------------------------------------------------------------------------------ Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive annuity payments. ---------------------------------------------------------------------------------------------- o No tax on transfers among investment options inside the contract. ---------------------------------------------------------------------------------------------- If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA), or tax sheltered annuity (TSA) you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code for these types of arrangements. Before purchasing one of these contracts, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities compared with any other investment that you may use in connection with your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness because of required minimum distributions ("RMDs"). - ------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during your life once income benefit you elect to annuitize the contract. - ------------------------------------------------------------------------------------------------------------------------ Guaranteed withdrawal The Guaranteed withdrawal benefit for life option ("GWBL"), guarantees that you can take benefit for life withdrawals of up to a maximum amount each contract year (your "Guaranteed annual withdrawal amount") beginning at age 45. Withdrawals are taken from your account value and continue during your lifetime even if your account value falls to zero (unless it is caused by a withdrawal that exceeds your Guaranteed annual withdrawal amount). - ------------------------------------------------------------------------------------------------------------------------ Contribution amounts o Initial minimum: $25,000 o Additional minimum: $500 (NQ and Rollover TSA) $100 monthly and $300 quarterly under our automatic investment program (NQ, Rollover IRA and Roth conversion IRA contracts) $1,000 (Inherited IRA contracts) $50 (IRA contracts) ---------------------------------------------------------------------------------------------- Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million ($500,000 for owners or annuitants who are age 81 and older at contract issue) under all Accumulator(R) series contracts with the same owner or annuitant. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. See "How you can purchase and contribute to your contract" in "Contract features and benefits" later in this prospectus. - ------------------------------------------------------------------------------------------------------------------------ Access to your money o Partial withdrawals o Several withdrawal options on a periodic basis o Loans under Rollover TSA contracts (employer or plan approval required) o Contract surrender o Maximum payment plan (only under contracts with GWBL) o Customized payment plan (only under contracts with GWBL) You may incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional benefits. - ------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Select(SM) at a glance -- key features 9 - ------------------------------------------------------------------------------------------------------------------------ Payout options o Fixed annuity payout options o Variable Immediate Annuity payout options (described in a separate prospectus for that option) o Income Manager(R) payout options (described in a separate prospectus for that option - ------------------------------------------------------------------------------------------------------------------------ Additional features o Guaranteed minimum death benefit options o Principal guarantee benefits o Dollar cost averaging o Automatic investment program o Account value rebalancing (quarterly, semiannually and annually) o Free transfers o Earnings enhancement benefit, an optional death benefit available under certain contracts o Spousal continuation o Beneficiary continuation option o Roll-Up benefit base reset - ------------------------------------------------------------------------------------------------------------------------ Fees and charges Please see "Fee table" later in this section for complete details. - ------------------------------------------------------------------------------------------------------------------------ Owner and annuitant NQ: 0-85 issue ages Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85 Inherited IRA: 0-70 - ------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the contract. In some cases, restrictions or exceptions apply. Also, all features of the contract are not necessarily available in your state or at certain ages. Please see Appendix VI later in this Prospectus for more information on state availability and/or variations of certain features and benefits. For more detailed information, we urge you to read the contents of this Prospectus, as well as your contract. This Prospectus provides a description of all material provisions of the contract. Please feel free to speak with your financial professional or call us, if you have questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund within a certain number of days. Please see "Your right to cancel within a certain number of days" later in this Prospectus for additional information. Other contracts We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, credits, fees and/or charges that are different from those in the contracts offered by this Prospectus. Not every contract is offered through every selling broker-dealer. Some selling broker-dealers may not offer and/or limit the offering of certain features or options, as well as limit the availability of the contracts, based on issue age or other criteria established by the selling broker-dealer. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about the availability of any of the AXA Equitable annuity contracts. You should work with your financial professional to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance. 10 Accumulator(R) Select(SM) at a glance -- key features Fee table - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying and owning the contract. Each of the charges and expenses is more fully described in "Charges and expenses" later in this Prospectus. The first table describes fees and expenses that you will pay if you purchase a Variable Immediate Annuity payout option. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply. - ------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value at the time you request certain transactions - ------------------------------------------------------------------------------------------------------------------------ Charge if you elect a variable payout option upon annuitization (which is described in a separate prospectus for that option) $ 350 - ------------------------------------------------------------------------------------------------------------------------ The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses. - ------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value on each contract date anniversary - ------------------------------------------------------------------------------------------------------------------------ Maximum annual administrative charge(1) If your account value on a contract date anniversary is less than $ 50,000(2) $ 30 If your account value on a contract date anniversary is $50,000 or more $ 0 - ------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------ SEPARATE ACCOUNT ANNUAL EXPENSES: Mortality and expense risks 1.10%(3) Administrative 0.25% Distribution 0.35% -------- Total Separate account annual expenses 1.70% - ------------------------------------------------------------------------------------------------------------------------ Charges we deduct from your account value each year if you elect any of the following optional benefits - ------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(1) on each contract date anniversary for which the benefit is in effect.) Standard death benefit and GWBL Standard death benefit 0.00% Annual Ratchet to age 85 0.25% Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 0.80%(4) If you elect to reset this benefit base, if applicable, we reserve the right to increase your charge up to: 0.95% Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 0.65%(4) If you elect to reset this benefit base, if applicable, we reserve the right to increase your charge up to: 0.80% Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 0.65% GWBL Enhanced death benefit 0.30% - ------------------------------------------------------------------------------------------------------------------------ Principal guarantee benefits charge (calculated as a percentage of the account value. Deducted annually(1) on each contract date anni- versary for which the benefit is in effect.) 100% Principal guarantee benefit 0.50% 125% Principal guarantee benefit 0.75% - ------------------------------------------------------------------------------------------------------------------------
Fee table 11 - ------------------------------------------------------------------------------------------------------------------------ Guaranteed minimum income benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually(1) on each contract date anniversary for which the benefit is in effect.) If you elect the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base 0.80%(4) If you elect to reset this benefit base, we reserve the right to increase your charge up to: 1.10% If you elect the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base 0.65%(4) If you elect to reset this Roll-Up benefit base, we reserve the right to increase your charge up to: 0.95% Earnings enhancement benefit charge (calculated as a percentage of the account value. Deducted annually(1) on each contract date anniversary for which the benefit is in effect.) 0.35% - ------------------------------------------------------------------------------------------------------------------------ Guaranteed withdrawal benefit for life benefit charge (calcu- 0.60% for the Single Life option lated as a percentage of the GWBL benefit base. Deducted annually(1) 0.75% for the Joint Life option on each contract date anniversary.) If your GWBL benefit base ratchets, we reserve the right to increase your charge up to: 0.75% for the Single Life option 0.90% for the Joint Life option Please see "Guaranteed withdrawal benefit for life" in "Contract features and benefits" for more information about this feature, including its benefit base and the Annual Ratchet provision, and "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses," both later in this Prospectus. - ------------------------------------------------------------------------------------------------------------------------ Net loan interest charge -- Rollover TSA contracts only (calculated and deducted daily as a percentage of the outstanding loan amount) 2.00%(5) - ------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio. - ------------------------------------------------------------------------------------------------------------------------ Portfolio operating expenses expressed as an annual percentage of daily net assets - ------------------------------------------------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ ------- other expenses)(6) 0.63% 3.56%
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets. - -------------------------------------------------------------------------------------------------------------------------- Acquired Total Fund Fees Annual and Expenses Fee Waiv- Net Annual Expenses (Before ers and/or Expenses Manage- (Underlying Expense Expense (After ment 12b-1 Other Portfo- Limita- Reimburse- Expense Portfolio Name Fees(7) Fees(8) Expenses(9) lios)(10) tions) ments(11) Limitations) - -------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - -------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.10% 0.25% 0.17% 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.10% 0.25% 0.21% 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.10% 0.25% 0.17% 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity 0.60% 0.25% 0.19% -- 1.04% -- 1.04%
12 Fee table
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets. Acquired Fund Fees Total and Annual Expenses Expenses Fee Waiv- Net Annual (Underly- (Before ers and/or Expenses Manage- Other ing Expense Expense (After ment 12b-1 Expenses Portfo- Limita- Reimburse- Expense Portfolio Name Fees(7) Fees(8) (9) lios)(10) tions) ments(11) Limitations) - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - ----------------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond 0.58% 0.25% 0.18% -- 1.01% (0.01)% 1.00% Multimanager Health Care 1.20% 0.25% 0.23% -- 1.68% 0.00% 1.68% Multimanager High Yield 0.57% 0.25% 0.19% -- 1.01% -- 1.01% Multimanager International Equity 1.00% 0.25% 0.23% -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth 0.90% 0.25% 0.22% -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value 0.87% 0.25% 0.20% -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value 1.09% 0.25% 0.20% -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth 1.05% 0.25% 0.27% -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value 1.03% 0.25% 0.18% -- 1.46% 0.00% 1.46% Multimanager Technology 1.20% 0.25% 0.22% 0.01% 1.68% 0.00% 1.68% - ----------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government Securities 0.50% 0.25% 0.13% -- 0.88% -- 0.88% EQ/AllianceBernstein International 0.71% 0.25% 0.18% -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% -- 1.12% -- 1.12% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% -- 1.26% (0.11)% 1.15% EQ/AXA Rosenberg Value Long/Short Equity 1.40% 0.25% 1.91% -- 3.56% 0.00% 3.56% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% -- 0.93% 0.00% 0.93% EQ/BlackRock International Value 0.81% 0.25% 0.19% -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research 0.63% 0.25% 0.13% -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture 0.85% 0.25% 0.18% -- 1.28% 0.00% 1.28% EQ/Equity 500 Index 0.25% 0.25% 0.13% -- 0.63% -- 0.63% EQ/Evergreen International Bond 0.70% 0.25% 0.17% -- 1.12% 0.00% 1.12% EQ/Evergreen Omega 0.65% 0.25% 0.25% -- 1.15% 0.00% 1.15% EQ/FI Mid Cap 0.68% 0.25% 0.13% -- 1.06% (0.06)% 1.00% EQ/Franklin Income 0.90% 0.25% 0.15% -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% 1.05% 1.57% (0.12)% 1.45%(12) EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.60% 0.25% 0.30% 0.04% 1.19% (0.05)% 1.14% EQ/International Growth 0.85% 0.25% 0.27% -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% -- 1.07% (0.07)% 1.00% EQ/Long Term Bond 0.40% 0.25% 0.13% -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% -- 1.10% (0.05)% 1.05% EQ/Marsico Focus 0.85% 0.25% 0.13% -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% 0.02% 1.06% (0.04)% 1.02% EQ/Money Market 0.32% 0.25% 0.13% -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% -- 1.15% 0.00% 1.15% EQ/Mutual Shares 0.90% 0.25% 0.21% -- 1.36% (0.06)% 1.30% - -----------------------------------------------------------------------------------------------------------------------------------
Fee table 13
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets. Acquired Total Fund Fees Annual and Expenses Fee Waiv- Net Annual Expenses (Before ers and/or Expenses Manage- (Underlying Expense Expense (After ment 12b-1 Other Portfo- Limita- Reimburse- Expense Portfolio Name Fees(7) Fees(8) Expenses(9) lios)(10) tions) ments(11) Limitations) - -------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - -------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global 0.95% 0.25% 0.51% 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return 0.55% 0.25% 0.14% -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond 0.43% 0.25% 0.15% -- 0.83% 0.00% 0.83% EQ/Small Company Index 0.25% 0.25% 0.14% -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% -- 1.18% (0.03)% 1.15% EQ/Templeton Growth 0.95% 0.25% 0.20% -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% -- 1.10% (0.05)% 1.05% EQ/Van Kampen Real Estate 0.90% 0.25% 0.21% -- 1.36% (0.10)% 1.26% - --------------------------------------------------------------------------------------------------------------------------------
Notes: (1) If the contract is surrendered or annuitized or a death benefit is paid on any date other than the contract date anniversary, we will deduct a pro rata portion of the charge for that year. (2) During the first two contract years this charge, if applicable, is equal to the lesser of $30 or 2% of your account value. Thereafter, if applicable, the charge is $30 for each contract year. (3) These charges compensate us for certain risks we assume and expenses we incur under the contract. We expect to make a profit from these charges. (4) We reserve the right to increase this charge if you elect to reset your Roll-Up benefit base on any contract date anniversary. See both "Guaranteed minimum death benefit charge" and "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. (5) We charge interest on loans under Rollover TSA contracts but also credit you interest on your loan reserve account. Our net loan interest charge is determined by the excess between the interest rate we charge over the interest rate we credit. See "Loans under Rollover TSA contracts" later in this Prospectus for more information on how the loan interest is calculated and for restrictions that may apply. (6) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. (7) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's Shareholders. See footnotes (11) and (12) for any expense limitation agreement information. (8) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. (9) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (11) and (12) for any expense limitation agreement information. (10) Each of these variable investment options invests in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios, ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A"--" indicates that the listed Portfolio does not invest in underlying portfolios. (11) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures, expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements.Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain Portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below:
------------------------------------------ Portfolio Name ------------------------------------------ Multimanager Aggressive Equity 0.97% ------------------------------------------ Multimanager Health Care 1.67% ------------------------------------------ Multimanager Large Cap Core Equity 1.34% ------------------------------------------ Multimanager Large Cap Growth 1.29% ------------------------------------------ Multimanager Large Cap Value 1.26% ------------------------------------------ Multimanager Mid Cap Growth 1.52% ------------------------------------------ Multimanager Mid Cap Value 1.53% ------------------------------------------ Multimanager Small Cap Growth 1.35% ------------------------------------------ Multimanager Small Cap Value 1.45% ------------------------------------------ Multimanager Technology 1.67% ------------------------------------------
14 Fee table
--------------------------------------------- Portfolio Name --------------------------------------------- EQ/AllianceBernstein Common Stock 0.84% --------------------------------------------- EQ/AllianceBernstein Large Cap Growth 1.03% --------------------------------------------- EQ/AllianceBernstein Small Cap Growth 1.11% --------------------------------------------- EQ/AllianceBernstein Value 0.87% --------------------------------------------- EQ/Ariel Appreciation II 1.09% --------------------------------------------- EQ/BlackRock Basic Value Equity 0.92% --------------------------------------------- EQ/Davis New York Venture 1.25% --------------------------------------------- EQ/Evergreen Omega 1.12% --------------------------------------------- EQ/GAMCO Mergers and Acquisitions 1.33% --------------------------------------------- EQ/GAMCO Small Company Value 1.10% --------------------------------------------- EQ/International Core PLUS 1.05% --------------------------------------------- EQ/Large Cap Core PLUS 0.83% --------------------------------------------- EQ/Large Cap Growth PLUS 0.82% --------------------------------------------- EQ/Legg Mason Value Equity 0.97% --------------------------------------------- EQ/Lord Abbett Growth and Income 0.98% --------------------------------------------- EQ/Lord Abbett Large Cap Core 0.99% --------------------------------------------- EQ/Lord Abbett Mid Cap Value 1.04% --------------------------------------------- EQ/Mid Cap Value PLUS 0.81% --------------------------------------------- EQ/Montag & Caldwell Growth 1.13% --------------------------------------------- EQ/T. Rowe Price Growth Stock 0.87% --------------------------------------------- EQ/UBS Growth and Income 1.04% --------------------------------------------- EQ/Van Kampen Comstock 0.99% --------------------------------------------- EQ/Van Kampen Mid Cap Growth 1.04% ---------------------------------------------
(12) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and adminis tration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses (including the underlying portfolio fees and expenses). The example below shows the expenses that a hypothetical contract owner (who has elected the enhanced death benefit that provides for the Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 and the Earnings enhancement benefit with the Guaranteed minimum income benefit) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.004% of contract value. The fixed maturity options, guaranteed interest option and the account for special money market dollar cost averaging are not covered by the example. However, the annual administrative charge, the charge for any optional benefits and the charge if you elect a Variable Immediate Annuity payout option do apply to the fixed maturity options, guaranteed interest option and the account for special money market dollar cost averaging. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. The example assumes that you invest $10,000 in the contract for the time periods indicated, and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Fee table 15
If you annuitize at the end of the applicable time period - ------------------------------------------------------------------------------------------------------ 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------ AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation N/A $ 1,991.00 $ 3,136.00 $ 6,198.00 AXA Conservative Allocation N/A $ 1,934.00 $ 3,045.00 $ 6,037.00 AXA Conservative-Plus Allocation N/A $ 1,949.00 $ 3,069.00 $ 6,080.00 AXA Moderate Allocation N/A $ 1,961.00 $ 3,088.00 $ 6,114.00 AXA Moderate-Plus Allocation N/A $ 1,973.00 $ 3,108.00 $ 6,148.00 Multimanager Aggressive Equity N/A $ 1,870.00 $ 2,942.00 $ 5,855.00 Multimanager Core Bond N/A $ 1,861.00 $ 2,928.00 $ 5,829.00 Multimanager Health Care N/A $ 2,064.00 $ 3,251.00 $ 6,397.00 Multimanager High Yield N/A $ 1,861.00 $ 2,928.00 $ 5,829.00 Multimanager International Equity N/A $ 2,003.00 $ 3,156.00 $ 6,232.00 Multimanager Large Cap Core Equity N/A $ 1,964.00 $ 3,093.00 $ 6,122.00 Multimanager Large Cap Growth N/A $ 1,970.00 $ 3,103.00 $ 6,139.00 Multimanager Large Cap Value N/A $ 1,955.00 $ 3,079.00 $ 6,097.00 Multimanager Mid Cap Growth N/A $ 2,024.00 $ 3,189.00 $ 6,290.00 Multimanager Mid Cap Value N/A $ 2,021.00 $ 3,184.00 $ 6,282.00 Multimanager Small Cap Growth N/A $ 2,030.00 $ 3,199.00 $ 6,307.00 Multimanager Small Cap Value N/A $ 1,997.00 $ 3,146.00 $ 6,215.00 Multimanager Technology N/A $ 2,064.00 $ 3,251.00 $ 6,397.00 - ------------------------------------------------------------------------------------------------------ EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock N/A $ 1,812.00 $ 2,849.00 $ 5,687.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,821.00 $ 2,864.00 $ 5,714.00 EQ/AllianceBernstein International N/A $ 1,900.00 $ 2,991.00 $ 5,942.00 EQ/AllianceBernstein Large Cap Growth N/A $ 1,943.00 $ 3,059.00 $ 6,063.00 EQ/AllianceBernstein Quality Bond N/A $ 1,824.00 $ 2,869.00 $ 5,723.00 EQ/AllianceBernstein Small Cap Growth N/A $ 1,894.00 $ 2,981.00 $ 5,925.00 EQ/AllianceBernstein Value N/A $ 1,845.00 $ 2,903.00 $ 5,785.00 EQ/Ariel Appreciation II N/A $ 1,937.00 $ 3,049.00 $ 6,046.00 EQ/AXA Rosenberg Value Long/Short Equity N/A $ 2,617.00 $ 4,109.00 $ 7,784.00 EQ/BlackRock Basic Value Equity N/A $ 1,836.00 $ 2,888.00 $ 5,758.00 EQ/BlackRock International Value N/A $ 1,934.00 $ 3,045.00 $ 6,037.00 EQ/Boston Advisors Equity Income N/A $ 1,900.00 $ 2,991.00 $ 5,942.00 EQ/Calvert Socially Responsible N/A $ 1,897.00 $ 2,986.00 $ 5,934.00 EQ/Capital Guardian Growth N/A $ 1,873.00 $ 2,947.00 $ 5,864.00 EQ/Capital Guardian Research N/A $ 1,861.00 $ 2,928.00 $ 5,829.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,861.00 $ 2,928.00 $ 5,829.00 EQ/Davis New York Venture N/A $ 1,943.00 $ 3,059.00 $ 6,063.00 EQ/Equity 500 Index N/A $ 1,744.00 $ 2,740.00 $ 5,488.00 EQ/Evergreen International Bond N/A $ 1,894.00 $ 2,981.00 $ 5,925.00 EQ/Evergreen Omega N/A $ 1,903.00 $ 2,996.00 $ 5,951.00 EQ/FI Mid Cap N/A $ 1,876.00 $ 2,952.00 $ 5,873.00 EQ/Franklin Income N/A $ 1,949.00 $ 3,069.00 $ 6,080.00 If you surrender or do not surrender your contract at the end of the applicable time period - -------------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years - -------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - -------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 537.00 $ 1,641.00 $ 2,786.00 $ 5,848.00 AXA Conservative Allocation $ 517.00 $ 1,584.00 $ 2,695.00 $ 5,687.00 AXA Conservative-Plus Allocation $ 523.00 $ 1,599.00 $ 2,719.00 $ 5,730.00 AXA Moderate Allocation $ 527.00 $ 1,611.00 $ 2,738.00 $ 5,764.00 AXA Moderate-Plus Allocation $ 531.00 $ 1,623.00 $ 2,758.00 $ 5,798.00 Multimanager Aggressive Equity $ 495.00 $ 1,520.00 $ 2,592.00 $ 5,505.00 Multimanager Core Bond $ 492.00 $ 1,511.00 $ 2,578.00 $ 5,479.00 Multimanager Health Care $ 562.00 $ 1,714.00 $ 2,901.00 $ 6,047.00 Multimanager High Yield $ 492.00 $ 1,511.00 $ 2,578.00 $ 5,479.00 Multimanager International Equity $ 541.00 $ 1,653.00 $ 2,806.00 $ 5,882.00 Multimanager Large Cap Core Equity $ 528.00 $ 1,614.00 $ 2,743.00 $ 5,772.00 Multimanager Large Cap Growth $ 530.00 $ 1,620.00 $ 2,753.00 $ 5,789.00 Multimanager Large Cap Value $ 525.00 $ 1,605.00 $ 2,729.00 $ 5,747.00 Multimanager Mid Cap Growth $ 549.00 $ 1,674.00 $ 2,839.00 $ 5,940.00 Multimanager Mid Cap Value $ 548.00 $ 1,671.00 $ 2,834.00 $ 5,932.00 Multimanager Small Cap Growth $ 551.00 $ 1,680.00 $ 2,849.00 $ 5,957.00 Multimanager Small Cap Value $ 539.00 $ 1,647.00 $ 2,796.00 $ 5,865.00 Multimanager Technology $ 562.00 $ 1,714.00 $ 2,901.00 $ 6,047.00 - -------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 475.00 $ 1,462.00 $ 2,499.00 $ 5,337.00 EQ/AllianceBernstein Intermediate Government Securities $ 478.00 $ 1,471.00 $ 2,514.00 $ 5,364.00 EQ/AllianceBernstein International $ 506.00 $ 1,550.00 $ 2,641.00 $ 5,592.00 EQ/AllianceBernstein Large Cap Growth $ 520.00 $ 1,593.00 $ 2,709.00 $ 5,713.00 EQ/AllianceBernstein Quality Bond $ 480.00 $ 1,474.00 $ 2,519.00 $ 5,373.00 EQ/AllianceBernstein Small Cap Growth $ 504.00 $ 1,544.00 $ 2,631.00 $ 5,575.00 EQ/AllianceBernstein Value $ 487.00 $ 1,495.00 $ 2,553.00 $ 5,435.00 EQ/Ariel Appreciation II $ 518.00 $ 1,587.00 $ 2,699.00 $ 5,696.00 EQ/AXA Rosenberg Value Long/Short Equity $ 760.00 $ 2,267.00 $ 3,759.00 $ 7,434.00 EQ/BlackRock Basic Value Equity $ 484.00 $ 1,486.00 $ 2,538.00 $ 5,408.00 EQ/BlackRock International Value $ 517.00 $ 1,584.00 $ 2,695.00 $ 5,687.00 EQ/Boston Advisors Equity Income $ 506.00 $ 1,550.00 $ 2,641.00 $ 5,592.00 EQ/Calvert Socially Responsible $ 505.00 $ 1,547.00 $ 2,636.00 $ 5,584.00 EQ/Capital Guardian Growth $ 496.00 $ 1,523.00 $ 2,597.00 $ 5,514.00 EQ/Capital Guardian Research $ 492.00 $ 1,511.00 $ 2,578.00 $ 5,479.00 EQ/Caywood-Scholl High Yield Bond $ 492.00 $ 1,511.00 $ 2,578.00 $ 5,479.00 EQ/Davis New York Venture $ 520.00 $ 1,593.00 $ 2,709.00 $ 5,713.00 EQ/Equity 500 Index $ 452.00 $ 1,394.00 $ 2,390.00 $ 5,138.00 EQ/Evergreen International Bond $ 504.00 $ 1,544.00 $ 2,631.00 $ 5,575.00 EQ/Evergreen Omega $ 507.00 $ 1,553.00 $ 2,646.00 $ 5,601.00 EQ/FI Mid Cap $ 497.00 $ 1,526.00 $ 2,602.00 $ 5,523.00 EQ/Franklin Income $ 523.00 $ 1,599.00 $ 2,719.00 $ 5,730.00 - --------------------------------------------------------------------------------------------------------
16 Fee table
If you annuitize at the end of the applicable time period - -------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years - -------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - -------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value N/A $ 1,958.00 $ 3,083.00 $ 6,105.00 EQ/Franklin Templeton Founding Strategy N/A $ 2,030.00 $ 3,199.00 $ 6,307.00 EQ/GAMCO Mergers and Acquisitions N/A $ 1,961.00 $ 3,088.00 $ 6,114.00 EQ/GAMCO Small Company Value N/A $ 1,897.00 $ 2,986.00 $ 5,934.00 EQ/International Core PLUS N/A $ 1,915.00 $ 3,015.00 $ 5,986.00 EQ/International Growth N/A $ 1,970.00 $ 3,103.00 $ 6,139.00 EQ/JPMorgan Core Bond N/A $ 1,800.00 $ 2,829.00 $ 5,651.00 EQ/JPMorgan Value Opportunities N/A $ 1,855.00 $ 2,918.00 $ 5,811.00 EQ/Large Cap Core PLUS N/A $ 1,864.00 $ 2,933.00 $ 5,838.00 EQ/Large Cap Growth PLUS N/A $ 1,861.00 $ 2,928.00 $ 5,829.00 EQ/Legg Mason Value Equity N/A $ 1,879.00 $ 2,957.00 $ 5,882.00 EQ/Long Term Bond N/A $ 1,790.00 $ 2,814.00 $ 5,624.00 EQ/Lord Abbett Growth and Income N/A $ 1,876.00 $ 2,952.00 $ 5,873.00 EQ/Lord Abbett Large Cap Core N/A $ 1,891.00 $ 2,977.00 $ 5,916.00 EQ/Lord Abbett Mid Cap Value N/A $ 1,888.00 $ 2,972.00 $ 5,908.00 EQ/Marsico Focus N/A $ 1,928.00 $ 3,035.00 $ 6,020.00 EQ/Mid Cap Value PLUS N/A $ 1,876.00 $ 2,952.00 $ 5,873.00 EQ/Money Market N/A $ 1,766.00 $ 2,775.00 $ 5,552.00 EQ/Montag & Caldwell Growth N/A $ 1,903.00 $ 2,996.00 $ 5,951.00 EQ/Mutual Shares N/A $ 1,967.00 $ 3,098.00 $ 6,131.00 EQ/Oppenheimer Global N/A $ 2,076.00 $ 3,270.00 $ 6,430.00 EQ/Oppenheimer Main Street Opportunity N/A $ 2,027.00 $ 3,194.00 $ 6,298.00 EQ/Oppenheimer Main Street Small Cap N/A $ 2,051.00 $ 3,232.00 $ 6,364.00 EQ/PIMCO Real Return N/A $ 1,839.00 $ 2,893.00 $ 5,767.00 EQ/Short Duration Bond N/A $ 1,806.00 $ 2,839.00 $ 5,669.00 EQ/Small Company Index N/A $ 1,747.00 $ 2,745.00 $ 5,497.00 EQ/T. Rowe Price Growth Stock N/A $ 1,912.00 $ 3,011.00 $ 5,977.00 EQ/Templeton Growth N/A $ 1,979.00 $ 3,117.00 $ 6,165.00 EQ/UBS Growth and Income N/A $ 1,906.00 $ 3,001.00 $ 5,960.00 EQ/Van Kampen Comstock N/A $ 1,873.00 $ 2,947.00 $ 5,864.00 EQ/Van Kampen Emerging Markets Equity N/A $ 2,051.00 $ 3,232.00 $ 6,364.00 EQ/Van Kampen Mid Cap Growth N/A $ 1,888.00 $ 2,972.00 $ 5,908.00 EQ/Van Kampen Real Estate N/A $ 1,967.00 $ 3,098.00 $ 6,131.00 - -------------------------------------------------------------------------------------------------- If you surrender or do not surrender your contract at the end of the applicable time period - ---------------------------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years - ---------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ---------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value $ 526.00 $ 1,608.00 $ 2,733.00 $ 5,755.00 EQ/Franklin Templeton Founding Strategy $ 551.00 $ 1,680.00 $ 2,849.00 $ 5,957.00 EQ/GAMCO Mergers and Acquisitions $ 527.00 $ 1,611.00 $ 2,738.00 $ 5,764.00 EQ/GAMCO Small Company Value $ 505.00 $ 1,547.00 $ 2,636.00 $ 5,584.00 EQ/International Core PLUS $ 511.00 $ 1,565.00 $ 2,665.00 $ 5,636.00 EQ/International Growth $ 530.00 $ 1,620.00 $ 2,753.00 $ 5,789.00 EQ/JPMorgan Core Bond $ 471.00 $ 1,450.00 $ 2,479.00 $ 5,301.00 EQ/JPMorgan Value Opportunities $ 490.00 $ 1,505.00 $ 2,568.00 $ 5,461.00 EQ/Large Cap Core PLUS $ 493.00 $ 1,514.00 $ 2,583.00 $ 5,488.00 EQ/Large Cap Growth PLUS $ 492.00 $ 1,511.00 $ 2,578.00 $ 5,479.00 EQ/Legg Mason Value Equity $ 498.00 $ 1,529.00 $ 2,607.00 $ 5,532.00 EQ/Long Term Bond $ 468.00 $ 1,440.00 $ 2,464.00 $ 5,274.00 EQ/Lord Abbett Growth and Income $ 497.00 $ 1,526.00 $ 2,602.00 $ 5,523.00 EQ/Lord Abbett Large Cap Core $ 503.00 $ 1,541.00 $ 2,627.00 $ 5,566.00 EQ/Lord Abbett Mid Cap Value $ 502.00 $ 1,538.00 $ 2,622.00 $ 5,558.00 EQ/Marsico Focus $ 515.00 $ 1,578.00 $ 2,685.00 $ 5,670.00 EQ/Mid Cap Value PLUS $ 497.00 $ 1,526.00 $ 2,602.00 $ 5,523.00 EQ/Money Market $ 460.00 $ 1,416.00 $ 2,425.00 $ 5,202.00 EQ/Montag & Caldwell Growth $ 507.00 $ 1,553.00 $ 2,646.00 $ 5,601.00 EQ/Mutual Shares $ 529.00 $ 1,617.00 $ 2,748.00 $ 5,781.00 EQ/Oppenheimer Global $ 567.00 $ 1,726.00 $ 2,920.00 $ 6,080.00 EQ/Oppenheimer Main Street Opportunity $ 550.00 $ 1,677.00 $ 2,844.00 $ 5,948.00 EQ/Oppenheimer Main Street Small Cap $ 558.00 $ 1,701.00 $ 2,882.00 $ 6,014.00 EQ/PIMCO Real Return $ 485.00 $ 1,489.00 $ 2,543.00 $ 5,417.00 EQ/Short Duration Bond $ 473.00 $ 1,456.00 $ 2,489.00 $ 5,319.00 EQ/Small Company Index $ 453.00 $ 1,397.00 $ 2,395.00 $ 5,147.00 EQ/T. Rowe Price Growth Stock $ 510.00 $ 1,562.00 $ 2,661.00 $ 5,627.00 EQ/Templeton Growth $ 533.00 $ 1,629.00 $ 2,767.00 $ 5,815.00 EQ/UBS Growth and Income $ 508.00 $ 1,556.00 $ 2,651.00 $ 5,610.00 EQ/Van Kampen Comstock $ 496.00 $ 1,523.00 $ 2,597.00 $ 5,514.00 EQ/Van Kampen Emerging Markets Equity $ 558.00 $ 1,701.00 $ 2,882.00 $ 6,014.00 EQ/Van Kampen Mid Cap Growth $ 502.00 $ 1,538.00 $ 2,622.00 $ 5,558.00 EQ/Van Kampen Real Estate $ 529.00 $ 1,617.00 $ 2,748.00 $ 5,781.00 - ----------------------------------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see Appendix IV at the end of this Prospectus. Fee table 17 CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this Prospectus for the unit values and the number of units outstanding as of the end of the periods shown for each of the variable investment options available as of December 31, 2007. 18 Fee table 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT You may purchase a contract by making payments to us that we call "contributions." We require a minimum initial contribution of $25,000 for you to purchase a contract. You may make additional contributions of at least $500 each for NQ and Rollover TSA contracts and $50 for Rollover IRA and Roth Conversion contracts and $1000 for Inherited IRA contracts, subject to limitations noted below. The following table summarizes our rules regarding contributions to your contract. Both the owner and the annuitant named in the contract must meet the issue age requirements shown in the table, and contributions are based on the age of the older of the original owner and annuitant. We may refuse to accept any contribution if the sum of all contributions under all Accumulator(R) series contracts with the same owner or annuitant would then total more than $1,500,000 ($500,000 for owners or annuitants who are age 81 and older at contract issue). We may also refuse to accept any contribution if the sum of all contributions under all AXA Equitable annuity accumulation contracts with the same owner or annuitant would then total more than $2,500,000. We may waive these contribution limitations based on certain criteria, including benefits that have been elected, issue age, the total amount of contributions, variable investment option allocations and selling broker-dealer compensation. We reserve the right to limit aggregate contributions made after the first contract year to 150% of first-year contributions. We may accept less than the minimum initial contribution under a contract if an aggregate amount of contracts purchased at the same time by an individual (including spouse) meets the minimum. - -------------------------------------------------------------------------------- The "owner" is the person who is the named owner in the contract and, if an individual, is the measuring life for determining contract benefits. The "annuitant" is the person who is the measuring life for determining the contract's maturity date. The annuitant is not necessarily the contract owner. Where the owner of a contract is non-natural, the annuitant is the measuring life for determining contract benefits. - --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------- Contract Available type for owner and Limitations on annuitant ages Minimum contributions Source of contributions contributions+ - ---------------------------------------------------------------------------------------------------------------------------- NQ 0 through 85 o $25,000 (initial) o After-tax money. o No additional contributions after o $500 (additional) o Paid to us by check or attainment of age 86 or, transfer of contract if later, the first o $100 monthly and $300 value in a tax-deferred contract date quarterly under our auto- exchange under Section anniversary.* matic investment program 1035 of the Internal (additional) Revenue Code. - ----------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 19
- ----------------------------------------------------------------------------------------------------------------------------------- Contract Available type for owner and Limitations on annuitant ages Minimum contributions Source of contributions contributions+ - ----------------------------------------------------------------------------------------------------------------------------------- Rollover IRA 20 through 85 o $25,000 (initial) o Eligible rollover o No rollover or direct transfer distribu- tions from contributions after attainment o $50 (additional) 403(b) plans, qualified of age 86 or, if later, the plans, and governmental first contract date anni- o $100 monthly and $300 employer 457(b) plans. versary.* quarterly under our auto- matic investment program o Rollovers from another o Contributions after age 70-1/2 (additional) (subject to tax traditional individual must be net of required maximums) retirement arrangement. minimum distributions. o Direct custodian-to- o Although we accept regular IRA custodian transfers from contributions (limited to another traditional indi- $5,000) under the Rollover IRA vidual retirement contracts, we intend that this arrangement. contract be used primarily for rollover and direct transfer o Regular IRA contributions. contributions. o Additional catch-up o Additional catch-up contri- butions. contributions of up to $1000 per calendar year where the owner is at least age 50 but under age 70-1/2 at any time during the calendar year for which the contribution is made. - -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 20
- ----------------------------------------------------------------------------------------------------------------------------------- Contract Available type for owner and Limitations on annuitant ages Minimum contributions Source of contributions contributions+ - ----------------------------------------------------------------------------------------------------------------------------------- Roth Conversion 20 through 85 o $25,000 (initial) o Rollovers from another o No additional rollover or IRA Roth IRA. direct transfer contributions o $50 (additional) after attainment of age 86 or, o Rollovers from a if later, the first contract o $100 monthly and $300 "designated Roth date anniversary.* quarterly under our auto- contribution account" matic investment program under a 401(k) plan or o Conversion rollovers after age (additional) (subject to tax 403(b) plan. 70-1/2 must be net of required maximums) minimum distributions for the o Conversion rollovers from traditional IRA or other a traditional IRA or other eligible retirement plan which eligible retirement plan. is the source for the conversion rollover. o Direct transfers from another Roth IRA. o You cannot roll over funds from a traditional IRA or o Regular Roth IRA other eligible retirement plan contributions. if your adjusted gross income is $100,000 or more. o Additional catch-up contributions. o Although we accept regular Roth IRA contributions (lim- ited to $5,000) under the Roth IRA contracts, we intend that this contract be used primarily for rollover and direct transfer contributions. o Additional catch-up contri- butions of up to $1,000 per calendar year where the owner is at least age 50 at any time during the calendar year for which the contribu- tion is made. - ----------------------------------------------------------------------------------------------------------------------------------- Inherited IRA 0-70 o $25,000 (initial) o Direct custodian-to- o Any additional contributions Beneficiary custodian transfers of must be from the same type of Continuation o $1,000 (additional) your interest as a death IRA of the same deceased Contract beneficiary of the owner. (traditional deceased owner's IRA or Roth traditional individual o Non-spousal beneficiary direct IRA) retirement arrangement or rollover contributions from Roth IRA to an IRA of the qualified plans, 403(b) plans same type. and governmental employer 457(b) plans may be made to a traditional Inherited IRA contract under specified circumstances. - -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
- ----------------------------------------------------------------------------------------------------------------------------------- Contract Available type for owner and Limitations on annuitant ages Minimum contributions Source of contributions contributions+ - ----------------------------------------------------------------------------------------------------------------------------------- Rollover TSA** 20 through 85 o $25,000 (initial) o With documentation of o No additional rollover or employer or plan direct transfer contributions o $500 (additional) approval, and limited to after attainment of age 86 or, pre-tax funds, direct if later, the first contract plan-to-plan transfers date anniversary.* from another 403(b) plan or contract exchanges o Contributions after age 70-1/2 from another 403(b) must be net of any required contract under the same minimum distributions. plan. o We do not accept employer- o With documentation of remitted contributions. employer or plan approval, and limited to o We do not accept after tax pre-tax funds, eligible contributions, including rollover distributions designated Roth contributions. from other 403(b) plans, qualified plans, gov- ernmental employer 457(b) plans or traditional IRAs. - -----------------------------------------------------------------------------------------------------------------------------------
+ Additional contributions may not be permitted under certain conditions in your state. Please see Appendix VI later in the Prospectus to see if additional contributions are permitted in your state. If you are participating in a Principal guarantee benefit, contributions will only be permitted for the first six months after the contract is issued and no further contributions will be permitted for the life of the contract. For the Guaranteed withdrawal benefit for life option, additional contributions are not permitted after the later of: (i) the end of the first contract year, and (ii) the date you make your first withdrawal. * Please see Appendix VI later in this Prospectus for state variations. ** May not be available from all Selling broker-dealers. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and certain contribution limitations. For information on when contributions are credited under your contract see "Dates and prices at which contract events occur" in "More information" later in this Prospectus. 22 Contract features and benefits OWNER AND ANNUITANT REQUIREMENTS Under NQ contracts, the annuitant can be different from the owner. We do not permit partnerships or limited liability corporations to be owners. We also reserve the right to prohibit availability of this contract to other non-natural owners. Only natural persons can be joint owners. For the Spousal continuation feature to apply, the spouses must either be joint owners, or, for Single life contracts, the surviving spouse must be the sole primary beneficiary. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. This contract is not available for purchase by Charitable Remainder Trusts. In general, we will not permit a contract to be owned by a minor unless it is pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your state. For NQ contracts (with a single owner, joint owners or a non-natural owner) purchased through an exchange that is not taxable under Section 1035 of the Internal Revenue Code, we permit joint annuitants. We also permit joint annuitants in non-exchange sales if you elect the Guaranteed withdrawal benefit for life on a Joint life basis, and the contract is owned by a non-natural owner. In all cases, the joint annuitants must be spouses. Under all IRA and Rollover TSA contracts, the owner and annuitant must be the same person. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. This option may not be available under your contract. See "Inherited IRA beneficiary continuation contract" later in this section for Inherited IRA owner and annuitant requirements. Certain benefits under your contract, as described later in this Prospectus, are based on the age of the owner. If the owner of the contract is not a natural person, these benefits will be based on the age of the annuitant. In this Prospectus, when we use the terms owner and joint owner, we intend these to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If GWBL is elected, the terms owner and Successor Owner are intended to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If the contract is jointly owned or is issued to a non-natural owner and the GWBL has not been elected, benefits are based on the age of the older joint owner or older joint annuitant, as applicable. HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. We may also apply contributions made pursuant to a Section 1035 tax-free exchange or a direct transfer. We do not accept starter checks or travelers' checks. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For your convenience, we will accept initial and additional contributions by wire transmittal from certain broker-dealers who have agreements with us for this purpose, including circumstances under which such contributions are considered received by us when your order is taken by such broker-dealers. Additional contributions may also be made under our automatic investment program. These methods of payment are discussed in detail in "More information" later in this Prospectus. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. - -------------------------------------------------------------------------------- Your initial contribution must generally be accompanied by an application and any other form we need to process the payments. If any information is missing or unclear, we will hold the contribution, whether received via check or wire, in a non-interest bearing suspense account while we try to obtain that information. If we are unable to obtain all of the information we require within five business days after we receive an incomplete application or form, we will inform the financial professional submitting the application on your behalf. We will then return the contribution to you unless you specifically direct us to keep your contribution until we receive the required information. The contribution will be applied as of the date we receive the missing information. - -------------------------------------------------------------------------------- Our "business day" is generally any day the New York Stock Exchange is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. For more information about our business day and our pricing of transactions, please see "Dates and prices at which contract events occur." - -------------------------------------------------------------------------------- WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT? You can choose from among the variable investment options, the guaranteed interest option, the account for special money market dollar cost averaging and the fixed maturity options. If you elect the 100% Principal guarantee benefit, the Guaranteed withdrawal benefit for life or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, your investment options will be limited to the guaranteed interest option, the account for special money market dollar cost averaging and the following variable investment options: the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio ("permitted variable investment options"). If you elect the 125% Principal guarantee benefit, your investment options will be limited to the guaranteed interest option, the account for special money market dollar cost averaging and the AXA Moderate Allocation Portfolio. Contract features and benefits 23 VARIABLE INVESTMENT OPTIONS Your investment results in any one of the variable investment options will depend on the investment performance of the underlying portfolios. You can lose your principal when investing in the variable investment options. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market variable investment option. Listed below are the currently available Portfolios, their investment objectives and their advisers. 24 Contract features and benefits PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, due to the relative diversification of the underlying portfolios covering various asset classes and categories, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features including those optional benefits that restrict allocations to the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable ALLOCATION greater emphasis on current income. - ------------------------------------------------------------------------------------------------------------------------------------ AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable - ------------------------------------------------------------------------------------------------------------------------------------ AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable ALLOCATION with a greater emphasis on capital appreciation. o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER AGGRESSIVE Long-term growth of capital. o ClearBridge Advisors, LLC EQUITY o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER CORE BOND To seek a balance of high current income and capital o BlackRock Financial Management, Inc. appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER HEALTH CARE Long-term growth of capital. o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER HIGH YIELD High total return through a combination of current o Pacific Investment Management CompanyLLC income and capital appreciation. o Post Advisory Group, LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER INTERNATIONAL Long-term growth of capital. o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 25
AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - ------------------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA ROSENBERG VALUE Seeks to increase value through bull markets and bear o AXA Rosenberg Investment Management LLC LONG/SHORT EQUITY markets using strategies that are designed to limit exposure to general equity market risk. - ------------------------------------------------------------------------------------------------------------------------------------
26 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, o BlackRock Investment Management, LLC EQUITY income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of o BlackRock Investment Management VALUE income, accompanied by growth of capital. International Limited - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to o Boston Advisors, LLC INCOME achieve an above-average and consistent total return. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company RESEARCH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management YIELD BOND - ------------------------------------------------------------------------------------------------------------------------------------ EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. o Davis Selected Advisers, L.P. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that o AllianceBernstein L.P. approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ------------------------------------------------------------------------------------------------------------------------------------ EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. o Evergreen Investment Management Company, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI MID CAP Seeks to achieve long-term growth of capital. o Fidelity Management & Research Company - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects o Franklin Advisers, Inc. for capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. o Franklin Advisory Services, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily o AXA Equitable FOUNDING STRATEGY seeks income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. o GAMCO Asset Management Inc. ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. o GAMCO Asset Management Inc. VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o MFS Investment Management - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with o JPMorgan Investment Management Inc. moderate risk to capital and maintenance of liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. o JPMorgan Investment Management Inc. OPPORTUNITIES - ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 27
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a o AXA Equitable secondary objective to seek reasonable current income. o Institutional Capital LLC For purposes of this Portfolio, the words "reasonable o Mellon Capital Management Corporation current income" mean moderate income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. o Legg Mason Capital Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LONG TERM BOND Seeks to maximize income and capital appreciation through investment in long-maturity debt obligations. o BlackRock Financial Management, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC INCOME income without excessive fluctuation in market value. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC CORE income with reasonable risk. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. o Lord, Abbett & Co. LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. o Marsico Capital Management, LLC - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONEY MARKET Seeks to obtain a high level of current income, o The Dreyfus Corporation preserve its assets and maintain liquidity. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- o Franklin Mutual Advisers, LLC sionally be short-term, and secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. o OppenheimerFunds, Inc. OPPORTUNITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. SMALL CAP - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with o Pacific Investment Management Company, preservation of real capital and prudent investment LLC management. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility o BlackRock Financial Management, Inc. of principal. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o AllianceBernstein L.P. deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and o T. Rowe Price Associates, Inc. STOCK secondarily, income. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. o Templeton Global Advisors Limited - ------------------------------------------------------------------------------------------------------------------------------------
28 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------ EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation o UBS Global Asset Management with income as a secondary consideration. (Americas) Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. o Morgan Stanley Investment Management Inc. - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. o Morgan Stanley Investment Management Inc. MARKETS EQUITY - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. o Morgan Stanley Investment Management Inc. GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ EQ/VAN KAMPEN REAL ESTATE Seeks to provide above average current income and long- o Morgan Stanley Investment Management Inc. term capital appreciation. - ------------------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks, and charges and expenses of the Portfolios carefully before investing. The prospectuses for the Trusts contain this and other important information about the Portfolios. The Prospectuses should be read carefully before investing. Contract features and benefits 29 GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this Prospectus. We assign an interest rate to each amount allocated to the guaranteed interest option. This rate is guaranteed for a specified period. Therefore, different interest rates may apply to different amounts in the guaranteed interest option. We credit interest daily to amounts in the guaranteed interest option. There are three levels of interest in effect at the same time in the guaranteed interest option: (1) the minimum interest rate guaranteed over the life of the contract, (2) the yearly guaranteed interest rate for the calendar year, and (3) the current interest rate. We set current interest rates periodically, according to our procedures that we have in effect at the time. We reserve the right to change these procedures. All interest rates are effective annual rates, but before deduction of annual administrative charges and any optional benefit charges. See Appendix VI later in this Prospectus for state variations. Depending on the state where your contract is issued, your lifetime minimum rate ranges from 1.00% to 3.00%. The data page for your contract shows the lifetime minimum rate. Check with your financial professional as to which rate applies in your state. The minimum yearly rate will never be less than the lifetime minimum rate. The minimum yearly rate for 2008 is 2.75% or 3.00%, depending on your lifetime minimum rate. Current interest rates will never be less than the yearly guaranteed interest rate. Generally, contributions and transfers into and out of the guaranteed interest option are limited. See "Transferring your money among the investment options" later in this Prospectus for restrictions on transfers to and from the guaranteed interest option. FIXED MATURITY OPTIONS We offer fixed maturity options with maturity dates ranging from one to ten years. We will not accept allocations to a fixed maturity option if on the date the contribution or transfer is to be applied the rate to maturity is 3%. This means that, at any given time, we may not offer fixed maturity options with all ten possible maturity dates. You can allocate your contributions to one or more of these fixed maturity options, however, you may not have more than 12 different maturities running during any contract year. This limit includes any maturities that have had any allocation or transfers even if the entire amount is withdrawn or transferred during the contract year. These amounts become part of a non-unitized separate account. They will accumulate interest at the "rate to maturity" for each fixed maturity option. The total amount you allocate to and accumulate in each fixed maturity option is called the "fixed maturity amount." The fixed maturity options are not available in all states. Check with your financial professional or see Appendix VI later in this Prospectus to see if fixed maturity options are available in your state. - -------------------------------------------------------------------------------- Fixed maturity options range from one to ten years to maturity. - -------------------------------------------------------------------------------- On the maturity date of a fixed maturity option your fixed maturity amount, assuming you have not made any withdrawals or transfers, will equal your contribution to that fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of the calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amounts will reflect a market value adjustment. Your current value will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amounts on the date of the report. We call this your "market adjusted amount." FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with maturity dates ranging from one to ten years. Not all of these fixed maturity options will be available for owner and annuitant ages 76 and older. See "Allocating your contributions" below. Each new contribution is applied to a new fixed maturity option. When you apply for an Accumulator(R) Select(SM) contract, a 60-day rate lock-in will apply from the date the application is signed. Any contributions received and designated for a fixed maturity option during this period will receive the then current fixed maturity option rate or the rate that was in effect on the date that the application was signed, whichever is greater. There is no rate lock available for subsequent contributions to the contract after 60 days, transfers from the variable investment options or the guaranteed interest option into a fixed maturity option or transfers from one fixed maturity option to another. YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days before each of your fixed maturity options is scheduled to mature. At that time, you may choose to have one of the following take place on the maturity date, as long as none of the restrictive conditions listed in "Allocating your contributions," below would apply: (a) transfer the maturity value into another available fixed maturity option, any of the variable investment options or the guaranteed interest option; or (b) withdraw the maturity value. If we do not receive your choice on or before the fixed maturity option's maturity date, we will automatically transfer your maturity value into the shortest available maturity option beginning on that date. As of February 15, 2008, the next available maturity date was February 15, 2015. If no fixed maturity options are available we will transfer your maturity value to the EQ/Money Market option. MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers, surrender of your contract or when we make deductions for charges) from a fixed maturity option before it matures we will make a market value adjustment, which will increase or decrease any fixed maturity amount you have in that fixed maturity option. A market value adjustment will also apply if amounts in a fixed maturity option are used to purchase any annuity payment option prior to the maturity date and may apply on payment of a death benefit. The market value adjustment, positive or negative, resulting from a withdrawal or transfer (including a deduction for charges) of a portion of the amount in the fixed maturity option will be a percentage of the market value adjustment that would apply if you were to withdraw the entire amount in that fixed maturity option. The market value adjustment applies to the amount remaining in a fixed maturity option and does not reduce the actual amount of a withdrawal. The amount applied to an annuity payout option will reflect the application of any applicable 30 Contract features and benefits market value adjustment (either positive or negative). We only apply a positive market value adjustment to the amount in the fixed maturity option when calculating any death benefit proceeds under your contract. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate we have in effect at that time for new fixed maturity options, (adjusted to reflect a similar maturity date) and (b) the length of time remaining until the maturity date. If fixed maturity option interest rates rise from the time that you originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if fixed maturity option interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an illustration of the market adjusted amount of specified maturity values, an explanation of how we calculate the market value adjustment, and information concerning our general account and investments purchased with amounts allocated to the fixed maturity options, in "More information" later in this Prospectus. Appendix II at the end of this Prospectus provides an example of how the market value adjustment is calculated. ALLOCATING YOUR CONTRIBUTIONS You may choose between self-directed and dollar cost averaging to allocate your contributions under your contract. Subsequent contributions are allocated according to instructions on file unless you provide new instructions. The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. SELF-DIRECTED ALLOCATION You may allocate your contributions to one or more, or all, of the variable investment options, guaranteed interest option (subject to restrictions in certain states--see Appendix VI later in this Prospectus for state variations) and fixed maturity options. Allocations must be in whole percentages and you may change your allocations at any time. No more than 25% of any contribution may be allocated to the guaranteed interest option. The total of your allocations into all available investment options must equal 100%. If an owner or annuitant is age 76-80, you may allocate contributions to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you may allocate contributions to fixed maturity options with maturities of five years or less. Also, you may not allocate amounts to fixed maturity options with maturity dates that are later than the date annuity payments are to begin. DOLLAR COST AVERAGING We offer a variety of dollar cost averaging programs. You may only participate in one program at a time. Each program allows you to gradually allocate amounts to available investment options by periodically transferring approximately the same dollar amount to the investment options you select. Regular allocations to the variable investment options will cause you to purchase more units if the unit value is low and fewer units if the unit value is high. Therefore, you may get a lower average cost per unit over the long term. These plans of investing, however, do not guarantee that you will earn a profit or be protected against losses. You may not make transfers to the fixed maturity options or the guaranteed interest option. - -------------------------------------------------------------------------------- Units measure your value in each variable investment option. - -------------------------------------------------------------------------------- SPECIAL MONEY MARKET DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the account for special money market dollar cost averaging option (which is part of the EQ/Money Market investment option) into any of the other variable investment options. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life, the 100% Principal guarantee benefit or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. You may elect to participate in a 3, 6 or 12-month program at any time subject to the age limitation on contributions described earlier in this Prospectus. Contributions into the account for special money market dollar cost averaging must be new contributions. In other words, you may not make transfers from amounts allocated in other variable investment options to initiate the program. You must allocate your entire initial contribution into the account for special money market dollar cost averaging if you are selecting the program at the time you apply for your Accumulator(R) Select(SM) contract. Therefore, contributions to any new program must be at least $2,000. Contributions to an existing program must be at least $250. You may only have one program in effect at any time. Each month, we will transfer your account value in the account for special money market dollar cost averaging into the other variable investment options you select. Once the time period you selected has expired, you may then select to participate in the special money market dollar cost averaging program for an additional time period. At that time, you may also select a different allocation for monthly transfers from the account for special money market dollar cost averaging to the variable investment options, or, if you wish, we will continue to use the selection that you have previously made. Contract features and benefits 31 Currently, the monthly transfer date from the account for special money market dollar cost averaging option will be the same as your contract date, but not later than the 28th day of the month. For a program selected after application, the first transfer date and each subsequent transfer date will be one month from the date the first contribution is made into the program, but not later than the 28th day of the month. All amounts will be transferred out by the end of the time period in effect. The only amounts that should be transferred from the account for special money market dollar cost averaging option are your regularly scheduled transfers to the variable investment options. If you request to transfer or withdraw any other amounts from the account special money market dollar cost averaging, we will transfer all of the value you have remaining in the account to the variable investments according to the allocation percentages we have on file for you. You may cancel your participation in the program at any time by notifying us in writing. GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market option is at least $5,000, you may choose, at any time, to have a specified dollar amount or percentage of your value transferred from that option to the other variable investment options. You can select to have transfers made on a monthly, quarterly or annual basis. The transfer date will be the same calendar day of the month as the contract date, but not later than the 28th day of the month. You can also specify the number of transfers or instruct us to continue making the transfers until all amounts in the EQ/Money Market option have been transferred out. The minimum amount that we will transfer each time is $250. If, on any transfer date, your value in the EQ/Money Market option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred. The general dollar cost averaging program will then end. You may change the transfer amount once each contract year or cancel this program at any time. If you are participating in a Principal guarantee benefit, the general dollar cost averaging program is not available. If you elect the Guaranteed withdrawal benefit for life or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, general dollar cost averaging is not available. INVESTMENT SIMPLIFIER FIXED-DOLLAR OPTION. Under this option you may elect to have a fixed-dollar amount transferred out of the guaranteed interest option and into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life, the 100% Principal guarantee benefit or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. Transfers may be made on a monthly, quarterly or annual basis. You can specify the number of transfers or instruct us to continue to make transfers until all available amounts in the guaranteed interest option have been transferred out. In order to elect the fixed-dollar option, you must have a minimum of $5,000 in the guaranteed interest option on the date we receive your election form at our processing office. The transfer date will be the same calendar day of the month as the contract date but not later than the 28th day of the month. The minimum transfer amount is $50. The fixed-dollar option is subject to the guaranteed interest option transfer limitations described under "Transferring your account value" in "Transferring your money among investment options" later in this Prospectus. While the program is running, any transfer that exceeds those limitations will cause the program to end for that contract year. You will be notified. You must send in a request form to resume the program in the next or subsequent contract years. If, on any transfer date your value in the guaranteed interest option is equal to or less than the amount you have elected to have transferred, the entire amount will be transferred, and the program will end. You may change the transfer amount once each contract year or cancel this program at any time. INTEREST SWEEP OPTION. Under this option, you may elect to have monthly transfers from amounts in the guaranteed interest option into the variable investment options of your choice. Only the permitted variable investment options are available if you elect the Guaranteed withdrawal benefit for life, the 100% Principal guarantee benefit or the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. Only the AXA Moderate Allocation Portfolio is available if you elect the 125% Principal guarantee benefit. The transfer date will be the last business day of the month. The amount we will transfer will be the interest credited to amounts you have in the guaranteed interest option from the last business day of the prior month to the last business day of the current month. You must have at least $7,500 in the guaranteed interest option on the date we receive your election. We will automatically cancel the interest sweep program if the amount in the guaranteed interest option is less than $7,500 on the last day of the month for two months in a row. For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ---------------------------------- You may not participate in any dollar cost averaging program if you are participating in the Option II rebalancing program. Under the Option I rebalancing program you may participate in any of the dollar cost averaging programs except special money market dollar cost averaging and general dollar cost averaging. You may only participate in one dollar cost averaging program at a time. See "Transferring your money among investment options" later in this Prospectus. Also, for information on how the dollar cost averaging program you select may affect certain guaranteed benefits see "Guaranteed minimum death benefit and Guaranteed minimum benefit base" immediately below. We do not deduct a transfer charge for any transfer made in connection with our dollar cost averaging and Investment Simplifier program. Not all dollar cost averaging programs are available in all states (see Appendix VI later in this Prospectus for more information on state availability). 32 Contract features and benefits GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE This section does not apply if you elect GWBL. For information about the GWBL Enhanced death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. The Guaranteed minimum death benefit base and Guaranteed minimum income benefit base (hereinafter, in this section called your "benefit base") are used to calculate the Guaranteed minimum income benefit and the death benefits as described in this section. The benefit base for the Guaranteed minimum income benefit and an enhanced death benefit will be calculated as described below in this section whether these options are elected individually or in combination. Your benefit base is not an account value or a cash value. See also "Guaranteed minimum income benefit option" and "Guaranteed minimum death benefit" below. STANDARD DEATH BENEFIT. Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; less o a deduction that reflects any withdrawals you make. The amount of the deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. 6-1/2% (OR 6%, IF APPLICABLE) ROLL-UP TO AGE 85 (USED FOR THE GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up; less o a deduction that reflects any withdrawals you make. The amount of the deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus. The effective annual roll-up rate credited to this benefit base is: o 6-1/2% (or 6%, if applicable) with respect to the variable investment options (including amounts allocated to the account for special money market dollar cost averaging, but excluding all other amounts allocated to the EQ/Money Market) ; the effective annual rate may be 4% in some states. Please see Appendix VI later in this Prospectus to see what applies in your state; and o 3% with respect to the EQ/Money Market, the fixed maturity options, the guaranteed interest option and the loan reserve account under Rollover TSA (if applicable). The benefit base stops rolling up on the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday. ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT, THE GREATER OF 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your benefit base is equal to the greater of either: o your initial contribution to the contract (plus any additional contributions), or o your highest account value on any contract date anniversary up to the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday, plus any contributions made since the most recent Annual Ratchet, less o a deduction that reflects any withdrawals you make. The amount of the deduction is described under "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. GREATER OF THE 6-1/2% (OR 6%, IF APPLICABLE) ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 6-1/2% (or 6%, if applicable) Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. 3% ROLL-UP TO AGE 85 (USED FOR THE GREATER OF 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT). Your benefit base is equal to: o your initial contribution and any additional contributions to the contract; plus o daily roll-up The effective annual roll-up rate credited to the benefit base is 3%. The benefit base stops rolling up on the contract date anniversary following the owner's (or older joint owner's, if applicable) 85th birthday. GREATER OF THE 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to the greater of the benefit base computed for the 3% Roll-Up to age 85 or the benefit base computed for the Annual Ratchet to age 85, as described immediately above, on each contract date anniversary. GUARANTEED MINIMUM INCOME BENEFIT AND THE ROLL-UP BENEFIT BASE RESET. You will be eligible to reset your Guaranteed minimum income benefit Roll-Up benefit base on each contract date anniversary until the contract date anniversary following age 75. If you elect the Guaranteed minimum income benefit without the Greater of 6-1/2% (or 6%, if applicable) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, you may reset its Roll-Up benefit base on each contract date anniversary until the contract date anniversary following age 75 AND your investment option choices will be limited to Contract features and benefits 33 the guaranteed interest option, the account for special money market dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. The reset amount would equal the account value as of the contract date anniversary on which you reset your Roll-Up benefit base. The Roll-Up continues to age 85 on any reset benefit base. If you elect both the Guaranteed minimum income benefit AND the Greater of the 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit (the "Greater of enhanced death benefit"), you will be eligible to reset the Roll-Up benefit base for these guaranteed benefits to equal the account value on any contract date anniversary until the contract date anniversary following age 75 and your investment options will not be restricted. If you elect both options, they are not available with different Roll-Up benefit bases: each option must include either the 6-1/2% Roll-Up or 6% Roll-Up benefit base. We will send you a notice in each year that the Roll-Up benefit base is eligible to be reset, and you will have 30 days from your contract date anniversary to reset your Roll-Up benefit base. If your request to reset your Roll-Up benefit base is received at our processing office more than 30 days after your contract date anniversary, your Roll-Up benefit base will reset on the next contract date anniversary on which you are eligible for a reset. You may choose one of the three available reset methods: one-time reset option, automatic annual reset program or automatic customized reset program. - -------------------------------------------------------------------------------- ONE-TIME RESET OPTION - resets your Roll-Up benefit base on a single contract date anniversary. AUTOMATIC ANNUAL RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary you are eligible for a reset. AUTOMATIC CUSTOMIZED RESET PROGRAM - automatically resets your Roll-Up benefit base on each contract date anniversary, if eligible, for the period you designate. - -------------------------------------------------------------------------------- If you wish to cancel your elected reset program, your request must be received by our processing office at least 30 days prior to your contract date anniversary to terminate your reset program for such contract date anniversary. Cancellation requests received after this window will be applied the following year. A reset cannot be cancelled after it has occurred. For more information, see "How to reach us" earlier in this Prospectus. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset until the next contract date anniversary. If after your death your spouse continues this contract, the benefit base will be eligible to be reset on each contract date anniversary, if applicable. The last age at which the benefit base is eligible to be reset is the contract date anniversary following owner (or older joint owner, if applicable) age 75. If you elect to reset your Roll-Up benefit base on any contract date anniversary, we may increase the charge for the Guaranteed minimum income benefit and the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit. There is no charge increase for the Annual Ratchet to age 85 enhanced death benefit. See both "Guaranteed minimum death benefit charge" and "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus for more information. It is important to note that once you have reset your Roll-Up benefit base, a new waiting period to exercise the Guaranteed minimum income benefit from the date of the reset; you may not exercise until the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. See "Exercise rules" under "Guaranteed minimum income benefit" below for more information. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the exercise waiting period. Also, even when there is no additional charge when you reset your Roll-Up benefit base, the total dollar amount charged on future contract date anniversaries may increase as a result of the reset since the charges may be applied to a higher benefit base than would have been otherwise applied. See "Charges and expenses" in the Prospectus. If you are a traditional IRA or TSA contract owner, before you reset your Roll-Up benefit base, please consider the effect of the 10-year exercise waiting period on your requirement to take lifetime required minimum distributions with respect to this contract. If you must begin taking lifetime required minimum distributions during the 10-year waiting period, you may want to consider taking the annual lifetime required minimum distribution calculated for this contract from another traditional IRA or TSA contract that you maintain. If you withdraw the lifetime required minimum distribution from this contract, and the required minimum distribution is more than 6-1/2% (or 6%) of the reset benefit base, the withdrawal would cause a pro-rata reduction in the benefit base. Alternatively, resetting the benefit base to a larger amount would make it less likely that the required minimum distributions would exceed the 6-1/2% (or 6%) threshold. See "Lifetime required minimum distribution withdrawals" and "How withdrawals affect your Guaranteed minimum income benefit and Guaranteed minimum death benefit" in "Accessing your money." Also, see "Required minimum distributions" under "Individual retirement arrangements (IRAs)" and "Tax-sheltered annuity contracts (TSAs)" in "Tax information", later in this Prospectus. If you elect both the "Greater of" enhanced death benefit and the Guaranteed minimum income benefit, the Roll-Up benefit bases for both are reset simultaneously when you request a Roll-Up benefit base reset. You cannot elect a Roll-Up benefit base reset for one benefit and not the other. ANNUITY PURCHASE FACTORS Annuity purchase factors are the factors applied to determine your periodic payments under the Guaranteed minimum income benefit and annuity payout options. The Guaranteed minimum income benefit is discussed under "Guaranteed minimum income benefit option" below and annuity payout options are discussed in "Accessing your money" later in this Prospectus. Annuity purchase factors are based on interest rates, mortality tables, frequency of payments, the form of annuity benefit, and the owner's (and any joint owner's) age and sex in certain instances. We may provide more favorable current annuity purchase factors for the annuity payout options. GUARANTEED MINIMUM INCOME BENEFIT The Guaranteed minimum income benefit is available if the owner is age 20 through 75 at the time the contract is issued. 34 Contract features and benefits Subject to state availability (see Appendix VII later in this Prospectus), you may elect one of the following: o The Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base. o The Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base. Both options include the ability to reset your Guaranteed minimum income benefit base on each contract date anniversary until the contract date anniversary following age 75. See "Guaranteed minimum income benefit and the Roll-Up benefit base reset" earlier in this section. If you elect the Guaranteed minimum income benefit with a "Greater of" death benefit, you can choose between one of the following two combinations: o the Greater of the 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base, or o the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base. If you elect the Guaranteed minimum income benefit without the Greater of the 6-1/2% (or 6%, if applicable) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, your investment options will be limited to the guaranteed interest option, the account for special money market dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. If the contract is jointly owned, the Guaranteed minimum income benefit will be calculated on the basis of the older owner's age. There is an additional charge for the Guaranteed minimum income benefit which is described under "Guaranteed minimum income benefit charge" in "Charges and expenses" later in this Prospectus. Once you purchase the Guaranteed minimum income benefit, you may not voluntarily terminate this benefit. If you elect both the Guaranteed minimum income benefit and a "Greater of" enhanced death benefit, the Roll-Up rate you elect must be the same for both features. If you are purchasing this contract as an Inherited IRA, or if you elect a Principal guarantee benefit or the Guaranteed withdrawal benefit for life, the Guaranteed minimum income benefit is not available. For IRA and Rollover TSA contracts, owners over age 60 at contract issue should consider the impact of the minimum distributions required by tax law in relation to the withdrawal limitations under the Guaranteed minimum income benefit. See "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus. If you elect the Guaranteed minimum income benefit option and change ownership of the contract, this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. The Guaranteed minimum income benefit guarantees you a minimum amount of fixed income under your choice of a life annuity fixed payout option or a life with a period certain payout option, subject to state availability. You choose which of these payout options you want and whether you want the option to be paid on a single or joint life basis at the time you exercise your Guaranteed minimum income benefit. The maximum period certain available under the life with a period certain payout option is 10 years. This period may be shorter, depending on the owner's age as follows: Level payments - -------------------------------------------------------- Owner's Period certain years age at exercise - -------------------------------------------------------- 80 and younger 10 81 9 82 8 83 7 84 6 85 5 - -------------------------------------------------------------------------------- We may also make other forms of payout options available. For a description of payout options, see "Your annuity payout options" in "Accessing your money" later in this Prospectus. - -------------------------------------------------------------------------------- The Guaranteed minimum income benefit should be regarded as a safety net only. - -------------------------------------------------------------------------------- When you exercise the Guaranteed minimum income benefit, the annual lifetime income that you will receive will be the greater of (i) your Guaranteed minimum income benefit which is calculated by applying your Guaranteed minimum income benefit base, to guaranteed annuity purchase factors, or (ii) the income provided by applying your account value to our then current annuity purchase factors. For Rollover TSA only, we will subtract from the Guaranteed minimum income benefit base or account value any outstanding loan, including interest accrued but not paid. You may also elect to receive monthly or quarterly payments as an alternative. The payments will be less than 1/12 or 1/4 of the annual payments, respectively, due to the effect of interest compounding. The benefit base is applied only to the guaranteed annuity purchase factors under the Guaranteed minimum income benefit in your contract and not to any other guaranteed or current annuity purchase rates. The amount of income you actually receive will be determined when we receive your request to exercise the benefit. When you elect to receive annual lifetime income, your contract will terminate and you will receive a new contract for the annuity payout option. For a discussion of when your payments will begin and end, see "Exercise of Guaranteed minimum income benefit" below. Before you elect the Guaranteed minimum income benefit, you should consider the fact that it provides a form of insurance and is based on conservative actuarial factors. Therefore, even if your account value is less than your benefit base, you may generate more income by applying your account value to current annuity purchase factors. We will make this comparison for you when the need arises. GUARANTEED MINIMUM INCOME BENEFIT "NO LAPSE GUARANTEE". In general, if your account value falls to zero (except as discussed below, Contract features and benefits 35 if your account value falls to zero due to a withdrawal that causes your total contract year withdrawals to exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days), the Guaranteed minimum income benefit will be exercised automatically, based on the owner's (or older joint owner's, if applicable) current age and benefit base, as follows: o You will be issued a supplementary contract based on a single life with a maximum 10 year period certain. Payments will be made annually starting one year from the date the account value fell to zero. o You will have 30 days from when we notify you to change the payout option and/or the payment frequency. Please note that we will not automatically exercise the Guaranteed minimum income benefit, as described above, if you have a TSA contract and withdrawal restrictions apply. The no lapse guarantee will terminate under the following circumstances: o If your aggregate withdrawals during any contract year exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received in the first 90 days); o Upon the contract date anniversary following the owner (or older joint owner, if applicable) reaching age 85. Please note that if you participate in our Automatic RMD service, an automatic withdrawal under that program will not cause the no lapse guarantee to terminate even if a withdrawal causes your total contract year withdrawals to exceed 6-1/2% (or 6%, if applicable) of your Roll-Up benefit base at the beginning of the contract year. ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll-Up to age 85 benefit base, the table below illustrates the Guaranteed minimum income benefit amounts per $100,000 of initial contribution, for a male owner age 60 (at issue) on the contract date anniversaries indicated, who has elected the life annuity fixed payout option, using the guaranteed annuity purchase factors as of the date of this Prospectus, assuming no additional contributions, withdrawals or loans under Rollover TSA contracts, and assuming there were no allocations to the EQ/Money Market, the guaranteed interest option, the fixed maturity options or the loan reserve account. - ---------------------------------------------------------- Guaranteed minimum income Contract date benefit -- annual income pay- anniversary at exercise able for life - ---------------------------------------------------------- 10 $10,065 15 $15,266 - ---------------------------------------------------------- EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary that you are eligible to exercise the Guaranteed minimum income benefit, we will send you an eligibility notice illustrating how much income could be provided as of the contract date anniversary. You must notify us within 30 days following the contract date anniversary if you want to exercise the Guaranteed minimum income benefit. You must return your contract to us, along with all required information, within 30 days following your contract date anniversary in order to exercise this benefit. Upon exercise of the Guaranteed minimum income benefit, the owner (or older joint owner) will become the annuitant, and the contract will be annuitized on the basis of the annuitant's life. You will begin receiving annual payments one year after the annuity payout contract is issued. If you choose monthly or quarterly payments, you will receive your payment one month or one quarter after the annuity payout contract is issued. You may choose to take a withdrawal prior to exercising the Guaranteed minimum income benefit, which will reduce your payments. You may not partially exercise this benefit. See "Accessing your money" under "Withdrawing your account value" later in this Prospectus. Payments end with the last payment before the annuitant's (or joint annuitant's, if applicable) death or, if later, then end of the period certain (where the payout option chosen includes a period certain). EXERCISE RULES. Eligibility to exercise the Guaranteed minimum income benefit is based on the owner's (or older joint owner's, if applicable) age as follows: o If you were at least age 20 and no older than age 44 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 15th contract date anniversary. o If you were at least age 45 and no older than age 49 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary after age 60. o If you were at least age 50 and no older than age 75 when the contract was issued, you are eligible to exercise the Guaranteed minimum income benefit within 30 days following each contract date anniversary beginning with the 10th contract date anniversary. Please note: (i) the latest date you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your 85th birthday; (ii) if you were age 75 when the contract was issued or the Roll-Up benefit base was reset, the only time you may exercise the Guaranteed minimum income benefit is within 30 days following the contract date anniversary following your attainment of age 85; (iii) for Accumulator(R) Select(SM) Rollover TSA contracts, you may exercise the Guaranteed minimum income benefit only if you effect a rollover of the TSA contract to an Accumulator(R) Select(SM) Rollover IRA. This may only occur when you are eligible for a distribution from the TSA. This process must be completed within the 30-day timeframe following the contract date anniversary in order for you to be eligible to exercise; (iv) if you reset the Roll-Up benefit base (as described earlier in this section), your new exercise date will be the tenth contract date anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. Please note that in almost all cases, resetting your Roll-Up benefit base will lengthen the waiting period; (v) a spouse beneficiary or younger spouse joint owner under Spou- 36 Contract features and benefits sal continuation may only continue the Guaranteed minimum income benefit if the contract is not past the last date on which the original owner could have exercised the benefit. In addition, the spouse beneficiary or younger spouse joint owner must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The spouse beneficiary or younger spouse joint owner's age on the date of the owner's death replaces the owner's age at issue for purposes of determining the availability of the benefit and which of the exercise rules applies. The original contract issue date will continue to apply for purposes of the exercise rules. (vi) if the contract is jointly owned, you can elect to have the Guaranteed minimum income benefit paid either: (a) as a joint life benefit or (b) as a single life benefit paid on the older owner's age; and (vii) if the contract is owned by a trust or other non-natural person, eligibility to elect or exercise the Guaranteed minimum income benefit is based on the annuitant's (or older joint annuitant's, if applicable) age, rather than the owner's. See "Effect of the owner's death" under "Payment of death benefit" later in this Prospectus for more information. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" and the section entitled "Charges and expenses" later in this Prospectus for more information on these guaranteed benefits. GUARANTEED MINIMUM DEATH BENEFIT This section does not apply if you elect GWBL. For information about the GWBL death benefits and benefit bases, see "Guaranteed withdrawal benefit for life ("GWBL")" later in this section. Your contract provides a standard death benefit. If you do not elect one of the enhanced death benefits described below, the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of death, any required instructions for the method of payment, information and forms necessary to effect payment, OR the standard death benefit, whichever provides the higher amount. The standard death benefit is equal to your total contributions, adjusted for withdrawals. The standard death benefit is the only death benefit available for owners (or older joint owners, if applicable) ages 81 through 85 at issue. Once your contract is issued, you may not change or voluntarily terminate your death benefit. If you elect one of the enhanced death benefits, (not including the GWBL Enhanced death benefit) the death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, information and forms necessary to effect payment, OR your elected enhanced death benefit on the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals, whichever provides the higher amount. See "Payment of death benefit" later in this Prospectus for more information. Any of enhanced death benefits (other than the Greater of 3% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit) or the standard death benefit can be elected by themselves or with the Guaranteed minimum income benefit. Each enhanced death benefit has an additional charge. There is no additional charge for the standard death benefit. If you elect one of the enhanced death benefit options described below and change ownership of the contract, generally the benefit will automatically terminate, except under certain circumstances. If this occurs, any enhanced death benefit elected will be replaced with the standard death benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Subject to state availability (see Appendix VI later in this Prospectus for state availability of these benefits), your age at contract issue, and your contract type, you may elect one of the following enhanced death benefits: Optional enhanced death benefit applicable for owner (or older joint owner, if applicable) ages 0 through 75 at issue of NQ contracts; 20 through 75 at issue of Rollover IRA, Roth Conversion IRA, and Rollover TSA contracts; 0 through 70 at issue for Inherited IRA contracts. o Annual Ratchet to age 85 o The Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 o The Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 Optional enhanced death benefit applicable for owner (or older joint owner, if applicable) ages 76 through 80 at issue of NQ, Rollover IRA, Roth Conversion IRA, and Rollover TSA contracts. o The Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 The Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 is not available for Inherited IRA contracts. For contracts with non-natural owners, the available death benefits are based on the annuitant's age. Each enhanced death benefit is equal to its corresponding benefit base described earlier in "Guaranteed minimum death benefit and Guaranteed minimum income benefit base." Once you have made your enhanced death benefit election, you may not change it. As discussed earlier in this Prospectus, you can elect a "Greater of" enhanced death benefit with a corresponding Guaranteed minimum income benefit. You can elect one of the following two combinations: o the Greater of 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base, or o the Greater of 6% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit with the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base. Contract features and benefits 37 If you purchase a "Greater of" enhanced death benefit with the Guaranteed minimum income benefit, you will be eligible to reset your Roll-Up benefit base on each contract date anniversary until the contract date anniversary following age 75. If you purchase a "Greater of" enhanced death benefit without the Guaranteed minimum income benefit, no reset is available. See "Guaranteed minimum income benefit and the Roll-Up benefit base reset" earlier in this section. Please see both "Insufficient account value" in "Determining your contract value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" later in this Prospectus for more information on these guaranteed benefits. See Appendix III later in this Prospectus for an example of how we calculate an enhanced death benefit. EARNINGS ENHANCEMENT BENEFIT Subject to state and contract availability (see Appendix VI later in this Prospectus for state availability of these benefits), if you are purchasing a contract under which the Earnings enhancement benefit is available, you may elect the Earnings enhancement benefit at the time you purchase your contract, if the owner is age 75 or younger. The Earnings enhancement benefit provides an additional death benefit as described below. See the appropriate part of "Tax information" later in this Prospectus for the potential tax consequences of electing to purchase the Earnings enhancement benefit in an NQ, IRA or Rollover TSA contract. Once you purchase the Earnings enhancement benefit , you may not voluntarily terminate this feature. If you elect the Guaranteed withdrawal benefit for life the Earnings enhancement benefit is not available. If you elect the Earnings enhancement benefit option described below and change ownership of the contract, generally this benefit will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. If the owner (or older joint owner, if applicable) is 70 or younger when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is 70 or younger when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 40% of: the greater of: o the account value or o any applicable death benefit decreased by: o total net contributions For purposes of calculating your Earnings enhancement benefit, the following applies: (i) "Net contributions" are the total contributions made (or, if applicable, the total amount that would otherwise have been paid as a death benefit had the spouse beneficiary or younger spouse joint owner not continued the contract plus any subsequent contributions) adjusted for each withdrawal that exceeds your Earnings enhancement benefit earnings. "Net contributions" are reduced by the amount of that excess. Earnings enhancement benefit earnings are equal to (a) minus (b) where (a) is the greater of the account value and the death benefit immediately prior to the withdrawal, and (b) is the net contributions as adjusted by any prior withdrawals; and (ii) "Death benefit" is equal to the greater of the account value as of the date we receive satisfactory proof of death or any applicable Guaranteed minimum death benefit as of the date of death. If the owner (or older joint owner, if applicable) is age 71 through 75 when we issue your contract (or if the spouse beneficiary or younger spouse joint owner is between the ages of 71 and 75 when he or she becomes the successor owner and the Earnings enhancement benefit had been elected at issue), the additional death benefit will be 25% of: the greater of: o the account value or o any applicable death benefit decreased by: o total net contributions The value of the Earnings enhancement benefit is frozen on the first contract date anniversary after the owner (or older joint owner, if applicable) turns age 80, except that the benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of the current account value that is being withdrawn and we reduce the benefit by that percentage. For example, if the account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If the benefit is $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and the benefit after the withdrawal would be $24,000 ($40,000 - $16,000). For an example of how the Earnings enhancement death benefit is calculated, please see Appendix V. For contracts continued under Spousal continuation, upon the death of the spouse (or older spouse, in the case of jointly owned contracts), the account value will be increased by the value of the Earnings enhancement benefit as of the date we receive due proof of death. The benefit will then be based on the age of the surviving spouse as of the date of the deceased spouse's death for the remainder of the contract. If the surviving spouse is age 76 or older, the benefit will terminate and the charge will no longer be in effect. The spouse may also take the death benefit (increased by the Earnings enhancement benefit) in a lump sum. See "Spousal continuation" in "Payment of death benefit" later in this Prospectus for more information. The Earnings enhancement benefit must be elected when the contract is first issued: neither the owner nor the successor owner can add it subsequently. Ask your financial professional or see Appendix VI later in this Prospectus to see if this feature is available in your state GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL") For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL") guarantees that you can take withdrawals up to a maximum amount per year (your "Guaranteed annual withdrawal amount"). 38 Contract features and benefits GWBL is only available at issue. This benefit is not available at issue ages younger than 45. GWBL is not available if you have elected the Guaranteed minimum income benefit, the Earnings enhancement benefit or one of our Principal guarantee benefits, described later in this Prospectus. You may elect one of our automated payment plans or you may take partial withdrawals. All withdrawals reduce your account value and Guaranteed minimum death benefit. See "Accessing your money" later in this Prospectus. Your investment options will be limited to the guaranteed interest option, the account for special money market dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. You may buy this benefit on a single life ("Single life") or a joint life ("Joint life") basis. Under a Joint life contract, lifetime withdrawals are guaranteed for the life of both the owner and successor owner. For Joint life contracts, a successor owner may be named at contract issue only. The successor owner must be the owner's spouse. If you and the successor owner are no longer married, you may either: (i) drop the original successor owner or (ii) replace the original successor owner with your new spouse. This can only be done before the first withdrawal is made from the contract. After the first withdrawal, the successor owner can be dropped but cannot be replaced. If the successor owner is dropped after withdrawals begin, the charge will continue based on a Joint life basis. For NQ contracts, you have the option to designate the successor owner as a joint owner. For Joint life contracts owned by a non-natural owner, a joint annuitant may be named at contract issue only. The annuitant and joint annuitant must be spouses. If the annuitant and joint annuitant are no longer married, you may either: (i) drop the joint annuitant or (ii) replace the original joint annuitant with the annuitant's new spouse. This can only be done before the first withdrawal. After the first withdrawal, the joint annuitant may be dropped but cannot be replaced. If the joint annuitant is dropped after withdrawals begin, the charge continues based on a Joint life basis. Joint life TSA contracts are not permitted. This benefit is not available under an Inherited IRA contract. The charge for the GWBL benefit will be deducted from your account value on each contract date anniversary. Please see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus for a description of the charge. You should not purchase this benefit if: o You plan to take withdrawals in excess of your Guaranteed annual withdrawal amount because those withdrawals may significantly reduce or eliminate the value of the benefit (see "Effect of Excess withdrawals" below in this section); o You are not interested in taking withdrawals prior to the contract's maturity date; o You are using the contract to fund a Rollover TSA contract where withdrawal restrictions will apply; or. o You plan to use it for withdrawals prior to age 59-1/2, as the taxable amount of the withdrawal will be includible in income and subject to an additional 10% federal income tax penalty, as discussed later in this Prospectus. The Federal Defense of Marriage Act precludes same-sex married couples, domestic partners, and civil union partners from being considered married under federal law. Such individuals, therefore, are not entitled to the favorable tax treatment accorded spouses under federal tax law. As a result, mandatory distributions from the contract must be made after the death of the first individual. Accordingly, the GWBL will have little or no value to the surviving same-gender spouse or partner. You should consult with your tax adviser for more information on this subject. For traditional IRAs and TSA contracts, you may take your lifetime required minimum distributions ("RMDs") without losing the value of the GWBL benefit, provided you comply with the conditions described under "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, this benefit may have limited usefulness for you and you should consider whether it is appropriate. Please consult your tax adviser. GWBL BENEFIT BASE At issue, your GWBL benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL benefit base increases by any subsequent contributions. o Your GWBL benefit base may be increased on each contract date anniversary, as described below under "Annual ratchet" and "5% deferral bonus." o Your GWBL benefit base is not reduced by withdrawals except those withdrawals that cause total withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess withdrawals" below in this section. GUARANTEED ANNUAL WITHDRAWAL AMOUNT Your initial Guaranteed annual withdrawal amount is equal to a percentage of the GWBL benefit base. The initial applicable percentage ("Applicable percentage") is based on the owner's age at the time of the first withdrawal. For Joint life contracts, the initial Applicable percentage is based on the age of the owner or successor owner, whoever is younger at the time of the first withdrawal. If your GWBL benefit base ratchets, as described below in this section under "Annual ratchet," on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. The Applicable percentages are as follows: - -------------------------------------------------- Age Applicable percentage - -------------------------------------------------- 45-64 4.0% 65-74 5.0% 75-84 6.0% 85 and older 7.0% We will recalculate the Guaranteed annual withdrawal amount on each contract date anniversary and as of the date of any subsequent contribution or Excess withdrawal, as described below under "Effect of Contract features and benefits 39 Excess withdrawals" and "Subsequent contributions." The withdrawal amount is guaranteed never to decrease as long as there are no Excess withdrawals. Your Guaranteed annual withdrawals are not cumulative. If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. EFFECT OF EXCESS WITHDRAWALS An Excess withdrawal is caused when you withdraw more than your Guaranteed annual withdrawal amount in any contract year. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, the entire amount of that withdrawal and each subsequent withdrawal in that contract year are considered Excess withdrawals. An Excess withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount. If you make an Excess withdrawal, we will recalculate your GWBL benefit base and the Guaranteed annual withdrawal amount, as follows: o The GWBL benefit base is reset as of the date of the Excess with drawal to equal the lesser of: (i) the GWBL benefit base immediately prior to the Excess withdrawal and (ii) the account value immediately following the Excess withdrawal. o The Guaranteed annual withdrawal amount is recalculated to equal the Applicable percentage multiplied by the reset GWBL benefit base. You should not purchase this contract if you plan to take withdrawals in excess of your Guaranteed annual withdrawal amount as such withdrawals may significantly reduce or eliminate the value of the GWBL benefit. If your account value is less than your GWBL benefit base (due, for example, to negative market performance), an Excess withdrawal, even one that is only slightly more than your Guaranteed annual withdrawal amount, can significantly reduce your GWBL benefit base and the Guaranteed annual withdrawal amount. For example, assume your GWBL benefit base is $100,000 and your account value is $80,000 when you decide to begin taking withdrawals at age 65. Your Guaranteed annual withdrawal amount is equal to $5,000 (5.0% of $100,000). You take an initial withdrawal of $8,000. Since your GWBL benefit base is immediately reset to equal the lesser of your GWBL benefit base prior to the Excess withdrawal ($100,000) and your account value immediately following the Excess withdrawal ($80,000 minus $8,000), your GWBL benefit base is now $72,000. In addition, your Guaranteed annual withdrawal amount is reduced to $3,600 (5.0% of $72,000), instead of the original $5,000. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. You should note that an Excess withdrawal that reduces your account value to zero terminates the contract, including all benefits, without value. See "Insufficient account value" in "Determining your contract value" later in this Prospectus. In general, if you purchase this contract as a traditional IRA or TSA and participate in our Automatic RMD service, an automatic withdrawal under that program will not cause an Excess withdrawal, even if it exceeds your Guaranteed annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" later in this Prospectus. Loans are not available under Rollover TSA contracts if GWBL is elected. ANNUAL RATCHET Your GWBL benefit base is recalculated on each contract date anniversary to equal the greater of: (i) the account value and (ii) the most recent GWBL benefit base. If your account value is greater, we will ratchet up your GWBL benefit base to equal your account value. If your GWBL benefit base ratchets on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. Your Guaranteed annual withdrawal amount will also be increased, if applicable, to equal your Applicable percentage times your new GWBL benefit base. If your GWBL benefit base ratchets, we may increase the charge for the benefit. Once we increase the charge, it is increased for the life of the contract. We will permit you to opt out of the ratchet if the charge increases. If you choose to opt out, your charge will stay the same but your GWBL benefit base will no longer ratchet. Upon request, we will permit you to accept a GWBL benefit base ratchet with the charge increase on a subsequent contract date anniversary. For a description of the charge increase, see "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses" later in this Prospectus. 5% DEFERRAL BONUS At no additional charge, during the first ten contract years, in each year you have not taken a withdrawal, we will increase your GWBL benefit base by an amount equal to 5% of your total contributions. If the Annual Ratchet (as discussed immediately above) occurs on any contract date anniversary, for the next and subsequent contract years, the bonus will be 5% of the most recent ratcheted GWBL benefit base plus any subsequent contributions. If the GWBL benefit base is reduced due to an Excess withdrawal, the 5% deferral bonus will be calculated using the reset GWBL benefit base plus any applicable contributions. The deferral bonus generally excludes contributions made in the prior 12 months. In the first contract year, the deferral bonus is determined using all contributions received in the first 90 days of the contract year. On any contract date anniversary on which you are eligible for a bonus, we will calculate the applicable bonus amount. If, when added to the current GWBL benefit base, the amount is greater than your account value, that amount will become your new GWBL benefit base. If that amount is less than or equal to your account value, your GWBL benefit base will be ratcheted to equal your account value, and the 5% deferral bonus will not apply. If you opt out of the Annual Ratchet (as discussed immediately above), the 5% deferral bonus will still apply. SUBSEQUENT CONTRIBUTIONS Subsequent contributions are not permitted after the later of: (i) the end of the first contract year and (ii) the date the first withdrawal is taken. Anytime you make an additional contribution, your GWBL benefit base will be increased by the amount of the contribution. Your Guaranteed 40 Contract features and benefits annual withdrawal amount will be equal to the Applicable percentage of the increased GWBL benefit base. GWBL GUARANTEED MINIMUM DEATH BENEFIT There are two guaranteed minimum death benefits available if you elect the GWBL option: (i) the GWBL Standard death benefit, which is available at no additional charge for owner issue ages 45-85, and (ii) the GWBL Enhanced death benefit, which is available for an additional charge for owner issue ages 45-75. Please see Appendix VI later in this Prospectus to see if these guaranteed death benefits are available in your state. The GWBL Standard death benefit is equal to the GWBL Standard death benefit base. The GWBL Standard death benefit base is equal to your initial contribution and any additional contributions less a deduction that reflects any withdrawals you make (see "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus). The GWBL Enhanced death benefit is equal to the GWBL Enhanced death benefit base. Your initial GWBL Enhanced death benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL Enhanced death benefit base increases by any subsequent contribution; o Your GWBL Enhanced death benefit base increases to equal your account value if your GWBL benefit base is ratcheted, as described above in this section; o Your GWBL Enhanced death benefit base increases by any 5% deferral bonus, as described above in this section; o Your GWBL Enhanced death benefit base decreases by an amount which reflects any withdrawals you make See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. The death benefit is equal to your account value (adjusted for any pro rata optional benefit charges) as of the date we receive satisfactory proof of death, any required instructions for method of payment, information and forms necessary to effect payment or the applicable GWBL Guaranteed minimum death benefit on the date of the owner's death (adjusted for any subsequent withdrawals), whichever provides a higher amount. EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO If your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no further payments or benefits. If an Excess withdrawal results in a withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. However, if your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, please note the following: o Your Accumulator(R) Select(SM) contract terminates and you will receive a supplementary life annuity contract setting forth your continuing benefits. The owner of the Accumulator(R) Select(SM) contract will be the owner and annuitant. The successor owner, if applicable, will be the joint annuitant. If the owner is non-natural, the annuitant and joint annuitant, if applicable, will be the same as under your Accumulator(R) Select(SM) contract. o No subsequent contributions will be permitted. o If you were taking withdrawals through the "Maximum payment plan," we will continue the scheduled withdrawal payments on the same basis. o If you were taking withdrawals through the "Customized payment plan" or in unscheduled partial withdrawals, we will pay the balance of the Guaranteed annual withdrawal amount for that contract year in a lump sum. Payment of the Guaranteed annual withdrawal amount will begin on the next contract date anniversary. o Payments will continue at the same frequency for Single or Joint life contracts, as applicable, or annually if automatic payments were not being made. o Any guaranteed minimum death benefit remaining under the original contract will be carried over to the supplementary life annuity contract. The death benefit will no longer grow and will be reduced on a dollar for dollar basis as payments are made. If there is any remaining death benefit upon the death of the owner and successor owner, if applicable, we will pay it to the beneficiary. o The charge for the Guaranteed withdrawal benefit for life and the GWBL Enhanced death benefit will no longer apply. o If at the time of your death the Guaranteed annual withdrawal amount was being paid to you as a supplementary life annuity contract, your beneficiary may not elect the Beneficiary continuation option. OTHER IMPORTANT CONSIDERATIONS o This benefit is not appropriate if you do not intend to take withdrawals prior to annuitization. o Excess withdrawals can significantly reduce or completely eliminate the value of the GWBL and GWBL Enhanced death benefit. See "Effect of Excess withdrawals" above in this section and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. o Withdrawals are not considered annuity payments for tax purposes, and may be subject to an additional 10% Federal income tax penalty if they are taken before age 59-1/2. See "Tax information" later in this Prospectus. o All withdrawals reduce your account value and Guaranteed minimum death benefit. See "How withdrawals are taken from your account value" and "How withdrawals affect your Guaranteed minimum death benefit" in "Accessing your money" later in this Prospectus. Contract features and benefits 41 o If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. o The GWBL benefit terminates if the contract is continued under the beneficiary continuation option or under the Spousal continuation feature if the spouse is not the successor owner. o If you surrender your contract to receive its cash value and your cash value is greater than your Guaranteed annual withdrawal amount, all benefits under the contract will terminate, including the GWBL benefit. o If you transfer ownership of this contract, you terminate the GWBL benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. o Withdrawals are available under other annuity contracts we offer and this contract without purchasing a withdrawal benefit. o For IRA and TSA contracts, if you have to take a required minimum distribution ("RMD") and it is your first withdrawal under the contract, the RMD will be considered your "first withdrawal" for the purposes of establishing your GWBL Applicable percentage. o If you elect GWBL on a Joint life basis and subsequently get divorced, your divorce will not automatically terminate the contract. For both Joint life and Single life contracts, it is possible that the terms of your divorce decree could significantly reduce or completely eliminate the value of this benefit. PRINCIPAL GUARANTEE BENEFITS We offer two 10-year Principal guarantee benefits at an additional charge: the 100% Principal guarantee benefit and the 125% Principal guarantee benefit. You may only elect one Principal guarantee benefit ("PGB"). 100% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 100% Principal guarantee benefit is equal to your initial contribution and additional permitted contributions, adjusted for withdrawals. Under the 100% Principal guarantee benefit, your investment options are limited to the guaranteed interest option, the account for special money market dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" earlier in this section. 125% PRINCIPAL GUARANTEE BENEFIT. The guaranteed amount under the 125% Principal guarantee benefit is equal to 125% of your initial contribution and additional permitted contributions, adjusted for withdrawals. Under the 125% Principal guarantee benefit, your investment options are limited to the guaranteed interest option, the account for special money market dollar cost averaging and the AXA Moderate Allocation Portfolio. Under both Principal guarantee benefits, if, on the 10th contract date anniversary (or later if you've exercised a reset as explained below) ("benefit maturity date"), your account value is less than the guaranteed amount, we will increase your account value to equal the applicable guaranteed amount. Any such additional amounts added to your account value will be allocated pursuant to the allocation instructions for additional contributions we have on file. After the benefit maturity date, the guarantee will terminate. You have the option to reset (within 30 days following each applicable contract date anniversary) the guaranteed amount to the account value or 125% of the account value, as applicable, as of your fifth and later contract date anniversaries. If you exercise this option, you are eligible for another reset on each fifth and later contract date anniversary after the last reset up to the contract date anniversary following an owner's 85th birthday. If you elect to reset the guaranteed amount, your benefit maturity date will be extended to be the 10th contract date anniversary after the anniversary on which you reset the guaranteed amount. This extension applies each time you reset the guaranteed amount. Neither PGB is available under Inherited IRA contracts. If you elect either PGB, you may not elect the Guaranteed minimum income benefit, the Guaranteed withdrawal benefit for life, the systematic withdrawals option or the substantially equal withdrawals options. If you purchase a PGB, you may not make additional contributions to your contract after six months from the contract issue date. If you are planning to take required minimum distributions from this contract, this benefit may not be appropriate. See "Tax information" later in this Prospectus. If you elect a PGB and change ownership of the contract, your PGB will automatically terminate, except under certain circumstances. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," later in this Prospectus for more information. Once you purchase a PGB, you may not voluntarily terminate this benefit. Your PGB will terminate if the contract terminates before the benefit maturity date, as defined below. If you die before the benefit maturity date and the contract continues, we will continue the PGB only if the contract can continue through the benefit maturity date. If the contract cannot so continue, we will terminate your PGB and the charge. See "Non-spousal joint owner contract continuation" in "Payment of death benefit" later in this Prospectus. The PGB will terminate upon the exercise of the beneficiary continuation option. See "Payment of death benefit" later in this Prospectus for more information about the continuation of the contract after the death of the owner and/or the annuitant. There is a charge for the Principal guarantee benefits (see "Charges and expenses" later in this Prospectus). You should note that the purchase of a PGB is not appropriate if you want to make additional contributions to your contract beyond the first six months after your contract is issued. The purchase of a PGB is also not appropriate if you plan on terminating your contract before the benefit maturity date. The purchase of a PGB may not be appropriate if you plan on taking withdrawals from your contract before the benefit maturity date. Withdrawals from your contract before the benefit maturity date reduce the guaranteed amount under a PGB on a pro rata basis. You should also note that if you intend to allocate a large percentage of your contributions to the guaranteed interest option, the purchase of a PGB may not be appro- 42 Contract features and benefits priate because of the guarantees already provided by this option at no additional charge. Please note that loans (applicable to TSA contracts only) are not permitted under either PGB. INHERITED IRA BENEFICIARY CONTINUATION CONTRACT This contract is available to an individual beneficiary of a traditional IRA or a Roth IRA where the deceased owner held the individual retirement account or annuity (or Roth individual retirement account or annuity) with an insurance company or financial institution other than AXA Equitable. The purpose of the inherited IRA beneficiary continuation contract is to permit the beneficiary to change the funding vehicle that the deceased owner selected ("original IRA") while taking the required minimum distribution payments that must be made to the beneficiary after the deceased owner's death. See the discussion of required minimum distributions under "Tax information." This contract is intended only for beneficiaries who want to take payments at least annually over their life expectancy. These payments generally must begin (or must have begun) no later than December 31 of the calendar year following the year the deceased owner died. This contract is not suitable for beneficiaries electing the "5-year rule." See "Beneficiary continuation option for IRA and Roth IRA contracts" under "Beneficiary continuation option" in "Payment of death benefit" later in this Prospectus. You should discuss with your tax adviser your own personal situation. This contract may not be available in all states. Please speak with your financial professional for further information. The Inherited traditional IRA is also available to non-spousal beneficiaries of deceased plan participants in qualified plans, 403(b) plans and governmental employer 457(b) plans ("Applicable Plan(s)"). In this discussion, unless otherwise indicated, references to "deceased owner" include "deceased plan participant"; references to "original IRA" include "the deceased plan participant's interest or benefit under the Applicable Plan", and references to "individual beneficiary of a traditional IRA" include "individual non-spousal beneficiary under an Applicable Plan." The inherited IRA beneficiary continuation contract can only be purchased by a direct transfer of the beneficiary's interest under the deceased owner's original IRA. In the case of a non-spousal beneficiary under a deceased plan participant's Applicable Plan, the Inherited traditional IRA can only be purchased by a direct rollover of the death benefit under the Applicable Plan. The owner of the inherited IRA beneficiary continuation contract is the individual who is the beneficiary of the original IRA. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. The contract must also contain the name of the deceased owner. In this discussion, "you" refers to the owner of the inherited IRA beneficiary continuation contract. The inherited IRA beneficiary continuation contract can be purchased whether or not the deceased owner had begun taking required minimum distribution payments during his or her life from the original IRA or whether you had already begun taking required minimum distribution payments of your interest as a beneficiary from the deceased owner's original IRA. You should discuss with your own tax adviser when payments must begin or must be made. Under the inherited IRA beneficiary continuation contract: o You must receive payments at least annually (but can elect to receive payments monthly or quarterly). Payments are generally made over your life expectancy determined in the calendar year after the deceased owner's death and determined on a term certain basis. o You must receive payments from this contract even if you are receiving payments from another IRA of the deceased owner in an amount that would otherwise satisfy the amount required to be distributed from this contract. o The beneficiary of the original IRA will be the annuitant under the inherited IRA beneficiary continuation contract. In the case where the beneficiary is a "see-through trust," the oldest beneficiary of the trust will be the annuitant. o An inherited IRA beneficiary continuation contract is not available for owners over age 70. o The initial contribution must be a direct transfer from the deceased owner's original IRA and is subject to minimum contribution amounts. See "How you can purchase and contribute to your contract" earlier in this section. o Subsequent contributions of at least $1,000 are permitted but must be direct transfers of your interest as a beneficiary from another IRA with a financial institution other than AXA Equitable, where the deceased owner is the same as under the original IRA contract. A non-spousal beneficiary under an Applicable Plan cannot make subsequent contributions to an Inherited traditional IRA contract. o You may make transfers among the investment options. o You may choose at any time to withdraw all or a portion of the account value. Any partial withdrawal must be at least $300. o The Guaranteed minimum income benefit, Spousal continuation, special money market dollar cost averaging, automatic investment program, Principal guarantee benefits, the Guaranteed withdrawal benefit for life and systematic withdrawals are not available under the Inherited IRA beneficiary continuation contract. o If you die, we will pay to a beneficiary that you choose the greater of the account value or the applicable death benefit. o Upon your death, your beneficiary has the option to continue taking required minimum distributions based on your remaining life expectancy or to receive any remaining interest in the contract in a single sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If your beneficiary elects to continue to take distributions, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value as of the date we receive satisfactory proof of death and any required instructions, information and forms. If you had elected any enhanced death benefits, they will no longer be in effect and charges for such benefits will stop. The Guaranteed minimum death benefit will also no longer be in effect. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must Contract features and benefits 43 mail the contract, with a signed letter of instruction electing this right, to our processing office within 10 days after you receive it. If state law requires, this "free look" period may be longer. Other state variations may apply. Please contact your financial professional and/or see Appendix VI to find out what applies in your state. Generally, your refund will be the same as any other surrender and you will receive your account value (less loan reserve account under TSA contracts) under the contract on the day we receive notification of your decision to cancel the contract, which will reflect (i) any investment gain or loss in the variable investment options (less the daily charges we deduct), (ii) any guaranteed interest in the guaranteed interest option, and (iii) any positive or negative market value adjustments in the fixed maturity options through the date we receive your contract. Some states, however, require that we refund the full amount of your contribution (not reflecting (i), (ii) or (iii) above). For any IRA contract returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. We may require that you wait six months before you may apply for a contract with us again if: o you cancel your contract during the free look period; or o you change your mind before you receive your contract whether we have received your contribution or not. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. If you fully convert an existing traditional IRA contract to a Roth Conversion IRA contract, you may cancel your Roth Conversion IRA contract and return to a Rollover IRA contract. Our processing office, or your financial professional, can provide you with the cancellation instructions. In addition to the cancellation right described above, you have the right to surrender your contract rather than cancel it. Please see "Surrendering your contract to receive its cash value," later in this Prospectus. Surrendering your contract may yield results different than canceling your contract, including a greater potential for taxable income. In some cases, your cash value upon surrender may be greater than your contributions to the contract. Please see "Tax information," later in this Prospectus. 44 Contract features and benefits 2. Determining your contract's value - -------------------------------------------------------------------------------- YOUR ACCOUNT VALUE AND CASH VALUE Your "account value" is the total of the values you have in: (i) the variable investment options; (ii) the guaranteed interest option; (iii) market adjusted amounts in the fixed maturity options; and (iv) the loan reserve account (applicable to Rollover TSA contracts only). Your contract also has a "cash value." At any time before annuity payments begin, your contract's cash value is equal to the account value, less: (i) the total amount or a pro rata portion of the annual administrative charge, as well as optional benefit charges; and (ii) the amount of any outstanding loan plus accrued interest (applicable to Rollover TSA contracts only). Please see "Surrendering your contract to receive its cash value" in "Accessing your money" later in this Prospectus. YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS Each variable investment option invests in shares of a corresponding Portfolio. Your value in each variable investment option is measured by "units." The value of your units will increase or decrease as though you had invested it in the corresponding Portfolio's shares directly. Your value, however, will be reduced by the amount of the fees and charges that we deduct under the contract. The unit value for each variable investment option depends on the investment performance of that option, less daily charges for: (i) mortality and expense; (ii) administrative expenses; and (iii) distribution charges. On any day, your value in any variable investment option equals the number of units credited to that option, adjusted for any units purchased for or deducted from your contract under that option, multiplied by that day's value for one unit. The number of your contract units in any variable investment option does not change unless they are: (i) increased to reflect additional contributions; (ii) increased to reflect additional contributions; (iii) decreased to reflect a withdrawal; (iv) increased to reflect a transfer into, or decreased to reflect a transfer out of, a variable investment option; or (v) increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover TSA contract. In addition, when we deduct the enhanced death benefit, Guaranteed minimum income benefit, Principal guarantee benefits, Guaranteed withdrawal benefit for life and/or Earnings enhancement benefit charges, the number of units credited to your contract will be reduced. Your units are also reduced when we deduct the annual administrative charge. A description of how unit values are calculated is found in the SAI. YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION Your value in the guaranteed interest option at any time will equal: your contributions and transfers to that option, plus interest, minus withdrawals out of the option, and charges we deduct. YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS Your value in each fixed maturity option at any time before the maturity date is the market adjusted amount in each option, which reflects withdrawals out of the option and charges we deduct. This is equivalent to your fixed maturity amount increased or decreased by the market value adjustment. Your value, therefore, may be higher or lower than your contributions (less withdrawals) accumulated at the rate to maturity. At the maturity date, your value in the fixed maturity option will equal its maturity value, provided there have been no withdrawals or transfers. INSUFFICIENT ACCOUNT VALUE Your contract will terminate without value if your account value is insufficient to pay any applicable charges when due. Your account value could become insufficient due to withdrawals and/or poor market performance. Upon such termination, you will lose all your rights under your contract and any applicable guaranteed benefits, except as discussed below. See Appendix VI later in this Prospectus for any state variations with regard to terminating your contract. GUARANTEED MINIMUM INCOME BENEFIT NO LAPSE GUARANTEE. In certain circumstances, even if your account value falls to zero, your Guaranteed minimum income benefit will still have value. Please see "Contract features and benefits" earlier in this Prospectus for information on this feature. PRINCIPAL GUARANTEE BENEFITS. If you take no withdrawals, and your account value is insufficient to pay charges, we will not terminate your contract if you are participating in a PGB. Your contract will remain in force and we will pay your guaranteed amount at the benefit maturity date. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. If you elect the Guaranteed withdrawal benefit for life and your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no payment or supplementary life annuity contract, even if your GWBL benefit base is greater than zero. If, however, your account Determining your contract's value 45 value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, the benefit will still have value. See "Contract features and benefits" earlier in this Prospectus. 46 Determining your contract's value 3. Transferring your money among investment options - -------------------------------------------------------------------------------- TRANSFERRING YOUR ACCOUNT VALUE At any time before the date annuity payments are to begin, you can transfer some or all of your account value among the investment options, subject to the following: o You may not transfer to a fixed maturity option that has a rate to maturity of 3%. o You may not transfer any amount to the account for special money market dollar cost averaging. o If an owner or annuitant is age 76-80, you must limit your transfers to fixed maturity options with maturities of seven years or less. If an owner or annuitant is age 81 or older, you must limit your transfers to fixed maturity options of five years or less. Also, the maturity dates may be no later than the date annuity payments are to begin. o If you make transfers out of a fixed maturity option other than at its maturity date, the transfer may cause a market value adjustment. o A transfer into the guaranteed interest option will not be permitted if such transfer would result in more than 25% of the account value being allocated to the guaranteed interest option, based on the account value as of the previous business day. In addition, we reserve the right to restrict transfers among variable investment options including limitations on the number, frequency, or dollar amount of transfers. Our current transfer restrictions are set forth in the "Disruptive transfer activity" section below. The maximum amount that may be transferred from the guaranteed interest option to any investment option (including amounts transferred pursuant to the fixed-dollar option and interest sweep option dollar cost averaging programs described under "Allocating your contributions" in "Contract features and benefits" earlier in this Prospectus) in any contract year is the greatest of: (a) 25% of the amount you have in the guaranteed interest option on the last day of the prior contract year; or (b) the total of all amounts transferred at your request from the guaranteed interest option to any of the Investment options in the prior contract year; or (c) 25% of amounts transferred or allocated to the guaranteed interest option during the current contract year. From time to time, we may remove the restrictions regarding transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. When we reimpose the transfer restrictions, if any dollar cost averaging transfer out of the guaranteed interest option causes a violation of the 25% outbound restriction, that dollar cost averaging program will be terminated for the current contract year. A new dollar cost averaging program can be started in the next or subsequent contract years. You may request a transfer in writing, by telephone using TOPS or through EQAccess. You must send in all written transfer requests directly to our processing office. Transfer requests should specify: (1) the contract number, (2) the dollar amounts or percentages of your current account value to be transferred, and (3) the investment options to and from which you are transferring. We will confirm all transfers in writing. Please see "Allocating your contributions" in "Contract features and benefits" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, Transferring your money among investment options 47 which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. REBALANCING YOUR ACCOUNT VALUE We currently offer two rebalancing programs that you can use to automatically reallocate your account value among your investment options. Option I allows you to rebalance your account value among the variable investment options. Option II allows you to rebalance among the variable investment options and the guaranteed interest option. Under both options, rebalancing is not available for amounts you have allocated to the fixed maturity options. In order to participate in one of our rebalancing programs, you must tell us: (a) the percentage you want invested in each investment option (whole percentages only), and (b) how often you want the rebalancing to occur (quarterly, semi-annually, or annually on a contract year basis) Rebalancing will occur on the same day of the month as the contract date. If a contract is established after the 28th, rebalancing will occur on the first business day of the month following the contract issue date. You may elect a rebalancing program at any time. You may also change your allocation instructions or cancel the program at any time. If you request a transfer while a rebalancing program is in effect, we will process the transfer as requested. Your rebalancing allocations will not be changed, and the rebalancing program will remain in effect unless you request that it be canceled. Cancellation requests can be made online through EQAccess or by calling our TOPS system toll free. See "How to reach us" in "Who is AXA Equitable?" earlier in this Prospectus. There is no charge for the rebalancing feature. - -------------------------------------------------------------------------------- Rebalancing does not assure a profit or protect against loss. You should periodically review your allocation percentages as your needs change. You may want to discuss the rebalancing program with your financial professional before electing the program. - -------------------------------------------------------------------------------- While your rebalancing program is in effect, we will transfer amounts among the investment options so that the percentage of your account value that you specify is invested in each option at the end of each rebalancing date. If you select Option II, you will be subject to our rules regarding transfers from the guaranteed interest option to the variable investment options. These rules are described in "Transferring your account value" earlier in this section. Under Option II, a transfer into or out of the guaranteed interest option to initiate the rebalancing program will not be permitted if such transfer would violate these rules. If this occurs, the rebalancing program will not go into effect. 48 Transferring your money among investment options You may not elect Option II if you are participating in any dollar cost averaging program. You may not elect Option I if you are participating in special money market dollar cost averaging or general dollar cost averaging. If you elect a benefit that limits your variable investment options, those limitations will also apply to the rebalancing programs. Transferring your money among investment options 49 4. Accessing your money - -------------------------------------------------------------------------------- WITHDRAWING YOUR ACCOUNT VALUE You have several ways to withdraw your account value before annuity payments begin. The table below shows the methods available under each type of contract. More information follows the table. Please see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" below for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. Method of withdrawal --------------------------------------------- Automatic Pre-age Lifetime payment 59-1/2 required plans sub- minimum (GWBL System- stantially distribu- Contract only) Partial atic equal tion - ----------------------------------------------------------------------------- NQ Yes Yes Yes No No - ----------------------------------------------------------------------------- Rollover IRA Yes Yes Yes Yes Yes - ----------------------------------------------------------------------------- Roth Conversion IRA Yes Yes Yes Yes No - ----------------------------------------------------------------------------- Rollover TSA* Yes Yes Yes No Yes - ----------------------------------------------------------------------------- Inherited IRA No Yes No No ** - ----------------------------------------------------------------------------- * Employer or plan approval required for all transactions. Your ability to take with drawals or loans from, or surrender your TSA contract may be limited. See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in this Prospectus. ** This contract pays out post-death required minimum distributions. See "Inherited beneficiary contract" in "Contract, features and benefits" earlier in this Prospectus. AUTOMATIC PAYMENT PLANS (For contracts with GWBL only) You may take automatic withdrawals under either the Maximum payment plan or the Customized payment plan, as described below. Under either plan, you may take withdrawals on a monthly, quarterly or annual basis. You may change the payment frequency of your withdrawals at any time, and the change will become effective on the next contract date anniversary. You may elect either the Maximum payment plan or the Customized payment plan at any time. You must wait at least 28 days from contract issue before automatic payments begin. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will increase following any Annual Ratchet or 5% deferral bonus. If you elect the Maximum payment plan and start monthly or quarterly payments after the beginning of a contract year, the payments you take that year will be less than your Guaranteed annual withdrawal amount. If you take a partial withdrawal while the Maximum payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will not be increased following any Annual Ratchet or 5% deferral bonus. You must elect to change the scheduled payment amount. It is important to note that if you elect the Customized payment plan and start monthly or quarterly withdrawals after the beginning of a contract year, you could select scheduled payment amounts that would cause an Excess withdrawal. If your selected scheduled payment would cause an Excess withdrawal, we will notify you. As discussed earlier in the Prospectus, Excess withdrawals may significantly reduce the value of the Guaranteed withdrawal benefit for life benefit. See "Effect of Excess withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you take a partial withdrawal while the Customized payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. PARTIAL WITHDRAWALS (All contracts) You may take partial withdrawals from your account value at any time. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) The minimum amount you may withdraw is $300. Under Rollover TSA contracts, if a loan is outstanding, you may only take partial withdrawals as long as the cash value remaining after any withdrawal equals at least 10% of the outstanding loan plus accrued interest. Any request for a partial withdrawal will terminate your participation in either the Maximum payment plan or Customized payment plan, if applicable. SYSTEMATIC WITHDRAWALS (All contracts except Inherited IRAs) You may take systematic withdrawals of a particular dollar amount or a particular percentage of your account value. (Rollover TSA contracts may have restrictions and employer or plan approval is required). 50 Accessing your money You may take systematic withdrawals on a monthly, quarterly or annual basis as long as the withdrawals do not exceed the following percentages of your account value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you may take in each systematic withdrawal is $250. If the amount withdrawn would be less than $250 on the date a withdrawal is to be taken, we will not make a payment and we will terminate your systematic withdrawal election. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. If you do not select a date, we will make the withdrawals on the same calendar day of the month as the contract date. You must wait at least 28 days after your contract is issued before your systematic withdrawals can begin. You may elect to take systematic withdrawals at any time. If you own an IRA contract, you may elect this withdrawal method only if you are between ages 59-1/2 and 70-1/2. You may change the payment frequency, or the amount or percentage of your systematic withdrawals, once each contract year. However, you may not change the amount or percentage in any contract year in which you have already taken a partial withdrawal. You can cancel the systematic withdrawal option at any time. Systematic withdrawals are not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. SUBSTANTIALLY EQUAL WITHDRAWALS (All Rollover IRA and Roth Conversion IRA contracts) We offer our "substantially equal withdrawals option" to allow you to receive distributions from your account value without triggering the 10% additional federal income tax penalty, which normally applies to distributions made before age 59-1/2. See "Tax information" later in this Prospectus. We use one of the IRS-approved methods for doing this; this is not the exclusive method of meeting this exception. After consultation with your tax adviser, you may decide to use another method which would require you to compute amounts yourself and request partial withdrawals. Once you begin to take substantially equal withdrawals, you should not stop them or change the pattern of your withdrawals until after the later of age 59-1/2 or five full years after the first withdrawal. If you stop or change the withdrawals or take a partial withdrawal, you may be liable for the 10% federal tax penalty that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the penalty. In accordance with IRS guidance, an individual who has elected to receive substantially equal withdrawals may make a one time change, without penalty, from one of the IRS-approved methods of calculating fixed payments to another IRS-approved method (similar to the required minimum distribution rules) of calculating payments which vary each year. You may elect to take substantially equal withdrawals at any time before age 59-1/2. We will make the withdrawal on any day of the month that you select as long as it is not later than the 28th day of the month. We will calculate the amount of your substantially equal withdrawals using the IRS-approved method we offer. The payments will be made monthly, quarterly or annually as you select. These payments will continue until we receive written notice from you to cancel this option or you take a partial withdrawal. You may elect to start receiving substantially equal withdrawals again, but the payments may not restart in the same calendar year in which you took a partial withdrawal. We will calculate the new withdrawal amount. The substantially equal withdrawal program is not available if you have elected a Principal guarantee benefit or the Guaranteed withdrawal benefit for life. LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS (Rollover IRA and Rollover TSA contracts only -- See "Tax information" later in this Prospectus) We offer our "automatic required minimum distribution (RMD) service" to help you meet lifetime required minimum distributions under federal income tax rules. This is not the exclusive way for you to meet these rules. After consultation with your tax adviser, you may decide to compute required minimum distributions yourself and request partial withdrawals. Before electing this account based withdrawal option, you should consider whether annuitization might be better in your situation. If you have elected certain additional benefits, such as the Guaranteed minimum death benefit or Guaranteed minimum income benefit, amounts withdrawn from the contract to meet RMDs will reduce the benefit base and may limit the utility of the benefit. Also, the actuarial present value of additional contract benefits must be added to the account value in calculating required minimum distribution withdrawals from annuity contracts funding qualified plans, TSAs and IRAs, which could increase the amount required to be withdrawn. Please refer to "Tax information" later in this Prospectus. You may elect this service in the year in which you reach age 70-1/2 or in any later year. The minimum amount we will pay out is $250. Currently, minimum distribution withdrawal payments will be made annually. See "Required minimum distributions" in "Tax information" later in this Prospectus for your specific type of retirement arrangement. - -------------------------------------------------------------------------------- For Rollover IRA and Rollover TSA contracts, we will send a form outlining the distribution options available in the year you reach age 70-1/2 (if you have not begun your annuity payments before that time). - -------------------------------------------------------------------------------- Under Rollover TSA contracts, you may not elect our automatic RMD service if a loan is outstanding. FOR CONTRACTS WITH GWBL. Generally, if you elect our automatic RMD service, any lifetime required minimum distribution payment we make to you under our automatic RMD service will not be treated as an Excess withdrawal. If you elect either the Maximum payment plan or the Customized payment plan AND our Automatic RMD service, we will make an extra payment, if necessary, on December 1st that will equal your lifetime required minimum distribution less all payments made through November 30 and any scheduled December payment. The combined automatic plan payments and lifetime required minimum distribution payment will not be treated as Excess withdrawals, if applicable. However, if you take any partial withdrawals in addition to your lifetime required minimum distribution and automatic payment plan payments, your applicable automatic payment plan will be terminated. Also, the partial withdrawal may cause an Excess withdrawal. You may Accessing your money 51 enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. Further, your GWBL benefit base and Guaranteed annual withdrawal amount may be reduced. See "Effect of Excess Withdrawals" in "Contract features and benefits" earlier in this Prospectus. If you elect our Automatic RMD service and elect to take your Guaranteed annual withdrawal amount in partial withdrawals without electing one of our available automatic payment plans, we will make a payment, if necessary, on December 1st that will equal your required minimum distribution less all withdrawals made through November 30th. If prior to December 1st you make a partial withdrawal that exceeds your Guaranteed annual withdrawal amount, but not your RMD amount, that partial withdrawal will be treated as an Excess withdrawal, as well as any subsequent partial withdrawals made during the same contract year. However, if by December 1st your withdrawals have not exceeded your RMD amount, the RMD payment we make to you will not be treated as an Excess withdrawal. FOR CONTRACTS WITH THE GUARANTEED MINIMUM INCOME BENEFIT. The no lapse guarantee will not be terminated if a required minimum distribution payment using our automatic RMD service causes your cumulative withdrawals in the contract year to exceed 6-1/2% (or 6%, if applicable) of the Roll- Up benefit base (as of the beginning of the contract year or in the first contract year, all contributions received within the first 90 days). Owners of tax-qualified contracts (IRA and TSA) generally should not reset the Roll-Up benefit base if lifetime required minimum distributions must begin before the end of the new exercise waiting period. See "Guaranteed minimum death benefit/Guaranteed minimum income benefit Roll-Up benefit base reset." in "Contract features and benefits" earlier in this Prospectus. HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE Unless you specify otherwise, we will subtract your withdrawals on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If there is insufficient value or no value in the variable investment options, and the guaranteed interest option, any additional amount of the withdrawal required or the total amount of the withdrawal will be withdrawn from the fixed maturity options in the order of the earliest maturity date(s) first. If the contract is surrendered or annuitized or a death benefit is paid, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to withdrawals from the fixed maturity options. HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH BENEFIT AND PRINCIPAL GUARANTEE BENEFITS In general, withdrawals (including RMDs) will reduce your guaranteed benefits on a pro rata basis. Reduction on a pro rata basis means that we calculate the percentage of your current account value that is being withdrawn and we reduce your current benefit by the same percentage. For example, if your account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of your account value. If your benefit was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal would be $24,000 ($40,000 - $16,000). With respect to the Guaranteed minimum income benefit and the Greater of 6-1/2% (or 6% or 3%, as applicable) Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death benefit, withdrawals will reduce each of the benefits' 6-1/2% (or 6% or 3%, as applicable) Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract year is 6-1/2% (or 6% or 3%, as applicable) or less of the 6-1/2% (or 6% or 3%, as applicable) Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. For this purpose, in the first contract year, all contributions received in the first 90 days after contract issue will be considered to have been received on the first day of the contract year. In subsequent contract years, additional contributions made during the contract year do not affect the amount of withdrawals that can be taken on a dollar-for-dollar basis in that contract year. Once a withdrawal is taken that causes the sum of withdrawals in a contract year to exceed 6-1/2% (or 6% or 3%, as applicable) of the benefit base on the most recent anniversary, that entire withdrawal (including RMDs) and any subsequent withdrawals in that same contract year will reduce the benefit base pro rata. Reduction on a dollar-for-dollar basis means that your 6-1/2% (or 6% or 3%, as applicable) Roll-Up to age 85 benefit base will be reduced by the dollar amount of the withdrawal for each Guaranteed benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata basis. HOW WITHDRAWALS AFFECT YOUR GWBL AND GWBL GUARANTEED MINIMUM DEATH BENEFIT Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes cumulative withdrawals in a contract year to exceed the Guaranteed annual withdrawal amount. Withdrawals that exceed the Guaranteed annual withdrawal amount, however, can significantly reduce your GWBL benefit base and Guaranteed annual withdrawal amount. For more information, see "Effect of Excess withdrawals" and "Other important considerations" under "Our Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this prospectus. Your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a dollar-for-dollar basis by any withdrawal up to the Guaranteed annual withdrawal amount. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, your GWBL Standard death benefit base and GWBL Enhanced death benefit base are reduced on a pro rata basis. If the reduced GWBL Enhanced death benefit base is greater than your account value (after the Excess withdrawal), we will further reduce your GWBL Enhanced death benefit base to equal your account value. WITHDRAWALS TREATED AS SURRENDERS If you request to withdraw more than 90% of a contract's current cash value, we will treat it as a request to surrender the contract for its cash value. In addition, we have the right to pay the cash value and terminate this contract if no contributions are made during the last three 52 Accessing your money completed contract years, and the account value is less than $500, or if you make a withdrawal that would result in a cash value of less than $500. The rules in the preceding sentence do not apply if the Guaranteed minimum income benefit no lapse guarantee is in effect on your contract. See "Surrendering your contract to receive its cash value" below. For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. SPECIAL RULES FOR THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. We will not treat a withdrawal request that results in a withdrawal in excess of 90% of the contract's cash value as a request to surrender the contract unless it is an Excess withdrawal. In addition, we will not terminate your contract if either your account value or cash value falls below $500, unless it is due to an Excess withdrawal. In other words, if you take an Excess withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. Please also see "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. Please also see "Guaranteed withdrawal benefit for life" in "Contract features and benefits," earlier in this Prospectus, for more information on how withdrawals affect your guaranteed benefits and could potentially cause your contract to terminate. LOANS UNDER ROLLOVER TSA CONTRACTS Loans under a Rollover TSA contract are not permitted without employer or plan approval. We will not permit you to take a loan while you are enrolled in our "automatic required minimum distribution (RMD) service." If you elect the GWBL option or a PGB, loans are not permitted. You should read the terms and conditions on our loan request form carefully before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may only take a loan with the written consent of your spouse. Your contract contains further details of the loan provision. Please see Appendix VI later in this Prospectus for any state restrictions you may be subject to if you take a loan from a Rollover TSA contract. Also, see "Tax information" later in this Prospectus for general rules applicable to loans. We will permit you to have only one loan outstanding at a time. The minimum loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account value, subject to any limits under the federal income tax rules. The term of a loan is five years. However, if you use the loan to acquire your primary residence, the term is 10 years. The term may not extend beyond the earliest of: (1) the date annuity payments begin, (2) the date the contract terminates, and (3) the date a death benefit is paid (the outstanding loan, including any accrued but unpaid loan interest, will be deducted from the death benefit amount). A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. Interest will accrue daily on your outstanding loan at a rate we set. The loan interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month ending two months before the first day of the calendar quarter in which the rate is determined. See Appendix VI later in this Prospectus to see if a different interest rate applies to your state. LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the amount of your loan to the "loan reserve account." Unless you specify otherwise, we will subtract your loan on a pro rata basis from your value in the variable investment options and the guaranteed interest option. If those amounts are insufficient, any additional amount of the loan will be subtracted from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment may apply. If such fixed maturity amounts are insufficient, we will deduct all or a portion of the loan from the account for special money market dollar cost averaging. For the period of time your loan is outstanding, the loan reserve account rate we will credit will equal the loan interest rate minus a maximum rate of 2%. On each contract date anniversary after the date the loan is processed, we will transfer the amount of interest earned in the loan reserve account to the variable investment options on a pro rata basis. When you make a loan repayment, unless you specify otherwise, we will transfer the dollar amount of the loan repaid from the loan reserve account to the investment options according to the allocation percentages we have on our records. The tax consequences of failure to repay a loan when due are substantial, and may result in severe restrictions on your ability to borrow amounts under any plans of your employer in the future. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time while an owner is living (or for contracts with non-natural owners while the annuitant is living) and before you begin to receive annuity payments. (Rollover TSA contracts may have restrictions and employer or plan approval is required.) For a surrender to be effective, we must receive your written request and your contract at our processing office. We will determine your cash value on the date we receive the required information. All benefits under the contract will terminate as of the date we receive the required information, including the Guaranteed withdrawal benefit for life (if applicable) if your cash value is greater than your Guaranteed annual withdrawal amount remaining that year. If your cash value is not greater than your Guaranteed annual withdrawal amount remaining that year, then you will receive a supplementary life annuity contract. For more information, please see "Effect of your account value falling to zero" in "Contract features and benefits" earlier in this Prospectus. Also, if the Guaranteed minimum income benefit no lapse guarantee is in effect, the benefit will terminate without value if your cash value plus any other withdrawals taken in the contract year exceed 6-1/2% (or 6%, if applicable) of the Roll-Up benefit base (as of the beginning of the contract year). For more information, please see "Insufficient account value" in "Determining your contract value" and Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus. Accessing your money 53 You may receive your cash value in a single sum payment or apply it to one or more of the annuity payout options. See "Your annuity payout options" below. For the tax consequences of surrenders, see "Tax information" later in this Prospectus. WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments out of the variable investment options within seven calendar days after the date of the transaction to which the request relates. These transactions may include applying proceeds to a variable annuity, payment of a death benefit, payment of any amount you withdraw and, upon surrender, payment of the cash value. We may postpone such payments or applying proceeds for any period during which: (1) the New York Stock Exchange is closed or restricts trading, (2) the SEC determines that an emergency exists as the result of which sales of securities or determination of the fair value of a variable investment option's assets is not reasonably practicable, or (3) the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We can defer payment of any portion of your value in the guaranteed interest option and fixed maturity options (other than for death benefits) for up to six months while you are living. We also may defer payments for a reasonable amount of time (not to exceed 10 days) while we are waiting for a contribution check to clear. All payments are made by check and are mailed to you (or the payee named in a tax-free exchange) by U.S. mail, unless you request that we use an express delivery and wire transfer service at your expense. YOUR ANNUITY PAYOUT OPTIONS Deferred annuity contracts such as Accumulator(R) Select(SM) provide for conversion to payout status at or before the contract's "maturity date." This is called annuitization. When your contract is annuitized, your Accumulator(R) Select(SM) contract and all its benefits will terminate and you will receive a supplemental annuity payout contract ("payout option") that provides periodic payments for life or for a specified period of time. In general, the periodic payment amount is determined by the account value or cash value of your Accumulator(R) Select(SM) contract at the time of annuitization and the annuity purchase factor to which that value is applied, as described below. Alternatively, if you have a Guaranteed minimum income benefit, you may exercise your benefit in accordance with its terms. Your Accumulator(R) Select(SM) contract guarantees that upon annuitization, your annuity account value will be applied to a guaranteed annuity purchase factor for a life annuity payout option. In addition, you may apply your account value or cash value, whichever is applicable, to any other annuity payout option that we may offer at the time of annuitization. We currently offer you several choices of annuity payout options. Some enable you to receive fixed annuity payments, which can be either level or increasing, and others enable you to receive variable annuity payments. Please see Appendix VI later in this Prospectus for variations that may apply in your state. You can choose from among the annuity payout options listed below. Restrictions may apply, depending on the type of contract you own or the owner's and annuitant's ages at contract issue. In addition, if you are exercising your Guaranteed minimum income benefit, your choice of payout options are those that are available under the Guaranteed minimum income benefit (see "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus). If you elect the Guaranteed withdrawal benefit for life and choose to annuitize your contract, the Guaranteed withdrawal benefit for life will terminate without value even if your GWBL benefit base is greater than zero. Payments you receive under the annuity payout option you select may be less than you would have received under GWBL. See "Guaranteed withdrawal benefit for life" in "Contract features and benefits" earlier in this Prospectus for further information. - -------------------------------------------------------------------------------- Fixed annuity payout options Life annuity Life annuity with period certain Life annuity with refund certain Period certain annuity - -------------------------------------------------------------------------------- Variable Immediate Annuity Life annuity payout options Life annuity with period certain - -------------------------------------------------------------------------------- Income Manager(R) payout options Life annuity with period certain (available for owners and annu- Period certain annuity itants age 83 or less at contract issue) - -------------------------------------------------------------------------------- o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last monthly payment before the annuitant's death. Because there is no continuation of benefits following the annuitant's death with this payout option, it provides the highest monthly payment of any of the life annuity options, so long as the annuitant is living. o Life annuity with period certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the end of a selected period of time ("period certain"), payments continue to the beneficiary for the balance of the period certain. The period certain cannot extend beyond the annuitant's life expectancy. A life annuity with a period certain is the form of annuity under the contracts that you will receive if you do not elect a different payout option. In this case, the period certain will be based on the annuitant's age and will not exceed 10 years. o Life annuity with refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments to the beneficiary will continue until that amount has been recovered. This payout option is available only as a fixed annuity. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not exceed the annuitant's life expectancy. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. This payout option is available only as a fixed annuity. 54 Accessing your money The life annuity, life annuity with period certain, and life annuity with refund certain payout options are available on a single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, payments continue to the survivor. We may offer other payout options not outlined here. Your financial professional can provide details. FIXED ANNUITY PAYOUT OPTIONS With fixed annuities, we guarantee fixed annuity payments will be based either on the tables of guaranteed annuity purchase factors in your contract or on our then current annuity purchase factors, whichever is more favorable for you. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS Variable Immediate Annuities are described in a separate prospectus that is available from your financial professional. Before you select a Variable Immediate Annuity payout option, you should read the prospectus which contains important information that you should know. Variable Immediate Annuities may be funded through your choice of available variable investment options investing in Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The contract also offers a fixed income annuity payout option that can be elected in combination with the variable annuity payout option. The amount of each variable income annuity payment will fluctuate, depending upon the performance of the variable investment options, and whether the actual rate of investment return is higher or lower than an assumed base rate. INCOME MANAGER(R) PAYOUT OPTIONS The Income Manager(R) payout annuity contracts differ from the other payout annuity contracts. The other payout annuity contracts may provide higher or lower income levels, but do not have all the features of the Income Manager(R) payout annuity contract. You may request an illustration of the Income Manager(R) payout annuity contract from your financial professional. Income Manager(R) payout options are described in a separate prospectus that is available from your financial professional. Before you select an Income Manager(R) payout option, you should read the prospectus which contains important information that you should know. Both NQ and IRA Income Manager(R) payout options provide guaranteed level payments. The Income Manager(R) (life annuity with period certain) also provides guaranteed increasing payments (NQ contracts only). For Rollover TSA contracts, if you want to elect an Income Manager(R) payout option, we will first roll over amounts in such contract to a Rollover IRA contract with the plan participant as owner. You must be eligible for a distribution under the Rollover TSA contract. You may choose to apply only part of the account value of your Accumulator(R) Select(SM) contract to an Income Manager(R) payout annuity. In this case, we will consider any amounts applied as a withdrawal from your Accumulator(R) Select(SM). For the tax consequences of withdrawals, see "Tax information" later in this Prospectus. The Income Manager(R) payout options are not available in all states. If you purchase an Income Manager(R) contract in connection with the exercise of the Guaranteed minimum income benefit option, different payout options may apply, as well as various other differences. See "Guaranteed minimum income benefit option" in "Contract features and benefits" earlier in this Prospectus, as well as the Income Manager(R) prospectus. THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION The amount applied to purchase an annuity payout option varies, depending on the payout option that you choose. If amounts in a fixed maturity option are used to purchase any annuity payout option prior to the maturity date, a market value adjustment will apply. SELECTING AN ANNUITY PAYOUT OPTION When you select a payout option, we will issue you a separate written agreement confirming your right to receive annuity payments. We require you to return your contract before annuity payments begin. The contract owner and annuitant must meet the issue age and payment requirements. You can choose the date annuity payments begin but it may not be earlier than thirteen months from the Accumulator(R) Select(SM) contract date. Please see Appendix VI later in this Prospectus for information on state variations. Except with respect to the Income Manager(R) annuity payout options, where payments are made on the 15th day of each month, you can change the date your annuity payments are to begin anytime before that date as long as you do not choose a date later than the 28th day of any month. Also, that date may not be later than the annuity maturity date described below. The amount of the annuity payments will depend on the amount applied to purchase the annuity and the applicable annuity purchase factors, discussed earlier. The amount of each annuity payment will be less with a greater frequency of payments, or with a longer duration of a non-life contingent annuity or a longer certain period of a life contingent annuity. Once elected, the frequency with which you receive payments cannot be changed. If, at the time you elect a payout option, the amount to be applied is less than $2,000 or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. If you select an annuity payout option and payments have begun, no change can be made other than: (i) transfers (if permitted in the future) among the variable investment options if a Variable Immediate Annuity payout option is selected; and (ii) withdrawals or contract surrender (subject to a market value adjustment) if an Income Manager(R) payout option is chosen. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is based on the age of the original annuitant at contract issue and cannot be changed even if you name a new annuitant. For contracts Accessing your money 55 with joint annuitants, the maturity age is based on the older annuitant. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elect the Guaranteed withdrawal benefit for life and your contract is annuitized at maturity, we will offer an annuity payout option that guarantees you will receive payments for life that are at least equal to what you would have received under the Guaranteed withdrawal benefit for life. You will not be able to take withdrawals in addition to the payments under this annuity payout option. You will still be able to surrender the contract at any time for the remaining account value. As described in "Contract features and benefits" under "Guaranteed withdrawal benefit for life," these payments will have the potential to increase with favorable investment performance. Any remaining Guaranteed minimum death benefit value will be transferred to the annuity payout contract as your "minimum death benefit." If an enhanced death benefit had been elected, its value as of the date the annuity payout contract is issued will become your minimum death benefit, and it will continue to ratchet annually if your account value is greater than your minimum death benefit base. The minimum death benefit will be reduced dollar-for-dollar by each payment. If you die while there is any minimum death benefit remaining, it will be paid to your beneficiary. Please see Appendix VI later in this Prospectus for variations that may apply in your state. 56 Accessing your money 5. Charges and expenses - -------------------------------------------------------------------------------- CHARGES THAT AXA EQUITABLE DEDUCTS We deduct the following charges each day from the net assets of each variable investment option. These charges are reflected in the unit values of each variable investment option: o A mortality and expense risks charge o An administrative charge o A distribution charge We deduct the following charges from your account value. When we deduct these charges from your variable investment options, we reduce the number of units credited to your contract: o On each contract date anniversary -- an annual administrative charge, if applicable. o On each contract date anniversary, a charge for each optional benefit that you elect: a death benefit (other than the Standard and GWBL Standard death benefit); the Guaranteed minimum income benefit; the Guaranteed withdrawal benefit for life; and the Earnings enhancement benefit. o On any contract date anniversary on which you are participating in a PGB -- a charge for a PGB. o At the time annuity payments are to begin -- charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. An annuity administrative fee may also apply. More information about these charges appears below. We will not increase these charges for the life of your contract, except as noted. We may reduce certain charges under group or sponsored arrangements. See "Group or sponsored arrangements" later in this section. The charges under the contracts are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise, we will incur a loss. The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this Prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray, a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk. Nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contracts. To help with your retirement planning, we may offer other annuities with different charges, benefits and features. Please contact your financial professional for more information. SEPARATE ACCOUNT ANNUAL EXPENSES Mortality and expense risks charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality and expense risks, including the Standard guaranteed minimum death benefit. The daily charge is equivalent to an annual rate of 1.10% of the net assets in each variable investment option. The mortality risk we assume is the risk that annuitants as a group will live for a longer time than our actuarial tables predict. If that happens, we would be paying more in annuity income than we planned. We also assume a risk that the mortality assumptions reflected in our guaranteed annuity payment tables, shown in each contract, will differ from actual mortality experience. Lastly, we assume a mortality risk to the extent that at the time of death, the guaranteed minimum death benefit exceeds the cash value of the contract. The expense risk we assume is the risk that it will cost us more to issue and administer the contracts than we expect. Administrative charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for administrative expenses under the contracts. The daily charge is equivalent to an annual rate of 0.25% of the net assets in each variable investment option. Distribution charge. We deduct a daily charge from the net assets in each variable investment option to compensate us for a portion of our sales expenses under the contracts. The daily charge is equivalent to an annual rate of 0.35% of the net assets in each variable investment option. ANNUAL ADMINISTRATIVE CHARGE We deduct an administrative charge from your account value on each contract date anniversary. We deduct the charge if your account value on the last business day of the contract year is less than $50,000. If your account value on such date is $50,000 or more, we do not deduct the charge. During the first two contract years, the charge is equal to $30 or, if less, 2% of your account value. The charge is $30 for contract years three and later. We will deduct this charge from your value in the variable investment options and the guaranteed interest option (see Appendix VI later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if available) in the order of the earliest maturity date(s) first. If such fixed maturity amounts are still insufficient, we will deduct all or a portion of this charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. Charges and expenses 57 If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. GUARANTEED MINIMUM DEATH BENEFIT CHARGE ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.25% of the Annual Ratchet to age 85 benefit base. GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.80% of the greater of the 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. If you opt to reset your Roll-Up benefit base on any contract date anniversary, if applicable, we reserve the right to increase the charge for this enhanced death benefit up to a maximum of 0.95% of the applicable benefit base. You will be notified of the increased charge at the time we notify you of your eligibility to reset. The increased charge, if any, will apply as of the next contract date anniversary following the reset and on all contract date anniversaries thereafter. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.65% of the greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. If you opt to reset your Roll-Up benefit base on any contract date anniversary, if applicable, we reserve the right to increase the charge for this enhanced death benefit up to a maximum of 0.80% of the applicable benefit base. You will be notified of the increased charge at the time we notify you of your eligibility to reset. The increased charge, if any, will apply as of the next contract date anniversary following the reset and on all contract date anniversaries thereafter. GREATER OF 3% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.65% of the greater of the 3% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. GWBL ENHANCED DEATH BENEFIT. This death benefit is only available if you elect the GWBL. If you elect this enhanced death benefit, we deduct a charge annually from your account value on each contract date anniversary. The charge is equal to 0.30% of the GWBL Enhanced death benefit base. We will deduct this charge from your value in the variable investment options (or, if applicable, the permitted variable investment options) and the guaranteed interest option on a pro rata basis (see Appendix VI later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are still insufficient, we will deduct all or a portion of the charge from the fixed maturity options (if applicable) in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If such fixed maturity amounts are still insufficient, we will deduct all or a portion of this charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. STANDARD DEATH BENEFIT AND GWBL STANDARD DEATH BENEFIT. There is no additional charge for these standard death benefits. PRINCIPAL GUARANTEE BENEFITS CHARGE If you purchase a PGB, we deduct a charge annually from your account value on each contract date anniversary on which you are participating in a PGB. The charge is equal to 0.50% of the account value for the 100% Principal guarantee benefit and 0.75% of the account value for the 125% Principal guarantee benefit. We will continue to deduct the charge until your benefit maturity date. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option (see Appendix VI later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state) on a pro rata basis. If such amounts are still insufficient, we will deduct all or a portion of this charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. GUARANTEED MINIMUM INCOME BENEFIT CHARGE If you elect the Guaranteed minimum income benefit, we deduct a charge annually from your account value on each contract date anniversary until such time as you exercise the Guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary after the owner (or older joint owner, if applicable) reaches age 85, whichever occurs first. If you elect the Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base, the charge is equal to 0.80% of the applicable benefit base on the contract date anniversary. If you elect the Guaranteed minimum income benefit that includes the 6% Roll-Up benefit base, the charge is equal to 0.65% of the applicable benefit base. If you opt to reset your Roll-Up benefit base on any contract date anniversary, we reserve the right to increase the charge for this benefit up to a maximum of 1.10% for the benefit that includes the 6-1/2% Roll-Up benefit base or 0.95% for the benefit that includes the 6% Roll-Up benefit base. You will be notified of the increased charge at the time we notify you of your eligibility to reset. The increased charge, 58 Charges and expenses if any, will apply as of the next contract date anniversary following the reset and on all contract date anniversaries thereafter. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis (see Appendix VI later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state). If those amounts are still insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. A market value adjustment will apply to deductions from the fixed maturity options. If such fixed maturity amounts are still insufficient, we will deduct all or a portion of this charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. EARNINGS ENHANCEMENT BENEFIT CHARGE If you elect the Earnings enhancement benefit, we deduct a charge annually from your account value on each contract date anniversary for which it is in effect. The charge is equal to 0.35% of the account value on each contract date anniversary. We will deduct this charge from your value in the variable investment options and the guaranteed interest option on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the fixed maturity options in the order of the earliest maturity date(s) first. If such fixed maturity amounts are still insufficient, we will deduct all or a portion of this charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. A market value adjustment will apply to deductions from the fixed maturity options. If your account value is insufficient to pay this charge, your contract will terminate without value and you will lose any applicable guaranteed benefits except as noted under "Insufficient account value" in "Determining your contract value" earlier in this Prospectus. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE BENEFIT CHARGE If you elect the Guaranteed withdrawal benefit for life ("GWBL"), we deduct a charge annually as a percentage of your GWBL benefit base on each contract date anniversary. If you elect the Single Life option, the charge is equal to 0.60%. If you elect the Joint Life option, the charge is equal to 0.75%. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option on a pro rata basis. (See Appendix VI later in this Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state.) If such amounts are still insufficient, we will deduct all or a portion of this charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. GWBL BENEFIT BASE ANNUAL RATCHET CHARGE. If your GWBL benefit base ratchets, we reserve the right to raise the charge at the time of an Annual Ratchet. The maximum charge for the Single Life option is 0.75%. The maximum charge for the Joint Life option is 0.90%. The increased charge, if any, will apply as of the contract date anniversary on which your GWBL benefit base ratchets and on all contract date anniversaries thereafter. We will permit you to opt out of the ratchet if the charge increases. For Joint life contracts, if the successor owner or joint annuitant is dropped before you take your first withdrawal, we will adjust the charge at that time to reflect a Single life. If the successor owner or joint annuitant is dropped after withdrawals begin, the charge will continue based on a Joint life. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE We deduct a fee of $350 from the amount to be applied to the variable Immediate Annuity payout option. This option may not be available at the time you elect to annuitize or it may have a different charge. CHARGES THAT THE TRUSTS DEDUCT The Trusts deduct charges for the following types of fees and expenses: o Management fees ranging from 0.05% to 1.40%. o 12b-1 fees of 0.25%. o Operating expenses, such as trustees' fees, independent public accounting firms' fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. o Investment-related expenses, such as brokerage commissions. These charges are reflected in the daily share price of each Portfolio. Since shares of each Trust are purchased at their net asset value, these fees and expenses are, in effect, passed on to the variable investment options and are reflected in their unit values. Certain Portfolios available under the contract in turn invest in shares of other Portfolios of AXA Premier VIP Trust and EQ Advisors Trust and/or other unaffiliated portfolios (collectively, the "underlying portfolios"). The underlying portfolios each have their own fees and expenses, including management fees, operating expenses, and investment related expenses such as brokerage commissions. For more information about these charges, please refer to the prospectuses for the Trusts. Charges and expenses 59 GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the mortality and expense risks charge or change the minimum initial contribution requirements. We also may change the Guaranteed minimum income benefit or the Guaranteed minimum death benefit, or offer variable investment options that invest in shares of the Trusts that are not subject to the 12b-1 fee. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Group arrangements are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. Our costs for sales, administration and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We also may establish different rates to maturity for the fixed maturity options under different classes of contracts for group or sponsored arrangements. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate charges when sales are made in a manner that results in savings of sales and administrative expenses, such as sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of charges where it would be unfairly discriminatory. 60 Charges and expenses 6. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY AND PAYMENT OF BENEFIT You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective as of the date the written request is executed, whether or not you are living on the date the change is received in our processing office. We are not responsible for any beneficiary change request that we do not receive. We will send you a written confirmation when we receive your request. Under jointly owned contracts, the surviving owner is considered the beneficiary, and will take the place of any other beneficiary. Under a contract with a non-natural owner that has joint annuitants, the surviving annuitant is considered the beneficiary, and will take the place of any other beneficiary. You may be limited as to the beneficiary you can designate in a Rollover TSA contract. Where an NQ contract is owned for the benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate of the minor. Where an IRA contract is owned in a custodial individual retirement account, the custodian must be the beneficiary. The death benefit is equal to your account value (without adjustment for any otherwise applicable negative market value adjustment) or, if greater, the applicable Guaranteed minimum death benefit. In either case, the death benefit is increased by any amount applicable under the Earnings enhancement benefit. We determine the amount of the death benefit (other than the applicable Guaranteed minimum death benefit) and any amount applicable under the Earnings enhancement benefit, as of the date we receive satisfactory proof of the owner's (or older joint owner's, if applicable) death, any required instructions for the method of payment, forms necessary to effect payment and any other information we may require. The amount of the applicable Guaranteed minimum death benefit will be such Guaranteed minimum death benefit as of the date of the owner's (or older joint owner's, if applicable) death adjusted for any subsequent withdrawals. For Rollover TSA contracts with outstanding loans, we will reduce the amount of the death benefit by the amount of the outstanding loan, including any accrued but unpaid interest on the date that the death benefit payment is made. - -------------------------------------------------------------------------------- When we use the terms owner and joint owner, we intend these to be references to annuitant and joint annuitant, respectively, if the contract has a non-natural owner. If the contract is jointly owned or is issued to a non- natural owner and the GWBL has not been elected, the death benefit is payable upon the death of the older joint owner or older joint annuitant, as applicable. Under contracts with GWBL, the terms Owner and Successor Owner are intended to be references to Annuitant and Joint Annuitant, respectively, if the contract has a non-natural owner. - -------------------------------------------------------------------------------- Subject to applicable laws and regulations, you may impose restrictions on the timing and manner of the payment of the death benefit to your beneficiary. For example, your beneficiary designation may specify the form of death benefit payout (such as a life annuity), provided the payout you elect is one that we offer both at the time of designation and when the death benefit is payable. In general, the beneficiary will have no right to change the election. You should be aware that (i) in accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period, (ii) we will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and (iii) a beneficiary or a successor owner who continues the contract under one of the continuation options described below will have the right to change your annuity payout election. In general, if the annuitant dies, the owner (or older joint owner, if applicable) will become the annuitant, and the death benefit is not payable. If the contract had joint annuitants, it will become a single annuitant contract. EFFECT OF THE OWNER'S DEATH In general, if the owner dies while the contract is in force, the contract terminates and the applicable death benefit is paid. If the contract is jointly owned, the death benefit is payable upon the death of the older owner. For Joint life contracts with GWBL, the death benefit is paid to the beneficiary at the death of the second to die of the owner and successor owner. There are various circumstances, however, in which the contract can be continued by a successor owner or under a Beneficiary continuation option ("BCO"). For contracts with spouses who are joint owners, the surviving spouse will automatically be able to continue the contract under the "Spousal continuation" feature or under our Beneficiary continuation option, as discussed below. For contracts with non-spousal joint owners, the joint owner will be able to continue the contract as a successor owner subject to the limitations discussed below under "Non-spousal joint owner contract continuation." If you are the sole owner and your spouse is the sole primary beneficiary, your surviving spouse can continue the contract as a successor owner under "Spousal continuation" or under our Beneficiary continuation option, as discussed below. If the surviving joint owner is not the surviving spouse, or, for single owner contracts, if the beneficiary is not the surviving spouse, federal income tax rules generally require payments of amounts under the contract to be made within five years of an owner's death (the "5-year rule"). In certain cases, an individual beneficiary or non-spousal surviving joint owner may opt to receive payments over his/her life (or over a period not in excess of his/her life expectancy) if payments commence within one year of the owner's death. Any such election must be made in accordance with our rules at the time of death. If the beneficiary of a contract with one owner or a younger non-spousal joint Payment of death benefit 61 owner continues the contract under the 5-year rule, in general, all guaranteed benefits and their charges will end. If a PGB election is in effect upon your death with a benefit maturity date of less than five years from the date of death, it will remain in effect. For more information on non-spousal joint owner contract continuation, see the section immediately below. NON-SPOUSAL JOINT OWNER CONTRACT CONTINUATION Upon the death of either owner, the surviving joint owner becomes the sole owner. Any death benefit (if the older owner dies first) or cash value (if the younger owner dies first) must be fully paid to the surviving joint owner within five years. The surviving owner may instead elect to receive a life annuity, provided payments begin within one year of the deceased owner's death. If the life annuity is elected, the contract and all benefits terminate. If the older owner dies first, we will increase the account value to equal the Guaranteed minimum death benefit, if higher, and by the value of the Earnings enhancement benefit. The surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the Guaranteed minimum death benefit and charge and the Guaranteed minimum income benefit and charge will then be discontinued. No additional contributions will be permitted. If the younger owner dies first, the surviving owner can elect to (1) take a lump sum payment; (2) annuitize within one year; (3) continue the contract for up to five years; or (4) continue the contract under the Beneficiary continuation option. If the contract continues, the death benefit is not payable, and the Guaranteed minimum death benefit and the Earnings enhancement benefit, if applicable, will continue without change. If the Guaranteed minimum income benefit cannot be exercised within the period required by federal tax laws, the benefit and charge will terminate as of the date we receive proof of death. No additional contributions will be permitted. Upon the death of either owner, if the surviving owner elects the 5-year rule and a PGB was in effect upon the owner's death with a maturity date of more than five years from the date of death, we will terminate the benefit and the charge. SPOUSAL CONTINUATION If you are the contract owner and your spouse is the sole primary beneficiary or you jointly own the contract with your younger spouse or if the contract owner is a non-natural person and you and your younger spouse are joint annuitants, your spouse may elect to continue the contract as successor owner upon your death. Spousal beneficiaries (who are not also joint owners) must be 85 or younger as of the date of the deceased spouse's death in order to continue the contract under Spousal continuation. The determination of spousal status is made under applicable state law. However, in the event of a conflict between federal and state law, we follow federal rules. Upon your death, the younger spouse joint owner (for NQ contracts only) or the spouse beneficiary (under a Single owner contract) may elect to receive the death benefit, continue the contract under our Beneficiary continuation option (as discussed below in this section) or continue the contract, as follows: o As of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary, we will increase the account value to equal the elected Guaranteed minimum death benefit as of the date of your death if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit, and adjusted for any subsequent withdrawals. The increase in the account value will be allocated to the investment options according to the allocation percentages we have on file for your contract. o The applicable Guaranteed minimum death benefit option may continue as follows: o If you elected either the Annual Ratchet to age 85 or the Greater of 6-1/2% (or 6%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, and if your surviving spouse is age 75 or younger on the date of your death, and you were age 84 or younger at death, the enhanced death benefit continues and will continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. If you were age 85 or older at death, we will reinstate the Guaranteed minimum death benefit you elected. The benefit base (which had previously been frozen at age 85) will now continue to grow according to its terms until the contract date anniversary following the date the surviving spouse reaches age 85. o If you elected the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, and your surviving spouse is age 80 or younger at the date of your death, and you were age 84 or younger at death, the enhanced death benefit continues and will grow according to its terms until the contract date anniversary following the surviving spouse's 85th birthday. If you were age 85 or older at death, we will reinstate the enhanced death benefit you elected. The benefit base (which had been previously frozen at age 85) will now continue to grow according to its terms until the contract date anniversary following the surviving spouse's 85th birthday. If your spouse is younger than age 75, before electing to continue the contract, your spouse should consider that he or she could purchase a new contract and elect the Greater of 6% (as opposed to 3%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit at the same cost. He or she could also purchase a contract with a "Greater of 6-1/2%" enhanced death benefit at an additional cost. o If you elected either the Annual Ratchet to age 85 or the Greater of the 6-1/2% (or 6%) Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit and your surviving spouse is age 76 or older on the date of your death, the Guaranteed minimum death benefit and charge will be discontinued. If you elected the Greater of the 3% Roll-Up to age 85 or the Annual Ratchet to age 85 enhanced death 62 Payment of death benefit benefit and your surviving spouse is 81 or older, the Guaranteed minimum death benefit and charge will be discontinued. o If the Guaranteed minimum death benefit continues, Roll-Up benefit base reset, if applicable, will be based on the surviving spouse's age at the time of your death. The next available reset will be based on the contract issue date or last reset, as applicable. o For single owner contracts with the GWBL Enhanced death benefit, we will discontinue the benefit and charge. However, we will freeze the GWBL Enhanced death benefit base as of the date of your death (less subsequent withdrawals), and pay it upon your spouse's death. o The Earnings enhancement benefit will be based on the surviving spouse's age at the date of the deceased spouse's death for the remainder of the life of the contract. If the benefit had been previously frozen because the older spouse had attained age 80, it will be reinstated if the surviving spouse is age 75 or younger. The benefit is then frozen on the contract date anniversary after the surviving spouse reaches age 80. If the surviving spouse is age 76 or older, the benefit and charge will be discontinued. o If elected, PGB continues and is based on the same benefit maturity date and guaranteed amount that was guaranteed. o The Guaranteed minimum income benefit may continue if the benefit had not already terminated and the benefit will be based on the surviving spouse's age at the date of the deceased spouse's death. See "Guaranteed minimum income benefit" in "Contract features and benefits" earlier in this Prospectus. o If you elect the Guaranteed withdrawal benefit for life on a Joint life basis, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. No additional contributions will be permitted. If you elect the Guaranteed withdrawal benefit for life on a Single life basis, the benefit and charge will terminate. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. If the deceased spouse was a joint annuitant, the contract will become a single annuitant contract. Where an NQ contract is owned by a Living Trust, as defined in the contract, and at the time of the annuitant's death the annuitant's spouse is the sole beneficiary of the Living Trust, the Trustee, as owner of the contract, may request that the spouse be substituted as annuitant as of the date of the annuitant's death. No further change of annuitant will be permitted. Where an IRA contract is owned in a custodial individual retirement account, and your spouse is the sole beneficiary of the account, the custodian may request that the spouse be substituted as annuitant after your death. For jointly owned NQ contracts, if the younger spouse dies first no death benefit is paid, and the contract continues as follows: o The Guaranteed minimum death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit continue to be based on the older spouse's age for the life of the contract. o If the deceased spouse was the annuitant, the surviving spouse becomes the annuitant. If the deceased spouse was a joint annuitant, the contract will become a single annuitant contract. o If a PGB had been elected, the benefit continues and is based on the same benefit maturity date and guaranteed amount. o If you elect the Guaranteed withdrawal benefit for life, the benefit and charge will remain in effect and no death benefit is payable until the death of the surviving spouse. If you divorce, Spousal continuation does not apply. BENEFICIARY CONTINUATION OPTION This feature permits a designated individual, on the contract owner's death, to maintain a contract in the deceased contract owner's name and receive distributions under the contract, instead of receiving the death benefit in a single sum. We make this option available to beneficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state availability. Please speak with your financial professional or see Appendix VI later in this Prospectus for further information. Where an IRA contract is owned in a custodial individual retirement account, the custodian may reinvest the death benefit in an individual retirement annuity contract, using the account beneficiary as the annuitant. Please speak with your financial professional for further information. For Joint life contracts with GWBL, BCO is only available after the death of the second owner. BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY. The beneficiary continuation option must be elected by September 30th of the year following the calendar year of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. If the election is made, then, as of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value, plus any amount applicable under the Earnings enhancement benefit, adjusted for any subsequent withdrawals. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy (determined in the calendar year after your death and determined on a term certain basis). These payments must begin no later than December 31st of the calendar year after the year of your death. For sole spousal beneficiaries, payments may begin by December 31st of the calendar year in which you would have reached age 70-1/2, if such time is later. For traditional IRA contracts only, if you die before your Required Beginning Date for Required Minimum Distributions, as discussed later in this Prospectus in "Tax information" under "Individual retirement arrangements (IRAs)," the beneficiary may choose the "5-year rule" option instead of annual payments over life expectancy. The 5-year rule is always available to beneficiaries under Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by December 31st of the calendar year which contains the fifth anniversary of your death. Payment of death benefit 63 Under the beneficiary continuation option for IRA and Roth IRA contracts: o The contract continues with your name on it for the benefit of your beneficiary. o The beneficiary replaces the deceased owner as annuitant. o This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the beneficiary's own life expectancy, if payments over life expectancy are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o The beneficiary may choose at any time to withdraw all or a portion of the account value. o Any partial withdrawal must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking required minimum distributions based on the remaining life expectancy of the deceased beneficiary or to receive any remaining interest in the contract in a lump sum. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known as Inherited annuity, may only be elected when the NQ contract owner dies before the annuity maturity date, whether or not the owner and the annuitant are the same person. For purposes of this discussion, "beneficiary" refers to the successor owner. This feature must be elected within 9 months following the date of your death and before any other inconsistent election is made. Beneficiaries who do not make a timely election will not be eligible for this option. Generally, payments will be made once a year to the beneficiary over the beneficiary's life expectancy, determined on a term certain basis and in the year payments start. These payments must begin no later than one year after the date of your death and are referred to as "scheduled payments." The beneficiary may choose the "5-year rule" instead of scheduled payments over life expectancy. If the beneficiary chooses the 5-year rule, there will be no scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals as desired, but the entire account value must be fully withdrawn by the fifth anniversary of your death. Under the beneficiary continuation option for NQ contracts: o This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals. o The beneficiary automatically replaces the existing annuitant. o The contract continues with your name on it for the benefit of your beneficiary. o If there is more than one beneficiary, each beneficiary's share will be separately accounted for. It will be distributed over the respective beneficiary's own life expectancy, if scheduled payments are chosen. o The minimum amount that is required in order to elect the beneficiary continuation option is $5,000 for each beneficiary. o The beneficiary may make transfers among the investment options but no additional contributions will be permitted. o If you had elected the Guaranteed minimum income benefit, an optional enhanced death benefit, a PGB, the Guaranteed withdrawal benefit for life or the GWBL Enhanced death benefit under the contract, they will no longer be in effect and charges for such benefits will stop. Also, any Guaranteed minimum death benefit feature will no longer be in effect. o If the beneficiary chooses the "5-year rule," withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary must also choose between two potential withdrawal options at the time of election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds in addition to the scheduled payments the beneficiary is receiving; "Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition to scheduled payments, at any time. However, the scheduled payments under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity payments." See "Taxation of nonqualified annuities" in "Tax Information" later in this Prospectus. o Any partial withdrawals must be at least $300. o Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the contract on the beneficiary's death. o Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the contract in a lump sum. We will pay any remaining interest in the contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If the deceased is the owner or the older joint owner: 64 Payment of death benefit o As of the date we receive satisfactory proof of death, any required instructions, information and forms necessary to effect the Beneficiary continuation option feature, we will increase the account value to equal the applicable death benefit if such death benefit is greater than such account value plus any amount applicable under the Earnings enhancement benefit, adjusted for any subsequent withdrawals. If the deceased is the younger non-spousal joint owner: o The annuity account value will not be reset to the death benefit amount. Payment of death benefit 65 7. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Accumulator(R) Select(SM) contracts owned by United States individual taxpayers. The tax rules can differ, depending on the type of contract, whether NQ, traditional IRA, Roth IRA or TSA. Therefore, we discuss the tax aspects of each type of contract separately. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax, and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, the amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Generally, there are two types of funding vehicles that are available for Individual Retirement Arrangements ("IRAs"): an individual retirement annuity contract such as the ones offered in this Prospectus, or a custodial or trusteed individual retirement account. Similarly, a 403(b) plan can be funded through a 403(b) annuity contract or a 403(b)(7) custodial account. How these arrangements work, including special rules applicable to each, are described in the specific sections for each type of arrangement, below. You should be aware that the funding vehicle for a tax-qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as Accumulator(R) Select(SM)'s special money market dollar cost averaging program, choice of death benefits, the Guaranteed withdrawal for life benefit, the Guaranteed minimum income benefit, selection of investment funds, guaranteed interest option, fixed maturity options and its choices of payout options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans, 403(b) plans and IRAs. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. You should consider the potential implication of these Regulations before you purchase this annuity contract or purchase additional features under this annuity contract. TRANSFERS AMONG INVESTMENT OPTIONS You can make transfers among investment options inside the contract without triggering taxable income. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal or as an annuity payment. However, earnings are taxable, even without a distribution: o if a contract fails investment diversification requirements as specified in federal income tax rules (these rules are based on or are similar to those specified for mutual funds under the securities laws); o if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse); o if you use a contract as security for a loan (in this case, the amount pledged will be treated as a distribution); and o if the owner is other than an individual (such as a corporation, partnership, trust, or other non-natural person). This provision does not apply to a trust which is a mere agent or nominee for an individual, such as a grantor trust. Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract for calculating the taxable amount of any distribution from any of those contracts. TAXATION OF LIFETIME WITHDRAWALS IF YOU ELECT GUARANTEED WITHDRAWAL BENEFIT FOR LIFE We treat Guaranteed annual withdrawals and other withdrawals as non-annuity payments for income tax purposes. These withdrawals are 66 Tax information taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. It reduces the investment in the contract. ANNUITY PAYMENTS Guaranteed annual withdrawals that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" earlier in this Prospectus, as well as GMIB and other annuitization payments that are based on life or life expectancy, are considered annuity payments for tax purposes. In order to get annuity payment tax treatment, all amounts under the contract must be applied to the annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get back the remaining portion without paying taxes on it. This is your unrecovered investment in the contract. Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. For fixed annuity payments, the tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. For variable annuity payments, your tax-free portion of each payment is your investment in the contract divided by the number of expected payments. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. Collateral assignments are taxable to the extent of any earnings in the contract at the time any portion of the contract's value is assigned as collateral. Therefore, if you assign your contract as collateral for a loan with a third party after the contract is issued but before the end of the first contract year, you may have taxable income even though you receive no payments under the contract. AXA Equitable will report any income attributable to a collateral assignment on Form 1099-R. Also, if AXA Equitable makes payments or distributions to the assignee pursuant to directions under the collateral assignment agreement, any gains in such payments may be taxable to you and reportable on Form 1099-R even though you do not receive them. EARNINGS ENHANCEMENT BENEFIT In order to enhance the amount of the death benefit to be paid at the owner's death, you may purchase an Earnings enhancement benefit rider for your NQ contract. Although we regard this benefit as an investment protection feature which is part of the contract and which should have no adverse tax effect, it is possible that the IRS could take a contrary position or assert that the Earnings enhancement benefit rider is not part of the contract. In such a case the charges for the Earnings enhancement benefit rider could be treated for federal income tax purposes as a partial withdrawal from the contract. If this were so, such a deemed withdrawal could be taxable, and for contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to take this position, AXA Equitable would take all reasonable steps to attempt to avoid this result, which could include amending the contract (with appropriate notice to you). CONTRACTS PURCHASED THROUGH EXCHANGES You may purchase your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o the contract that is the source of the funds you are using to purchase the NQ contract is another nonqualified deferred annuity contract (or life insurance or endowment contract). o The owner and the annuitant are the same under the source contract and the Accumulator(R) Select(SM) NQ contract. If you are using a life insurance or endowment contract the owner and the insured must be the same on both sides of the exchange transaction. The tax basis, also referred to as your investment in the contract, of the source contract carries over to the Accumulator(R) Select(SM) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between carriers, and provision of cost basis information may be required to process this type of an exchange. Section 1035 exchanges are generally not available after the death of the owner. SURRENDERS If you surrender or cancel the contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. Please consult with your tax adviser before electing this feature. Tax information 67 BENEFICIARY CONTINUATION OPTION We have received a private letter ruling from the IRS regarding certain tax consequences of scheduled payments under the beneficiary continuation option for a prior similar version of the NQ contract. See the discussion "Beneficiary continuation option for NQ Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among other things, the IRS rules that: o scheduled payments under the beneficiary continuation option for NQ contracts satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option 2"; o scheduled payments, any additional withdrawals under "Withdrawal Option 2", or contract surrenders under "Withdrawal Option 1" will only be taxable to the beneficiary when amounts are actually paid, regardless of the Withdrawal Option selected by the beneficiary; o a beneficiary who irrevocably elects scheduled payments with "Withdrawal Option 1" will receive "excludable amount" tax treatment on scheduled payments. See "Annuity payments" earlier in this section. If the beneficiary elects to surrender the contract before all scheduled payments are paid, the amount received upon surrender is a non-annuity payment taxable to the extent it exceeds any remaining investment in the contract. The ruling specifically does not address the taxation of any payments received by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or any withdrawal that might be taken). The tax treatment of a withdrawal after the death of the owner taken as a single sum or taken as withdrawals under the 5-year rule is generally the same as the tax treatment of a withdrawal from or surrender of your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancy) of you and a beneficiary, in accordance with IRS formulas. We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. INVESTOR CONTROL ISSUES Under certain circumstances, the IRS has stated that you could be treated as the owner (for tax purposes) of the assets of Separate Account 49. If you were treated as the owner, you would be taxable on income and gains attributable to the shares of the underlying portfolios. The circumstances that would lead to this tax treatment would be that, in the opinion of the IRS, you could control the underlying investment of Separate Account 49. The IRS has said that the owners of variable annuities will not be treated as owning the separate account assets provided the underlying portfolios are restricted to variable life and annuity assets. The variable annuity owners must have the right only to choose among the Portfolios, and must have no right to direct the particular investment decisions within the Portfolios. Although we believe that, under current IRS guidance, you would not be treated as the owner of the assets of Separate Account 49, there are some issues that remain unclear. For example, the IRS has not issued any guidance as to whether having a larger number of Portfolios available, or an unlimited right to transfer among them, could cause you to be treated as the owner. We do not know whether the IRS will ever provide such guidance or whether such guidance, if unfavorable, would apply retroactively to your contract. Furthermore, the IRS could reverse its current guidance at any time. We reserve the right to modify your contract as necessary to prevent you from being treated as the owner of the assets of Separate Account 49. INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS) GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets for the benefit of the IRA owner. The assets funding the account typically include mutual funds and/or individual stocks and/or securities in a custodial account and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and o Roth IRAs, funded on an after-tax basis. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. You may purchase the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion IRA"). We also offer the Inherited IRA for 68 Tax information payment of post-death required minimum distributions from traditional IRAs and Roth IRAs. We currently do not offer traditional IRA contracts for use as employer-funded SEP IRA or SIMPLE IRA plans, although we may do so in the future. This Prospectus contains the information that the IRS requires you to have before you purchase an IRA. The first section covers some of the special tax rules that apply to traditional IRAs. The next section covers Roth IRAs. The disclosure generally assumes direct ownership of the individual retirement annuity contract. For contracts owned in a custodial individual retirement account, the disclosure will apply only if you terminate your account or transfer ownership of the contract to yourself. We describe the amount and types of charges that may apply to your contributions under "Charges and expenses" earlier in this Prospectus. We describe the method of calculating payments under "Accessing your money" earlier in this Prospectus. We do not guarantee or project growth in any variable income annuitization option payments (as opposed to payments from a fixed income annuitization option). AXA Equitable has applied for opinion letters from the IRS to approve the respective forms of nearly identical prior versions of the Accumulator(R) Select(SM) traditional and Roth IRA contracts for use as a traditional and Roth IRA, respectively. It is not clear whether if and when any such approval may be received. We have in the past received IRS opinion letters approving the respective forms of similar traditional IRA and Roth IRA endorsements for use as a traditional and Roth IRA, respectively. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. The contracts submitted for IRS approval do not include every feature possibly available under the Accumulator(R) Select(SM) traditional and Roth IRA contracts. AXA Equitable has also submitted the respective forms of the Accumulator(R) Select(SM) Inherited IRA beneficiary continuation contract to the IRS for approval as to form for use as a traditional IRA or Roth IRA, respectively. We do not know if and when any such approval may be granted. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS You can cancel any version of the Accumulator(R) Select(SM) IRA contract (traditional IRA or Roth IRA) by following the directions in "Your right to cancel within a certain number of days" under "Contract features and benefits" earlier in this Prospectus. If you cancel a traditional IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS) CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS LIMITS ON CONTRIBUTIONS. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a traditional IRA. You cannot make regular traditional IRA contributions for the tax year in which you reach age 70-1/2 or any tax year after that. If you are at least age 50 at any time during the taxable year for which you are making a regular contribution to your IRA, you may be eligible to make additional "catch up contributions" of up to $1,000 to your traditional IRA. SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to traditional IRAs (and Roth IRAs discussed below). Even if one spouse has no compensation or compensation under $5,000, married individuals filing jointly can contribute up to $10,000 to any combination of traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa. The maximum amount may be less if earned income is less and the other spouse has made IRA contributions. No more than a combined total of $5,000 can be contributed annually to either spouse's traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the other spouse funded the contributions. A working spouse age 70-1/2 or over can contribute up to the lesser of $5,000 or 100% of "earned income" to a traditional IRA for a nonworking spouse until the year in which the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as described above for spouses who are at least age 50 but under age 70-1/2 at any time during the taxable year for which the contribution is made. DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions that you can deduct for a taxable year depends on whether you are covered by an employer-sponsored-tax-favored retirement plan, as defined under special federal income tax rules. Your Form W-2 will indicate whether or not you are covered by such a retirement plan. If you are not covered by a retirement plan during any part of the year, you can make fully deductible contributions to your traditional IRAs for the taxable year up to the maximum amount discussed earlier in this section under "Limits on contributions." That is, your fully deductible contribution can be up to $5,000, or if less, your earned income. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. If you are covered by a retirement plan during any part of the year, and your adjusted gross income (AGI) is below the lower dollar figure in a phase-out range, you can make fully deductible contributions to your traditional IRAs. Tax information 69 If you are covered by a retirement plan during any part of the year, and your AGI falls within a phase-out range, you can make partially deductible contributions to your traditional IRAs. If you are covered by a retirement plan during any part of the year, and your AGI falls above the higher figure in the phase-out range, you may not deduct any of your regular contributions to your traditional IRAs. Cost of living indexing adjustments apply to the income limits on deductible contributions. If you are single and covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $50,000 and $60,000 (for 2008, AGI between $53,000 and $63,000, after adjustment). If you are married and file a joint return, and you are covered by a retirement plan during any part of the taxable year, the deduction for traditional IRA contributions phases out with AGI between $80,000 and $100,000 (for 2008, AGI between $85,000 and $105,000, after adjustment). Married individuals filing separately and living apart at all times are not considered married for purposes of this deductible contribution calculation. Generally, the active participation in an employer-sponsored retirement plan of an individual is determined independently for each spouse. Where spouses have "married filing jointly" status, however, the maximum deductible traditional IRA contribution for an individual who is not an active participant (but whose spouse is an active participant) is phased out for taxpayers with AGI between $150,000 and $160,000 (for 2008, AGI between $159,000 and $169,000, after adjustment). To determine the deductible amount of the contribution for 2008, for example, you determine AGI and subtract $53,000 if you are single, or $85,000 if you are married and file a joint return with your spouse. The resulting amount is your excess AGI. You then determine the limit on the deduction for traditional IRA contributions using the following formula: ($10,000-excess AGI) times the maximum Equals the adjusted --------------------- x regular = deductible divided by $10,000 contribution contribution for the year limit ADDITIONAL "SAVER'S CREDIT" FOR CONTRIBUTIONS TO A TRADITIONAL IRA OR ROTH IRA You may be eligible for a nonrefundable income tax credit for contributions you make to a traditional IRA or Roth IRA. If you qualify, you may take this credit even though your traditional IRA contribution is already fully or partially deductible. To take advantage of this "saver's credit" you must be age 18 or over before the end of the taxable year for which the contribution is made. You cannot be a full-time student or claimed as a dependent on another's tax return, and your adjusted gross income cannot exceed $50,000 ($53,000, after cost of living adjustments for 2008) . The amount of the tax credit you can get varies from 10% of your contribution to 50% of your contribution, and depends on your income tax filing status and your adjusted gross income. The maximum annual contribution eligible for the saver's credit is $2,000. If you and your spouse file a joint return, and each of you qualifies, each is eligible for a maximum annual contribution of $2,000. Your saver's credit may also be reduced if you take or have taken a taxable distribution from any plan eligible for a saver's credit contribution -- even if you make a contribution to one plan and take the distribution from another plan -- during the "testing period." The "testing period" begins two years before the year for which you make the contribution and ends when your tax return is due for the year for which you make the contribution, including extensions. Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) plan, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth IRA. NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or all of the traditional IRA contribution, you may still make nondeductible contributions on which earnings will accumulate on a tax-deferred basis. The combined deductible and nondeductible contributions to your traditional IRA (or the nonworking spouse's traditional IRA) may not, however, exceed the $5,000 maximum per person limit for the applicable taxable year. The dollar limit is $6,000 for people eligible to make age 50-70-1/2 catch-up contributions. See "Excess contributions" later in this section. You must keep your own records of deductible and nondeductible contributions in order to prevent double taxation on the distribution of previously taxed amounts. See "Withdrawals, payments and transfers of funds out of traditional IRAs" later in this section. If you are making nondeductible contributions in any taxable year, or you have made nondeductible contributions to a traditional IRA in prior years and are receiving distributions from any traditional IRA, you must file the required information with the IRS. Moreover, if you are making nondeductible traditional IRA contributions, you must retain all income tax returns and records pertaining to such contributions until interests in all traditional IRAs are fully distributed. WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a calendar year basis like most taxpayers, you have until the April 15 return filing deadline (without extensions) of the following calendar year to make your regular traditional IRA contributions for a taxable year. ROLLOVER AND TRANSFER CONTRIBUTIONS TO TRADITIONAL IRAS Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans; and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. 70 Tax information Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. ROLLOVERS FROM "ELIGIBLE RETIREMENT PLANS" OTHER THAN TRADITIONAL IRAS Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your eligible retirement plan will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the trustee or custodian of the eligible retirement plan to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a qualified plan, 403(b) plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN TRADITIONAL IRAS Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for recordkeeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this section under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVER AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. EXCESS CONTRIBUTIONS Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contribution amount for the applicable taxable year); or o regular contributions to a traditional IRA made after you reach age 70-1/2; or o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular Tax information 71 traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions, discussed later in this section under "Early distribution penalty tax." You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. RECHARACTERIZATIONS Amounts that have been contributed as traditional IRA funds may subsequently be treated as Roth IRA funds. Special federal income tax rules allow you to change your mind again and have amounts that are subsequently treated as Roth IRA funds, once again treated as traditional IRA funds. You do this by using the forms we prescribe. This is referred to as having "recharacterized" your contribution. WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all of your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" earlier in this section; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds. (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" earlier in this section.) The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available under limited circumstances for certain distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. REQUIRED MINIMUM DISTRIBUTIONS BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS Distributions must be made from traditional IRAs according to rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing. Please consult your tax adviser concerning applicability of these complex rules to your situation. LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. WHEN YOU HAVE TO TAKE THE FIRST LIFETIME REQUIRED MINIMUM DISTRIBUTION. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 72 Tax information 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year--the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a designated beneficiary or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan and an account-based annual withdrawal from another IRA. WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON THE METHOD YOU CHOOSE? We will only pay you automatically if you affirmatively select an annuity payout option or an account-based withdrawal option such as our "automatic required minimum distribution (RMD) service." Even if you do not enroll in our service, we will calculate the amount of the required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay Tax information 73 starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed earlier under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. SPOUSAL CONTINUATION If the contract is continued under Spousal continuation, the required minimum distribution rules are applied as if your surviving spouse is the contract owner. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH IRA death benefits are taxed the same as IRA distributions. BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o used to pay certain extraordinary medical expenses (special federal income tax definition); or o used to pay medical insurance premiums for unemployed individuals (special federal income tax definition); or o used to pay certain first-time home buyer expenses (special federal income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); or o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy) or over the joint lives of you and your beneficiary (or your joint life expectancies using an IRS-approved distribution method). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. To meet the substantially equal periodic payments exception, you could elect to apply your contract value to an Income Manager(R) (life annuity with a period certain) payout annuity contract (level payments version). You could also elect the substantially equal withdrawals option. We will calculate the substantially equal annual payments using your choice of IRS-approved methods we offer. Although substantially equal withdrawals and Income Manager(R) payments are not subject to the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments and transfers of funds out of traditional IRAs" above. Once substantially equal withdrawals or Income Manager(R) annuity payments begin, the distributions should not be stopped or changed until after the later of your reaching age 59-1/2 or five years after the date of the first distribution, or the penalty tax, including an interest charge for the prior penalty avoidance, may apply to all prior distributions under this option. Also, it is possible that the IRS could view any additional withdrawal or payment you take from, or any additional contributions or transfers you make to, your contract as changing your pattern of substantially equal withdrawals or Income Manager(R) payments for purposes of determining whether the penalty applies. ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS) This section of the Prospectus covers some of the special tax rules that apply to Roth IRAs. If the rules are the same as those that apply to the traditional IRA, we will refer you to the same topic under "traditional IRAs." The Accumulator(R) Select(SM) Roth Conversion IRA contract is designed to qualify as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the Internal Revenue Code. CONTRIBUTIONS TO ROTH IRAS Individuals may make four different types of contributions to a Roth IRA: o regular after-tax contributions out of earnings; or o taxable rollover contributions from traditional IRAs or other eligible retirement plans ("conversion rollover" contributions); or 74 Tax information o tax-free rollover contributions from other Roth individual retirement arrangements; or o tax-free direct custodian-to-custodian transfers from other Roth IRAs ("direct transfers"). Regular after-tax, direct transfer and rollover contributions may be made to a Roth Conversion IRA contract. See "Rollovers and direct transfers" later in this section. If you use the forms we require, we will also accept traditional IRA funds which are subsequently recharacterized as Roth IRA funds following special federal income tax rules. REGULAR CONTRIBUTIONS TO ROTH IRAS LIMITS ON REGULAR CONTRIBUTIONS. The "maximum regular contribution amount" for any taxable year is the most that can be contributed to all of your IRAs (traditional and Roth) as regular contributions for the particular taxable year. The maximum regular contribution amount depends on age, earnings, and year, among other things. Generally, $5,000 is the maximum amount that you may contribute to all IRAs (including Roth IRAs). This limit does not apply to rollover contributions or direct custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs reduce your ability to contribute to traditional IRAs and vice versa. When your earnings are below $5,000, your earned income or compensation for the year is the most you can contribute. If you are married and file a joint income tax return, you and your spouse may combine your compensation to determine the amount of regular contributions you are permitted to make to Roth IRAs and traditional IRAs. See the discussion under "Special rules for spouses" earlier in this section under traditional IRAs. If you or your spouse are at least age 50 at any time during the taxable year for which you are making a regular contribution, you may be eligible to make additional catch-up contributions of up to $1,000. With a Roth IRA, you can make regular contributions when you reach 70-1/2, as long as you have sufficient earnings. But, you cannot make contributions, regardless of your age, for any year that your modified adjusted gross income exceeds the following amounts (indexed for cost of living adjustment): o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is over $160,000 (for 2008, $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is over $110,000 (for 2008, $116,000 after adjustment). However, you can make regular Roth IRA contributions in reduced amounts when: o your federal income tax filing status is "married filing jointly" and your modified adjusted gross income is between $150,000 and $160,000 (for 2008, between $159,000 and $169,000 after adjustment); or o your federal income tax filing status is "single" and your modified adjusted gross income is between $95,000 and $110,000 (for 2008, between $101,000 and $116,000 after adjustment). If you are married and filing separately and your modified adjusted gross income is between $0 and $10,000 the amount of regular contributions you are permitted to make is phased out. If your modified adjusted gross income is more than $10,000 you cannot make regular Roth IRA contributions. WHEN YOU CAN MAKE CONTRIBUTIONS. Same as traditional IRAs. DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible. ROLLOVERS AND DIRECT TRANSFERS WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? The difference between a rollover transaction and a direct transfer transaction is the following: in a rollover transaction you actually take possession of the funds rolled over or are considered to have received them under tax law in the case of a change from one type of plan to another. In a direct transfer transaction, you never take possession of the funds, but direct the first Roth IRA custodian trustee or issuer to transfer the first Roth IRA funds directly to the recipient Roth IRA custodian, trustee or issuer. You can make direct transfer transactions only between identical plan types (for example, Roth IRA to Roth IRA). You can also make rollover transactions between identical plan types. However, you can only make rollovers between different plan types (for example, traditional IRA to Roth IRA). You may make rollover contributions to a Roth IRA from these sources only: o another Roth IRA; o a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year rollover limitation period for SIMPLE IRA funds), in a taxable conversion rollover ("conversion rollover"); o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan (direct or 60-day); or o from non-Roth accounts under another eligible retirement plan, subject to limits specified below under "Conversion rollover contributions to Roth IRAs." You may make direct transfer contributions to a Roth IRA only from another Roth IRA. You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to Roth IRA direct transfer transactions. This can be accomplished on a completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions only once in any 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers can be made more frequently than once a year. Also, if you send us the rollover contribution to apply it to a Roth IRA, you must do so within 60 days after you receive the proceeds from the original IRA to get rollover treatment. The surviving spouse beneficiary of a deceased individual can roll over or directly transfer an inherited Roth IRA to one or more other Roth Tax information 75 IRAs. In some cases, Roth IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court-ordered divorce or separation decree. CONVERSION ROLLOVER CONTRIBUTIONS TO ROTH IRAS In a conversion rollover transaction, you withdraw (or are considered to have withdrawn) all or a portion of funds from a traditional IRA you maintain and convert it to a Roth IRA within 60 days after you receive (or are considered to have received) the traditional IRA proceeds. Beginning in 2008, amounts can also be rolled over from non-Roth accounts under another eligible retirement plan, including a Code Section 401(a) qualified plan, a 403(b) plan, and a governmental employer Section 457(b) plan. You must meet AGI limits specified below. Unlike a rollover from a traditional IRA to another traditional IRA, a conversion rollover transaction from a traditional IRA or other eligible retirement plan to a Roth IRA is not tax-free. Instead, the distribution from the traditional IRA or other eligible retirement plan is generally fully taxable. In the case of a traditional IRA conversion rollover for example, we are required to withhold 10% federal income tax from the amount treated as converted unless you properly elect out of such withholding. If you are converting all or part of a traditional IRA, and you have ever made nondeductible regular contributions to any traditional IRA -- whether or not it is the traditional IRA you are converting -- a pro rata portion of the distribution is tax free. Even if you are under age 59-1/2, the early distribution penalty tax does not apply to conversion rollover contributions to a Roth IRA. The following rules apply until 2010: You cannot make conversion rollover contributions to a Roth IRA for any taxable year in which your modified adjusted gross income exceeds $100,000. (For this purpose, your modified adjusted gross income is computed without the gross income stemming from the conversion rollover. Modified adjusted gross income for this purpose excludes any lifetime required minimum distribution from a traditional IRA or other eligible retirement plan.) You also cannot make conversion contributions to a Roth IRA for any taxable year in which your federal income tax filing status is "married filing separately." You cannot make conversion contributions to a Roth IRA to the extent that the funds in your traditional IRA or other eligible retirement plan are subject to the lifetime annual required minimum distribution rules. You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed Roth IRA conversion. The IRS and Treasury have issued Proposed and Temporary Treasury Regulations addressing the valuation of annuity contracts funding traditional IRAs in the conversion to Roth IRAs. Although these Regulations are not clear, they could require an individual's gross income on the conversion of a traditional IRA to a Roth IRA to be measured using various actuarial methods and not as if the annuity contract funding the traditional IRA had been surrendered at the time of conversion. This could increase the amount reported as includible in certain circumstances. RECHARACTERIZATIONS You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacterizing the contribution. HOW TO RECHARACTERIZE. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a deemed trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. It will be treated as having been made to the second IRA on the same date that it was actually made to the first IRA. You must report the recharacterization and must treat the contribution as having been made to the second IRA, instead of the first IRA, on your tax return for the year during which the contribution was made. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be transferred. If there was a loss, the net income you must transfer may be a negative amount. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharacterized contribution is treated as earned in the second IRA. The contribution will not be treated as having been made to the second IRA to the extent any deduction was allowed with respect to the contribution to the first IRA. For recharacterization purposes, a distribution from a traditional IRA that is received in one tax year and rolled over into a Roth IRA in the next year, but still within 60 days of the distribution from the traditional IRA, is treated as a contribution to the Roth IRA in the year of the distribution from the traditional IRA. Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or SIMPLE IRA). You cannot recharacterize back to the original plan a contribution directly rolled over from an eligible retirement plan which is not a traditional IRA. To recharacterize a contribution, you must use our forms. The recharacterization of a contribution is not treated as a rollover for purposes of the 12-month limitation period described above. This rule applies even if the contribution would have been treated as a rollover contribution by the second IRA if it had been made directly to the second IRA rather than as a result of a recharacterization of a contribution to the first IRA. 76 Tax information WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or all of your funds from a Roth IRA at any time; you do not need to wait for a special event like retirement. DISTRIBUTIONS FROM ROTH IRAS Distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also distributions. You must keep your own records of regular and conversion contributions to all Roth IRAs to assure appropriate taxation. You may have to file information on your contributions to and distributions from any Roth IRA on your tax return. You may have to retain all income tax returns and records pertaining to such contributions and distributions until your interests in all Roth IRAs are distributed. Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to special favorable ten-year averaging and long-term capital gain treatment available in limited cases to certain distributions from qualified plans. The following distributions from Roth IRAs are free of income tax: o rollovers from a Roth IRA to another Roth IRA; o direct transfers from a Roth IRA to another Roth IRA; o qualified distributions from a Roth IRA; and o return of excess contributions or amounts recharacterized to a traditional IRA. QUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Qualified distributions from Roth IRAs made because of one of the following four qualifying events or reasons are not includable in income: o you are age 59-1/2 or older; or o you die; or o you become disabled (special federal income tax definition); or o your distribution is a "qualified first-time homebuyer distribution" (special federal income tax definition; $10,000 lifetime total limit for these distributions from all of your traditional and Roth IRAs). You also have to meet a five-year aging period. A qualified distribution is any distribution made after the five-taxable-year period beginning with the first taxable year for which you made any contribution to any Roth IRA (whether or not the one from which the distribution is being made). NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Nonqualified distributions from Roth IRAs are distributions that do not meet both the qualifying event and five-year aging period tests described above. If you receive such a distribution, part of it may be taxable. For purposes of determining the correct tax treatment of distributions (other than the withdrawal of excess contributions and the earnings on them), there is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA. The order of distributions is as follows: (1) Regular contributions. (2) Conversion contributions, on a first-in-first-out basis (generally, total conversions from the earliest year first). These conversion contributions are taken into account as follows: (a) Taxable portion (the amount required to be included in gross income because of conversion) first, and then the (b) Nontaxable portion. (3) Earnings on contributions. Rollover contributions from other Roth IRAs are disregarded for this purpose. To determine the taxable amount distributed, distributions and contributions are aggregated or grouped together as follows: (1) All distributions made during the year from all Roth IRAs you maintain -- with any custodian or issuer -- are added together. (2) All regular contributions made during and for the year (contributions made after the close of the year, but before the due date of your return) are added together. This total is added to the total undistributed regular contributions made in prior years. (3) All conversion contributions made during the year are added together. For purposes of the ordering rules, in the case of any conversion in which the conversion distribution is made in 2008 and the conversion contribution is made in 2009, the conversion contribution is treated as contributed prior to other conversion contributions made in 2009. Any recharacterized contributions that end up in a Roth IRA are added to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Any recharacterized contribution that ends up in an IRA other than a Roth IRA is disregarded for the purpose of grouping both contributions and distributions. Any amount withdrawn to correct an excess contribution (including the earnings withdrawn) is also disregarded for this purpose. REQUIRED MINIMUM DISTRIBUTIONS DURING LIFE Lifetime required minimum distributions do not apply. REQUIRED MINIMUM DISTRIBUTIONS AT DEATH Same as traditional IRA under "What are the required minimum distribution payments after you die?", assuming death before the Required Beginning Date. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH Distributions to a beneficiary generally receive the same tax treatment as if the distribution had been made to you. BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS Same as traditional IRA. Tax information 77 EXCESS CONTRIBUTIONS Generally the same as traditional IRA, except that regular contributions made after age 70-1/2 are not excess contributions. Excess rollover contributions to Roth IRAs are contributions not eligible to be rolled over (for example, conversion contributions from a traditional IRA if your modified adjusted gross income is in excess of $100,000 in the conversion year). You can withdraw or recharacterize any contribution to a Roth IRA before the due date (including extensions) for filing your federal income tax return for the tax year. If you do this, you must also withdraw or recharacterize any earnings attributable to the contribution. EARLY DISTRIBUTION PENALTY TAX Same as traditional IRA. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) GENERAL This section of the Prospectus reflects our current understanding of some of the special federal income tax rules applicable to annuity contracts used to fund employer plans under Section 403(b) of the Internal Revenue Code. We refer to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity contracts (TSAs)." If the rules are the same as those that apply to another kind of contract, for example, traditional IRA contracts, we will refer you to the same topic under "traditional IRAs." - -------------------------------------------------------------------------------- The disclosure generally assumes that the TSA has 403(b) contract status or qualifies as a 403(b) contract. Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. - -------------------------------------------------------------------------------- FINAL REGULATIONS UNDER SECTION 403(B) The IRS and the Treasury Department recently published final Treasury Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result, there are significant revisions to the establishment and operation of plans and arrangements under Section 403(b) of the Code, and the contracts issued to fund such plans. These rules become fully effective on January 1, 2009, but various transition rules apply beginning in 2007. The 2007 Regulations raise a number of questions as to the effect of the 2007 Regulations on TSAs issued prior to the effective date of the 2007 Regulations. The IRS has issued guidance intended to clarify some of these questions, and may issue further guidance in future years. PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are generally two types of investments available to fund 403(b) plans -- an annuity contract under Section 403(b)(1) of the Internal Revenue Code or a custodial account that invests only in mutual funds and which is treated as an annuity contract under Section 403(b)(7) of the Code. Both types of 403(b) funding vehicles qualify for tax deferral. EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate informal Section 403(b) arrangements with minimal or diffuse employer oversight and to require employers purchasing annuity contracts for their employees under Section 403(b) of the Code to conform to other tax-favored, employer-based retirement plans with salary reduction contributions, such as Section 401(k) plans and governmental employer Section 457(b) plans. As of January 1, 2009, employers sponsoring 403(b) plans must have a written plan designating administrative responsibilities for various functions under the plan, and the plan in operation must conform to the plan terms. LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated, tax-free direct transfers of funds from one 403(b) annuity contract to another, without reportable taxable income to the individual. Under transitional rules in the 2007 Regulations and other IRS published guidance, direct transfers made after September 24, 2007 may still be permitted with plan or employer approval as described below. EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) SELECT(SM) TSA CONTRACT Because the Accumulator(R) Select(SM) TSA contract (i) was designed to be purchased through either an individual-initiated, Rev. Rul. 90-24 tax-free direct transfer of funds from one 403(b) arrangement to another, or a rollover from another 403(b) arrangement and (ii) does not accept employer-remitted contributions, after September 24, 2007, exchanges to an Accumulator(R) Select(SM) TSA contract are extremely limited as described below. Accumulator(R) Select(SM) TSA contracts issued pursuant to a Rev. Rul. 90-24 direct transfer where applications and all transfer paperwork were received by our processing office in good order prior to September 25, 2007 are "grandfathered" as to 403(b) status. However, future transactions such as loans and distributions under such "grandfathered" 403(b) annuity contracts may result in adverse tax consequences to the owner unless the contracts are or become part of the employer's 403(b) plan, or the employer enters into an information sharing agreement with us. Contributions to an Accumulator(R) Select(SM) TSA contract after September 24, 2007, may only be made where AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is, the participants in that 403(b) plan are currently contributing to another AXA Equitable 403(b) annuity contract, or the employer agrees to enter into an information sharing agreement by January 1, 2009 with AXA Equitable with respect to the Accumulator(R) Select(SM) TSA contract. 78 Tax information AXA Equitable does not accept contributions of after-tax funds, including designated Roth contributions to the Accumulator(R) Select(SM) TSA contracts. We will accept contributions of pre-tax funds only with documentation satisfactory to us of employer or its designee or plan approval of the transaction. CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS Because of the "grandfathered" 403(b) annuity contract status of Accumulator(R) Select(SM) Rollover TSA contracts purchased prior to September 24, 2007 through Rev. Rul. 90-24 direct transfers, we provide the following discussion as part of our description of restrictions on the distribution of funds directly transferred, which include employer-remitted contributions to other 403(b) annuity contracts. EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to TSA contracts made through the employer's payroll are subject to annual limits. (Tax-free plan-to-plan direct transfer contributions from another 403(b) plan, contract exchanges under the same plan, and rollover contributions from another eligible retirement plan are not subject to these annual contribution limits.) Commonly, some or all of the contributions made to a TSA contract are made under a salary reduction agreement between the employee and the employer. These contributions are called "salary reduction" or "elective deferral" contributions. However, a TSA contract can also be wholly or partially funded through non-elective employer contributions or after-tax employee contributions. Amounts attributable to salary reduction contributions to TSA contracts are generally subject to withdrawal restrictions. Also, all amounts attributable to investments in a 403(b)(7) custodial account are subject to withdrawal restrictions discussed below. ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. The amount of any rollover or direct transfer contributions made to a 403(b) annuity contract must be net of the required minimum distribution for the tax year in which the 403(b) annuity contract is issued if the owner is at least age 70-1/2 in the calendar year the contribution is made, and has retired from service with the employer who sponsored the plan or provided the funds to purchase the 403(b) annuity contract which is the source of the contribution. ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b) plan source funds, federal tax law permits rollover contributions to be made to a TSA contract from these sources: qualified plans, governmental employer 457(b) plans and traditional IRAs, as well as other 403(b) plan funding vehicles. The recipient 403(b) plan must allow such contributions to be made. Generally, funds may be rolled over when a plan participant has a distributable event from an eligible retirement plan as a result of: o termination of employment with the employer who provided the funds for the plan; or o reaching age 59-1/2 even if still employed; or o disability (special federal income tax definition). If the source of the rollover contribution is pre-tax funds from a traditional IRA, no specific event is required. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax-qualified retirement plan to another because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan and subsequently take a premature distribution. Further, in light of the restrictions on the ability to take distributions or loans from a 403(b) contract without plan or employer approval under the 2007 Regulations, a plan participant should consider carefully whether to roll an eligible rollover distribution (which is no longer subject to distribution restrictions) to a 403(b) plan funding vehicle, or to a traditional IRA instead. If the recipient plan separately accounts for funds rolled over from another eligible retirement plan, the IRS has ruled that an exception is available in certain situations to withdrawal restrictions that would otherwise apply to the rollover contribution funds in the recipient plan. AXA Equitable does not separately account for rollover contributions from other eligible retirement plans in the Accumulator(R) Select(SM) TSA contract. DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing the 403(b) plan funding vehicle, even if there is no distributable event. Under a direct transfer a plan participant does not receive a distribution. The 2007 Regulations provide for two types of direct transfers between 403(b) funding vehicles: "plan-to-plan transfers" and "contract exchanges within the same 403(b) plan." 403(b) plans do not have to offer these options. A "plan-to-plan transfer" must meet the following conditions: (i) both the source 403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii) the transfer from one 403(b) plan to another 403(b) plan is made for a participant (or beneficiary of a deceased participant) who is an employee or former employee of the employer sponsoring the recipient 403(b) plan; (iii) immediately after the transfer the accumulated benefit of the participant (or beneficiary) whose assets are being transferred is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on transferred amounts at least as stringent as those imposed under the source 403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of the participant's (or beneficiary's) interest in the source 403(b) plan, the recipient 403(b) plan treats the amount transferred as a continuation of a pro rata portion of the participant's (or beneficiary's) interest in the source 403(b) plan (for example, with respect to the participant's interest in any after-tax employee contributions). A "contract exchange within the same 403(b) plan" must meet the following conditions: (i) the 403(b) plan under which the contract is issued must permit contract exchanges; (ii) immediately after the exchange the accumulated benefit of the participant (or beneficiary of a deceased participant) is at least equal to the participant's (or beneficiary's) accumulated benefit immediately before the exchange (taking into account the accumulated benefit of that participant (or beneficiary) under both section 403(b) annuity contracts immediately before the exchange); (iii) the contract issued in the exchange is subject to Tax information 79 distribution restrictions with respect to the participant that are not less stringent than those imposed on the contract being exchanged; and (iv) the employer sponsoring the 403(b) plan and the issuer of the contract issued in the exchange agree to provide each other with specified information from time to time in the future ("an information sharing agreement"). The shared information is designed to preserve the requirements of Section 403(b), primarily to comply with loan requirements, hardship withdrawal rules, and distribution restrictions. DISTRIBUTIONS FROM TSAS GENERAL. Generally, after the 2007 Regulations, employer or plan administrator consent is required for loan, withdrawal or distribution transactions under a 403(b) annuity contract. Processing of a requested transaction will not be completed until the information required to process the transaction is received from the employer or its designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an Accumulator(R) Select(SM) Rollover TSA contract as not eligible for withdrawal until: o the owner is severed from employment with the employer who provided the funds used to purchase the TSA contract; o the owner reaches age 59-1/2; o the owner dies; o the owner becomes disabled (special federal income tax definition); or o the owner takes hardship withdrawal (special federal income tax definition). If any portion of the funds directly transferred to your TSA contract (in a Rev. Rul. 90-24 exchange or other permitted transfer or exchange) is attributable to amounts that you invested in a 403(b)(7) custodial account, such amounts, including earnings, are subject to withdrawal restrictions. With respect to the portion of the funds that were never invested in a 403(b)(7) custodial account, these restrictions apply to the salary reduction (elective deferral) contributions to a TSA contract you made and any earnings on them. These restrictions do not apply to the amount directly transferred to your TSA contract that represents your December 31, 1988, account balance attributable to salary reduction contributions to a TSA contract and earnings. To take advantage of this grandfathering you must properly notify us in writing at our processing office of your December 31, 1988, account balance if you have qualifying amounts transferred to your TSA contract. TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally not subject to federal income tax until benefits are distributed. Distributions include withdrawals from your TSA contract and annuity payments from your TSA contract. Death benefits paid to a beneficiary are also taxable distributions. Unless an exception applies, amounts distributed from TSA contracts are includible in gross income as ordinary income. Distributions from TSA contracts may be subject to 20% federal income tax withholding. See "Federal and state income tax withholding and information reporting" later in this section. In addition, TSA contract distributions may be subject to additional tax penalties. If you have made after-tax contributions, you will have a tax basis in your TSA contract, which will be recovered tax-free. Since AXA Equitable does not accept after-tax funds to Accumulator(R) Select(SM) Rollover TSA contract, we do not track your investment in the TSA contract, if any. We will report all distributions from this Rollover TSA contract as fully taxable. You will have to determine how much of the distribution is taxable. DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount received in excess of the investment in the contract is taxable. The amount of any partial distribution from a TSA contract prior to the annuity starting date is generally taxable, except to the extent that the distribution is treated as a withdrawal of after-tax contributions. Distributions are normally treated as pro rata withdrawals of any after-tax contributions and earnings on those contributions. ANNUITY PAYMENTS. Guaranteed annual withdrawal amounts that are continued after your account value goes to zero under a supplementary life annuity contract, as discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" in this Prospectus, as well as GMIB and other annuitization payments that are based on the annuitant's life or life expectancy, are considered annuity payments for tax purposes. If you elect an annuity payout option, you will recover any investment in the TSA contract as each payment is received by dividing the investment in the TSA contract by an expected return determined under an IRS table prescribed for qualified annuities. The amount of each payment not excluded from income under this exclusion ratio is fully taxable. The full amount of the payments received after your investment in the TSA contract is recovered is fully taxable. If you (and your beneficiary under a joint and survivor annuity) die before recovering the full investment in the TSA contract, a deduction is allowed on your (or your beneficiary's) final tax return. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a TSA contract generally receive the same tax treatment as distributions during your lifetime. In some instances, distributions from a TSA contract made to your surviving spouse may be rolled over to a traditional IRA or other eligible retirement plan. A surviving spouse might also be eligible to directly roll over a TSA contract death benefit to a Roth IRA in a taxable conversion rollover, beginning in 2008. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS As a result of the 2007 Regulations, loans are not available without employer or plan administrator approval. If loans are available, loan processing may be delayed pending receipt of information required to process the loan under an information sharing agreement. The processing of a loan request will not be completed until the information required to process the transaction is received from the employer or its 80 Tax information designee. This information will be transmitted as a result of an information sharing agreement between AXA Equitable and the employer sponsoring the plan. If loans are available: Loans are generally not treated as a taxable distribution. If the amount of the loan exceeds permissible limits under federal income tax rules when made, the amount of the excess is treated (solely for tax purposes) as a taxable distribution. Additionally, if the loan is not repaid at least quarterly, amortizing (paying down) interest and principal, the amount not repaid when due will be treated as a taxable distribution. The entire unpaid balance of the loan is includable in income in the year of the default. TSA loans are subject to federal income tax limits and may also be subject to the limits of the plan from which the funds came. Federal income tax rule requirements apply even if the plan is not subject to ERISA. For example, loans offered under TSA contracts are subject to the following conditions: o The amount of a loan to a participant, when combined with all other loans to the participant from all qualified plans of the employer, cannot exceed the lesser of: (1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued benefits; and (2) $50,000 reduced by the excess (if any) of the highest outstanding loan balance over the previous 12 months over the outstanding loan balance of plan loans on the date the loan was made. o In general, the term of the loan cannot exceed five years unless the loan is used to acquire the participant's primary residence. Accumulator(R) Select(SM) Rollover TSA contracts have a term limit of ten years for loans used to acquire the participant's primary residence. o All principal and interest must be amortized in substantially level payments over the term of the loan, with payments being made at least quarterly. In very limited circumstances, the repayment obligation may be temporarily suspended during a leave of absence. The amount borrowed and not repaid may be treated as a distribution if: o the loan does not qualify under the conditions above; o the participant fails to repay the interest or principal when due; or o in some instances, the participant separates from service with the employer who provided the funds or the plan is terminated. In this case, the participant may have to include the unpaid amount due as ordinary income. In addition, the 10% early distribution penalty tax may apply. The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a distribution. For purposes of calculating any subsequent loans which may be made under any plan of the same employer, a defaulted loan which has not been fully repaid is treated as still outstanding, even after the default is reported to the IRS on Form 1099-R. The amount treated as still outstanding (which limits subsequent loans) includes interest accruing on the unpaid balance. TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an "eligible rollover distribution" from a 403(b) annuity contract into another eligible retirement plan which agrees to accept the rollover. The rollover may be a direct rollover or one you do yourself within 60 days after you receive the distribution. To the extent rolled over, a distribution remains tax-deferred. You may roll over a distribution from a 403(b) annuity contract to any of the following: another 403(b) plan funding vehicle, a qualified plan, a governmental employer 457(b) plan (separate accounting required) or a traditional IRA. A spousal beneficiary may also roll over death benefits as above. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. The Accumulator(R) Select(SM) IRA contract is not available for purchase by a non-spousal death beneficiary direct rollover. Effective beginning in 2008, distributions from a 403(b) annuity contract can be rolled over to a Roth IRA. Such conversion rollover transactions are taxable. Any Taxable portion of the amount rolled over will be taxed at the time of the rollover. Rollovers are subject to the Roth IRA conversion rules, which restrict conversions of traditional IRAs to taxpayers with adjusted gross income of no more than $100,000, whether single or married filing jointly. The taxable portion of most distributions will be eligible for rollover, except as specifically excluded under federal income tax rules. Distributions that you cannot roll over generally include periodic payments for life or for a period of 10 years or more, hardship withdrawals and required minimum distributions under federal income tax rules. Direct transfers from one 403(b) annuity contract to another (whether under a plan-to-plan transfer, contract exchange under the same 403(b) plan, or under Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions. REQUIRED MINIMUM DISTRIBUTIONS Generally the same as traditional IRA with these differences: When you have to take the first required minimum distribution. The minimum distribution rules force 403(b) plan participants to start calculating and taking annual distributions from their 403(b) annuity contracts by a required date. Generally, you must take the first required minimum distribution for the calendar year in which you turn age 70-1/2. You may be able to delay the start of required minimum distributions for all or part of your account balance until after age 70-1/2, as follows: o For 403(b) plan participants who have not retired from service with the employer maintaining the 403(b) plan by the calendar year the participant turns age 70-1/2, the required beginning date for minimum distributions is extended to April 1 following the calendar year of retirement. o 403(b) plan participants may also delay the start of required minimum distributions to age 75 for the portion of their account value attributable to their December 31, 1986 TSA contract account balance, even if retired at age 70-1/2. We will know whether or not you qualify for this exception because it only applies to individuals who established their Accumulator(R) Select(SM) Rollover TSA contract by direct Revenue Ruling 90-24 transfer prior to September 25, 2007, Tax information 81 or by a contract exchange or a plan-to-plan exchange approved under the employer's plan after that date. If you do not give us the amount of your December 31, 1986, account balance that is being transferred to the Accumulator(R) Select(SM) Rollover TSA contract on the form used to establish the TSA contract, you do not qualify. SPOUSAL CONSENT RULES Your employer will tell us on the form used to establish the TSA whether or not you need to get spousal consent for loans, withdrawals or other distributions. If you do, you will need such consent if you are married when you request a withdrawal under the TSA contract. In addition, unless you elect otherwise with the written consent of your spouse, the retirement benefits payable under the plan must be paid in the form of a qualified joint and survivor annuity. A qualified joint and survivor annuity is payable for the life of the annuitant with a survivor annuity for the life of the spouse in an amount not less than one-half of the amount payable to the annuitant during his or her lifetime. In addition, if you are married, the beneficiary must be your spouse, unless your spouse consents in writing to the designation of another beneficiary. If you are married and you die before annuity payments have begun, payments will be made to your surviving spouse in the form of a life annuity unless at the time of your death a contrary election was in effect. However, your surviving spouse may elect, before payments begin, to receive payments in any form permitted under the terms of the TSA contract and the plan of the employer who provided the funds for the TSA contract. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a TSA contract before you reach age 59-1/2. This is in addition to any income tax. There are exceptions to the extra penalty tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o to pay for certain extraordinary medical expenses (special federal income tax definition); or o in any form of payout after you have separated from service (only if the separation occurs during or after the calendar year you reach age 55); or o in a payout in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancies) using an IRS-approved distribution method (only after you have separated from service at any age). We do not anticipate that Guaranteed annual withdrawals made under the Guaranteed withdrawal benefit for life's Maximum or Customized payment plan or taken as partial withdrawals will qualify for this exception if made before age 59-1/2. FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding will depend on the type of distribution and, in certain cases, the amount of your distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. You must file your request not to withhold in writing before the payment or distribution is made. Our processing office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. You should note the following special situations: o We might have to withhold and/or report on amounts we pay under a free look or cancellation. o We are generally required to withhold on conversion rollovers of traditional IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA and is taxable. o We are required to withhold on the gross amount of a distribution from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You can elect out of withholding as described below. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However we may require additional documentation in the case of payments made to non United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, call our processing office at the toll-free number. FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS Federal tax rules require payers to withhold differently on "periodic" and "non-periodic" payments. Payers are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election 82 Tax information form. If the owner does not claim a different number of withholding exemptions or marital status, the payer is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payer is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payers generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is includable in gross income. As described below, there is no election out of federal income tax withholding if the payment is an eligible rollover distribution from a qualified plan or TSA. If a non-periodic distribution from a qualified plan or TSA is not an eligible rollover distribution then election out is permitted. If there is no election out, the 10% withholding rate applies. MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS Unless the distribution is directly rolled over to another eligible retirement plan, eligible rollover distributions from qualified plans and TSAs are subject to mandatory 20% withholding. The plan administrator is responsible for withholding from qualified plan distributions. All distributions from a TSA or qualified plan are eligible rollover distributions unless they are on the following list of exceptions: o any distributions which are required minimum distributions after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for the life (or life expectancy) or the joint lives (or joint life expectancies) of the plan participant (and designated beneficiary); or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions that fit specified technical tax rules; or o loans that are treated as distributions; or o a death benefit payment to a beneficiary who is not the plan participant's surviving spouse; or o a qualified domestic relations order distribution to a beneficiary who is not the plan participant's current spouse or former spouse. A death benefit payment to the plan participant's surviving spouse, or a qualified domestic relations order distribution to the plan participant's current or former spouse may be a distribution subject to mandatory 20% withholding. IMPACT OF TAXES TO AXA EQUITABLE The contracts provide that we may charge Separate Account No. 49 for taxes. We do not now, but may in the future set up reserves for such taxes. Tax information 83 8. More information - -------------------------------------------------------------------------------- ABOUT OUR SEPARATE ACCOUNT NO. 49 Each variable investment option is a subaccount of Separate Account No. 49. We established Separate Account No. 49 in 1996 under special provisions of the New York Insurance Law. These provisions prevent creditors from any other business we conduct from reaching the assets we hold in our variable investment options for owners of our variable annuity contracts. We are the legal owner of all of the assets in Separate Account No. 49 and may withdraw any amounts that exceed our reserves and other liabilities with respect to variable investment options under our contracts. For example, we may withdraw amounts from Separate Account No. 49 that represent our investments in Separate Account No. 49 or that represent fees and charges under the contracts that we have earned. The results of Separate Account's operations are accounted for without regard to AXA Equitable's other operations. The amount of some of our obligations under the contracts is based on the assets in Separate Account No. 49. However, the obligations themselves are obligations of AXA Equitable. Separate Account No. 49 is registered under the Investment Company Act of 1940 and is registered and classified under that act as a "unit investment trust." The SEC, however, does not manage or supervise AXA Equitable or Separate Account No. 49. Although the Separate Account No. 49 is registered, the SEC does not monitor the activity of Separate Account No. 49 on a daily basis. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Each subaccount (variable investment option) within Separate Account No. 49 invests solely in class IB/B shares issued by the corresponding Portfolio of its Trust. We reserve the right subject to compliance with laws that apply: (1) to add variable investment options to, or to remove variable investment options from the Separate Account or to add other separate accounts; (2) to combine any two or more variable investment options; (3) to transfer the assets we determine to be the shares of the class of contracts to which the contracts belong from any variable investment option to another variable investment option; (4) to operate the Separate Account or any variable investment option as a management investment company under the Investment Company Act of 1940 (in which case, charges and expenses that otherwise would be assessed against an underlying mutual fund would be assessed against the Separate Account or a variable investment option directly); (5) to deregister the Separate Account under the Investment Company Act of 1940; (6) to restrict or eliminate any voting rights as to the Separate Account; (7) to cause one or more variable investment options to invest some or all of their assets in one or more other trusts or investment companies; and (8) to unilaterally change your contract in order to comply with any applicable laws and regulations, including but not limited to changes in the Internal Revenue Code, in Treasury regulations or in published rulings of the Internal Revenue Service, ERISA and in Department of Labor regulations. Any change in the contract must be in writing and made by our authorized officer. We will provide notice of any contract change. ABOUT THE TRUSTS The Trusts are registered under the Investment Company Act of 1940. They are classified as "open-end management investment companies," more commonly called mutual funds. Each Trust issues different shares relating to each Portfolio. The Trusts do not impose sales charges or "loads" for buying and selling its shares. All dividends and other distributions on Trust shares are reinvested in full. The Board of Trustees of the Trusts may establish additional Portfolios or eliminate existing Portfolios at any time. More detailed information about each Trust, its Portfolio investment objectives, policies, restrictions, risks, expenses, its Rule 12b-1 Plan and other aspects of its operations, appears in the prospectuses for each Trust which generally accompany this Prospectus, or in their respective SAIs which are available upon request. ABOUT OUR FIXED MATURITY OPTIONS RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE We can determine the amount required to be allocated to one or more fixed maturity options in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. FMO rates are determined daily. The rates in the table below are illustrative only and will most likely differ from the rates applicable at time of purchase. Current FMO rates can be obtained from your financial professional. The rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as shown below: - -------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------- 2009 3.00%* $ 97.08 2010 3.00%* $ 94.25 2011 3.00%* $ 91.51 2012 3.00%* $ 88.84 2013 3.00%* $ 86.25 2014 3.00%* $ 83.73 - -------------------------------------------------------- 84 More information - -------------------------------------------------------- Fixed Maturity Options with February 15th Rate to Price Maturity Date of Maturity as of Per $100 of Maturity Year February 15, 2008 Maturity Value - -------------------------------------------------------- 2015 3.42% $ 79.01 2016 3.69% $ 74.82 2017 3.87% $ 71.03 2018 4.01% $ 67.47 - -------------------------------------------------------- * Since these rates to maturity are 3%, no amounts could have been allocated to these options. HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw all of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity for your FMO based on the rate for a new FMO issued on the same date and having the same maturity date as your FMO; if the same maturity date is not available for new FMOs, we determine a rate that is between the rates for new FMO maturities that immediately precede and immediately follow your FMOs maturity date. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. If you withdraw only a portion of the amount in a fixed maturity option, the market value adjustment will be a percentage of the market value adjustment that would have applied if you had withdrawn the entire value in that fixed maturity option. This percentage is equal to the percentage of the value in the fixed maturity option that you are withdrawing. See Appendix II at the end of this Prospectus for an example. For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) above would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity option, the "current rate to maturity" will be determined by using a widely-published Index. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. INVESTMENTS UNDER THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. Under New York Insurance Law, the portion of the separate account's assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law that applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your value in the fixed maturity options, regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We expect the rates to maturity for the fixed maturity options to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities, and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options under the contracts, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT THE GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the guaranteed interest option and fixed maturity options, as well as our general obligations. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. More information 85 We have been advised that the staff of the SEC has not reviewed the portions of this Prospectus that relate to the general account. The disclosure with regard to the general account, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. ABOUT OTHER METHODS OF PAYMENT WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept initial and subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information provided through certain broker-dealers with which we have established electronic facilities. In any such cases, you must sign our Acknowledgement of Receipt form. Where we require a signed application, the above procedures do not apply and no financial transactions will be permitted until we receive the signed application and have issued the contract. Where we issue a contract based on information provided through electronic facilities, we require an Acknowledgement of Receipt form, and financial transactions are only permitted if you request them in writing, sign the request and have it signature guaranteed, until we receive the signed Acknowledgement of Receipt form. After your contract has been issued, additional contributions may be transmitted by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of its customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. After your contract has been issued, additional contributions may be transmitted by wire. AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, ROLLOVER IRA OR ROTH CONVERSION IRA CONTRACTS ONLY You may use our automatic investment program, or "AIP," to have a specified amount automatically deducted from a checking account, money market account, or credit union checking account and contributed as an additional contribution into an NQ, Rollover IRA or Roth Conversion IRA contract on a monthly or quarterly basis. AIP is not available for Inherited IRA Beneficiary Continuation (traditional IRA or Roth IRA) or Rollover TSA contracts. Please see Appendix VI later in this Prospectus to see if the automatic investment program is available in your state. The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP additional contributions may be allocated to any of the variable investment options, the guaranteed interest option and available fixed maturity options but not the account for special money market dollar cost averaging. You choose the day of the month you wish to have your account debited. However, you may not choose a date later than the 28th day of the month. For contracts with GWBL, AIP will be automatically terminated after the later of : (i) the end of the first contract year, or (ii) the date the first withdrawal is taken. For contracts with PGB, AIP will be automatically terminated at the end of the first six months. You may cancel AIP at any time by notifying our processing office. We are not responsible for any debits made to your account before the time written notice of cancellation is received at our processing office. DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR We describe below the general rules for when, and at what prices, events under your contract will occur. Other portions of this Prospectus describe circumstances that may cause exceptions. We generally do not repeat those exceptions below. BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. o A loan request under your Rollover TSA contract will be processed on the first business day of the month following the date on which the properly completed loan request form is received. o If your transaction is set to occur on the same day of the month as the contract date and that date is the 29th, 30th or 31st of the month, then the transaction will occur on the 1st day of the next month. o When a charge is to be deducted on a contract date anniversary that is a non-business day, we will deduct the charge on the next business day. o If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your 86 More information broker-dealer receives your contribution and all information needed to process your application, along with any required documents. Your broker-dealer will then transmit your order to us in accordance with our processing procedures. However, in such cases, your broker-dealer is considered a processing office for the purpose of receiving the contribution. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. CONTRIBUTIONS AND TRANSFERS o Contributions allocated to the variable investment options are invested at the unit value next determined after the receipt of the contribution. o Contributions allocated to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o Contributions allocated to a fixed maturity option will receive the rate to maturity in effect for that fixed maturity option on that business day (unless a rate lock-in is applicable). o Transfers to or from variable investment options will be made at the unit value next determined after the receipt of the transfer request. o Transfers to a fixed maturity option will be based on the rate to maturity in effect for that fixed maturity option on the business day of the transfer. o Transfers to the guaranteed interest option will receive the crediting rate in effect on that business day for the specified time period. o For the interest sweep option, the first monthly transfer will occur on the last business day of the month following the month that we receive your election form at our processing office. ABOUT YOUR VOTING RIGHTS As the owner of the shares of the Trusts we have the right to vote on certain matters involving the Portfolios, such as: o the election of trustees; or o the formal approval of independent public accounting firms selected for each Trust; or o any other matters described in each prospectus for the Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners, we will vote the shares of a Portfolio for which no instructions have been received in the same proportion as we vote shares of that Portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a Portfolio in the same proportions that contract owners vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustees or Directors of each Trust intends to monitor events to identify any material irreconcilable conflicts that may arise and to determine what action, if any, should be taken in response. If we believe that a Board's response insufficiently protects our contract owners, we will see to it that appropriate action is taken to do so. SEPARATE ACCOUNT NO. 49 VOTING RIGHTS If actions relating to the Separate Account require contract owner approval, contract owners will be entitled to one vote for each unit they have in the variable investment options. Each contract owner who has elected a variable annuity payout option may cast the number of votes equal to the dollar amount of reserves we are holding for that annuity in a variable investment option divided by the annuity unit value for that option. We will cast votes attributable to any amounts we have in the variable investment options in the same proportion as votes cast by contract owners. CHANGES IN APPLICABLE LAW The voting rights we describe in this Prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account No. 49, nor would any of these proceedings be likely to have a material adverse effect upon the Separate Account, our ability to meet our obligations under the contracts, or the distributions of the contracts. FINANCIAL STATEMENTS The financial statements of Separate Account No. 49, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-789-7771. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING You can transfer ownership of an NQ contract at any time before annuity payments begin. We will continue to treat you as the owner until we receive written notification of any change at our processing office. More information 87 If you elected the Guaranteed minimum death benefit, Guaranteed minimum income benefit, the Earnings enhancement benefit, a PGB, and/or the Guaranteed withdrawal for life ("Benefit"), generally the Benefit will automatically terminate if you change ownership of the contract or if you assign the owner's right to change the beneficiary or person to whom annuity payments will be made. The Benefit will not terminate if the ownership of the contract is transferred from a non-natural owner to an individual but the contract will continue to be based on the annuitant's life. The Benefit will also not terminate if you transfer your individually-owned contract to a trust held for your (or your and your immediate family's) benefit; the Benefit will continue to be based on your life. If you were not the annuitant under the individually-owned contract, you will become the annuitant under the new contract. Please speak with your financial professional for further information. See Appendix VI later in this Prospectus for any state variations with regard to terminating any benefits under your contract. You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA or Rollover TSA contract except by surrender to us. If your individual retirement annuity contract is held in your custodial individual retirement account, you may only assign or transfer ownership of such an IRA contract to yourself. Loans are not available and you cannot assign Rollover IRA, Roth Conversion IRA or Rollover TSA contracts as security for a loan or other obligation. If the employer that provided the funds does not restrict them, loans are available under a Rollover TSA contract. For limited transfers of ownership after the owner's death see "Beneficiary continuation option" in "Payment of death benefit" earlier in this Prospectus. You may direct the transfer of the values under your Rollover IRA, Roth Conversion IRA or Rollover TSA contract to another similar arrangement under federal income tax rules. Loans are not available under your NQ contract. In certain circumstances, you may collaterally assign all or a portion of the value of your NQ contract as security for a loan with a third party lender. The terms of the assignment are subject to our approval. The amount of the assignment may never exceed your account value on the day prior to the date we receive all necessary paperwork to effect the assignment. Only one assignment per contract is permitted, and any such assignment must be made prior to the first contract date anniversary. You must indicate that you have not purchased, and will not purchase, any other AXA Equitable (or affiliate's) NQ deferred annuity contract in the same calendar year that you purchase this contract. A collateral assignment does not terminate your benefits under the contract. However, all withdrawals, distributions and benefit payments, as well as the exercise of any benefits, are subject to the assignee's prior approval and payment directions. We will follow such directions until AXA Equitable receives written notification satisfactory to us that the assignment has been terminated. If the owner or beneficiary fails to provide timely notification of the termination, it is possible that we could pay the assignee more than the amount of the assignment, or continue paying the assignee pursuant to existing directions after the collateral assignment has in fact been terminated. Our payment of any death benefit to the beneficiary will also be subject to the terms of the assignment until we receive written notification satisfactory to us that the assignment has been terminated. In some cases, an assignment or change of ownership may have adverse tax consequences. See "Tax information" earlier in this Prospectus. ABOUT CUSTODIAL IRAS For certain custodial IRA accounts, after your contract has been issued, we may accept transfer instructions by telephone, mail, facsimile or electronically from a broker-dealer, provided that we or your broker-dealer have your written authorization to do so on file. Accordingly, AXA Equitable will rely on the stated identity of the person placing instructions as authorized to do so on your behalf. AXA Equitable will not be liable for any claim, loss, liability or expenses that may arise out of such instructions. AXA Equitable will continue to rely on this authorization until it receives your written notification at its processing office that you have withdrawn this authorization. AXA Equitable may change or terminate telephone or electronic or overnight mail transfer procedures at any time without prior written notice and restrict facsimile, internet, telephone and other electronic transfer services because of disruptive transfer activity. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The Distributors serve as principal underwriters of Separate Account No. 49. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 1.00% of the account value of 88 More information the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 2.00% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker- dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) Select(SM) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset- based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. More information 89 9. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This Prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa-equitable.com 90 Incorporation of certain documents by reference Appendix I: Condensed financial information - -------------------------------------------------------------------------------- The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.70%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ----------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.05 $ 14.43 $ 12.45 $ 11.72 $ 10.66 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 6,377 3,109 1,519 656 32 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.76 $ 11.31 $ 10.82 $ 10.74 $ 10.30 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,454 1,800 1,000 281 1 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.40 $ 11.96 $ 11.19 $ 11.02 $ 10.41 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,753 3,022 2,176 414 84 -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 48.27 $ 46.21 $ 42.61 $ 41.36 $ 38.70 $ 33.05 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,098 2,325 1,725 893 383 86 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.45 $ 13.82 $ 12.28 $ 11.71 $ 10.66 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 23,506 14,705 6,917 2,788 46 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 243.48 $ 239.38 $ 219.99 $ 214.55 $ 191.26 $ 130.09 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 65 73 73 64 29 9 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.82 $ 17.92 $ 17.67 $ 17.76 $ 17.72 $ 17.65 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 404 376 481 416 458 259 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.41 $ 17.67 $ 14.55 $ 12.84 $ 11.05 $ 8.32 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,236 1,508 1,037 649 530 142 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 7.62 $ 6.80 $ 6.96 $ 6.16 $ 5.78 $ 4.77 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,050 1,042 1,055 981 856 341 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.06 $ 15.63 $ 15.31 $ 15.27 $ 14.97 $ 14.71 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 626 590 573 555 512 198 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 20.14 $ 17.56 $ 16.39 $ 14.95 $ 13.34 $ 9.63 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 443 462 372 312 478 121 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.31 $ 17.38 $ 14.57 $ 14.06 $ 12.60 $ 9.96 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,123 2,507 2,363 2,169 1,481 530 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.99 $ 11.31 $ 10.35 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 227 123 40 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AXA Rosenberg Value Long/Short Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.07 $ 10.91 $ 10.94 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 383 13,017 784 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ----------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 23.24 $ 23.37 $ 19.66 $ 19.43 $ 17.87 $ 13.86 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 842 856 849 802 502 184 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 23.97 $ 22.13 $ 17.91 $ 16.44 $ 13.75 $ 10.92 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,136 1052 782 522 441 161 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.71 $ 6.59 $ 5.78 $ 5.54 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 571 504 326 15 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Calvert Socially Responsible - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.71 $ 8.81 $ 8.51 $ 7.96 $ 7.82 $ 6.22 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 373 353 314 204 249 42 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.14 $ 12.67 $ 12.00 $ 11.62 $ 11.20 $ 9.19 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,289 1,484 351 160 164 40 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Capital Guardian Research - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.71 $ 12.72 $ 11.55 $ 11.08 $ 10.16 $ 7.86 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,063 1,393 1,585 1,200 776 200 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Caywood-Scholl High Yield Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.12 $ 11.01 $ 10.37 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 180 225 81 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Davis New York Venture - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.05 $ 10.84 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,189 216 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Equity 500 Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 29.54 $ 28.64 $ 25.31 $ 24.66 $ 22.76 $ 18.11 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,547 1,418 1,604 1,386 1,074 399 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen International Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.64 $ 9.90 $ 9.74 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 476 185 8 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Evergreen Omega - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.49 $ 8.67 $ 8.33 $ 8.15 $ 7.75 $ 5.70 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 249 215 280 377 218 32 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/FI Mid Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.35 $ 12.57 $ 11.47 $ 10.97 $ 9.62 $ 6.81 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,166 1,890 1,556 1,391 883 285 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.45 $ 10.42 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,574 368 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.71 $ 10.81 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 421 38 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Franklin Templeton Founding Strategy - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.49 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,805 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.75 $ 11.56 $ 10.48 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 337 193 77 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO Small Company Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 27.67 $ 25.76 $ 22.05 $ 21.50 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 618 233 79 9 -- -- - ------------------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ----------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.01 $ 14.13 $ 12.06 $ 10.47 $ 9.38 $ 7.19 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2,289 3,208 2,337 1,926 1,026 282 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.18 $ 14.17 $ 11.47 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 665 269 56 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.07 $ 13.88 $ 13.57 $ 13.50 $ 13.20 $ 12.99 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,473 1,477 1,527 1,343 1,175 441 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/JPMorgan Value Opportunities - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.08 $ 15.53 $ 13.12 $ 12.84 $ 11.78 $ 9.45 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 288 351 347 370 307 128 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Core PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.50 $ 10.28 $ 9.26 $ 8.79 $ 8.03 $ 6.69 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 458 510 603 610 598 229 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Large Cap Growth PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.57 $ 14.58 $ 13.76 $ 12.84 $ 11.60 $ 9.12 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 492 192 184 149 93 38 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.32 $ 11.17 $ 10.63 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 809 532 144 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.54 $ 9.98 $ 9.98 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 248 135 173 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.39 $ 12.18 $ 10.57 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 369 308 83 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.70 $ 11.67 $ 10.54 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 442 196 84 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.15 $ 12.29 $ 11.12 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 888 591 290 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.08 $ 16.13 $ 15.01 $ 13.79 $ 12.69 $ 9.85 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3,346 2,714 2,354 1,938 1,510 386 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.40 $ 16.96 $ 15.34 $ 14.02 $ 12.10 $ 9.24 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,069 1,156 1,107 1,007 636 237 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 27.65 $ 26.86 $ 26.15 $ 25.92 $ 26.17 $ 26.47 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,051 1102 845 349 434 630 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 5.66 $ 4.77 $ 4.49 $ 4.34 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 657 83 72 22 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.69 $ 10.70 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,727 258 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.51 $ 11.08 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 674 83 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ----------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.10 $ 10.92 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 154 20 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.70 $ 11.09 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 277 19 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.72 $ 9.78 $ 9.91 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,235 730 286 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.53 $ 10.17 $ 9.96 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 262 202 60 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.02 $ 16.60 $ 14.35 $ 14.00 $ 12.10 $ 8.44 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 713 744 596 575 449 122 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/T. Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.30 $ 15.46 $ 16.39 $ 16.03 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 401 47 41 6 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.78 $ 10.75 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 853 178 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.04 $ 6.07 $ 5.41 $ 5.05 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 89 104 69 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.36 $ 11.85 $ 10.40 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 539 602 296 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 25.45 $ 18.23 $ 13.53 $ 10.37 $ 8.53 $ 5.56 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,726 1239 755 609 457 69 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.95 $ 13.26 $ 12.34 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 782 297 179 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ Van Kampen Real Estate - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.27 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,440 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 60.62 $ 55.37 $ 53.59 $ 50.38 $ 45.72 $ 33.82 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 56 47 25 28 10 4 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.80 $ 11.30 $ 11.08 $ 11.07 $ 10.84 $ 10.63 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,494 2,030 1,611 1,424 1,202 628 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.72 $ 11.87 $ 11.49 $ 10.93 $ 9.91 $ 7.87 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 390 400 338 284 143 57 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 30.68 $ 30.26 $ 28.00 $ 27.64 $ 25.87 $ 21.48 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 526 758 755 771 557 125 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.39 $ 16.64 $ 13.51 $ 11.90 $ 10.27 $ 7.78 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,047 1,030 783 806 360 135 - ------------------------------------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007. (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ----------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.50 $ 12.11 $ 10.85 $ 10.34 $ 9.59 $ 7.61 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 473 453 353 272 238 104 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.35 $ 9.47 $ 9.62 $ 9.10 $ 8.68 $ 6.76 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 881 1,014 980 876 792 408 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.37 $ 14.10 $ 12.02 $ 11.42 $ 10.15 $ 7.88 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1,210 1,363 1,238 1,242 726 316 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.81 $ 10.74 $ 9.96 $ 9.35 $ 8.52 $ 6.18 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 934 1,035 1,075 1,055 731 292 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.46 $ 13.68 $ 12.13 $ 11.49 $ 10.15 $ 7.34 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 805 1010 876 1,011 560 206 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.71 $ 8.54 $ 7.89 $ 7.46 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 788 475 242 59 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.88 $ 19.05 $ 16.69 $ 16.22 $ 14.09 $ 10.43 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 748 1201 991 884 641 270 - ------------------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.10 $ 10.41 $ 9.87 $ 9.02 $ 8.74 $ 5.64 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 597 350 311 306 98 14 - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-5 Appendix II: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00%("h" in the calculations below), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000 is made four years later on February 15, 2012(a).
Hypothetical assumed rate to maturity ("j" in the calculations below) February 15, 2012 ----------------------------------------------- 5.00% 9.00% - ---------------------------------------------------------------------------------------------------------------------------- As of February 15, 2012 before withdrawal - ---------------------------------------------------------------------------------------------------------------------------- (1) Market adjusted amount(b) $141,389 $121,737 - ---------------------------------------------------------------------------------------------------------------------------- (2) Fixed maturity amount(c) $131,104 $131,104 - ---------------------------------------------------------------------------------------------------------------------------- (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ---------------------------------------------------------------------------------------------------------------------------- On February 15, 2012 after $50,000 withdrawal - ---------------------------------------------------------------------------------------------------------------------------- (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ---------------------------------------------------------------------------------------------------------------------------- (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ---------------------------------------------------------------------------------------------------------------------------- (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ---------------------------------------------------------------------------------------------------------------------------- (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ---------------------------------------------------------------------------------------------------------------------------- (8) Maturity value(d) $111,099 $101,287 - ----------------------------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes:
(a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ where j is either 5% or 9% (1+j)(D/365) (1+j)(1,461/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 ________________ = ________________ (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount \x (1+h)(D/365) = ($84,741 or $77,257) \x (1+0.07)(1,461/365)
B-1 Appendix II: Market value adjustment example Appendix III: Enhanced death benefit example - -------------------------------------------------------------------------------- The death benefit under the contracts is equal to the account value or, if greater, the enhanced death benefit, if elected. The following illustrates the enhanced death benefit calculation. Assuming $100,000 is allocated to the variable investment options (with no allocation to the EQ/Money Market, the guaranteed interest option or the fixed maturity options), no additional contributions, no transfers, no withdrawals and no loans under a Rollover TSA contract, the enhanced death benefit for an owner age 45 would be calculated as follows:
End of contract 6-1/2% Roll-Up to age 85 6% Roll-Up to age 85 Annual Ratchet to age 85 GWBL Enhanced year Account value death benefit base death benefit base death benefit base death benefit base - ------------------------------------------------------------------------------------------------------------------------------------ 1 $105,000 $ 106,500(4) $ 106,000(6) $ 105,000(1) $ 105,000(7) - ------------------------------------------------------------------------------------------------------------------------------------ 2 $115,500 $ 113,423(3) $ 112,360(5) $ 115,500(1) $ 115,500(7) - ------------------------------------------------------------------------------------------------------------------------------------ 3 $129,360 $ 120,795(3) $ 119,102(5) $ 129,360(1) $ 129,360(7) - ------------------------------------------------------------------------------------------------------------------------------------ 4 $103,488 $ 128,647(3) $ 126,248(5) $ 129,360(2) $ 135,828(8) - ------------------------------------------------------------------------------------------------------------------------------------ 5 $113,837 $ 137,009(4) $ 133,823(6) $ 129,360(2) $ 142,296(8) - ------------------------------------------------------------------------------------------------------------------------------------ 6 $127,497 $ 145,914(4) $ 141,852(6) $ 129,360(2) $ 148,764(8) - ------------------------------------------------------------------------------------------------------------------------------------ 7 $127,497 $ 155,399(4) $ 150,363(6) $ 129,360(2) $ 155,232(8) - ------------------------------------------------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. We are using these rates solely to illustrate how the benefit is determined. The return rates bear no relationship to past or future investment results. ANNUAL RATCHET TO AGE 85 (1) At the end of contract years 1 through 3, the Annual Ratchet to age 85 enhanced death benefit is equal to the current account value. (2) At the end of contract years 4 through 7, the death benefit is equal to the Annual Ratchet to age 85 enhanced death benefit at the end of the prior year since it is higher than the current account value. GREATER OF 6-1/2% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown would be the greater of the amounts shown under the 6-1/2% Roll-Up to age 85 or the Annual Ratchet to age 85. (3) At the end of contract years 2 through 4, the enhanced death benefit will be based on the Annual Ratchet to age 85. (4) At the end of contract years 1 and 5 through 7, the enhanced death benefit will be based on the 6-1/2% Roll-Up to age 85. GREATER OF 6% ROLL-UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85 The enhanced death benefit under this option for each year shown would be the greater of the amounts shown under the 6% Roll-Up to age 85 or the Annual Ratchet to age 85. (5) At the end of contract years 2 through 4, the enhanced death benefit will be based on the Annual Ratchet to age 85. (6) At the end of contract years 1 and 5 through 7, the enhanced death benefit will be based on the 6% Roll-Up to age 85. GWBL ENHANCED DEATH BENEFIT This example assumes no withdrawals. The GWBL Enhanced death benefit is a guaranteed minimum death benefit that is only available if you elect the Guaranteed withdrawal benefit for life. If you plan to take withdrawals during any of the first seven contract years, this illustration is of limited usefulness to you. (7) At the end of contract years 1 through 3, the GWBL Enhanced death benefit is equal to the current account value. (8) At the end of contract years 4 through 7, the GWBL Enhanced death benefit is greater than the current account value. Appendix III: Enhanced death benefit example C-1 Appendix IV: Hypothetical illustrations - -------------------------------------------------------------------------------- ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "Greater of 6-1/2% Roll-Up to Age 85 or the Annual Ratchet to age 85" guaranteed minimum death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R) Select(SM) contract. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution and takes no withdrawals. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying portfolios (as described below), the corresponding net annual rates of return would be -2.93%, 3.07% for the Accumulator(R) Select(SM) contract, at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges but they do not reflect the charges we deduct from your account value annually for the optional Guaranteed minimum death benefit, the Earnings enhancement benefit and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return would be lower; however, the values shown in the following tables reflect the following contract charges: the Greater of 6-1/2% Roll-Up to age 85 and the Annual Ratchet to age 85 Guaranteed minimum death benefit charge, the Earnings enhancement benefit charge, the Guaranteed minimum income benefit charge and any applicable administrative charge. The values shown under "Lifetime annual guaranteed minimum income benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract date anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime annual guaranteed minimum income benefit" columns indicates that the contract has terminated due to insufficient account value. However, the Guaranteed minimum income benefit has been automatically exercised and the owner is receiving lifetime payments. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.69%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.29% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. D-1 Appendix IV: Hypothetical illustrations Variable deferred annuity Accumulator(R) Select(SM) $100,000 Single contribution and no withdrawals Male, issue age 60 Benefits: Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 Guaranteed minimum death benefit Earnings enhancement benefit Guaranteed minimum income benefit
Greater of 6-1/2% Roll-Up to Lifetime Annual age 85 or Guaranteed Minimum Income Benefit Annual Ratchet to Total Death Benefit ---------------------------------- age 85 Guaranteed with the Earnings Guaranteed Hypothetical Account Value Cash Value Minimun Death Benefit enhancement benefit Income Income Contract ------------------- ------------------- ---------------------- ------------------- ----------------- ---------------- Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% Age --------- --------- --------- --------- --------- --------- --------- --------- --------- -------- -------- -------- ------- 60 1 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A 61 2 95,026 101,005 95,026 101,005 106,500 106,500 109,100 109,100 N/A N/A N/A N/A 62 3 90,104 101,927 90,104 101,927 113,423 113,423 118,792 118,792 N/A N/A N/A N/A 63 4 85,225 102,756 85,225 102,756 120,795 120,795 129,113 129,113 N/A N/A N/A N/A 64 5 80,380 103,481 80,380 103,481 128,647 128,647 140,105 140,105 N/A N/A N/A N/A 65 6 75,560 104,093 75,560 104,093 137,009 137,009 151,812 151,812 N/A N/A N/A N/A 66 7 70,755 104,578 70,755 104,578 145,914 145,914 164,280 164,280 N/A N/A N/A N/A 67 8 65,955 104,925 65,955 104,925 155,399 155,399 177,558 177,558 N/A N/A N/A N/A 68 9 61,150 105,120 61,150 105,120 165,500 165,500 191,699 191,699 N/A N/A N/A N/A 69 10 56,331 105,148 56,331 105,148 176,257 176,257 206,760 206,760 N/A N/A N/A N/A 74 15 31,505 102,192 31,505 102,192 241,487 241,487 298,082 298,082 14,441 14,441 14,441 14,441 79 20 4,502 92,156 4,502 92,156 330,859 330,859 423,202 423,202 22,168 22,168 22,168 22,168 84 25 0 71,562 0 71,562 0 453,305 0 554,251 0 36,264 0 36,264 89 30 0 57,111 0 57,111 0 482,770 0 583,716 N/A N/A N/A N/A 94 35 0 44,863 0 44,863 0 482,770 0 583,716 N/A N/A N/A N/A 95 36 0 42,186 0 42,186 0 482,770 0 583,716 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. Appendix IV: Hypothetical illustrations D-2 Appendix V: Earnings enhancement benefit example - -------------------------------------------------------------------------------- The following illustrates the calculation of a death benefit that includes Earnings enhancement benefit for an owner age 45. The example assumes a contribution of $100,000 and no additional contributions. Where noted, a single withdrawal in the amount shown is also assumed. The calculation is as follows:
No Withdrawal $3,000 withdrawal $6,000 withdrawal ------------------------------------------------------------------------------------------------------------------- A Initial contribution 100,000 100,000 100,000 ------------------------------------------------------------------------------------------------------------------- B Death benefit: prior to withdrawal.* 104,000 104,000 104,000 Earnings enhancement benefit earnings: death ------------------------------------------------------------------------------------------------------------------- C benefit less net contributions (prior to the withdrawal in 4,000 4,000 4,000 D). B minus A. ------------------------------------------------------------------------------------------------------------------- D Withdrawal 0 3,000 6,000 Excess of the withdrawal over the Earnings ------------------------------------------------------------------------------------------------------------------- E enhancement benefit earnings 0 0 2,000 greater of D minus C or zero ------------------------------------------------------------------------------------------------------------------- F Net contributions (adjusted for the withdrawal in D) 100,000 100,000 98,000 A minus E ------------------------------------------------------------------------------------------------------------------- Death benefit (adjusted for the withdrawal in D) G B minus D 104,000 101,000 98,000 ------------------------------------------------------------------------------------------------------------------- Death benefit less net contributions H G minus F 4,000 1,000 0 ------------------------------------------------------------------------------------------------------------------- I Earnings enhancement benefit factor 40% 40% 40% ------------------------------------------------------------------------------------------------------------------- J Earnings enhancement benefit 1,600 400 0 H times I ------------------------------------------------------------------------------------------------------------------- K Death benefit: including Earnings enhancement benefit 105,600 101,400 98,000 G plus J -------------------------------------------------------------------------------------------------------------------
* The death benefit is the greater of the account value or any applicable death benefit. E-1 Appendix V: Earnings enhancement benefit example Appendix VI: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- The following information is a summary of the states where the Accumulator(R) Select(SM) contract or certain features and/or benefits are either not available as of the date of this Prospectus or vary from the contract's features and benefits as previously described in this Prospectus. STATES WHERE CERTAIN ACCUMULATOR(R) SELECT(SM) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS: - -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- CALIFORNIA See "Contract features and benefits"--"Your right to can- cel within a certain number of days" - -------------------------------------------------------------------------------- ILLINOIS See "Loans under Rollover TSA contracts" in "Accessing your money" See "Selecting an annuity payout option" under "Your annuity payout options" in "Accessing your money" - -------------------------------------------------------------------------------- MASSACHUSETTS Annual administrative charge - -------------------------------------------------------------------------------- NEW JERSEY The following information applies to Accumulator(R) Select(SM) contracts sold in New Jersey from August 6, 2007 to September 10, 2007: "Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit" - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- CALIFORNIA If you reside in the state of California and you are age 60 and older at the time the contract is issued, you may return your variable annuity contract within 30 days from the date that you receive it and receive a refund as described below. If you allocate your entire initial contribution to the EQ/Money Market option (and/or guaranteed interest option, if available), the amount of your refund will be equal to your contribution less interest, unless you make a trans- fer, in which case the amount of your refund will be equal to your account value on the date we receive your request to cancel at our processing office. This amount could be less than your initial contribution. If the Principal guarantee ben- efit or Guaranteed withdrawal benefit for life is elected, the investment allocation during the 30 day free look period is limited to the guaranteed interest option. If you allocate any portion of your initial contribution to the variable invest- ment options (other than the EQ/Money Market option) and/or fixed maturity options, your refund will be equal to your account value on the date we receive your request to cancel at our processing office. - -------------------------------------------------------------------------------- ILLINOIS Your loan interest rate will not exceed 8% (or any lower maximum rate that may become required by Illinois or fed- eral law). The following sentence replaces the first sentence of the second paragraph in this section: You can choose the date annuity payments begin but it may not be earlier than twelve months from the Accumulator(R) Select(SM) contract date. - -------------------------------------------------------------------------------- MASSACHUSETTS The annual administrative charge will not be deducted from amounts allocated to the Guaranteed interest option. - -------------------------------------------------------------------------------- NEW JERSEY All references to this feature are deleted in their entirety. - -------------------------------------------------------------------------------- Appendix VI: State contract availability and/or variations of certain features and benefits F-1 - -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- NEW JERSEY See "Guaranteed minimum death benefit charge" in "Fee (CONTINUED) table" See "Guaranteed minimum death benefit charge" and "Guaranteed minimum income benefit charge" in "Fee table" See "Guaranteed minimum income benefit and the Roll-Up benefit base reset" in "Contract features and benefits" See "Guaranteed minimum income benefit option" in "Contract features and benefits" - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- NEW JERSEY You have the choice of the following guaranteed minimum (CONTINUED) death benefits: the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85; the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85; the Annual Ratchet to age 85; the Standard death benefit; the GWBL Standard death benefit; or the GWBL Enhanced death benefit. The charge for the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 is 0.60% The charge for the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 is 0.60% Footnote (3) (and all related text) is deleted in its entirety. We do not reserve the right to increase your charge if you reset your Greater of 6% to age 85 or Annual Ratchet to age 85 enhanced death benefit and Guaranteed minimum income benefit Roll-Up benefit base. All references to resetting your Roll-Up benefit base on each contract date anniversary are deleted in their entirety here and throughout the Prospectus. Instead, if you elect the Guaranteed minimum income benefit alone or together with the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, you will be eligible to reset the Roll-Up benefit base for these guaranteed benefits to equal the account value as of the 5th or later contract date anniversary. Each time you reset the Roll-Up benefit base, your Roll-Up benefit base will not be eligible for another reset for five years. The Guaranteed minimum income benefit that includes the 6-1/2% Roll-Up benefit base is not available in combination with the Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. The table showing the maximum periods certain available under the life with a period certain payout option is deleted in its entirety and replaced with the following: - -------------------------------------------------------------------------------- Level payments - -------------------------------------------------------------------------------- Period certain years --------------------------------------- Owner's age at exercise IRAs NQ - -------------------------------------------------------------------------------- 75 and younger 10 10 76 9 10 77 8 10 78 7 10 79 7 10 80 7 10 81 7 9 82 7 8 83 7 7 84 6 6 85 5 5 - -------------------------------------------------------------------------------- F-2 Appendix VI: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- NEW JERSEY See "Greater of 6% Roll-Up to age 85 or Annual Ratchet (CONTINUED) to age 85" under "Guaranteed minimum death benefit charge" in "Charges and expenses" See "Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85" under "Guaranteed minimum death benefit charge" in "Charges and expenses" See "Guaranteed minimum income benefit charge" in "Charges and expenses" - -------------------------------------------------------------------------------- PENNSYLVANIA Contributions Required disclosure for Pennsylvania customers - -------------------------------------------------------------------------------- PUERTO RICO IRA, Roth IRA, Inherited IRA and Rollover TSA contracts Beneficiary continuation option (IRA) Tax Information -- Special rules for NQ contracts - -------------------------------------------------------------------------------- TEXAS See "Annual administrative charge" in "Charges and expenses" - -------------------------------------------------------------------------------- WASHINGTON Guaranteed interest option Investment simplifier -- Fixed-dollar option and Interest sweep option Fixed maturity options Income Manager(R) payout option Earnings enhancement benefit - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- NEW JERSEY The second sentence of the first paragraph and the entire (CONTINUED) second paragraph are deleted in their entirety and replaced with the following: The charge is equal to 0.60% of the Greater of the 6% Roll-Up to age 85 or the Annual Ratchet to age 85 benefit base. The second sentence is deleted in its entirety and replaced with the following: The charge is equal to 0.60% of the Greater of the 3% Roll-up to age 85 or the Annual Ratchet to age 85 benefit base. The third paragraph is deleted in its entirety. - -------------------------------------------------------------------------------- PENNSYLVANIA Your contract refers to contributions as premiums. Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. - -------------------------------------------------------------------------------- PUERTO RICO Not Available Not Available Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico source income of Puerto Rico resi- dents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable portion of amounts distributed from a con- tract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S. tax paid. Depending on your per- sonal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. - -------------------------------------------------------------------------------- TEXAS The annual administrative charge will not be deducted from amounts allocated to the Guaranteed interest option. - -------------------------------------------------------------------------------- WASHINGTON Not Available Not Available Not Available Not Available Not Available - -------------------------------------------------------------------------------- Appendix VI: State contract availability and/or variations of certain features and benefits F-3 - -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- WASHINGTON "Greater of 6-1/2% Roll-Up to age 85 or Annual Ratchet to (CONTINUED) age 85 enhanced death benefit"; "Greater of 6% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit"; and "GWBL Enhanced death benefit" See "Guaranteed minimum death benefit charge" in "Fee table" and in "Charges and expenses" See "How you can purchase and contribute to your con- tract" in "Contract features and benefits" See "Guaranteed minimum death benefit and Guaranteed minimum income benefit base" in "Contract features and benefits" See "Guaranteed minimum death benefit/Guaranteed mini- mum income benefit roll-up benefit base reset" in "Contract features and benefits" - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- WASHINGTON All references to these features are deleted in their entirety. (CONTINUED) You have the choice of the following guaranteed minimum death benefits: the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit; the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit; the Annual Ratchet to age 85; the Standard death benefit; or the GWBL Standard death benefit. The charge for the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 is 0.65% and cannot be increased. o For contracts with GWBL, the $1,500,000 contribution limit applies for all issue ages. o The second sentence of the third paragraph is deleted. The paragraph now reads: "We limit aggregate contribu- tions made after the first contract year to 150% of first- year contributions." o If you elect the 6-1/2% (or 6%, as applicable) Guaranteed minimum income benefit with the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, the variable investment options (including amounts allocated to the account for special money market dollar cost averaging, but excluding all other amounts allocated to the EQ/Money Market) will roll up at an annual rate of 6-1/2% (or 6%, as applicable) for the Guaranteed minimum income benefit base and 4% for the 4% Roll-Up to age 85 benefit base. o If you elect the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, with- out a Guaranteed minimum income benefit, the variable investment options (including amounts allocated to the account for special money market dollar cost averaging, but excluding all other amounts allocated to the EQ/Money Market) will roll up at an annual rate of 4% for the 4% Roll-Up to age 85 benefit base. Your "Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit" benefit base will reset only if your account value is greater than your Guaranteed minimum income benefit Roll-Up benefit base. - -------------------------------------------------------------------------------- F-4 Appendix VI: State contract availability and/or variations of certain features and benefits - -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- WASHINGTON See "How withdrawals affect your Guaranteed minimum (CONTINUED) income benefit and Guaranteed minimum death benefit" in "Accessing your money" See "Guaranteed minimum death benefit" in "Contract features and benefits" See "GWBL Guaranteed minimum death benefit" under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- WASHINGTON The first sentence of the third paragraph is replaced with (CONTINUED) the following: o With respect to the 6-1/2% (or 6%, as applicable) Guar- anteed minimum income benefit, withdrawals (including any applicable withdrawal charges) will reduce the 6-1/2% (or 6%, as applicable) Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6-1/2% (or 6%, as applicable) or less of the 6-1/2% (or 6%, as applicable) Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. o With respect to the Guaranteed minimum income benefit and the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, if elected in combination, withdrawals (including any applicable with- drawal charges) will reduce each of the benefits' Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6-1/2% (or 6%, as applicable) or less of the Guaranteed minimum income benefit's Roll-Up benefit base on the contract issue date or the most recent contract date anniversary, if later. o With respect to the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, if elected without the Guaranteed minimum income ben- efit, withdrawals (including any applicable withdrawal charges) will reduce the 4% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a contract year is 6% or less of the 4% Roll-Up to age 85 benefit base on the contract issue date or the most recent contract date anniversary, if later. o With respect to the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, with- drawals (including any applicable withdrawal charges) will reduce the 3% Roll-Up to age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the with- drawals in a contract year is 3% or less of the 3% Roll-Up to age 85 enhanced death benefit base on the contract issue date or the most recent contract date anniversary, if later. You have a choice of the standard death benefit, the Annual Ratchet to age 85 enhanced death benefit, the Greater of 3% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit, or the Greater of 4% Roll-Up to age 85 or Annual Ratchet to age 85 enhanced death benefit. Only the GWBL Standard death benefit is available. - -------------------------------------------------------------------------------- Appendix VI: State contract availability and/or variations of certain features and benefits F-5 - -------------------------------------------------------------------------------- State Features and Benefits - -------------------------------------------------------------------------------- WASHINGTON See "Annual administrative charge" in "Charges and (CONTINUED) expenses" - -------------------------------------------------------------------------------- State Availability or Variation - -------------------------------------------------------------------------------- WASHINGTON The second paragraph of this section is replaced with the (CONTINUED) following: The annual administrative charge will be deducted from the value in the variable investment options on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized or a death benefit is paid on a date other than a contract date anniversary, we will deduct a pro rata por- tion of that charge for the year. - -------------------------------------------------------------------------------- F-6 Appendix VI: State contract availability and/or variations of certain features and benefits Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Unit Values 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Financial Statements 3 How to obtain an Accumulator(R) Select(SM) Statement of Additional Information for Separate Account No. 49 Send this request form to: Accumulator(R) Select(SM) P.O. Box 1547 Secaucus, NJ 07096-1547 ................................................................................. Please send me an Accumulator(R) Select(SM) SAI for Separate Account No. 49 dated May 1, 2008. - -------------------------------------------------------------------------------- Name: - -------------------------------------------------------------------------------- Address: - -------------------------------------------------------------------------------- City State Zip x1891/Select '02/'04, OR, '04 (NY), '06/'06.5 and '07 Series AXA EQUITABLE LIFE INSURANCE COMPANY SUPPLEMENT DATED MAY 1, 2008 TO PROSPECTUSES FOR: o Income Manager(R) Accumulator(R) o Accumulator(R) o Accumulator(R) Elite(SM) o Income Manager(R) Rollover IRA o Accumulator(R) Select(SM) o Accumulator(R) Elite(SM) II o Accumulator(R) (IRA, NQ, QP) o Accumulator(R) Select(SM) II o Accumulator(R) Plus(SM) o Accumulator(R) Express(SM)
- -------------------------------------------------------------------------------- This Supplement updates certain information in the most recent prospectus and statement of additional information you received for any of the products listed above, and in any Supplements to that prospectus and statement of additional information. The Appendix sets forth the dates of such prior prospectuses, statements of additional information and supplements, which, in addition to this Supplement, should be kept for future reference. We have filed with the Securities and Exchange Commission (SEC) our Statement of Additional Information (SAI) dated May 1, 2008. If you do not presently have a copy of the prospectus and prior Supplements, you may obtain additional copies, as well as a copy of the SAI, from us, free of charge, by writing to AXA Equitable, P.O. Box 1547, Secaucus, NJ 07096-1547, or calling (800) 789-7771. If you only need a copy of the SAI, you may mail in the SAI request form located at the end of this Supplement. The SAI has been incorporated by reference into this Supplement. This Supplement and the SAI can also be obtained from the SEC's website at www.sec.gov. In this Supplement, we provide information on the following: (1) how to reach us; (2) investment options; (3) the Trusts' annual expenses and expense example; (4) important information about your guaranteed benefits; (5) tax information; (6) updated information on AXA Equitable; (7) managing your allocations; (8) disruptive transfer activity; (9) wire transmittals and electronic applications information; (10) certain information about our business day; (11) your contract date and contract date anniversary; (12) legal proceedings; (13) distribution of the contracts; (14) incorporation of certain documents by reference; (15) condensed financial information; and (16) hypothetical illustrations. (1) HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: Accumulator(R) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: Accumulator(R) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: Accumulator(R) P.O. Box 1547 Secaucus, NJ 07096-1547 FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: Accumulator(R) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o written confirmation of financial transactions; o statement of your contract values at the close of each calendar year and any calendar quarter in which there was a financial transaction; and o annual statement of your contract values as of the close of the contract year, including notification of eligibility to exercise the guaranteed minimum income benefit, if applicable. X01903 - Global - -------------------------------------------------------------------------------- TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS: - -------------------------------------------------------------------------------- TOPS is designed to provide you with up-to-date information via touch-tone telephone. EQAccess is designed to provide this information through the Internet. You can obtain information on: o your current account value; o your current allocation percentages; o the number of units you have in the variable investment options; o rates to maturity for the fixed maturity options; o the daily unit values for the variable investment options; and o performance information regarding the variable investment options (not available through TOPS). You can also: o change your allocation percentages and/or transfer among the investment options; o elect to receive certain contract statements electronically; o enroll in, modify or cancel a rebalancing program (through EQAccess only); o change your address (not available through TOPS); o change your TOPS personal identification number ("PIN") (through TOPS only) and your EQAccess password (through EQAccess only); and o access Frequently Asked Questions and Service Forms (not available through TOPS). TOPS and EQAccess are normally available seven days a week, 24 hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA Advisors you may use EQAccess by visiting our website at www.axaonline.com and logging in to access your account. All other clients may access EQAccess by visiting our website at www.axa-equitable.com. Of course, for reasons beyond our control, these services may sometimes be unavailable. We have established procedures to reasonably confirm that the instructions communicated by telephone or Internet are genuine. For example, we will require certain personal identification information before we will act on telephone or Internet instructions and we will provide written confirmation of your transfers. If we do not employ reasonable procedures to confirm the genuineness of telephone or Internet instructions, we may be liable for any losses arising out of any act or omission that constitutes negligence, lack of good faith, or willful misconduct. In light of our procedures, we will not be liable for following telephone or Internet instructions we reasonably believe to be genuine. We reserve the right to limit access to these services if we determine that you engaged in a disruptive transfer activity, such as "market timing" (see "Disruptive transfer activity" in "Transferring your money among investment options" in your Prospectus). - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVE: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time. (2) INVESTMENT OPTIONS PORTFOLIOS OF THE TRUSTS The AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio offer contract owners a convenient opportunity to invest in other portfolios that are managed and have been selected for inclusion in the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio by AXA Equitable. AXA Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the benefits of such Portfolios to contract owners and/or suggest, incidental to the sale of this contract, that contract owners consider whether allocating some or all of their account value to such Portfolios is consistent with their desired investment objectives. In doing so, AXA Equitable, and/or its affiliates, may be subject to conflicts of interest insofar as AXA Equitable may derive greater revenues from the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio than certain other Portfolios available to you under your contract. In addition, the AXA Allocation Portfolios and the EQ/Franklin Templeton Founding Strategy Portfolio may enable AXA Equitable to more efficiently manage AXA Equitable's financial risks associated with certain guaranteed features. Please see "Managing your allocations" for more information about your role in managing your allocations. AXA Equitable serves as the investment manager of the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered into sub-advisory agreements with investment advisers (the "sub-advisers") to carry out the day-to-day investment decisions for the Portfolios. As such, AXA Equitable oversees the activities of the sub-advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio, if any. The chart below also shows the currently available Portfolios and their investment objectives.
- ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable ALLOCATION greater emphasis on current income. - ----------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable - ----------------------------------------------------------------------------------------------------------------------------------- AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable ALLOCATION with a greater emphasis on capital appreciation. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER AGGRESSIVE Long-term growth of capital. o AllianceBernstein L.P. EQUITY o ClearBridge Advisors, LLC o Legg Mason Capital Management, Inc. o Marsico Capital Management, LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER CORE BOND To seek a balance of high current income and capital o BlackRock Financial Management, Inc. appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HEALTH CARE Long-term growth of capital. o Invesco Aim Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER HIGH YIELD High total return through a combination of current o Pacific Investment Management Company income and capital appreciation. LLC o Post Advisory Group, LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER INTERNATIONAL Long-term growth of capital. o AllianceBernstein L.P. EQUITY o JPMorgan Investment Management Inc. o Marsico Capital Management, LLC - -----------------------------------------------------------------------------------------------------------------------------------
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- ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. CORE EQUITY o Janus Capital Management LLC o Thornburg Investment Management, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o RCM Capital Management LLC GROWTH o TCW Investment Management Company o T. Rowe Price Associates, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P. VALUE o Institutional Capital LLC o MFS Investment Management - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P. GROWTH o Franklin Advisers, Inc. o Provident Investment Counsel, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC o TCW Investment Management Company o Wellington Management Company, LLP - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc. GROWTH o Wells Capital Management Inc. - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC VALUE o Lazard Asset Management LLC - ----------------------------------------------------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc. o RCM Capital Management LLC o Wellington Management Company, LLP - ----------------------------------------------------------------------------------------------------------------------------------- EQ Advisors Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN COM- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. MON STOCK - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve high current income consistent with o AllianceBernstein L.P. MEDIATE GOVERNMENT relative stability of principal. SECURITIES - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN INTER- Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. NATIONAL - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN LARGE Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN QUALITY Seeks to achieve high current income consistent with o AllianceBernstein L.P. BOND moderate risk to capital. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P. CAP GROWTH - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ALLIANCEBERNSTEIN VALUE Seeks to achieve capital appreciation. o AllianceBernstein L.P. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/ARIEL APPRECIATION II Seeks to achieve long-term capital appreciation. o Ariel Capital Management, LLC - -----------------------------------------------------------------------------------------------------------------------------------
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- ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, o BlackRock Investment Management, LLC EQUITY income. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of o BlackRock Investment Management VALUE income, accompanied by growth of capital. International Limited - ----------------------------------------------------------------------------------------------------------------------------------- EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to o Boston Advisors, LLC INCOME achieve an above-average and consistent total return. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. o Calvert Asset Management Company, Inc. RESPONSIBLE o Bridgeway Capital Management, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company - ----------------------------------------------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company RESEARCH - ----------------------------------------------------------------------------------------------------------------------------------- EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management YIELD BOND - ----------------------------------------------------------------------------------------------------------------------------------- EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. o Davis Selected Advisers, L.P. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that o AllianceBernstein L.P. approximates the total return performance of the S&P 500 Index, including reinvestment of dividends, at a risk level consistent with that of the S&P 500 Index. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/EVERGREEN INTERNATIONAL Seeks to achieve capital growth and current income. o Evergreen Investment Management BOND Company, LLC o First International Advisors, LLC (dba "Evergreen International") - ----------------------------------------------------------------------------------------------------------------------------------- EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. o Evergreen Investment Management Company, LLC - ----------------------------------------------------------------------------------------------------------------------------------- EQ/FI MID CAP Seeks to achieve long-term growth of capital. o Fidelity Management & Research Company - ----------------------------------------------------------------------------------------------------------------------------------- EQ/FRANKLIN INCOME Seeks to maximize income while maintaining prospects o Franklin Advisers, Inc. for capital appreciation. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/FRANKLIN SMALL CAP VALUE Seeks to achieve long-term total return. o Franklin Advisory Services, LLC - ----------------------------------------------------------------------------------------------------------------------------------- EQ/FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily o AXA Equitable FOUNDING STRATEGY seeks income. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO MERGERS AND Seeks to achieve capital appreciation. o GAMCO Asset Management Inc. ACQUISITIONS - ----------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO SMALL COMPANY Seeks to maximize capital appreciation. o GAMCO Asset Management Inc. VALUE - ----------------------------------------------------------------------------------------------------------------------------------- EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital. o AXA Equitable o Mellon Capital Management Corporation o Wentworth Hauser and Violich, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o MFS Investment Management - ----------------------------------------------------------------------------------------------------------------------------------- EQ/JPMORGAN CORE BOND Seeks to provide a high total return consistent with o JPMorgan Investment Management Inc. moderate risk to capital and maintenance of liquidity. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. o JPMorgan Investment Management Inc. OPPORTUNITIES - -----------------------------------------------------------------------------------------------------------------------------------
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- ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a sec- o AXA Equitable ondary objective to seek reasonable current income. For o Institutional Capital LLC purposes of this Portfolio, the words "reasonable o Mellon Capital Management Corporation current income" mean moderate income. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. o AXA Equitable o Marsico Capital Management, LLC o Mellon Capital Management Corporation - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LEGG MASON VALUE EQUITY Seeks to achieve long-term growth of capital. o Legg Mason Capital Management, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o BlackRock Financial Management, Inc. through investment in long-maturity debt obligations. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC INCOME income without excessive fluctuation in market value. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC CORE income with reasonable risk. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/LORD ABBETT MID CAP VALUE Seeks to achieve capital appreciation. o Lord, Abbett & Co. LLC - ----------------------------------------------------------------------------------------------------------------------------------- EQ/MARSICO FOCUS Seeks to achieve long-term growth of capital. o Marsico Capital Management, LLC - ----------------------------------------------------------------------------------------------------------------------------------- EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. o AXA Equitable o Mellon Capital Management Corporation o Wellington Management Company LLP - ----------------------------------------------------------------------------------------------------------------------------------- EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o The Dreyfus Corporation its assets and maintain liquidity. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc. GROWTH - ----------------------------------------------------------------------------------------------------------------------------------- EQ/MUTUAL SHARES Seeks to achieve capital appreciation, which may occa- o Franklin Mutual Advisers, LLC sionally be short-term, and secondarily, income. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. o OppenheimerFunds, Inc. OPPORTUNITY - ----------------------------------------------------------------------------------------------------------------------------------- EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. o OppenheimerFunds, Inc. SMALL CAP - ----------------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO REAL RETURN Seeks to achieve maximum real return consistent with o Pacific Investment Management Company, preservation of real capital and prudent investment man- LLC agement. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/SHORT DURATION BOND Seeks to achieve current income with reduced volatility o BlackRock Financial Management, Inc. of principal. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o AllianceBernstein L.P. deduction of Portfolio expenses) the total return of the Russell 2000 Index. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and o T. Rowe Price Associates, Inc. STOCK secondarily, income. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/TEMPLETON GROWTH Seeks to achieve long-term capital growth. o Templeton Global Advisors Limited - -----------------------------------------------------------------------------------------------------------------------------------
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- ----------------------------------------------------------------------------------------------------------------------------------- AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s), as Portfolio Name Objective applicable) - ----------------------------------------------------------------------------------------------------------------------------------- EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation o UBS Global Asset Management with income as a secondary consideration. (Americas) Inc. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. o Morgan Stanley Investment Management Inc. - ----------------------------------------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN EMERGING Seeks to achieve long-term capital appreciation. o Morgan Stanley Investment Management Inc. MARKETS EQUITY - ----------------------------------------------------------------------------------------------------------------------------------- EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. o Morgan Stanley Investment Management Inc. GROWTH - -----------------------------------------------------------------------------------------------------------------------------------
YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS AND CHARGES AND EXPENSES OF THE PORTFOLIOS CAREFULLY BEFORE INVESTING. THE PROSPECTUSES FOR THE TRUSTS CONTAIN THIS AND OTHER IMPORTANT INFORMATION ABOUT THE PORTFOLIOS. THE PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE INVESTING. (3) THE TRUSTS' ANNUAL EXPENSES AND EXPENSE EXAMPLE The following table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio. You also bear your proportionate share of all fees and expenses paid by a "Portfolio" that corresponds to any variable investment option you are using. This table shows the lowest and highest total operating expenses charged by any of the Portfolios that you will pay periodically during the time that you own the contract. These fees and expenses are reflected in the Portfolio's net asset value each day. Therefore, they reduce the investment return of the Portfolio and the related variable investment option. Actual fees and expenses are likely to fluctuate from year to year. More detail concerning each Portfolio's fees and expenses is contained in the Trust prospectus for the Portfolio.
- ----------------------------------------------------------------------------------------------------- Portfolio operating expenses expressed as an annual percentage of daily net assets - ----------------------------------------------------------------------------------------------------- Total Annual Portfolio Operating Expenses for 2007 (expenses that are deducted Lowest Highest from Portfolio assets including management fees, 12b-1 fees, service fees, ------ ------- and/or other expenses)(1) 0.63% 1.72%
This table shows the fees and expenses for 2007 as an annual percentage of each Portfolio's daily average net assets.
- -------------------------------------------------------------------------------- Manage- Other Portfolio Name ment Fees(2) 12b-1 Fees(3) Expenses (4) - -------------------------------------------------------------------------------- AXA Premier VIP Trust: - -------------------------------------------------------------------------------- AXA Aggressive Allocation 0.10% 0.25% 0.17% AXA Conservative Allocation 0.10% 0.25% 0.21% AXA Conservative-Plus Allocation 0.10% 0.25% 0.19% AXA Moderate Allocation 0.10% 0.25% 0.17% AXA Moderate-Plus Allocation 0.10% 0.25% 0.17% Multimanager Aggressive Equity 0.60% 0.25% 0.19% Multimanager Core Bond 0.58% 0.25% 0.18% Multimanager Health Care 1.20% 0.25% 0.23% Multimanager High Yield 0.57% 0.25% 0.19% Multimanager International Equity 1.00% 0.25% 0.23% Multimanager Large Cap Core Equity 0.89% 0.25% 0.21% Multimanager Large Cap Growth 0.90% 0.25% 0.22% Multimanager Large Cap Value 0.87% 0.25% 0.20% Multimanager Mid Cap Growth 1.10% 0.25% 0.20% Multimanager Mid Cap Value 1.09% 0.25% 0.20% Multimanager Small Cap Growth 1.05% 0.25% 0.27% Multimanager Small Cap Value 1.03% 0.25% 0.18% Multimanager Technology 1.20% 0.25% 0.22% - -------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- Acquired Fund Fees Total Annual Fee Waivers and Expenses and/or Net Annual Expenses (Before Expense Expenses (Underlying Expense Reimburse- After Expense Portfolio Name Portfolio)(5) Limitations) ments(6) Limitations - ----------------------------------------------------------------------------------------------- AXA Premier VIP Trust: - ----------------------------------------------------------------------------------------------- AXA Aggressive Allocation 0.92% 1.44% (0.17)% 1.27% AXA Conservative Allocation 0.69% 1.25% (0.21)% 1.04% AXA Conservative-Plus Allocation 0.76% 1.30% (0.19)% 1.11% AXA Moderate Allocation 0.82% 1.34% (0.17)% 1.17% AXA Moderate-Plus Allocation 0.86% 1.38% (0.17)% 1.21% Multimanager Aggressive Equity -- 1.04% -- 1.04% Multimanager Core Bond -- 1.01% (0.01)% 1.00% Multimanager Health Care -- 1.68% 0.00% 1.68% Multimanager High Yield -- 1.01% -- 1.01% Multimanager International Equity -- 1.48% 0.00% 1.48% Multimanager Large Cap Core Equity -- 1.35% 0.00% 1.35% Multimanager Large Cap Growth -- 1.37% (0.02)% 1.35% Multimanager Large Cap Value -- 1.32% 0.00% 1.32% Multimanager Mid Cap Growth -- 1.55% 0.00% 1.55% Multimanager Mid Cap Value -- 1.54% 0.00% 1.54% Multimanager Small Cap Growth -- 1.57% (0.02)% 1.55% Multimanager Small Cap Value -- 1.46% 0.00% 1.46% Multimanager Technology 0.01% 1.68% 0.00% 1.68% - -----------------------------------------------------------------------------------------------
7
- ------------------------------------------------------------------------------------------- Manage- Other Portfolio Name ment Fees(2) 12b-1 Fees(3) Expenses (4) - ------------------------------------------------------------------------------------------- EQ Advisors Trust: - ------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock 0.47% 0.25% 0.13% EQ/AllianceBernstein Intermediate Government 0.50% 0.25% 0.13% Securities EQ/AllianceBernstein International 0.71% 0.25% 0.18% EQ/AllianceBernstein Large Cap Growth 0.90% 0.25% 0.13% EQ/AllianceBernstein Quality Bond 0.50% 0.25% 0.14% EQ/AllianceBernstein Small Cap Growth 0.74% 0.25% 0.13% EQ/AllianceBernstein Value 0.59% 0.25% 0.12% EQ/Ariel Appreciation II 0.75% 0.25% 0.26% EQ/BlackRock Basic Value Equity 0.55% 0.25% 0.13% EQ/BlackRock International Value 0.81% 0.25% 0.19% EQ/Boston Advisors Equity Income 0.75% 0.25% 0.14% EQ/Calvert Socially Responsible 0.65% 0.25% 0.23% EQ/Capital Guardian Growth 0.65% 0.25% 0.14% EQ/Capital Guardian Research 0.63% 0.25% 0.13% EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.16% EQ/Davis New York Venture 0.85% 0.25% 0.18% EQ/Equity 500 Index 0.25% 0.25% 0.13% EQ/Evergreen International Bond 0.70% 0.25% 0.17% EQ/Evergreen Omega 0.65% 0.25% 0.25% EQ/FI Mid Cap 0.68% 0.25% 0.13% EQ/Franklin Income 0.90% 0.25% 0.15% EQ/Franklin Small Cap Value 0.90% 0.25% 0.18% EQ/Franklin Templeton Founding Strategy 0.05% 0.25% 0.22% EQ/GAMCO Mergers and Acquisitions 0.90% 0.25% 0.19% EQ/GAMCO Small Company Value 0.76% 0.25% 0.12% EQ/International Core PLUS 0.60% 0.25% 0.30% EQ/International Growth 0.85% 0.25% 0.27% EQ/JPMorgan Core Bond 0.43% 0.25% 0.13% EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.14% EQ/Large Cap Core PLUS 0.50% 0.25% 0.25% EQ/Large Cap Growth PLUS 0.50% 0.25% 0.24% EQ/Legg Mason Value Equity 0.65% 0.25% 0.17% EQ/Long Term Bond 0.40% 0.25% 0.13% EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.16% EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.21% EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.15% EQ/Marsico Focus 0.85% 0.25% 0.13% EQ/Mid Cap Value PLUS 0.55% 0.25% 0.24% EQ/Money Market 0.32% 0.25% 0.13% EQ/Montag & Caldwell Growth 0.75% 0.25% 0.15% EQ/Mutual Shares 0.90% 0.25% 0.21% EQ/Oppenheimer Global 0.95% 0.25% 0.51% EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.45% EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.48% EQ/PIMCO Real Return 0.55% 0.25% 0.14% EQ/Short Duration Bond 0.43% 0.25% 0.15% EQ/Small Company Index 0.25% 0.25% 0.14% EQ/T. Rowe Price Growth Stock 0.79% 0.25% 0.14% EQ/Templeton Growth 0.95% 0.25% 0.20% EQ/UBS Growth and Income 0.75% 0.25% 0.16% EQ/Van Kampen Comstock 0.65% 0.25% 0.15% EQ/Van Kampen Emerging Markets Equity 1.11% 0.25% 0.28% EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.15% - ------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------- Acquired Fund Fees Total Annual Fee Waivers and Expenses and/or Net Annual Expenses (Before Expense Expenses (Underlying Expense Reimburse- After Expense Portfolio Name Portfolio)(5) Limitations) ments(6) Limitations - --------------------------------------------------------------------------------------------------------- EQ Advisors Trust: - --------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- 0.85% -- 0.85% EQ/AllianceBernstein Intermediate Government -- 0.88% -- 0.88% Securities EQ/AllianceBernstein International -- 1.14% (0.04)% 1.10% EQ/AllianceBernstein Large Cap Growth -- 1.28% (0.23)% 1.05% EQ/AllianceBernstein Quality Bond -- 0.89% -- 0.89% EQ/AllianceBernstein Small Cap Growth -- 1.12% -- 1.12% EQ/AllianceBernstein Value -- 0.96% (0.01)% 0.95% EQ/Ariel Appreciation II -- 1.26% (0.11)% 1.15% EQ/BlackRock Basic Value Equity -- 0.93% 0.00% 0.93% EQ/BlackRock International Value -- 1.25% 0.00% 1.25% EQ/Boston Advisors Equity Income -- 1.14% (0.09)% 1.05% EQ/Calvert Socially Responsible -- 1.13% (0.08)% 1.05% EQ/Capital Guardian Growth 0.01% 1.05% (0.09)% 0.96% EQ/Capital Guardian Research -- 1.01% (0.06)% 0.95% EQ/Caywood-Scholl High Yield Bond -- 1.01% (0.01)% 1.00% EQ/Davis New York Venture -- 1.28% 0.00% 1.28% EQ/Equity 500 Index -- 0.63% -- 0.63% EQ/Evergreen International Bond -- 1.12% 0.00% 1.12% EQ/Evergreen Omega -- 1.15% 0.00% 1.15% EQ/FI Mid Cap -- 1.06% (0.06)% 1.00% EQ/Franklin Income -- 1.30% 0.00% 1.30% EQ/Franklin Small Cap Value -- 1.33% (0.03)% 1.30% EQ/Franklin Templeton Founding Strategy 1.05% 1.57% (0.12)% 1.45%(7) EQ/GAMCO Mergers and Acquisitions -- 1.34% 0.00% 1.34% EQ/GAMCO Small Company Value -- 1.13% 0.00% 1.13% EQ/International Core PLUS 0.04% 1.19% (0.05)% 1.14% EQ/International Growth -- 1.37% 0.00% 1.37% EQ/JPMorgan Core Bond -- 0.81% 0.00% 0.81% EQ/JPMorgan Value Opportunities -- 0.99% (0.04)% 0.95% EQ/Large Cap Core PLUS 0.02% 1.02% (0.05)% 0.97% EQ/Large Cap Growth PLUS 0.02% 1.01% (0.04)% 0.97% EQ/Legg Mason Value Equity -- 1.07% (0.07)% 1.00% EQ/Long Term Bond -- 0.78% 0.00% 0.78% EQ/Lord Abbett Growth and Income -- 1.06% (0.06)% 1.00% EQ/Lord Abbett Large Cap Core -- 1.11% (0.11)% 1.00% EQ/Lord Abbett Mid Cap Value -- 1.10% (0.05)% 1.05% EQ/Marsico Focus -- 1.23% (0.08)% 1.15% EQ/Mid Cap Value PLUS 0.02% 1.06% (0.04)% 1.02% EQ/Money Market -- 0.70% -- 0.70% EQ/Montag & Caldwell Growth -- 1.15% 0.00% 1.15% EQ/Mutual Shares -- 1.36% (0.06)% 1.30% EQ/Oppenheimer Global 0.01% 1.72% (0.36)% 1.36% EQ/Oppenheimer Main Street Opportunity 0.01% 1.56% (0.25)% 1.31% EQ/Oppenheimer Main Street Small Cap 0.01% 1.64% (0.33)% 1.31% EQ/PIMCO Real Return -- 0.94% (0.04)% 0.90% EQ/Short Duration Bond -- 0.83% 0.00% 0.83% EQ/Small Company Index -- 0.64% 0.00% 0.64% EQ/T. Rowe Price Growth Stock -- 1.18% (0.03)% 1.15% EQ/Templeton Growth -- 1.40% (0.05)% 1.35% EQ/UBS Growth and Income -- 1.16% (0.11)% 1.05% EQ/Van Kampen Comstock -- 1.05% (0.05)% 1.00% EQ/Van Kampen Emerging Markets Equity -- 1.64% 0.00% 1.64% EQ/Van Kampen Mid Cap Growth -- 1.10% (0.05)% 1.05% - ---------------------------------------------------------------------------------------------------------
Notes: (1) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2007 and for the underlying portfolios. 8 (2) The management fees for each Portfolio cannot be increased without a vote of that Portfolio's Shareholders. See footnotes (6) and (7) for any expense limitation agreement information. (3) Portfolio shares are all subject to fees imposed under the distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under the Investment Company Act of 1940. For the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust, the 12b-1 fees will not be increased for the life of the contract. (4) Other expenses shown are those incurred in 2007. The amounts shown as "Other Expenses" will fluctuate from year to year depending on actual expenses. See footnotes (6) and (7) for any expense limitation agreement information. (5) Each of these variable investment options invest in a corresponding Portfolio of one of the Trusts or other unaffiliated investment companies. Each Portfolio, in turn, invests in shares of other Portfolios of the Trusts and/or shares of unaffiliated portfolios ("the underlying portfolios"). Amounts shown reflect each Portfolio's pro rata share of the fees and expenses of the underlying portfolios in which it invests. A "--" indicates that the listed Portfolio does not invest in underlying portfolios. (6) The amounts shown reflect any fee waivers and/or expense reimbursements that applied to each Portfolio. A "--" indicates that there is no expense limitation in effect. "0.00%" indicates that the expense limitation arrangement did not result in a fee waiver or reimbursement. AXA Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has entered into expense limitation agreements with respect to certain Portfolios, which are effective through April 30, 2009 (unless the Board of Trustees of AXA Premier VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier revision or termination of this arrangement). Under these agreements, AXA Equitable has agreed to waive or limit its fees and assume other expenses of certain Portfolios, if necessary, in an amount that limits each affected Portfolio's Total Annual Expenses (exclusive of interest, taxes, brokerage commissions, capitalized expenditures expenses of the underlying portfolios in which the Portfolio invests and extraordinary expenses) to not more than the amounts specified in the agreements. Therefore, each Portfolio may at a later date make a reimbursement to AXA Equitable for any of the management fees waived or limited and other expenses assumed and paid by AXA Equitable pursuant to the expense limitation agreements provided that the Portfolio's current annual operating expenses do not exceed the operating expense limit determined for such Portfolio. See the prospectus for each applicable underlying Trust for more information about the arrangements. In addition, a portion of the brokerage commissions of certain portfolios of AXA Premier VIP Trust and EQ Advisors Trust is used to reduce the applicable Portfolio's expenses. If the above table reflected both the expense limitation arrangements plus the portion of the brokerage commissions used to reduce Portfolio expenses, the net expenses would be as shown in the table below:
- --------------------------------------------------- Portfolio Name - --------------------------------------------------- Multimanager Aggressive Equity 0.97% Multimanager Health Care 1.67% Multimanager Large Cap Core Equity 1.34% Multimanager Large Cap Growth 1.29% Multimanager Large Cap Value 1.26% Multimanager Mid Cap Growth 1.52% Multimanager Mid Cap Value 1.53% Multimanager Small Cap Growth 1.35% Multimanager Small Cap Value 1.45% Multimanager Technology 1.67% EQ/AllianceBernstein Common Stock 0.84% EQ/AllianceBernstein Large Cap Growth 1.03% EQ/AllianceBernstein Small Cap Growth 1.11% EQ/AllianceBernstein Value 0.87% EQ/Ariel Appreciation II 1.09% EQ/BlackRock Basic Value Equity 0.92% EQ/Davis New York Venture 1.25% EQ/Evergreen Omega 1.12% EQ/GAMCO Mergers and Acquisitions 1.33% EQ/GAMCO Small Company Value 1.10% EQ/International Core PLUS 1.05% EQ/Large Cap Core PLUS 0.83% EQ/Large Cap Growth PLUS 0.82% EQ/Legg Mason Value Equity 0.97% EQ/Lord Abbett Growth and Income 0.98% EQ/Lord Abbett Large Cap Core 0.99% EQ/Lord Abbett Mid Cap Value 1.04% EQ/Mid Cap Value PLUS 0.81% EQ/Montag & Caldwell Growth 1.13% EQ/T. Rowe Price Growth Stock 0.87% EQ/UBS Growth and Income 1.04% EQ/Van Kampen Comstock 0.99% EQ/Van Kampen Mid Cap Growth 1.04% - ---------------------------------------------------
(7) In addition to the fee waiver and/or expense reimbursement discussed in the footnote immediately above, AXA Equitable, voluntarily will waive all its management and administration fees and reimburse all other expenses associated with the EQ/Franklin Templeton Founding Strategy Portfolio ("Portfolio") (exclusive of taxes, interest, brokerage commissions, capitalized expenses, expenses of the investment companies in which the Portfolio invests, Rule 12b-1 fees and extraordinary expenses). Accordingly, the Total Annual Operating Expenses (including Acquired Fund Fees and Expenses), taking into account the voluntary waiver by AXA Equitable, will be 1.30%. The voluntary waiver by AXA Equitable will remain in effect until April 30, 2009. EXAMPLE This example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses of 1.55% (actual expenses under your contract may be less), and underlying trust fees and expenses. 9 The example below shows the expenses that a hypothetical contract owner (who has elected the Guaranteed Minimum Income Benefit with either the 6% Roll-Up to age 80 or the Annual Ratchet to age 80 Guaranteed minimum death benefit and Protection Plus(SM)) would pay in the situations illustrated. The example uses an average annual administrative charge based on the charges paid in 2007, which results in an estimated administrative charge of 0.0% of contract value. Some of these features may not be available or may be different under your contract. Some of these charges may not be applicable under your contract. The fixed maturity options and the account for special dollar cost averaging are not covered by the fee table and example. However, the annual administrative charge, the charge if you elect a Variable Immediate Annuity payout option, the charge for any optional benefits and the withdrawal charge do apply to the fixed maturity options and the account for special dollar cost averaging. A market value adjustment (up or down) may apply as a result of a withdrawal, transfer, or surrender of amounts from a fixed maturity option. Some of these investment options and charges may not be applicable under your contract. The example assumes that you invest $10,000 in the contract for the time periods indicated and that your investment has a 5% return each year. Other than the administrative charge (which is described immediately above), the example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. This example should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the example is not an estimate or guarantee of future investment performance. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 10
- --------------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period ------------------------------------------------------------ Portfolio Name 1 year 3 years 5 years 10 years - --------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - --------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 1,066.00 $ 1,618.00 $ 2,194.00 $ 3,949.00 AXA Conservative Allocation $ 1,047.00 $ 1,559.00 $ 2,098.00 $ 3,768.00 AXA Conservative-Plus Allocation $ 1,052.00 $ 1,574.00 $ 2,123.00 $ 3,816.00 AXA Moderate Allocation $ 1,056.00 $ 1,587.00 $ 2,143.00 $ 3,854.00 AXA Moderate-Plus Allocation $ 1,060.00 $ 1,599.00 $ 2,164.00 $ 3,892.00 Multimanager Aggressive Equity $ 1,024.00 $ 1,494.00 $ 1,991.00 $ 3,564.00 Multimanager Core Bond $ 1,021.00 $ 1,484.00 $ 1,975.00 $ 3,535.00 Multimanager Health Care $ 1,092.00 $ 1,691.00 $ 2,314.00 $ 4,172.00 Multimanager High Yield $ 1,021.00 $ 1,484.00 $ 1,975.00 $ 3,535.00 Multimanager International Equity $ 1,071.00 $ 1,630.00 $ 2,214.00 $ 3,987.00 Multimanager Large Cap Core Equity $ 1,057.00 $ 1,590.00 $ 2,148.00 $ 3,864.00 Multimanager Large Cap Growth $ 1,059.00 $ 1,596.00 $ 2,158.00 $ 3,883.00 Multimanager Large Cap Value $ 1,054.00 $ 1,581.00 $ 2,133.00 $ 3,835.00 Multimanager Mid Cap Growth $ 1,078.00 $ 1,651.00 $ 2,249.00 $ 4,052.00 Multimanager Mid Cap Value $ 1,077.00 $ 1,648.00 $ 2,244.00 $ 4,043.00 Multimanager Small Cap Growth $ 1,080.00 $ 1,658.00 $ 2,259.00 $ 4,071.00 Multimanager Small Cap Value $ 1,069.00 $ 1,624.00 $ 2,204.00 $ 3,968.00 Multimanager Technology $ 1,092.00 $ 1,691.00 $ 2,314.00 $ 4,172.00 - --------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - --------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 1,005.00 $ 1,434.00 $ 1,893.00 $ 3,376.00 EQ/AllianceBernstein Intermediate Government Securities $ 1,008.00 $ 1,444.00 $ 1,909.00 $ 3,406.00 EQ/AllianceBernstein International $ 1,035.00 $ 1,525.00 $ 2,042.00 $ 3,662.00 EQ/AllianceBernstein Large Cap Growth $ 1,050.00 $ 1,568.00 $ 2,113.00 $ 3,797.00 EQ/AllianceBernstein Quality Bond $ 1,009.00 $ 1,447.00 $ 1,914.00 $ 3,416.00 EQ/AllianceBernstein Small Cap Growth $ 1,033.00 $ 1,519.00 $ 2,032.00 $ 3,642.00 EQ/AllianceBernstein Value $ 1,016.00 $ 1,469.00 $ 1,950.00 $ 3,485.00 EQ/Ariel Appreciation II $ 1,048.00 $ 1,562.00 $ 2,103.00 $ 3,778.00 EQ/BlackRock Basic Value Equity $ 1,013.00 $ 1,459.00 $ 1,934.00 $ 3,455.00 EQ/BlackRock International Value $ 1,047.00 $ 1,559.00 $ 2,098.00 $ 3,768.00 EQ/Boston Advisors Equity Income $ 1,035.00 $ 1,525.00 $ 2,042.00 $ 3,662.00 EQ/Calvert Socially Responsible $ 1,034.00 $ 1,522.00 $ 2,037.00 $ 3,652.00 EQ/Capital Guardian Growth $ 1,026.00 $ 1,497.00 $ 1,996.00 $ 3,574.00 EQ/Capital Guardian Research $ 1,021.00 $ 1,484.00 $ 1,975.00 $ 3,535.00 EQ/Caywood-Scholl High Yield Bond $ 1,021.00 $ 1,484.00 $ 1,975.00 $ 3,535.00 EQ/Davis New York Venture $ 1,050.00 $ 1,568.00 $ 2,113.00 $ 3,797.00 EQ/Equity 500 Index $ 981.00 $ 1,365.00 $ 1,779.00 $ 3,153.00 EQ/Evergreen International Bond $ 1,033.00 $ 1,519.00 $ 2,032.00 $ 3,642.00 - --------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period and select a non-life contingent period certain annuity option with less than five years ---------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation N/A $ 1,618.00 $ 2,194.00 $ 3,949.00 AXA Conservative Allocation N/A $ 1,559.00 $ 2,098.00 $ 3,768.00 AXA Conservative-Plus Allocation N/A $ 1,574.00 $ 2,123.00 $ 3,816.00 AXA Moderate Allocation N/A $ 1,587.00 $ 2,143.00 $ 3,854.00 AXA Moderate-Plus Allocation N/A $ 1,599.00 $ 2,164.00 $ 3,892.00 Multimanager Aggressive Equity N/A $ 1,494.00 $ 1,991.00 $ 3,564.00 Multimanager Core Bond N/A $ 1,484.00 $ 1,975.00 $ 3,535.00 Multimanager Health Care N/A $ 1,691.00 $ 2,314.00 $ 4,172.00 Multimanager High Yield N/A $ 1,484.00 $ 1,975.00 $ 3,535.00 Multimanager International Equity N/A $ 1,630.00 $ 2,214.00 $ 3,987.00 Multimanager Large Cap Core Equity N/A $ 1,590.00 $ 2,148.00 $ 3,864.00 Multimanager Large Cap Growth N/A $ 1,596.00 $ 2,158.00 $ 3,883.00 Multimanager Large Cap Value N/A $ 1,581.00 $ 2,133.00 $ 3,835.00 Multimanager Mid Cap Growth N/A $ 1,651.00 $ 2,249.00 $ 4,052.00 Multimanager Mid Cap Value N/A $ 1,648.00 $ 2,244.00 $ 4,043.00 Multimanager Small Cap Growth N/A $ 1,658.00 $ 2,259.00 $ 4,071.00 Multimanager Small Cap Value N/A $ 1,624.00 $ 2,204.00 $ 3,968.00 Multimanager Technology N/A $ 1,691.00 $ 2,314.00 $ 4,172.00 - ------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock N/A $ 1,434.00 $ 1,893.00 $ 3,376.00 EQ/AllianceBernstein Intermediate Government Securities N/A $ 1,444.00 $ 1,909.00 $ 3,406.00 EQ/AllianceBernstein International N/A $ 1,525.00 $ 2,042.00 $ 3,662.00 EQ/AllianceBernstein Large Cap Growth N/A $ 1,568.00 $ 2,113.00 $ 3,797.00 EQ/AllianceBernstein Quality Bond N/A $ 1,447.00 $ 1,914.00 $ 3,416.00 EQ/AllianceBernstein Small Cap Growth N/A $ 1,519.00 $ 2,032.00 $ 3,642.00 EQ/AllianceBernstein Value N/A $ 1,469.00 $ 1,950.00 $ 3,485.00 EQ/Ariel Appreciation II N/A $ 1,562.00 $ 2,103.00 $ 3,778.00 EQ/BlackRock Basic Value Equity N/A $ 1,459.00 $ 1,934.00 $ 3,455.00 EQ/BlackRock International Value N/A $ 1,559.00 $ 2,098.00 $ 3,768.00 EQ/Boston Advisors Equity Income N/A $ 1,525.00 $ 2,042.00 $ 3,662.00 EQ/Calvert Socially Responsible N/A $ 1,522.00 $ 2,037.00 $ 3,652.00 EQ/Capital Guardian Growth N/A $ 1,497.00 $ 1,996.00 $ 3,574.00 EQ/Capital Guardian Research N/A $ 1,484.00 $ 1,975.00 $ 3,535.00 EQ/Caywood-Scholl High Yield Bond N/A $ 1,484.00 $ 1,975.00 $ 3,535.00 EQ/Davis New York Venture N/A $ 1,568.00 $ 2,113.00 $ 3,797.00 EQ/Equity 500 Index N/A $ 1,365.00 $ 1,779.00 $ 3,153.00 EQ/Evergreen International Bond N/A $ 1,519.00 $ 2,032.00 $ 3,642.00 - ------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period ---------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ------------------------------------------------------------------------------------------------------- AXA PREMIER VIP TRUST: - ------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation $ 366.00 $ 1,118.00 $ 1,894.00 $ 3,949.00 AXA Conservative Allocation $ 347.00 $ 1,059.00 $ 1,798.00 $ 3,768.00 AXA Conservative-Plus Allocation $ 352.00 $ 1,074.00 $ 1,823.00 $ 3,816.00 AXA Moderate Allocation $ 356.00 $ 1,087.00 $ 1,843.00 $ 3,854.00 AXA Moderate-Plus Allocation $ 360.00 $ 1,099.00 $ 1,864.00 $ 3,892.00 Multimanager Aggressive Equity $ 324.00 $ 994.00 $ 1,691.00 $ 3,564.00 Multimanager Core Bond $ 321.00 $ 984.00 $ 1,675.00 $ 3,535.00 Multimanager Health Care $ 392.00 $ 1,191.00 $ 2,014.00 $ 4,172.00 Multimanager High Yield $ 321.00 $ 984.00 $ 1,675.00 $ 3,535.00 Multimanager International Equity $ 371.00 $ 1,130.00 $ 1,914.00 $ 3,987.00 Multimanager Large Cap Core Equity $ 357.00 $ 1,090.00 $ 1,848.00 $ 3,864.00 Multimanager Large Cap Growth $ 359.00 $ 1,096.00 $ 1,858.00 $ 3,883.00 Multimanager Large Cap Value $ 354.00 $ 1,081.00 $ 1,833.00 $ 3,835.00 Multimanager Mid Cap Growth $ 378.00 $ 1,151.00 $ 1,949.00 $ 4,052.00 Multimanager Mid Cap Value $ 377.00 $ 1,148.00 $ 1,944.00 $ 4,043.00 Multimanager Small Cap Growth $ 380.00 $ 1,158.00 $ 1,959.00 $ 4,071.00 Multimanager Small Cap Value $ 369.00 $ 1,124.00 $ 1,904.00 $ 3,968.00 Multimanager Technology $ 392.00 $ 1,191.00 $ 2,014.00 $ 4,172.00 - ------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock $ 304.00 $ 934.00 $ 1,593.00 $ 3,376.00 EQ/AllianceBernstein Intermediate Government Securities $ 308.00 $ 944.00 $ 1,609.00 $ 3,406.00 EQ/AllianceBernstein International $ 335.00 $ 1,025.00 $ 1,742.00 $ 3,662.00 EQ/AllianceBernstein Large Cap Growth $ 350.00 $ 1,068.00 $ 1,813.00 $ 3,797.00 EQ/AllianceBernstein Quality Bond $ 309.00 $ 947.00 $ 1,614.00 $ 3,416.00 EQ/AllianceBernstein Small Cap Growth $ 333.00 $ 1,019.00 $ 1,732.00 $ 3,642.00 EQ/AllianceBernstein Value $ 316.00 $ 969.00 $ 1,650.00 $ 3,485.00 EQ/Ariel Appreciation II $ 348.00 $ 1,062.00 $ 1,803.00 $ 3,778.00 EQ/BlackRock Basic Value Equity $ 313.00 $ 959.00 $ 1,634.00 $ 3,455.00 EQ/BlackRock International Value $ 347.00 $ 1,059.00 $ 1,798.00 $ 3,768.00 EQ/Boston Advisors Equity Income $ 335.00 $ 1,025.00 $ 1,742.00 $ 3,662.00 EQ/Calvert Socially Responsible $ 334.00 $ 1,022.00 $ 1,737.00 $ 3,652.00 EQ/Capital Guardian Growth $ 326.00 $ 997.00 $ 1,696.00 $ 3,574.00 EQ/Capital Guardian Research $ 321.00 $ 984.00 $ 1,675.00 $ 3,535.00 EQ/Caywood-Scholl High Yield Bond $ 321.00 $ 984.00 $ 1,675.00 $ 3,535.00 EQ/Davis New York Venture $ 350.00 $ 1,068.00 $ 1,813.00 $ 3,797.00 EQ/Equity 500 Index $ 281.00 $ 865.00 $ 1,479.00 $ 3,153.00 EQ/Evergreen International Bond $ 333.00 $ 1,019.00 $ 1,732.00 $ 3,642.00 - 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11
- ----------------------------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period ------------------------------------------------------------ Portfolio Name 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------------- EQ/Evergreen Omega $ 1,036.00 $ 1,528.00 $ 2,047.00 $ 3,672.00 EQ/FI Mid Cap $ 1,027.00 $ 1,500.00 $ 2,001.00 $ 3,584.00 EQ/Franklin Income $ 1,052.00 $ 1,574.00 $ 2,123.00 $ 3,816.00 EQ/Franklin Small Cap Value $ 1,055.00 $ 1,584.00 $ 2,138.00 $ 3,845.00 EQ/Franklin Templeton Founding Strategy $ 1,080.00 $ 1,658.00 $ 2,259.00 $ 4,071.00 EQ/GAMCO Mergers and Acquisitions $ 1,056.00 $ 1,587.00 $ 2,143.00 $ 3,854.00 EQ/GAMCO Small Company Value $ 1,034.00 $ 1,522.00 $ 2,037.00 $ 3,652.00 EQ/International Core PLUS $ 1,040.00 $ 1,540.00 $ 2,067.00 $ 3,710.00 EQ/International Growth $ 1,059.00 $ 1,596.00 $ 2,158.00 $ 3,883.00 EQ/JPMorgan Core Bond $ 1,000.00 $ 1,422.00 $ 1,873.00 $ 3,335.00 EQ/JPMorgan Value Opportunities $ 1,019.00 $ 1,478.00 $ 1,965.00 $ 3,515.00 EQ/Large Cap Core PLUS $ 1,022.00 $ 1,487.00 $ 1,981.00 $ 3,544.00 EQ/Large Cap Growth PLUS $ 1,021.00 $ 1,484.00 $ 1,975.00 $ 3,535.00 EQ/Legg Mason Value Equity $ 1,028.00 $ 1,503.00 $ 2,006.00 $ 3,594.00 EQ/Long Term Bond $ 997.00 $ 1,413.00 $ 1,857.00 $ 3,305.00 EQ/Lord Abbett Growth and Income $ 1,027.00 $ 1,500.00 $ 2,001.00 $ 3,584.00 EQ/Lord Abbett Large Cap Core $ 1,032.00 $ 1,515.00 $ 2,027.00 $ 3,633.00 EQ/Lord Abbett Mid Cap Value $ 1,031.00 $ 1,512.00 $ 2,021.00 $ 3,623.00 EQ/Marsico Focus $ 1,044.00 $ 1,553.00 $ 2,088.00 $ 3,749.00 EQ/Mid Cap Value PLUS $ 1,027.00 $ 1,500.00 $ 2,001.00 $ 3,584.00 EQ/Money Market $ 989.00 $ 1,387.00 $ 1,816.00 $ 3,224.00 EQ/Montag & Caldwell Growth $ 1,036.00 $ 1,528.00 $ 2,047.00 $ 3,672.00 EQ/Mutual Shares $ 1,058.00 $ 1,593.00 $ 2,153.00 $ 3,873.00 EQ/Oppenheimer Global $ 1,096.00 $ 1,704.00 $ 2,334.00 $ 4,209.00 EQ/Oppenheimer Main Street Opportunity $ 1,079.00 $ 1,655.00 $ 2,254.00 $ 4,061.00 EQ/Oppenheimer Main Street Small Cap $ 1,087.00 $ 1,679.00 $ 2,294.00 $ 4,136.00 EQ/PIMCO Real Return $ 1,014.00 $ 1,462.00 $ 1,940.00 $ 3,465.00 EQ/Short Duration Bond $ 1,002.00 $ 1,428.00 $ 1,883.00 $ 3,356.00 EQ/Small Company Index $ 982.00 $ 1,369.00 $ 1,784.00 $ 3,163.00 EQ/T. Rowe Price Growth Stock $ 1,039.00 $ 1,537.00 $ 2,062.00 $ 3,701.00 EQ/Templeton Growth $ 1,062.00 $ 1,605.00 $ 2,174.00 $ 3,911.00 EQ/UBS Growth and Income $ 1,037.00 $ 1,531.00 $ 2,052.00 $ 3,681.00 EQ/Van Kampen Comstock $ 1,026.00 $ 1,497.00 $ 1,996.00 $ 3,574.00 EQ/Van Kampen Emerging Markets Equity $ 1,087.00 $ 1,679.00 $ 2,294.00 $ 4,136.00 EQ/Van Kampen Mid Cap Growth $ 1,031.00 $ 1,512.00 $ 2,021.00 $ 3,623.00 - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- If you annuitize at the end of the applicable time period and select a non-life contingent period certain annuity option with less than five years ------------------------------------------------------ Portfolio Name 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------- EQ/Evergreen Omega N/A $ 1,528.00 $ 2,047.00 $ 3,672.00 EQ/FI Mid Cap N/A $ 1,500.00 $ 2,001.00 $ 3,584.00 EQ/Franklin Income N/A $ 1,574.00 $ 2,123.00 $ 3,816.00 EQ/Franklin Small Cap Value N/A $ 1,584.00 $ 2,138.00 $ 3,845.00 EQ/Franklin Templeton Founding Strategy N/A $ 1,658.00 $ 2,259.00 $ 4,071.00 EQ/GAMCO Mergers and Acquisitions N/A $ 1,587.00 $ 2,143.00 $ 3,854.00 EQ/GAMCO Small Company Value N/A $ 1,522.00 $ 2,037.00 $ 3,652.00 EQ/International Core PLUS N/A $ 1,540.00 $ 2,067.00 $ 3,710.00 EQ/International Growth N/A $ 1,596.00 $ 2,158.00 $ 3,883.00 EQ/JPMorgan Core Bond N/A $ 1,422.00 $ 1,873.00 $ 3,335.00 EQ/JPMorgan Value Opportunities N/A $ 1,478.00 $ 1,965.00 $ 3,515.00 EQ/Large Cap Core PLUS N/A $ 1,487.00 $ 1,981.00 $ 3,544.00 EQ/Large Cap Growth PLUS N/A $ 1,484.00 $ 1,975.00 $ 3,535.00 EQ/Legg Mason Value Equity N/A $ 1,503.00 $ 2,006.00 $ 3,594.00 EQ/Long Term Bond N/A $ 1,413.00 $ 1,857.00 $ 3,305.00 EQ/Lord Abbett Growth and Income N/A $ 1,500.00 $ 2,001.00 $ 3,584.00 EQ/Lord Abbett Large Cap Core N/A $ 1,515.00 $ 2,027.00 $ 3,633.00 EQ/Lord Abbett Mid Cap Value N/A $ 1,512.00 $ 2,021.00 $ 3,623.00 EQ/Marsico Focus N/A $ 1,553.00 $ 2,088.00 $ 3,749.00 EQ/Mid Cap Value PLUS N/A $ 1,500.00 $ 2,001.00 $ 3,584.00 EQ/Money Market N/A $ 1,387.00 $ 1,816.00 $ 3,224.00 EQ/Montag & Caldwell Growth N/A $ 1,528.00 $ 2,047.00 $ 3,672.00 EQ/Mutual Shares N/A $ 1,593.00 $ 2,153.00 $ 3,873.00 EQ/Oppenheimer Global N/A $ 1,704.00 $ 2,334.00 $ 4,209.00 EQ/Oppenheimer Main Street Opportunity N/A $ 1,655.00 $ 2,254.00 $ 4,061.00 EQ/Oppenheimer Main Street Small Cap N/A $ 1,679.00 $ 2,294.00 $ 4,136.00 EQ/PIMCO Real Return N/A $ 1,462.00 $ 1,940.00 $ 3,465.00 EQ/Short Duration Bond N/A $ 1,428.00 $ 1,883.00 $ 3,356.00 EQ/Small Company Index N/A $ 1,369.00 $ 1,784.00 $ 3,163.00 EQ/T. Rowe Price Growth Stock N/A $ 1,537.00 $ 2,062.00 $ 3,701.00 EQ/Templeton Growth N/A $ 1,605.00 $ 2,174.00 $ 3,911.00 EQ/UBS Growth and Income N/A $ 1,531.00 $ 2,052.00 $ 3,681.00 EQ/Van Kampen Comstock N/A $ 1,497.00 $ 1,996.00 $ 3,574.00 EQ/Van Kampen Emerging Markets Equity N/A $ 1,679.00 $ 2,294.00 $ 4,136.00 EQ/Van Kampen Mid Cap Growth N/A $ 1,512.00 $ 2,021.00 $ 3,623.00 - ----------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- If you do not surrender your contract at the end of the applicable time period ---------------------------------------------------------- Portfolio Name 1 year 3 years 5 years 10 years - ----------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST: - ----------------------------------------------------------------------------------------------------- EQ/Evergreen Omega $ 336.00 $ 1,028.00 $ 1,747.00 $ 3,672.00 EQ/FI Mid Cap $ 327.00 $ 1,000.00 $ 1,701.00 $ 3,584.00 EQ/Franklin Income $ 352.00 $ 1,074.00 $ 1,823.00 $ 3,816.00 EQ/Franklin Small Cap Value $ 355.00 $ 1,084.00 $ 1,838.00 $ 3,845.00 EQ/Franklin Templeton Founding Strategy $ 380.00 $ 1,158.00 $ 1,959.00 $ 4,071.00 EQ/GAMCO Mergers and Acquisitions $ 356.00 $ 1,087.00 $ 1,843.00 $ 3,854.00 EQ/GAMCO Small Company Value $ 334.00 $ 1,022.00 $ 1,737.00 $ 3,652.00 EQ/International Core PLUS $ 340.00 $ 1,040.00 $ 1,767.00 $ 3,710.00 EQ/International Growth $ 359.00 $ 1,096.00 $ 1,858.00 $ 3,883.00 EQ/JPMorgan Core Bond $ 300.00 $ 922.00 $ 1,573.00 $ 3,335.00 EQ/JPMorgan Value Opportunities $ 319.00 $ 978.00 $ 1,665.00 $ 3,515.00 EQ/Large Cap Core PLUS $ 322.00 $ 987.00 $ 1,681.00 $ 3,544.00 EQ/Large Cap Growth PLUS $ 321.00 $ 984.00 $ 1,675.00 $ 3,535.00 EQ/Legg Mason Value Equity $ 328.00 $ 1,003.00 $ 1,706.00 $ 3,594.00 EQ/Long Term Bond $ 297.00 $ 913.00 $ 1,557.00 $ 3,305.00 EQ/Lord Abbett Growth and Income $ 327.00 $ 1,000.00 $ 1,701.00 $ 3,584.00 EQ/Lord Abbett Large Cap Core $ 332.00 $ 1,015.00 $ 1,727.00 $ 3,633.00 EQ/Lord Abbett Mid Cap Value $ 331.00 $ 1,012.00 $ 1,721.00 $ 3,623.00 EQ/Marsico Focus $ 344.00 $ 1,053.00 $ 1,788.00 $ 3,749.00 EQ/Mid Cap Value PLUS $ 327.00 $ 1,000.00 $ 1,701.00 $ 3,584.00 EQ/Money Market $ 289.00 $ 887.00 $ 1,516.00 $ 3,224.00 EQ/Montag & Caldwell Growth $ 336.00 $ 1,028.00 $ 1,747.00 $ 3,672.00 EQ/Mutual Shares $ 358.00 $ 1,093.00 $ 1,853.00 $ 3,873.00 EQ/Oppenheimer Global $ 396.00 $ 1,204.00 $ 2,034.00 $ 4,209.00 EQ/Oppenheimer Main Street Opportunity $ 379.00 $ 1,155.00 $ 1,954.00 $ 4,061.00 EQ/Oppenheimer Main Street Small Cap $ 387.00 $ 1,179.00 $ 1,994.00 $ 4,136.00 EQ/PIMCO Real Return $ 314.00 $ 962.00 $ 1,640.00 $ 3,465.00 EQ/Short Duration Bond $ 302.00 $ 928.00 $ 1,583.00 $ 3,356.00 EQ/Small Company Index $ 282.00 $ 869.00 $ 1,484.00 $ 3,163.00 EQ/T. Rowe Price Growth Stock $ 339.00 $ 1,037.00 $ 1,762.00 $ 3,701.00 EQ/Templeton Growth $ 362.00 $ 1,105.00 $ 1,874.00 $ 3,911.00 EQ/UBS Growth and Income $ 337.00 $ 1,031.00 $ 1,752.00 $ 3,681.00 EQ/Van Kampen Comstock $ 326.00 $ 997.00 $ 1,696.00 $ 3,574.00 EQ/Van Kampen Emerging Markets Equity $ 387.00 $ 1,179.00 $ 1,994.00 $ 4,136.00 EQ/Van Kampen Mid Cap Growth $ 331.00 $ 1,012.00 $ 1,721.00 $ 3,623.00 - -----------------------------------------------------------------------------------------------------
For information on how your contract works under certain hypothetical circumstances, please see item (14) at the end of this Prospectus. 12 (4) IMPORTANT INFORMATION ABOUT YOUR GUARANTEED BENEFITS For purposes of calculating any applicable guaranteed minimum death benefit or guaranteed minimum income benefit (if elected) that rolls-up at a specified rate, the EQ/Short Duration Bond, EQ/Money Market, EQ/AllianceBernstein Intermediate Government Securities, and the Fixed Maturity Options (FMOs) are investment options for which the benefit base rolls up at 3%. In some early Accumulator(R) Series, this group of funds rolls up at 4% and certain additional variable investment options roll up at 3%. All other investment options continue to roll up at 5% or 6%, as provided by your Accumulator(R) Series contract. For more information about these benefits, please see "Contract features and benefits" in your Prospectus or your contract, or consult with your financial professional. (5) TAX INFORMATION HOW YOU CAN MAKE CONTRIBUTIONS o Regular contributions to traditional IRAs and Roth IRAs are limited to $5,000 for the calendar year 2008. o Regular contributions to traditional IRAs cannot be made during or after the calendar year the owner reaches age 70-1/2. o Additional catch-up contributions of up to $1,000 can be made where the owner is at least age 50 at any time during the calendar year for which the contribution is made. o Rollovers can be made to a Roth IRA from a "designated Roth contribution account" under a 401(k) or 403(b) plan which permits designated Roth elective deferral contributions to be made. Beginning in 2008, conversion rollovers may also be made from an eligible retirement plan to a Roth IRA in certain circumstances. o A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA plan under certain circumstances. REQUIRED MINIMUM DISTRIBUTIONS Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits must be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from qualified plans and 403(b) plans funded by annuity contracts and from individual retirement annuity contracts. For this purpose additional annuity contract benefits may include, but are not limited to, guaranteed minimum income benefits and enhanced death benefits. This could increase the amount required to be distributed from these contracts if you take annual withdrawals instead of annuitizing. TAX-SHELTERED ANNUITY CONTRACTS (TSAS) Due to the Internal Revenue Service and Treasury regulatory changes in 2007 which become fully effective on January 1, 2009, contracts issued prior to September 25, 2007 which qualified as 403(b) contracts under the rules at the time of issue may lose their status as 403(b) contracts or have the availability of transactions under the contract restricted as of January 1, 2009 unless the individual's employer or the individual take certain actions. Please consult your tax adviser regarding the effect of these rules (which may vary depending on the owner's employment status, plan participation status, and when and how the contract was acquired) on your personal situation. (6) UPDATED INFORMATION ON AXA EQUITABLE We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. (7) MANAGING YOUR ALLOCATIONS The contract is between you and AXA Equitable. The contract is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under your contract. In the absence of a specific written arrangement to the contrary, you, as the owner 13 of the contract, have the sole authority to make investment allocations and other decisions under the contract. If your financial professional is with AXA Advisors, he or she is acting as a broker-dealer registered representative, and is not authorized to act as an investment advisor or to manage the allocations under your contract. If your financial professional is a registered representative with a broker-dealer other than AXA Advisors, you should speak with him/her regarding any different arrangements that may apply. (8) DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the underlying portfolios in which the variable investment options invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a portfolio to maintain larger amounts of cash or to liquidate portfolio holdings at a disadvantageous time or price. For example, when market timing occurs, a portfolio may have to sell its holdings to have the cash necessary to redeem the market timer's investment. This can happen when it is not advantageous to sell any securities, so the portfolio's performance may be hurt. When large dollar amounts are involved, market timing can also make it difficult to use long-term investment strategies because a portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of portfolio investments may impede efficient portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the portfolio manager to effect more frequent purchases and sales of portfolio securities. Similarly, a portfolio may bear increased administrative costs as a result of the asset level and investment volatility that accompanies patterns of excessive or short-term trading. Portfolios that invest a significant portion of their assets in foreign securities or the securities of small- and mid-capitalization companies tend to be subject to the risks associated with market timing and short-term trading strategies to a greater extent than portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio securities values occur after the close of the overseas market but prior to the close of the U.S. markets. Securities of small- and mid-capitalization companies present arbitrage opportunities because the market for such securities may be less liquid than the market for securities of larger companies, which could result in pricing inefficiencies. Please see the prospectuses for the underlying portfolios for more information on how portfolio shares are priced. We currently use the procedures described below to discourage disruptive transfer activity. You should understand, however, that these procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that portfolio performance will be affected by such activity; and (3) the design of market timing procedures involves inherently subjective judgments, which we seek to make in a fair and reasonable manner consistent with the interests of all contract owners. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The trusts have adopted policies and procedures regarding disruptive transfer activity. They discourage frequent purchases and redemptions of portfolio shares and will not make special arrangements to accommodate such transactions. They aggregate inflows and outflows for each portfolio on a daily basis. On any day when a portfolio's net inflows or outflows exceed an established monitoring threshold, the trust obtains from us contract owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same variable investment option within a five business day period as potentially disruptive transfer activity. Each trust reserves the right to reject a transfer that it believes, in its sole discretion, is disruptive (or potentially disruptive) to the management of one of its portfolios. Please see the prospectuses for the trusts for more information. When a contract owner is identified as having engaged in a potentially disruptive transfer under the contract for the first time, a letter is sent to the contract owner explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. We or a trust may change the definition of potentially disruptive transfer activity, the monitoring procedures and thresholds, any notification procedures, and the procedures to restrict this activity. Any new or revised policies and procedures will apply to all contract owners uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that a trust may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners. As of the date of this Prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by a trust, that fee, like any other trust fee, will be borne by the contract owner. Contract owners should note that it is not always possible for us and the underlying trusts to identify and prevent disruptive transfer activity. In addition, because we do not monitor for all frequent trading at the separate account level, contract owners may engage in frequent trading which may not be detected, for example, due to low net inflows or outflows on the particular day(s). Therefore, no assurance can be given that we or the trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be 14 stopped, some contract owners may be treated differently than others, resulting in the risk that some contract owners may be able to engage in frequent transfer activity while others will bear the effect of that frequent transfer activity. The potential effects of frequent transfer activity are discussed above. (9) WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS We accept initial and subsequent contributions sent by wire to our processing office by agreement with certain broker-dealers. Such transmittals must be accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" under "Contract features and benefits" earlier in this Prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information provided through certain broker-dealers with which we have established electronic facilities. In any such cases, you must sign our Acknowledgment of Receipt form. Where we require a signed application, the above procedures do not apply and no financial transactions will be permitted until we receive the signed application and have issued the contract. Where we issue a contract based on information provided through electronic facilities, we require an Acknowledgment of Receipt form, and financial transactions are only permitted if you request them in writing, sign the request and have it signature guaranteed, until we receive the signed Acknowledgment of Receipt form. After your contract has been issued, additional contributions may be transmitted by wire. In general, the transaction date for electronic transmissions is the date on which we receive at our regular processing office all required information and the funds due for your contribution. We may also establish same-day electronic processing facilities with a broker-dealer that has undertaken to pay contribution amounts on behalf of our customers. In such cases, the transaction date for properly processed orders is the business day on which the broker-dealer inputs all required information into its electronic processing system. You can contact us to find out more about such arrangements. After your contract has been issued, additional contributions may be transmitted by wire. (10) CERTAIN INFORMATION ABOUT OUR BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. If we have entered into an agreement with your broker-dealer for automated processing of contributions upon receipt of customer order, your contribution will be considered received at the time your broker-dealer receives your contribution and all information needed to process your application, along with any required documents, and transmits your order to us in accordance with our processing procedures. Such arrangements may apply to initial contributions, subsequent contributions, or both, and may be commenced or terminated at any time without prior notice. If required by law, the "closing time" for such orders will be earlier than 4:00 p.m., Eastern Time. For more information, including additional instances when a different date may apply to your contributions, please see "More Information" in your prospectus. (11) YOUR CONTRACT DATE AND CONTRACT DATE ANNIVERSARY The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." For example, if your contract date is May 1, your contract date anniversary is April 30. (12) LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings would be considered material with respect to a contract owner's interest in Separate Account Nos. 45 and 49, respectively, nor would any of these proceedings be likely to have a material adverse effect upon either Separate Account, our ability to meet our obligations under the contracts, or the distribution of the contracts. 15 (13) DISTRIBUTION OF THE CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"), which serve as principal underwriters of Separate Account Nos. 45 and 49, respectively. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. The contracts are sold by financial professionals of AXA Advisors and its affiliates. The contracts are also sold by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays compensation to both Distributors based on contracts sold. Compensation paid to AXA Advisors is based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation") and will generally not exceed 8.50% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable on the sale of a contract to the AXA Advisors financial professional and/or Selling broker-dealer making the sale. In some instances, a financial professional or Selling broker-dealer may elect to receive reduced contribution-based compensation on a contract in combination with ongoing annual compensation of up to 1.20% of the account value of the contract sold ("asset-based compensation"). Total compensation paid to a financial professional or a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Advisors varies among financial professionals and among Selling broker-dealers. Contribution-based compensation paid by AXA Equitable to AXA Distributors on sales of AXA Equitable contracts by its Selling broker-dealers will generally not exceed 7.50% of the total contributions made under the contracts. AXA Distributors, in turn, pays the contribution-based compensation it receives on the sale of a contract to the Selling broker-dealer making the sale. In some instances, the Selling broker-dealer may elect to receive reduced contribution-based compensation on the sale of a contract in combination with annual asset-based compensation of up to 1.25% of contract account value. If a Selling broker-dealer elects to receive reduced contribution-based compensation on a contract, the contribution-based compensation which AXA Equitable pays to AXA Distributors will be reduced by the same amount and AXA Equitable will pay AXA Distributors asset-based compensation on the contract equal to the asset-based compensation which AXA Distributors pays to the Selling broker-dealer. Total compensation paid to a Selling broker-dealer electing to receive both contribution-based and asset-based compensation could over time exceed the total compensation that would otherwise be paid on the basis of contributions alone. The contribution-based and asset-based compensation paid by AXA Distributors varies among Selling broker-dealers. AXA Distributors also receives compensation and reimbursement for its marketing services under the terms of its distribution agreement with AXA Equitable. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Accumulator(R) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain Portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the Portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective Portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and 16 bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition, AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any contribution-based and asset-based compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. (14) INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE This section only applies if your contract offers fixed maturity options. AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Compreshensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by 17 reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa-financial.com. (15) CONDENSED FINANCIAL INFORMATION The following table sets forth the unit values and number of units outstanding at the year end for each variable investment option, except those options offered for the first time after December 31, 2007. The table shows unit values based on the lowest and highest charges that would apply to any contract or investment option to which this supplement relates, including the lowest and highest charges that would apply to the underlying portfolios. Therefore, if your contract has different charges or features than those assumed, your unit values will be different than those shown. Please refer to the SAI for a complete presentation of the unit values and units outstanding. The table also shows the total number of units outstanding for all contracts to which this supplement relates. 18 The unit values and number of units outstanding shown below are for contracts offered under Separate Account 45 with the same daily asset charges of 1.15%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- --------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------------------------- 2007 2006 2005 2004 2003 - --------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.90 $ 13.24 $ 11.36 $ 10.64 -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 448 263 109 64 -- - --------------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.48 $ 10.98 $ 10.44 $ 10.31 -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 387 251 226 98 -- - --------------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.91 $ 11.43 $ 10.63 $ 10.41 -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 441 206 114 54 -- - --------------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation -- Class A - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 57.64 $ 54.74 $ 50.07 $ 48.21 $ 44.75 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 570 843 703 778 909 - --------------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 54.56 $ 51.94 $ 47.62 $ 45.97 $ 42.78 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 789 613 971 1,106 1,263 - --------------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.37 $ 12.71 $ 11.23 -- -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,837 1,295 728 -- -- - --------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- Class A - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 299.23 $ 291.81 $ 266.03 $ 257.37 $ 227.59 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 203 380 322 407 498 - --------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 290.90 $ 284.40 $ 259.92 $ 252.09 $ 223.47 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 311 266 458 552 639 - --------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities -- Class A - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 21.22 $ 20.04 $ 19.61 $ 19.55 $ 19.35 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 205 469 293 354 460 - --------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 20.66 $ 19.56 $ 19.19 $ 19.17 $ 19.03 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 361 238 563 766 998 - --------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International -- Class A - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 21.42 $ 19.35 $ 15.81 $ 13.84 $ 11.82 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 978 1,145 1,271 1,509 1,843 - --------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 20.84 $ 18.87 $ 15.45 $ 13.56 $ 11.61 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,020 1,130 1,246 1,359 1,568 - --------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.00 $ 7.10 $ 7.22 $ 6.36 $ 5.93 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 674 995 1,173 1,269 1,663 - --------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.39 $ 16.83 $ 16.40 $ 16.26 $ 15.86 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 170 227 287 275 292 - --------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth -- Class A - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 21.93 $ 18.96 $ 17.56 $ 15.89 $ 14.06 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 155 974 365 358 402 - --------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 21.37 $ 18.53 $ 17.20 $ 15.60 $ 13.85 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 810 304 1,163 1,361 1,510 - --------------------------------------------------------------------------------------------------------------------------------- EQ/Alliance Bernstein Value -- Class A - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.06 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 4,100 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------- 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------------ AXA Aggressive Allocation -- Class B - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative Allocation -- Class B - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Conservative-Plus Allocation -- Class B - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation -- Class A - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 37.91 $ 43.83 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,013 387 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate Allocation -- Class B - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 36.32 $ 42.10 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,386 736 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock -- Class A - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 153.56 $ 232.44 $ 262.80 $ 309.23 $ 249.88 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 560 748 893 993 1,079 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Common Stock -- Class B - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 151.16 $ 229.38 $ 260.00 $ 306.70 $ 248.45 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 698 875 988 1,066 1,101 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities -- Class A - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.12 $ 17.76 $ 16.62 $ 15.40 $ 15.55 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,043 641 360 451 524 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Intermediate Government Securities -- Class B - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.85 $ 17.56 $ 16.46 $ 15.30 $ 15.49 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,296 1,054 735 871 1,079 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International -- Class A - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.83 $ 9.91 $ 13.00 $ 17.08 $ 12.54 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,978 816 941 855 1,001 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein International -- Class B - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 8.69 $ 9.77 $ 12.89 $ 16.97 $ 12.49 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,624 390 438 414 438 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 4.87 $ 7.16 $ 9.53 $ 11.81 -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,968 2,839 3,046 1,792 -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Quality Bond -- Class B - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.49 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 240 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth -- Class A - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.07 $ 14.57 $ 16.95 $ 15.04 $ 11.90 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 428 497 487 192 314 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/AllianceBernstein Small Cap Growth -- Class B - ------------------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.94 $ 14.41 $ 16.81 $ 14.96 $ 11.86 - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) 1,604 1,800 1,985 1,762 2,306 - ------------------------------------------------------------------------------------------------------------------------------------ EQ/Alliance Bernstein Value -- Class A - ------------------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------
19 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- --------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------------------------- 2007 2006 2005 2004 2003 - --------------------------------------------------------------------------------------------------------------------------------- EQ/Alliance Bernstein Value -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.05 $ 18.28 $ 15.23 $ 14.61 $ 13.03 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 7,094 1,987 2,290 2,543 2,775 - --------------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.13 $ 11.39 $ 10.37 -- -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 18 8 2 -- -- - --------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 24.66 $ 24.66 $ 20.63 $ 20.27 $ 18.55 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,030 1,201 1,488 1,843 2,009 - --------------------------------------------------------------------------------------------------------------------------------- EQ/Black Rock International Value -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 25.44 $ 23.35 $ 18.80 $ 17.16 $ 14.27 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 736 795 814 779 839 - --------------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.06 $ 6.89 $ 6.01 $ 5.73 -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 346 380 367 50 -- - --------------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.17 $ 9.18 $ 8.82 $ 8.21 $ 8.01 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 12 6 12 19 10 - --------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.94 $ 13.37 $ 12.60 $ 12.12 $ 11.62 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 58 38 28 15 14 - --------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.34 $ 13.28 $ 11.99 $ 11.44 $ 10.43 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,117 1,048 1,232 1,468 1,625 - --------------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.29 $ 11.11 $ 10.41 -- -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 78 57 25 -- -- - --------------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.13 $ 10.85 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 105 19 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index -- Class A - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 32.78 $ 31.52 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 31.91 $ 30.76 $ 27.04 $ 26.20 $ 24.04 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 521 624 717 858 994 - --------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.77 $ 9.97 $ 9.75 -- -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 98 55 5 -- -- - --------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.98 $ 9.07 $ 8.66 $ 8.43 $ 7.97 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 113 121 149 225 198 - --------------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.91 $ 13.03 $ 11.81 $ 11.24 $ 9.80 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 520 620 750 697 677 - --------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.53 $ 10.44 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 357 78 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.78 $ 10.83 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 39 6 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.53 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 62 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------------------------- 2002 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------- EQ/Alliance Bernstein Value -- Class B - --------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.24 $ 12.00 -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2,810 2,882 -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - --------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - --------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.30 $ 17.36 $ 16.64 $ 15.06 $ 12.81 - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2,129 2,223 1,946 2,162 2,127 - --------------------------------------------------------------------------------------------------------------------------- EQ/Black Rock International Value -- Class B - --------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.27 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 956 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income -- Class B - --------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible -- Class B - --------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.34 $ 8.72 -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 3 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth -- Class B - --------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.48 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 11 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research -- Class B - --------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.02 $ 10.78 $ 11.13 $ 10.63 -- - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,727 80 57 20 -- - --------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - --------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - --------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index -- Class A - --------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index -- Class B - --------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.03 $ 24.80 $ 28.57 $ 32.04 $ 26.99 - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,017 1,094 1,206 11 14 - --------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - --------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega -- Class B - --------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.83 $ 7.76 $ 9.47 $ 10.84 -- - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 84 52 59 44 -- - --------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap -- Class B - --------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.90 $ 8.56 $ 10.00 -- -- - --------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 427 292 43 -- -- - --------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - --------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - --------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - --------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
20 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.93 $ 11.67 $ 10.52 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 70 198 132 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - Class B - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 30.84 $ 28.54 $ 24.30 $ 23.56 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 151 94 71 20 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS -- Class B - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.80 $ 14.75 $ 12.51 $ 10.81 $ 9.62 $ 7.34 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 209 238 233 209 144 56 - ------------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.43 $ 14.30 $ 11.51 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 133 42 12 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - Class B - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.87 $ 14.59 $ 14.19 $ 14.04 $ 13.64 $ 13.35 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 623 630 688 621 618 623 - ------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities Class B - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.00 $ 16.39 $ 13.77 $ 13.40 $ 12.23 $ 9.76 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 557 654 747 946 1,120 1,280 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS -- Class B - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.04 $ 10.75 $ 9.63 $ 9.09 $ 8.25 $ 6.84 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 50 85 103 98 107 99 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS -- Class B - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.59 $ 15.39 $ 14.44 $ 13.40 $ 12.04 $ 9.42 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 954 1,056 1,226 1,570 1,952 2,239 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.45 $ 11.24 $ 10.65 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 70 54 7 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.70 $ 10.08 $ 10.01 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 64 47 69 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.58 $ 12.30 $ 10.61 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 41 56 18 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.89 $ 11.78 $ 10.58 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 26 10 8 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.33 $ 12.41 $ 11.16 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 200 167 199 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.73 $ 16.61 $ 15.37 $ 14.05 $ 12.86 $ 9.92 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 710 770 736 693 778 439 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.41 $ 17.90 $ 16.10 $ 14.63 $ 12.56 $ 9.53 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,257 1,559 1,833 2,058 2,302 2,470 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Money Market -- Class A - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 32.86 $ 31.67 $ 30.59 $ 30.08 $ 30.12 $ 30.22 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 259 433 238 344 444 863 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Money Market -- Class B - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 32.05 $ 30.96 $ 29.98 $ 29.55 $ 29.66 $ 29.84 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 361 262 400 566 711 1,022 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.96 $ 4.99 $ 4.68 $ 4.49 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 81 50 54 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------------- 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - --------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - --------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - Class B - --------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - --------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS -- Class B - --------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - --------------------------------------------------------------------------------------------------------------- EQ/International Growth - --------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - --------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - Class B - --------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - --------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities Class B - --------------------------------------------------------------------------------------------------------------- Unit value $ 12.19 $ 13.24 $ 12.54 $ 12.86 - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1,543 1,692 2,198 2,347 - --------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS -- Class B - --------------------------------------------------------------------------------------------------------------- Unit value $ 8.76 $ 10.55 $ 10.75 -- - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 84 75 73 -- - --------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS -- Class B - --------------------------------------------------------------------------------------------------------------- Unit value $ 14.51 $ 22.25 $ 27.74 $ 16.16 - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 3,104 3,748 3,430 2,619 - --------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - --------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - --------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - --------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - --------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - --------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - --------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - --------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - --------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - --------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - --------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - --------------------------------------------------------------------------------------------------------------- Unit value $ 11.35 -- -- -- - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 29 -- -- -- - --------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - --------------------------------------------------------------------------------------------------------------- Unit value $ 11.31 $ 11.00 $ 10.58 $ 10.52 - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2,317 1,758 2,259 2,984 - --------------------------------------------------------------------------------------------------------------- EQ/Money Market -- Class A - --------------------------------------------------------------------------------------------------------------- Unit value $ 30.12 $ 29.34 $ 27.94 $ 26.92 - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 954 817 1,201 839 - --------------------------------------------------------------------------------------------------------------- EQ/Money Market -- Class B - --------------------------------------------------------------------------------------------------------------- Unit value $ 29.82 $ 29.13 $ 27.80 $ 26.85 - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 965 851 1,548 1,193 - --------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - --------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------------
21 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.77 $ 10.72 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 138 21 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.60 $ 11.10 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 30 9 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.18 $ 10.94 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 13 6 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.78 $ 11.11 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 11 1 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.88 $ 9.87 $ 9.95 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 272 195 161 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.69 $ 10.27 $ 9.99 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 65 83 47 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.94 $ 17.46 $ 15.00 $ 14.56 $ 12.51 $ 8.68 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 265 341 383 499 427 297 - ------------------------------------------------------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.16 $ 17.14 $ 18.06 $ 17.57 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 99 14 12 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.86 $ 10.76 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 94 20 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.35 $ 6.35 $ 5.63 $ 5.23 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 86 146 117 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.53 $ 11.96 $ 10.44 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 93 157 129 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 26.97 $ 19.21 $ 14.18 $ 10.80 $ 8.84 $ 5.73 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 960 1,021 1,010 876 859 894 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.19 $ 13.38 $ 12.39 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 135 48 30 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity -- Class A - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 70.46 $ 63.84 $ 61.29 $ 57.16 $ 51.45 $ 37.75 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 186 197 270 320 387 453 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity -- Class B - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 68.51 $ 62.23 $ 59.89 $ 55.99 $ 50.53 $ 37.17 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 159 227 234 272 297 327 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.20 $ 11.62 $ 11.33 $ 11.26 $ 10.97 $ 10.69 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 379 416 490 551 570 493 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.15 $ 12.21 $ 11.75 $ 11.11 $ 10.02 $ 7.91 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 153 206 216 231 234 160 - ------------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield -- Class A - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 35.48 $ 34.71 $ 31.86 $ 31.20 $ 28.97 $ 23.85 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 76 378 110 132 131 93 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------- 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------- Unit value $ 11.10 $ 11.01 $ 11.52 $ 9.66 - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 320 303 334 244 - ------------------------------------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------- Unit value $ 6.16 $ 6.57 $ 11.09 $ 5.73 - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 812 908 795 567 - ------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity -- Class A - ------------------------------------------------------------------------------------------------------------- Unit value $ 53.56 $ 72.23 $ 84.11 $ 71.60 - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 576 705 854 1,101 - ------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity -- Class B - ------------------------------------------------------------------------------------------------------------- Unit value $ 52.87 $ 71.48 $ 83.44 $ 71.21 - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 399 478 561 680 - ------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Multimanager High Yield -- Class A - ------------------------------------------------------------------------------------------------------------- Unit value $ 24.80 $ 24.85 $ 27.52 $ 28.81 - ------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 104 71 99 173 - -------------------------------------------------------------------------------------------------------------
22 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- --------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------------------------- 2007 2006 2005 2004 2003 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield -- Class B - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 34.49 $ 33.83 $ 31.13 $ 30.56 $ 28.44 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 326 93 449 548 583 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.02 $ 17.11 $ 13.81 $ 12.11 $ 10.39 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 260 315 260 243 212 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.93 $ 12.46 $ 11.09 $ 10.52 $ 9.70 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 65 82 131 131 133 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.70 $ 9.73 $ 9.84 $ 9.26 $ 8.78 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 183 252 270 281 251 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.86 $ 14.50 $ 12.30 $ 11.61 $ 10.27 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 319 302 296 259 232 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.21 $ 11.04 $ 10.19 $ 9.51 $ 8.61 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 302 284 324 333 384 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.91 $ 14.06 $ 12.40 $ 11.69 $ 10.26 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 208 325 332 447 402 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Company Growth - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.16 $ 8.94 $ 8.20 $ 7.72 -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 196 101 70 13 -- - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.85 $ 20.03 $ 17.45 $ 16.86 $ 14.57 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 279 399 485 526 495 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.51 $ 10.71 $ 10.09 $ 9.18 $ 8.84 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 274 316 382 537 207 - --------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------- 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield -- Class B - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 23.48 $ 24.47 $ 24.59 $ 27.30 $ 28.65 - ------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 592 707 796 1,064 1,451 - ------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.82 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 129 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.66 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 88 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.80 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 164 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.92 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 205 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.21 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 214 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.38 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 250 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Small Company Growth - ------------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.73 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 384 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.67 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 44 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------
23 The unit values and number of units outstanding shown below are for contracts offered under Separate Account 45 and 49 with the same daily asset charges of 1.70%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ---------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - ---------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.05 $ 14.43 $ 12.45 $ 11.72 $ 10.66 -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 7 8 10 13 -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6,377 3,084 1,519 656 32 -- - ---------------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.76 $ 11.31 $ 10.82 $ 10.74 $ 10.30 -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 5 5 6 5 -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,454 1,800 1,000 281 1 -- - ---------------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.40 $ 11.96 $ 11.19 $ 11.02 $ 10.41 -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 12 13 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,753 3,022 2,176 414 84 -- - ---------------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 48.27 $ 46.21 $ 42.61 $ 41.36 $ 38.70 $ 33.05 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 6 32 33 8 9 13 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,098 2,325 1,725 893 383 86 - ---------------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.45 $ 13.82 $ 12.28 $ 11.71 $ 10.66 -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 7 -- 4 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 23,506 14,705 6,917 2,788 46 -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $243.48 $ 239.38 $ 219.99 $ 214.55 $ 191.26 $ 130.09 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2 3 3 3 4 6 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 65 73 73 64 29 9 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.82 $ 17.92 $ 17.67 $ 17.76 $ 17.72 $ 17.65 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 26 29 39 67 84 146 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 404 376 481 416 458 259 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.41 $ 17.67 $ 14.55 $ 12.84 $ 11.05 $ 8.32 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 7 9 10 13 20 20 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,236 1,508 1,037 649 530 142 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.62 $ 6.80 $ 6.96 $ 6.16 $ 5.78 $ 4.77 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 9 14 17 17 24 22 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,050 1,042 1,055 981 856 341 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.06 $ 15.63 $ 15.31 $ 15.27 $ 14.97 $ 14.71 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 10 11 14 17 14 17 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 626 590 573 555 512 198 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 20.14 $ 17.56 $ 16.39 $ 14.95 $ 13.34 $ 9.63 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 13 18 18 20 25 28 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 443 462 372 312 478 121 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.31 $ 17.38 $ 14.57 $ 14.06 $ 12.60 $ 9.96 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 62 21 35 49 54 60 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,123 2,507 2,363 2,169 1,481 530 - ----------------------------------------------------------------------------------------------------------------------------------
24 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ---------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.99 $ 11.31 $ 10.35 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2 2 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 227 123 40 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 23.24 $ 23.37 $ 19.66 $ 19.43 $ 17.87 $ 13.86 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 10 14 19 21 25 32 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 842 856 849 802 502 184 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 23.97 $ 22.13 $ 17.91 $ 16.44 $ 13.75 $ 10.92 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1 3 3 3 6 4 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,136 1052 782 522 441 161 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.71 $ 6.59 $ 5.78 $ 5.54 -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - 1 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 571 504 326 15 -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.71 $ 8.81 $ 8.51 $ 7.96 $ 7.82 $ 6.22 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - 2 2 1 1 -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 373 353 314 204 249 42 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.14 $ 12.67 $ 12.00 $ 11.62 $ 11.20 $ 9.19 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,289 1484 351 160 164 40 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.71 $ 12.72 $ 11.55 $ 11.08 $ 10.16 $ 7.86 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1 -- -- 1 -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,063 1,393 1,585 1,200 776 200 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.12 $ 11.01 $ 10.37 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 180 225 81 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.05 10.84 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,189 216 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 29.54 $ 28.64 $ 25.31 $ 24.66 $ 22.76 $ 18.11 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 5 9 12 13 16 10 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,547 64 1,604 1,386 1,074 399 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.64 $ 9.90 $ 9.74 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1 1 1 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 476 185 8 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.49 $ 8.67 $ 8.33 $ 8.15 $ 7.75 $ 5.70 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- 1 2 4 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 249 215 280 377 218 32 - ----------------------------------------------------------------------------------------------------------------------------------
25 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ---------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.35 $ 12.57 $ 11.47 $ 10.97 $ 9.62 $ 6.81 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 26 31 35 38 41 39 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,166 1,890 1,556 1,391 883 285 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.45 $ 10.42 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,574 368 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.71 $ 10.81 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 421 38 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.49 -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,805 -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.75 $ 11.56 $ 10.48 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 3 3 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 337 193 77 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 27.67 $ 25.76 $ 22.05 $ 21.50 -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - 1 1 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 618 233 79 9 -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.01 $ 14.13 $ 12.06 $ 10.47 $ 9.38 $ 7.19 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2,289 3,208 2,337 1,926 1,026 282 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.18 $ 14.17 $ 11.47 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 665 269 56 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.07 $ 13.88 $ 13.57 $ 13.50 $ 13.20 $ 12.99 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 13 8 12 8 7 9 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,473 1,477 1,527 1,343 1,175 441 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.08 $ 15.53 $ 13.12 $ 12.84 $ 11.78 $ 9.45 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2 2 11 11 16 13 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 288 351 347 370 307 128 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.50 $ 10.28 $ 9.26 $ 8.79 $ 8.03 $ 6.69 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 458 510 603 610 598 229 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.57 $ 14.58 $ 13.76 $ 12.84 $ 11.60 $ 9.12 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1 1 1 2 5 7 - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 492 192 184 149 93 38 - ---------------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ---------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.32 $ 11.17 $ 10.63 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 3 4 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 809 532 144 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------
26 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.54 $ 9.98 $ 9.98 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1 2 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 248 135 173 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.39 $ 12.18 $ 10.57 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 369 308 83 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.70 $ 11.67 $ 10.54 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 442 196 84 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.15 $ 12.29 $ 11.12 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- 1 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 888 591 290 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.08 $ 16.13 $ 15.01 $ 13.79 $ 12.69 $ 9.85 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 5 11 8 11 16 8 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3,346 2,714 2,354 1,938 1,510 386 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.40 $ 16.96 $ 15.34 $ 14.02 $ 12.10 $ 9.24 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 8 16 19 26 31 36 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,069 1,156 1,107 1,007 636 237 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 27.65 $ 26.86 $ 26.15 $ 25.92 $ 26.17 $ 26.47 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 21 22 8 15 37 57 - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,051 1102 845 349 434 630 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.66 $ 4.77 $ 4.49 $ 4.34 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 657 83 72 22 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.69 $ 10.70 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,727 258 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.51 11.08 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 674 83 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.10 10.92 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 154 20 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.70 11.09 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 277 19 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.72 $ 9.78 $ 9.91 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 13 3 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,235 730 286 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------
27 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- -------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, -------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.53 $ 10.17 $ 9.96 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 3 2 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 262 202 60 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.02 $ 16.60 $ 14.35 $ 14.00 $ 12.10 $ 8.44 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1 3 5 11 10 8 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 713 744 596 575 449 122 - -------------------------------------------------------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.30 $ 15.46 $ 16.39 $ 16.03 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 401 47 41 6 -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.78 10.75 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 853 178 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.04 $ 6.07 $ 5.41 $ 5.05 -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 89 104 69 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.36 $ 11.85 $ 10.40 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 539 602 296 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 25.45 $ 18.23 $ 13.53 $ 10.37 $ 8.53 $ 5.56 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1 1 1 -- 6 6 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,726 1239 755 609 457 69 - -------------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.95 $ 13.26 $ 12.34 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 782 297 179 -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 60.62 $ 55.37 $ 53.59 $ 50.38 $ 45.72 $ 33.82 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - 2 2 2 2 2 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 56 47 25 28 10 4 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.80 $ 11.30 $ 11.08 $ 11.07 $ 10.84 $ 10.63 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 2 6 8 11 19 23 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,494 2,030 1,611 1,424 1,202 628 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.72 $ 11.87 $ 11.49 $ 10.93 $ 9.91 $ 7.87 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 10 10 11 10 11 7 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 390 400 338 284 143 57 - -------------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - -------------------------------------------------------------------------------------------------------------------------------- Unit value $ 30.68 $ 30.26 $ 28.00 $ 27.64 $ 25.87 $ 21.48 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 10 11 13 14 20 21 - -------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 526 758 755 771 557 125 - --------------------------------------------------------------------------------------------------------------------------------
28 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- --------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.39 $ 16.64 $ 13.51 $ 11.90 $ 10.27 $ 7.78 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1 1 1 1 1 -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,047 1,030 783 806 360 135 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.50 $ 12.11 $ 10.85 $ 10.34 $ 9.59 $ 7.61 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 1 1 1 3 3 3 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 473 453 353 272 238 104 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.35 $ 9.47 $ 9.62 $ 9.10 $ 8.68 $ 6.76 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 23 23 26 27 27 21 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 881 1,014 980 876 792 408 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.37 $ 14.10 $ 12.02 $ 11.42 $ 10.15 $ 7.88 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 41 41 44 45 45 36 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1,210 1,363 1,238 1,242 726 316 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.81 $ 10.74 $ 9.96 $ 9.35 $ 8.52 $ 6.18 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 3 3 4 6 8 8 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 934 1,035 1,075 1,055 731 292 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.46 $ 13.68 $ 12.13 $ 11.49 $ 10.15 $ 7.34 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 27 27 27 29 30 23 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 805 1,010 876 1,011 560 206 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.71 $ 8.54 $ 7.89 $ 7.46 -- -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) - -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 788 475 242 59 -- -- - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.88 $ 19.05 $ 16.69 $ 16.22 $ 14.09 $ 10.43 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 5 6 5 5 7 8 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 748 1,201 991 884 641 270 - --------------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - --------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.10 $ 10.41 $ 9.87 $ 9.02 $ 8.74 $ 5.64 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 45 number of units outstanding (000's) 15 15 15 15 14 10 - --------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 597 350 311 306 98 14 - ---------------------------------------------------------------------------------------------------------------------------------
29 The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 0.95%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ----------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.01 $ 13.32 $ 11.41 $ 10.66 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 118 117 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.57 $ 11.04 $ 10.48 $ 10.33 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.01 $ 11.49 $ 10.67 $ 10.43 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 57.03 $ 54.18 $ 49.58 $ 47.77 $ 44.36 $ 37.59 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- 1 2 3 3 -- - ----------------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.48 $ 12.79 $ 11.28 $ 10.67 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 16 6 7 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 310.29 $ 302.74 $ 276.12 $ 267.26 $ 236.45 $ 159.61 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1 1 2 2 2 2 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 21.37 $ 20.19 $ 19.77 $ 19.71 $ 19.53 $ 19.30 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3 3 3 4 7 10 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 21.38 $ 19.32 $ 15.79 $ 13.83 $ 11.81 $ 8.82 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6 7 8 8 8 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.14 $ 7.21 $ 7.32 $ 6.43 $ 5.99 $ 4.91 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 43 47 66 71 93 89 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.90 $ 17.28 $ 16.81 $ 16.64 $ 16.19 $ 15.78 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2 5 2 2 3 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 21.84 $ 18.90 $ 17.50 $ 15.85 $ 14.04 $ 10.05 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 16 18 25 27 30 32 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.60 $ 18.61 $ 15.48 $ 14.82 $ 13.19 $ 10.35 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 44 44 46 40 38 38 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.18 $ 11.42 $ 10.37 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 25.20 $ 25.15 $ 21.00 $ 20.59 $ 18.80 $ 14.47 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- 1 3 1 1 -- - ----------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 25.99 $ 23.81 $ 19.13 $ 17.42 $ 14.46 $ 11.70 - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 27 30 36 35 51 73 - ----------------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ----------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.19 $ 7.00 $ 6.10 $ 5.80 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1 1 4 1 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------- For the years ending December 31, - ------------------------------------------------------------------------------------------------- 2001 2000 1999 - ------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ------------------------------------------------------------------------------------------------- Unit value $ 43.48 -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------- Unit value $ 241.72 $ 273.42 $ 321.89 - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2 2 -- - ------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------- Unit value $ 7.20 -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 79 -- -- - ------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------- Unit value $ 14.55 -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 32 -- -- - ------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------- Unit value $ 12.09 -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 34 -- -- - ------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - ------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------- Unit value $ 17.53 -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1 -- -- - ------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------- Unit value $ 13.81 $ 17.77 $ 20.45 - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 65 47 -- - ------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------- Unit value -- -- -- - ------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- - -------------------------------------------------------------------------------------------------
30 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ---------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------- 2007 2006 2005 2004 2003 - ---------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 10.34 $ 9.31 $ 8.93 $ 8.30 $ 8.09 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 14.25 $ 13.64 $ 12.82 $ 12.31 -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3 9 5 5 -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 13.58 $ 13.49 $ 12.15 $ 11.57 $ 10.53 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 69 53 51 53 66 - ---------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 11.35 $ 11.15 $ 10.42 -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 11.16 $ 10.86 -- -- -- - ---------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 32.82 $ 31.57 $ 27.69 $ 26.78 $ 24.53 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 9 10 11 11 10 - ---------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 10.82 $ 10.00 $ 9.76 -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 10.16 $ 9.21 $ 8.79 $ 8.53 $ 8.05 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- 9 -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 14.12 $ 13.19 $ 11.94 $ 11.34 $ 9.86 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 28 30 39 29 34 - ---------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 10.56 $ 10.44 -- -- -- - ---------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 9.81 $ 10.84 -- -- -- - ---------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 9.54 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 11.99 $ 11.71 $ 10.53 -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 32.07 $ 29.63 25.17 $ 24.36 -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 17.10 $ 14.98 $ 12.68 $ 10.93 $ 9.71 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 38 40 49 41 39 - ---------------------------------------------------------------------------------------------------------------------- EQ/International Growth - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 16.51 $ 14.35 $ 11.53 -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 15.18 $ 14.86 $ 14.42 $ 14.24 $ 13.81 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 25 24 28 26 36 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- For the years ending December 31, - ---------------------------------------------------------------------------------------------------------- 2002 2001 2000 1999 - ---------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - ---------------------------------------------------------------------------------------------------------- Unit value $ 6.38 $ 8.76 -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - ---------------------------------------------------------------------------------------------------------- Unit value $ 8.08 $ 10.83 $ 11.16 $ 10.64 - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 69 26 18 -- - ---------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - ---------------------------------------------------------------------------------------------------------- Unit value $ 19.37 $ 25.20 $ 28.97 -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 10 11 6 -- - ---------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - ---------------------------------------------------------------------------------------------------------- Unit value $ 5.88 $ 7.81 -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - ---------------------------------------------------------------------------------------------------------- Unit value $ 6.93 $ 8.59 $ 10.01 -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 29 19 3 -- - ---------------------------------------------------------------------------------------------------------- EQ/Franklin Income - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - ---------------------------------------------------------------------------------------------------------- Unit value $ 7.40 $ 8.79 $ 11.22 $ 14.00 - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 35 34 28 -- - ---------------------------------------------------------------------------------------------------------- EQ/International Growth - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - ---------------------------------------------------------------------------------------------------------- Unit value $ 13.49 $ 12.43 $ 11.62 $ 10.53 - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 44 46 34 -- - ----------------------------------------------------------------------------------------------------------
31 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ---------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ----------------------------------------------------------- 2007 2006 2005 2004 2003 - ---------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 16.35 $ 16.71 $ 14.01 $ 13.61 $ 12.40 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 10 12 14 15 18 - ---------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 11.24 $ 10.93 $ 9.77 $ 9.20 $ 8.34 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4 4 6 6 6 - ---------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 17.97 $ 15.69 $ 14.70 $ 13.61 $ 12.20 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 21 22 29 31 42 - ---------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 10.50 $ 11.27 $ 10.65 -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 10.76 $ 10.11 $ 10.03 -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 12.64 $ 12.34 $ 10.63 -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 0 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 12.96 $ 11.82 $ 10.59 -- -- - ---------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 12.40 $ 12.45 $ 11.18 -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- 2 -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 18.97 $ 16.79 $ 15.51 $ 14.14 $ 12.92 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 13 22 7 5 3 - ---------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 17.79 $ 18.25 $ 16.38 $ 14.86 $ 12.73 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 14 20 13 15 20 - ---------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 33.81 $ 32.60 $ 31.50 $ 30.98 $ 31.04 - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 4 10 11 26 2 - ---------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 6.07 $ 5.07 $ 4.74 $ 4.54 -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 8 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 10.80 $ 10.72 -- -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 3 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 11.63 $ 11.11 -- -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 11.21 $ 10.95 -- -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 10.81 $ 11.11 -- -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ---------------------------------------------------------------------------------------------------------------------- Unit value $ 10.94 $ 9.91 $ 9.96 -- -- - ---------------------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- For the years ending December 31, - ---------------------------------------------------------------------------------------------------------- 2002 2001 2000 1999 - ---------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ---------------------------------------------------------------------------------------------------------- Unit value $ 9.87 $ 12.31 $ 13.34 $ 12.61 - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 20 18 4 -- - ---------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ---------------------------------------------------------------------------------------------------------- Unit value $ 6.90 $ 8.82 $ 10.59 $ 10.77 - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 7 6 2 -- - ---------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ---------------------------------------------------------------------------------------------------------- Unit value $ 9.53 $ 14.64 $ 22.48 $ 27.88 - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 42 43 35 -- - ---------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ---------------------------------------------------------------------------------------------------------- Unit value $ 9.95 $ 11.36 -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 2 1 -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ---------------------------------------------------------------------------------------------------------- Unit value $ 9.64 $ 11.41 $ 11.08 -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 14 11 -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Money Market - ---------------------------------------------------------------------------------------------------------- Unit value $ 31.16 $ 31.08 -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 6 13 -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ----------------------------------------------------------------------------------------------------------
32 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------ EQ/Short Duration Bond - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.75 $ 10.30 $ 10.01 -- -- - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/Small Company Index - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 17.28 $ 17.78 $ 15.25 $ 14.76 $ 12.67 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 14 15 15 16 15 - ------------------------------------------------------------------------------------------------------------------------ EQ/T. Rowe Price Growth Stock - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.89 $ 17.79 $ 18.71 $ 18.16 -- - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 6 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/Templeton Growth - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.89 $ 10.77 -- -- -- - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/UBS Growth and Income - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 6.47 $ 6.46 $ 5.71 $ 5.29 -- - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 6 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Comstock - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 11.59 $ 12.00 $ 10.46 -- -- - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Emerging Markets Equity - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 27.54 $ 19.58 $ 14.42 $ 10.96 $ 8.95 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 32 22 9 12 12 - ------------------------------------------------------------------------------------------------------------------------ EQ/Van Kampen Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 16.28 $ 13.43 $ 12.41 -- -- - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 4 3 -- -- -- - ------------------------------------------------------------------------------------------------------------------------ Multimanager Aggressive Equity - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 71.62 $ 64.92 $ 62.35 $ 58.18 $ 52.40 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1 1 1 1 1 - ------------------------------------------------------------------------------------------------------------------------ Multimanager Core Bond - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.35 $ 11.74 $ 11.42 $ 11.33 $ 11.01 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- 15 24 -- - ------------------------------------------------------------------------------------------------------------------------ Multimanager Health Care - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.31 $ 12.33 $ 11.84 $ 11.18 $ 10.06 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2 2 2 -- -- - ------------------------------------------------------------------------------------------------------------------------ Multimanager High Yield - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 35.98 $ 35.22 $ 32.35 $ 31.69 $ 29.44 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 5 5 5 6 11 - ------------------------------------------------------------------------------------------------------------------------ Multimanager International Equity - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 19.25 $ 17.29 $ 13.93 $ 12.18 $ 10.43 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3 3 6 6 3 - ------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Core Equity - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 13.09 $ 12.58 $ 11.18 $ 10.58 $ 9.74 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- 20 20 9 - ------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 10.84 $ 9.83 $ 9.92 $ 9.31 $ 8.82 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ Multimanager Large Cap Value - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 15.04 $ 14.65 $ 12.40 $ 11.68 $ 10.31 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 22 21 2 1 1 - ------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Growth - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.36 $ 11.15 $ 10.27 $ 9.57 $ 8.65 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 2 3 5 5 3 - ------------------------------------------------------------------------------------------------------------------------ - ---------------------------------------------------------------------------------------------------------- For the years ending December 31, - ---------------------------------------------------------------------------------------------------------- 2002 2001 2000 1999 - ---------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ---------------------------------------------------------------------------------------------------------- Unit value $ 8.97 $ 11.19 $ 11.07 $ 11.57 - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 17 17 10 -- - ---------------------------------------------------------------------------------------------------------- EQ/T. Rowe Price Growth Stock - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ---------------------------------------------------------------------------------------------------------- Unit value $ 5.80 $ 6.22 -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 12 9 -- -- - ---------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ---------------------------------------------------------------------------------------------------------- Unit value $ 38.47 $ 54.60 $ 73.67 $ 85.83 - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 1 1 1 -- - ---------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ---------------------------------------------------------------------------------------------------------- Unit value $ 10.71 -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Multimanager Health Care - ---------------------------------------------------------------------------------------------------------- Unit value $ 7.93 -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Multimanager High Yield - ---------------------------------------------------------------------------------------------------------- Unit value $ 24.25 $ 25.23 $ 25.30 $ 28.03 - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 12 13 13 -- - ---------------------------------------------------------------------------------------------------------- Multimanager International Equity - ---------------------------------------------------------------------------------------------------------- Unit value $ 7.84 -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ---------------------------------------------------------------------------------------------------------- Unit value $ 7.67 -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ---------------------------------------------------------------------------------------------------------- Unit value $ 6.81 -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ---------------------------------------------------------------------------------------------------------- Unit value $ 7.94 -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ---------------------------------------------------------------------------------------------------------- Unit value $ 6.22 -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ----------------------------------------------------------------------------------------------------------
33 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ------------------------------------------------------------------------------------------------------------------------ For the years ending December 31, ------------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------ Multimanager Mid Cap Value - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 14.08 $ 14.21 $ 12.50 $ 11.76 $ 10.30 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 3 3 7 6 5 - ------------------------------------------------------------------------------------------------------------------------ Multimanager Small Company Growth - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.33 $ 9.09 $ 8.32 $ 7.82 -- - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 1 5 1 -- -- - ------------------------------------------------------------------------------------------------------------------------ Multimanager Small Cap Value - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 18.21 $ 20.40 $ 17.74 $ 17.10 $ 14.75 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 11 16 15 16 17 - ------------------------------------------------------------------------------------------------------------------------ Multimanager Technology - ------------------------------------------------------------------------------------------------------------------------ Unit value $ 12.66 $ 10.81 $ 10.18 $ 9.23 $ 8.88 - ------------------------------------------------------------------------------------------------------------------------ Separate Account 49 number of units outstanding (000's) 27 23 23 25 -- - ------------------------------------------------------------------------------------------------------------------------ - ---------------------------------------------------------------------------------------------------------- For the years ending December 31, - ---------------------------------------------------------------------------------------------------------- 2002 2001 2000 1999 - ---------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ---------------------------------------------------------------------------------------------------------- Unit value $ 7.40 -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Multimanager Small Company Growth - ---------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ---------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ---------------------------------------------------------------------------------------------------------- Unit value $ 10.84 $ 12.70 $ 10.89 $ 9.28 - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) 18 15 9 -- - ---------------------------------------------------------------------------------------------------------- Multimanager Technology - ---------------------------------------------------------------------------------------------------------- Unit value $ 5.69 -- -- -- - ---------------------------------------------------------------------------------------------------------- Separate Account 49 number of units outstanding (000's) -- -- -- -- - ----------------------------------------------------------------------------------------------------------
34 The unit values and number of units outstanding shown below are for contracts offered under Separate Account 49 with the same daily asset charges of 1.90%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ------------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, --------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 - ------------------------------------------------------------------------------------------------------------------------------- AXA Aggressive Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.49 $ 12.95 $ 11.22 $ 10.56 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 49 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- AXA Conservative Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.15 $ 10.74 $ 10.29 $ 10.24 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5 31 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- AXA Conservative-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.57 $ 11.18 $ 10.48 $ 10.34 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6 16 15 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- AXA Moderate Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 46.16 $ 44.28 $ 40.92 $ 39.80 $ 37.31 $ 31.93 $ 37.29 - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4 4 8 13 11 7 4 - ------------------------------------------------------------------------------------------------------------------------------- AXA Moderate-Plus Allocation - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.98 $ 12.44 $ 11.07 $ 10.58 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- 55 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Common Stock - ------------------------------------------------------------------------------------------------------------------------------- Unit value $228.16 $ 224.77 $ 206.99 $ 202.28 $ 180.69 $ 123.15 $ 188.32 - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2 2 2 3 3 3 1 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Intermediate Government Securities - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.19 $ 17.35 $ 17.15 $ 17.27 $ 17.27 $ 17.23 -- - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1 2 3 3 3 2 -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein International - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.91 $ 17.25 $ 14.24 $ 12.59 $ 10.86 $ 8.19 -- - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7 11 16 13 14 -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Large Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 7.49 $ 6.70 $ 6.86 $ 6.09 $ 5.73 $ 4.74 $ 7.02 - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 60 66 86 86 111 108 27 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Quality Bond - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.60 $ 15.21 $ 14.94 $ 14.93 $ 14.67 $ 14.44 -- - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 30 25 24 24 25 28 -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Small Cap Growth - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 19.71 $ 17.22 $ 16.10 $ 14.72 $ 13.61 $ 9.52 $ 13.91 - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4 9 15 17 25 31 7 - ------------------------------------------------------------------------------------------------------------------------------- EQ/AllianceBernstein Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.98 $ 17.07 $ 14.33 $ 13.86 $ 12.45 $ 9.86 $ 11.64 - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 36 22 28 46 66 66 16 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Ariel Appreciation II - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.94 $ 11.29 $ 10.35 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1 1 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock Basic Value Equity - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 22.74 $ 22.91 $ 19.32 $ 19.12 $ 17.63 $ 13.70 $ 16.76 - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5 12 19 39 40 34 9 - ------------------------------------------------------------------------------------------------------------------------------- EQ/BlackRock International Value - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 23.45 $ 21.70 $ 17.60 $ 16.18 $ 13.56 $ 10.80 $ 13.20 - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7 8 10 19 21 15 18 - ------------------------------------------------------------------------------------------------------------------------------- EQ/Boston Advisors Equity Income - ------------------------------------------------------------------------------------------------------------------------------- Unit value $ 6.59 $ 6.48 $ 5.69 $ 5.47 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 24 24 24 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------
35 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- -------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ---------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 - -------------------------------------------------------------------------------------------------------------------------- EQ/Calvert Socially Responsible - -------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.54 $ 8.68 $ 8.40 $ 7.88 $ 7.75 $ 6.18 $ 8.56 - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Growth - -------------------------------------------------------------------------------------------------------------------------- Unit value $12.85 $ 12.42 $ 11.79 $ 11.44 $ 11.05 $ 9.08 $ 12.57 - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7 6 3 3 3 8 4 - -------------------------------------------------------------------------------------------------------------------------- EQ/Capital Guardian Research - -------------------------------------------------------------------------------------------------------------------------- Unit value $12.49 $ 12.53 $ 11.40 $ 10.95 $ 10.07 $ 7.80 $ 10.56 - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 11 11 23 34 35 37 13 - -------------------------------------------------------------------------------------------------------------------------- EQ/Caywood-Scholl High Yield Bond - -------------------------------------------------------------------------------------------------------------------------- Unit value $11.06 $ 10.97 $ 10.36 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- EQ/Davis New York Venture - -------------------------------------------------------------------------------------------------------------------------- Unit value $11.02 $ 10.83 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- 1 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- EQ/Equity 500 Index - -------------------------------------------------------------------------------------------------------------------------- Unit value $28.72 $ 27.90 $ 24.71 $ 24.12 $ 22.31 $ 17.79 $ 23.37 - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 14 16 18 19 28 29 11 - -------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen International Bond - -------------------------------------------------------------------------------------------------------------------------- Unit value $10.59 $ 9.89 $ 9.74 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- EQ/Evergreen Omega - -------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.32 $ 8.53 $ 8.21 $ 8.05 $ 7.67 $ 5.66 $ 7.59 - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2 6 7 7 7 4 -- - -------------------------------------------------------------------------------------------------------------------------- EQ/FI Mid Cap - -------------------------------------------------------------------------------------------------------------------------- Unit value $13.15 $ 12.49 $ 11.35 $ 10.87 $ 9.55 $ 6.78 $ 8.48 - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4 13 16 28 22 25 5 - -------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Income - -------------------------------------------------------------------------------------------------------------------------- Unit value $10.42 $ 10.41 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Small Cap Value - -------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.68 $ 10.80 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- EQ/Franklin Templeton Founding Strategy - -------------------------------------------------------------------------------------------------------------------------- Unit value $ 9.48 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Mergers and Acquisitions - -------------------------------------------------------------------------------------------------------------------------- Unit value $11.69 $ 11.52 $ 10.46 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO Small Company Value - -------------------------------------------------------------------------------------------------------------------------- Unit value $26.60 $ 24.81 $ 21.28 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7 6 6 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- EQ/International Core PLUS - -------------------------------------------------------------------------------------------------------------------------- Unit value $15.73 $ 13.91 $ 11.89 $ 10.35 $ 9.29 $ 7.14 $ 8.57 - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6 13 31 43 36 48 41 - -------------------------------------------------------------------------------------------------------------------------- EQ/International Growth - -------------------------------------------------------------------------------------------------------------------------- Unit value $16.10 $ 14.12 $ 11.46 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Core Bond - -------------------------------------------------------------------------------------------------------------------------- Unit value $13.78 $ 13.63 $ 13.35 $ 13.31 $ 13.04 $ 12.85 $ 11.96 - -------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 29 38 51 56 60 73 31 - --------------------------------------------------------------------------------------------------------------------------
36 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 - ----------------------------------------------------------------------------------------------------------------------------- EQ/JPMorgan Value Opportunities - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.75 $ 15.22 $ 12.89 $ 12.64 $ 11.62 $ 9.34 $ 11.77 - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 15 16 17 22 25 29 19 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Core PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.31 $ 10.12 $ 9.13 $ 8.68 $ 7.94 $ 6.64 $ 8.56 - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3 5 6 12 12 15 6 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Large Cap Growth PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.21 $ 14.30 $ 13.52 $ 12.64 $ 11.44 $ 9.02 $ 14.00 - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1 1 1 1 3 2 1 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Legg Mason Value Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.28 $ 11.14 $ 10.63 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Long Term Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.48 $ 9.95 $ 9.96 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Growth and Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.32 $ 12.14 $ 10.56 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Large Cap Core - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.63 $ 11.63 $ 10.52 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Lord Abbett Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.09 $ 12.25 $ 11.11 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- 1 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Marsico Focus - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 17.85 $ 15.95 $ 14.88 $ 13.70 $ 12.63 $ 9.82 $ 11.32 - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5 4 5 12 14 3 2 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Mid Cap Value PLUS - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.05 $ 16.63 $ 15.07 $ 13.80 $ 11.94 $ 9.13 $ 10.91 - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 14 15 17 32 39 40 14 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Money Market - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 26.20 $ 25.51 $ 24.88 $ 24.71 $ 25.00 $ 25.34 $ 25.51 - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 7 8 10 10 21 115 217 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Montag & Caldwell Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.56 $ 4.69 $ 4.43 $ 4.28 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Mutual Shares - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.66 $ 10.69 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Global - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.48 $ 11.07 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Opportunity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.07 $ 10.91 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Oppenheimer Main Street Small Cap - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.68 $ 11.08 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO Real Return - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.66 $ 9.75 $ 9.90 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2 2 8 -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------
37 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 - ----------------------------------------------------------------------------------------------------------------------------- EQ/Short Duration Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.48 $ 10.14 $ 9.94 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3 7 8 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Small Company Index - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.70 $ 16.30 $ 14.12 $ 13.80 $ 11.95 $ 8.35 $ 10.77 - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5 4 6 6 13 14 1 - ----------------------------------------------------------------------------------------------------------------------------- EQ/T.Rowe Price Growth Stock - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.67 $ 14.89 $ 15.82 $ 15.50 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 11 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Templeton Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.75 $ 10.74 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/UBS Growth and Income - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 5.93 $ 5.97 $ 5.33 $ 4.99 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Comstock - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.30 $ 11.81 $ 10.39 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- 2 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Emerging Markets Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 24.92 $ 17.89 $ 13.30 $ 10.21 $ 8.42 $ 5.50 $ 5.96 - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- EQ/Van Kampen Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 15.87 $ 13.21 $ 12.33 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Aggressive Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 57.97 $ 53.06 $ 51.46 $ 48.47 $ 44.08 $ 32.67 $ 46.83 - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- 12 12 12 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Core Bond - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.66 $ 11.19 $ 10.99 $ 11.01 $ 10.80 $ 10.61 -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 10 21 20 20 18 13 -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Health Care - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.56 $ 11.75 $ 11.39 $ 10.86 $ 9.87 $ 7.85 -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1 2 2 3 3 3 -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager High Yield - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 29.39 $ 29.05 $ 26.94 $ 26.64 $ 24.99 $ 20.79 $ 21.83 - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 4 7 10 16 11 7 -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager International Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 18.17 $ 16.48 $ 13.40 $ 11.83 $ 10.23 $ 7.76 -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 2 1 1 9 6 7 -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Core Equity - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 12.35 $ 11.99 $ 10.76 $ 10.28 $ 9.55 $ 7.60 -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- 15 15 15 15 17 -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 10.23 $ 9.37 $ 9.54 $ 9.05 $ 8.65 $ 6.75 -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6 21 23 30 36 39 -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Large Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 14.19 $ 13.96 $ 11.93 $ 11.35 $ 10.11 $ 7.86 -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5 11 15 29 28 30 -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.67 $ 10.63 $ 9.88 $ 9.30 $ 8.48 $ 6.16 -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 5 15 18 31 30 34 -- - -----------------------------------------------------------------------------------------------------------------------------
38 UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2007.
- ----------------------------------------------------------------------------------------------------------------------------- For the years ending December 31, ------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Mid Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 13.29 $ 13.54 $ 12.03 $ 11.42 $ 10.11 $ 7.33 -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 3 6 10 26 23 25 -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Growth - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 8.55 $ 8.40 $ 7.77 $ 7.37 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Small Cap Value - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 16.54 $ 18.70 $ 16.42 $ 15.99 $ 13.92 $ 10.33 $ 12.22 - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 6 16 26 36 44 43 14 - ----------------------------------------------------------------------------------------------------------------------------- Multimanager Technology - ----------------------------------------------------------------------------------------------------------------------------- Unit value $ 11.95 $ 10.31 $ 9.79 $ 8.97 $ 8.71 $ 5.63 -- - ----------------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 1 10 11 11 4 4 -- - -----------------------------------------------------------------------------------------------------------------------------
39 (16) HYPOTHETICAL ILLUSTRATIONS ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM BENEFITS The following tables illustrate the changes in account value, cash value and the values of the "5% Roll-Up to age 80" guaranteed minimum death benefit, the Protection Plus(SM) benefit and the Guaranteed minimum income benefit under certain hypothetical circumstances for an Accumulator(R), Accumulator(R) Elite, Accumulator(R) Plus(SM) and Accumulator(R) Select(SM) contracts, respectively. The table illustrates the operation of a contract based on a male, issue age 60, who makes a single $100,000 contribution, takes no withdrawals, and has a current account value of $105,000 in contract year 3. For Accumulator(R) Plus(SM) we assume a current account value of $110,000 in contract year 3. The amounts shown are for the beginning of each contract year and assume that all of the account value is invested in Portfolios that achieve investment returns at constant gross annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1 fees or other expenses are deducted from the underlying portfolio assets). After the deduction of the arithmetic average of the investment management fees, 12b-1 fees and other expenses of all of the underlying Portfolios (as described below), the corresponding net annual rates of return would be (2.74)% and 3.26% for the Accumulator(R) contracts; (2.99)% and 3.01% for Accumulator(R) Elite(SM) contracts (2.79)% and 3.21% for Accumulator(R) Plus(SM) contracts; and (3.09)% and 2.91% for Accumulator(R) Select(SM) contracts, respectively at the 0% and 6% gross annual rates, respectively. These net annual rates of return reflect the trust and separate account level charges, but they do not reflect the charges we deduct from your account value annually for the 5% Roll up to age 80 Guaranteed minimum death benefit, Protection Plus(SM) benefit, and the Guaranteed minimum income benefit features, as well as the annual administrative charge. If the net annual rates of return did reflect these charges, the net annual rates of return shown would be lower; however, the values shown in the following tables reflect all contract charges. The values shown under "Lifetime Annual Guaranteed Minimum Income Benefit" reflect the lifetime income that would be guaranteed if the Guaranteed minimum income benefit is selected at that contract anniversary. An "N/A" in these columns indicates that the benefit is not exercisable in that year. A "0" under any of the death benefit and/or "Lifetime Annual Guaranteed Minimum Income Benefit" columns indicates that the contract has terminated due to insufficient account value and, consequently, the guaranteed benefit has no value. With respect to fees and expenses deducted from assets of the underlying portfolios, the amounts shown in all tables reflect (1) investment management fees equivalent to an effective annual rate of 0.67%, and (2) an assumed average asset charge for all other expenses of the underlying portfolios equivalent to an effective annual rate of 0.27% and (3) 12b-1 fees equivalent to an effective annual rate of 0.25%. These rates are the arithmetic average for all Portfolios that are available as investment options. In other words, they are based on the hypothetical assumption that account values are allocated equally among the variable investment options. The actual rates associated with any contract will vary depending upon the actual allocation of account value among the investment options. These rates do not reflect expense limitation arrangements in effect with respect to certain of the underlying portfolios as described in the footnotes to the fee table for the underlying portfolios in "Fee table" earlier in this prospectus. With these arrangements, the charges shown above would be lower. This would result in higher values than those shown in the following tables. Because your circumstances will no doubt differ from those in the illustrations that follow, values under your contract will differ, in most cases substantially. Upon request, we will furnish you with a personalized illustration. 40 Variable deferred annuity Accumulator(R) $100,000 Single contribution and no withdrawals $105,000 year 3 account value Male, issue age 60 Benefits: 5% Roll-Up to age 80 Guaranteed minimum death benefit Protection Plus Guaranteed minimum income benefit
5% Roll-Up to age 80 Lifetime Annual Guaranteed Total Death Benefit Guaranteed Minimum Death with Protection Minimum Income Account Value Cash Value Benefit Plus Benefit Contract ------------------- ------------------- ------------------- ------------------- ---------------- Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% Age --------- --------- --------- --------- --------- --------- --------- --------- --------- -------- ------- 62 3 105,000 105,000 100,000 100,000 110,250 110,250 114,350 114,350 N/A N/A 63 4 101,571 107,859 97,571 103,859 115,763 115,763 122,068 122,068 N/A N/A 64 5 98,226 110,788 95,226 107,788 121,551 121,551 130,171 130,171 N/A N/A 65 6 94,961 113,788 92,961 111,788 127,628 127,628 138,679 138,679 N/A N/A 66 7 91,772 116,860 90,772 115,860 134,010 134,010 147,613 147,613 N/A N/A 67 8 88,657 120,006 88,657 120,006 140,710 140,710 156,994 156,994 N/A N/A 68 9 85,612 123,227 85,612 123,227 147,746 147,746 166,844 166,844 N/A N/A 69 10 82,634 126,525 82,634 126,525 155,133 155,133 177,186 177,186 N/A N/A 74 15 68,647 144,196 68,647 144,196 197,993 197,993 237,190 237,190 12,493 12,493 79 20 55,890 163,945 55,890 163,945 252,695 252,695 313,773 313,773 17,032 17,032 84 25 44,403 186,320 44,403 186,320 265,330 265,330 331,462 331,462 22,818 22,818 89 30 37,553 215,660 37,553 215,660 265,330 265,330 331,462 331,462 N/A N/A 94 35 32,357 250,659 32,357 250,659 265,330 265,330 331,462 331,462 N/A N/A 95 36 31,407 258,313 31,407 258,313 265,330 265,330 331,462 331,462 N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. 41 Variable deferred annuity Accumulator(R) Plus(SM) $100,000 Single contribution and no withdrawals $110,000 year 3 account value Male, issue age 60 Benefits: 5% Roll-Up to age 80 Guaranteed minimum death benefit Protection Plus
5% Roll-Up to age 80 Guaranteed Total Death Benefit Account Value Cash Value Minimum Death Benefit with Protection Plus Contract --------------------- --------------------- ---------------------- -------------------- Year 0% 6% 0% 6% 0% 6% 0% 6% Age --------- --------- --------- --------- --------- ---------- --------- --------- -------- 62 3 110,000 110,000 103,000 103,000 114,660 114,660 120,524 120,524 63 4 106,717 113,304 100,717 107,304 120,393 120,393 128,550 128,550 64 5 103,532 116,707 98,532 111,707 126,413 126,413 136,978 136,978 65 6 100,442 120,213 96,442 116,213 132,733 132,733 145,827 145,827 66 7 97,445 123,823 94,445 120,823 139,370 139,370 155,118 155,118 67 8 94,537 127,542 92,537 125,542 146,338 146,338 164,874 164,874 68 9 91,715 131,373 91,715 131,373 153,655 153,655 175,118 175,118 69 10 88,978 135,319 88,978 135,319 161,338 161,338 185,873 185,873 74 15 76,470 156,899 76,470 156,899 205,913 205,913 248,278 248,278 79 20 65,720 181,921 65,720 181,921 262,803 262,803 327,924 327,924 84 25 56,481 210,933 56,481 210,933 275,943 275,943 346,320 346,320 89 30 48,541 244,571 48,541 244,571 275,943 275,943 346,320 346,320 94 35 41,718 283,574 41,718 283,574 275,943 275,943 346,320 346,320 95 36 40,473 292,092 40,473 292,092 275,943 275,943 346,320 346,320
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. 42 Variable deferred annuity Accumulator(R) Elite(SM) $100,000 Single contribution and no withdrawals $105,000 year 3 account value Male, issue age 60 Benefits: 5% Roll-Up to age 80 Guaranteed minimum death benefit Protection Plus Guaranteed minimum income benefit
5% Roll-Up to age 80 Lifetime Annual Guaranteed Total Death Benefit Guaranteed Minimum Death with Protection Minimum Income Account Value Cash Value Benefit Plus Benefit Contract ------------------- ------------------- ------------------- ------------------- ---------------- Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% Age --------- --------- --------- --------- --------- --------- --------- --------- --------- -------- ------- 62 3 105,000 105,000 97,000 97,000 110,250 110,250 114,350 114,350 N/A N/A 63 4 101,309 107,597 101,309 107,597 115,763 115,763 122,068 122,068 N/A N/A 64 5 97,719 110,249 97,719 110,249 121,551 121,551 130,171 130,171 N/A N/A 65 6 94,225 112,958 94,225 112,958 127,628 127,628 138,679 138,679 N/A N/A 66 7 90,823 115,723 90,823 115,723 134,010 134,010 147,613 147,613 N/A N/A 67 8 87,509 118,546 87,509 118,546 140,710 140,710 156,994 156,994 N/A N/A 68 9 84,279 121,426 84,279 121,426 147,746 147,746 166,844 166,844 N/A N/A 69 10 81,130 124,366 81,130 124,366 155,133 155,133 177,186 177,186 N/A N/A 74 15 66,469 139,959 66,469 139,959 197,993 197,993 237,190 237,190 12,493 12,493 79 20 53,296 157,078 53,296 157,078 252,695 252,695 313,773 313,773 17,032 17,032 84 25 41,600 176,161 41,600 176,161 265,330 265,330 331,462 331,462 22,818 22,818 89 30 34,687 201,394 34,687 201,394 265,330 265,330 331,462 331,462 N/A N/A 94 35 29,505 231,257 29,505 231,257 265,330 265,330 331,462 331,462 N/A N/A 95 36 28,566 237,742 28,566 237,742 265,330 265,330 331,462 331,462 N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. 43 Variable deferred annuity Accumulator(R) Select((SM)) $100,000 Single contribution and no withdrawals $105,000 year 3 account value Male, issue age 60 Benefits: 5% Roll-Up to age 80 Guaranteed minimum death benefit Protection Plus Guaranteed minimum income benefit
5% Roll-Up to age 80 Lifetime Annual Guaranteed Total Death Benefit Guaranteed Minimum Death with Protection Minimum Income Account Value Cash Value Benefit Plus Benefit Contract ------------------- ------------------- ------------------- ------------------- ---------------- Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% Age --------- --------- --------- --------- --------- --------- --------- --------- --------- -------- ------- 62 3 105,000 105,000 105,000 105,000 110,250 110,250 114,350 114,350 N/A N/A 63 4 101,205 107,492 101,205 107,492 115,763 115,763 122,068 122,068 N/A N/A 64 5 97,517 110,034 97,517 110,034 121,551 121,551 130,171 130,171 N/A N/A 65 6 93,932 112,627 93,932 112,627 127,628 127,628 138,679 138,679 N/A N/A 66 7 90,445 115,270 90,445 115,270 134,010 134,010 147,613 147,613 N/A N/A 67 8 87,053 117,965 87,053 117,965 140,710 140,710 156,994 156,994 N/A N/A 68 9 83,751 120,712 83,751 120,712 147,746 147,746 166,844 166,844 N/A N/A 69 10 80,535 123,511 80,535 123,511 155,133 155,133 177,186 177,186 N/A N/A 74 15 65,616 138,296 65,616 138,296 197,993 197,993 237,190 237,190 12,493 12,493 79 20 52,289 154,406 52,289 154,406 252,695 252,695 313,773 313,773 17,032 17,032 84 25 40,522 172,242 40,522 172,242 265,330 265,330 331,462 331,462 22,818 22,818 89 30 33,595 195,939 33,595 195,939 265,330 265,330 331,462 331,462 N/A N/A 94 35 28,430 223,903 28,430 223,903 265,330 265,330 331,462 331,462 N/A N/A 95 36 27,496 229,958 27,496 229,958 265,330 265,330 331,462 331,462 N/A N/A
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment allocations made by the owner. The account value, cash value and guaranteed benefits for a contract would be different from the ones shown if the actual gross rate of investment return averaged 0% or 6% over a period of years, but also fluctuated above or below the average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative. 44 Appendix I - -------------------------------------------------------------------------------- Dates of previous Prospectuses and Supplements
- ------------------------------------------------------------------------------------------------------------------------------------ Product Distributor ------------------------------------------------------------------------------------------------------------ AXA Advisors AXA Distributors ------------------------------------------------------------------------------------------------------------ Prospectus and Prospectus and Product Name SAI Dates Supplement Dates SAI Dates Supplement Dates - ------------------------------------------------------------------------------------------------- ---------------------------------- Income Manager(SM) 4/7/95 7/1/95; 9/28/95 4/7/95 7/1/95; 9/28/95 Accumulator(R) 11/1/95 11/1/95 Income Manager(SM) 5/1/96 10/16/96 2/10/97 Rollover IRA 10/17/96 2/10/97 5/1/97 5/1/97 5/1/97 5/1/97; 12/31/97; 5/1/98; 8/1/97 1/4/99; 5/1/99; 5/1/00; 6/23/00; 12/31/97 12/31/97; 5/1/98; 9/1/00; 2/9/01; 9/1/01; 1/14/02; 1/4/99; 5/1/99; 5/1/00; 9/1/00; 2/22/02; 7/15/02; 8/20/02; 1/6/03; 2/9/01; 9/1/01; 1/14/02; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/22/02; 7/15/02; 8/20/02; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 1/6/03; 2/20/03; 5/15/03; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 8/15/03; 11/24/03; 2/1/04; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/4/04; 8/10/04; 12/13/04; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 12/31/04; 5/9/05; 6/10/05; 9/19/07; 10/19/07; 2/15/08 6/17/05; 7/25/05; 8/31/05; -------------------------------------------------------- 12/2/05; 2/8/06; 8/25/06; 12/31/97 12/31/97; 5/1/98; 1/4/99; 5/1/99; 12/11/06; 5/1/07; 8/24/07; 5/1/00; 6/23/00; 9/1/00; 2/9/01; 9/19/07; 10/19/07; 2/15/08 9/1/01; 1/14/02; 2/22/02; 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07 - ------------------------------------------------------------------------------------------------------------------------------------ Accumulator(R) 5/1/98 5/1/98; 6/18/98; 11/30/98 10/1/97(2) (IRA, NQ and QP) (Accumulator 5/1/99; 5/1/00; 9/1/00; 2/9/01; 12/31/97(2) Accumulator(R) only) 9/1/01; 1/14/02; 2/22/02; 7/15/02; 5/1/98 5/1/98; 6/18/98; 11/30/98; Select(SM) (IRA, NQ, 5/1/99 8/20/02; 1/6/03; 2/20/03; 5/15/03; 5/1/99; 5/1/00; 9/1/00; 2/9/01; QP) 8/15/03; 11/24/03; 2/1/04; 8/4/04; 9/1/01; 1/14/02; 2/22/02; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 7/15/02; 8/20/02; 1/6/03; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 2/20/03; 5/15/03; 8/15/03; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 11/24/03; 2/1/04; 8/4/04; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 8/10/04; 12/13/04; 12/31/04; 2/15/08 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07;9/19/07; 10/19/07; 2/15/08 - ------------------------------------------------------------------------------------------------------------------------------------
Appendix I 1
- ------------------------------------------------------------------------------------------------------------------------------------ Product Distributor ------------------------------------------------------------------------------------------------------------ AXA Advisors AXA Distributors ------------------------------------------------------------------------------------------------------------ Prospectus and Prospectus and Product Name SAI Dates Supplement Dates SAI Dates Supplement Dates - ------------------------------------------------------------------------------------------------------------------------------------ Accumulator(R) 10/18/99(3) 3/20/00; 5/1/00; 6/23/00; 9/1/00; 5/1/99 Select(SM) 10/13/00; 2/9/01; 9/1/01; 1/14/02; 10/18/99 3/20/00; 5/1/00; 9/1/00; Accumulator(R) 2/22/02; 7/15/02; 8/20/02; 1/6/03; 10/13/00; 2/9/01; 9/1/01; Accumulator(R) 2/20/03; 5/15/03; 8/15/03; 11/24/03; 1/14/02; 2/22/02; 7/15/02; Select(SM) 2/1/04; 8/4/04; 8/10/04; 12/13/04; 8/20/02; 1/6/03; 2/20/03; (2002 Series) 12/31/04; 5/9/05; 6/10/05; 6/17/05; 5/15/03; 8/15/03; 11/24/03; Accumulator(R) 7/25/05; 8/31/05; 12/2/05; 2/8/06; 2/1/04; 8/4/04; 8/10/04; (2002 Series) 8/25/06; 12/11/06; 5/1/07; 8/24/07; 12/13/04; 12/31/04; 5/9/05; 9/19/07; 10/19/07; 2/15/08 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - ------------------------------------------------------------------------------------------------------------------------------------ 5/1/00(3) 3/20/00; 6/23/00; 9/1/00; 9/6/00; 5/1/00 3/20/00; 9/1/00; 9/6/00; 10/13/00; 2/9/01; 9/1/01; 1/14/02; 10/13/00; 2/9/01; 9/1/01; 2/22/02; 7/15/02; 8/20/02; 1/6/03; 1/14/02; 2/22/02; 7/15/02; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 8/20/02; 1/6/03; 2/20/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 5/15/03; 8/15/03; 11/24/03; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 2/1/04; 8/4/04; 8/10/04; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 12/13/04; 12/31/04; 5/9/05; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 6/10/05; 6/17/05; 7/25/05; 9/19/07; 10/19/07; 2/15/08 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07;9/19/07; 10/19/07; 2/15/08 - ------------------------------------------------------------------------------------------------------------------------------------
2 Appendix I
Product Distributor ----------------------------------------------------------- AXA Advisors ----------------------------------------------------------- Prospectus and Product Name SAI Dates Supplement Dates - ---------------------------------------------------------------------------------------------- Accumulator(R) Select(SM) 5/1/01(3) 5/1/01(1); 7/30/01(5); 9/1/01; Accumulator(R) 10/1/01(6); 12/14/01; 1/14/02; 2/22/02; Accumulator(R) Select(SM) (2002 7/15/02; 8/20/02; 1/6/03; 2/20/03; Series) 5/15/03; 8/15/03; 11/24/03; 2/1/04; Accumulator(R) (2002 Series) 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ---------------------------------------------------------- 8/13/01(2) 9/1/01; 10/1/01(6); 12/14/01; 1/14/02; 2/22/02; 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ---------------------------------------------------------- 4/1/02(4) 4/3/02; 5/20/02(7); 6/7/02(2); 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 12/6/02; 12/09/02; 1/6/03; 2/4/03; 2/20/03; 5/15/03; 8/8/03(8); 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ---------------------------------------------------------- 5/1/02(3) 5/1/02(1); 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ---------------------------------------------------------- 5/1/02(4) 5/20/02(7); 6/7/02(2); 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 12/6/02; 12/09/02; 1/6/03; 2/4/02; 2/20/03; 5/15/03; 8/8/03(8); 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - ---------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------ Product Distributor ------------------------------------------------- AXA Distributors ------------------------------------------------- Prospectus and Product Name SAI Dates Supplement Dates - ------------------------------------------------------------------------------------ Accumulator(R) Select(SM) 5/1/01 5/1/01(1); 7/30/01(5); Accumulator(R) 9/1/01; 10/1/01(6); 12/14/01; Accumulator(R) Select(SM) (2002 1/14/02; 2/22/02; 7/15/02; Series) 8/20/02; 1/6/03; 2/20/03; Accumulator(R) (2002 Series) 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ------------------------------------------------- N/A N/A ------------------------------------------------- 4/1/02(4) 4/3/02; 5/20/02(7); 6/7/02(2); 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 12/6/02; 12/09/02; 1/6/03; 2/4/03; 2/20/03; 5/15/03; 8/8/03(8); 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ------------------------------------------------- 5/1/02(3) 5/1/02(1); 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ------------------------------------------------- 5/1/02(4) 5/20/02(7); 6/7/02(2); 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 12/06/02; 12/09/02; 1/6/03; 2/4/03; 2/20/03; 5/15/03; 8/8/03(8); 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25//05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - ------------------------------------------------------------------------------------
Appendix I 3
- --------------------------------------------------------------------------------------------- Product Distributor ----------------------------------------------------------- AXA Advisors ----------------------------------------------------------- Prospectus and Product Name SAI Dates Supplement Dates - --------------------------------------------------------------------------------------------- Accumulator(R) Select(SM) 5/1/03(4) 5/15/03; 8/8/03(8); 8/15/03; 11/24/03; Accumulator(R) 2/1/04; 2/10/04; 8/4/04; 8/10/04; Accumulator(R) Select(SM) (2002 12/13/04; 12/31/04; 5/9/05; 6/10/05; Series) 6/17/05; 7/25/05; 8/31/05; 12/2/05; Accumulator(R) (2002 Series) 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ----------------------------------------------------------- 5/1/04(4) 8/4/04; 8/10/04; 10/25/04(5); 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - --------------------------------------------------------------------------------------------- Accumulator(R) 9/15/03 9/15/03(9); 11/24/03; 12/5/03; 1/23/04; (2004 Series) 2/2/04; 2/10/04; 2/23/04(7); 8/4/04; 8/10/04; 12/13/04; 12/31/04; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ----------------------------------------------------------- 5/1/04 7/1/04; 7/19/04; 8/4/04; 8/10/04; 10/25/04(11); 12/10/04(5); 12/13/04; 12/21/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 11/1/05(14); 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - --------------------------------------------------------------------------------------------- Accumulator(R) Select(SM) 9/15/03 9/15/03(9); 11/24/03; 12/5/03; 2/10/04; (2004 Series) 2/23/04(7); 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ----------------------------------------------------------- 5/1/04 7/1/04; 7/19/04; 8/4/04; 8/10/04; 10/25/04(11); 12/10/04(5); 12/13/04; 12/21/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 11/1/05(14); 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - --------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------ Product Distributor -------------------------------------------------- AXA Distributors -------------------------------------------------- Prospectus and Product Name SAI Dates Supplement Dates - ------------------------------------------------------------------------------------ Accumulator(R) Select(SM) 5/1/03(4) 5/15/03; 8/8/03(8); 8/15/03; Accumulator(R) 11/24/03; 2/1/04; 2/10/04; Accumulator(R) Select(SM) (2002 8/4/04; 8/10/04; 12/13/04; Series) 12/31/04; 5/9/05; 6/10/05; Accumulator(R) (2002 Series) 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 -------------------------------------------------- 5/1/04(4) 8/4/04; 8/10/04; 10/25/04(5); 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07;9/19/07; 10/19/07; 2/15/08 - ------------------------------------------------------------------------------------ Accumulator(R) 9/15/03 9/15/03(9); 11/24/03; 12/5/03; (2004 Series) 1/23/04; 2/2/04; 2/10/04(7); 2/23/04(7); 4/23/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 -------------------------------------------------- 5/1/04 7/1/04; 7/19/04; 8/4/04; 8/10/04; 10/25/04(11); 12/10/04(5); 12/13/04; 12/21/04; 12/31/04; 4/04/05; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 11/1/05(14); 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/ 07; 2/15/08 - ------------------------------------------------------------------------------------ Accumulator(R) Select(SM) 9/15/03 9/15/03(9); 11/24/03; 12/5/03; (2004 Series) 2/10/04; 2/23/04(7); 4/23/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/ 07; 2/15/08 -------------------------------------------------- 5/1/04 7/1/04; 7/19/04; 8/4/04; 8/10/04; 10/25/04(11); 12/10/04(5); 12/13/04; 12/21/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05;11/1/05(14); 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07;9/19/07; 10/19/07; 2/15/08 - ------------------------------------------------------------------------------------
4 Appendix I
- ------------------------------------------------------------------------------------------ Product Distributor ---------------------------------------------------------- AXA Advisors ---------------------------------------------------------- Prospectus and Product Name SAI Dates Supplement Dates - ------------------------------------------------------------------------------------------ Accumulator(R) Plus(SM) 9/2/99(3) 6/23/00; 9/1/00; 9/6/00; 10/13/00; Accumulator(R) Plus(SM) (2002 10/18/99(3) 2/9/01; 3/19/01; 7/30/01; 9/1/01; Series) 5/1/00(3) 1/14/02; 2/22/02; 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ---------------------------------------------------------- 5/1/01(3) 7/30/01(5); 9/1/01; 12/14/01; 1/14/02; 2/22/02; 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04;8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ---------------------------------------------------------- 4/1/02(4) 4/3/02; 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 12/6/02; 12/9/02; 1/6/03; 2/4/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05;6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ---------------------------------------------------------- 5/1/02(3) 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ---------------------------------------------------------- 5/1/02(4) 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 12/6/02; 12/9/02; 1/6/03; 2/4/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - ------------------------------------------------------------------------------------------ - ---------------------------------------------------------------------------------- Product Distributor -------------------------------------------------- AXA Distributors -------------------------------------------------- Prospectus and Product Name SAI Dates Supplement Dates - ---------------------------------------------------------------------------------- Accumulator(R) Plus(SM) 8/2/99(3) 9/1/00; 9/6/00; 10/13/00; Accumulator(R) Plus(SM) (2002 10/18/99(3) 2/9/01; 3/19/01; 7/30/01; Series) 5/1/00(3) 9/1/01; 1/14/02; 2/22/02; 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 -------------------------------------------------- 5/1/01(3) 5/1/01; 7/30/01(5); 9/1/01; 12/14/01; 1/14/02; 2/22/02; 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/ 07; 2/15/08 -------------------------------------------------- 4/1/02(4) 4/3/02; 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 12/6/02; 12/9/02; 1/6/03; 2/4/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 -------------------------------------------------- 5/1/02(3) 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 -------------------------------------------------- 5/1/02(4) 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 12/6/02; 12/9/02; 1/6/03; 2/4/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - ----------------------------------------------------------------------------------
Appendix I 5
- -------------------------------------------------------------------------------------------- Product Distributor ----------------------------------------------------------- AXA Advisors ----------------------------------------------------------- Prospectus and Product Name SAI Dates Supplement Dates - -------------------------------------------------------------------------------------------- Accumulator(R) Plus(SM) 5/1/03(4) 5/15/03; 6/20/03; 8/15/03; 11/24/03; Accumulator(R) Plus(SM) (2002 2/1/04; 2/10/04; 8/4/04; 8/10/04; Series) 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ----------------------------------------------------------- 5/1/04(4) 8/4/04; 8/10/04; 10/25/04(5); 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - -------------------------------------------------------------------------------------------- Accumulator(R) Plus(SM) 9/15/03 9/15/03; 11/24/03; 12/5/03; 1/23/04; (2004 Series) 2/2/04; 2/10/04; 2/23/04(7); 6/21/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 2/17/05; 5/1/05; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 2/17/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ----------------------------------------------------------- 5/1/04 6/21/04; 7/1/04; 7/19/04; 8/4/04; 8/10/04; 10/25/04(11); 12/10/04(5)(12); 12/13/04; 12/21/04; 12/31/04; 2/17/05; 5/1/05; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 11/1/05(14); 12/2/05; 2/8/06; 2/17/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - -------------------------------------------------------------------------------------------- Accumulator(R) Select(SM) II N/A N/A - -------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------- Product Distributor ------------------------------------------------ AXA Distributors ------------------------------------------------ Prospectus and Product Name SAI Dates Supplement Dates - --------------------------------------------------------------------------------- Accumulator(R) Plus(SM) 5/1/03(4) 5/15/03; 6/20/03; 8/15/03; Accumulator(R) Plus(SM) (2002 11/24/03; 2/1/04; 2/10/04; Series) 4/23/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ------------------------------------------------ 5/1/04(4) 8/4/04; 8/10/04; 10/25/04(5); 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - --------------------------------------------------------------------------------- Accumulator(R) Plus(SM) 9/15/03 9/15/03; 11/24/03; 12/5/03; (2004 Series) 1/23/04; 2/2/04; 2/10/04; 2/23/04(7); 4/23/04; 6/21/04; 8/4/04; 8/10/04;12/13/04; 12/31/04; 2/17/05; 5/1/05; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 2/17/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ------------------------------------------------ 5/1/04 6/21/04; 7/1/04; 7/19/04; 8/4/04; 8/10/04; 10/25/04(11); 12/10/04(5)(12); 12/13/04; 12/21/04; 12/31/04; 2/17/05; 4/04/05; 5/1/05; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 11/1/05(14); 12/2/05; 2/8/06; 2/17/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - --------------------------------------------------------------------------------- Accumulator(R) Select(SM) II 10/1/01 10/1/01(6); 12/14/01; 1/14/02; 2/22/02 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - ---------------------------------------------------------------------------------
6 Appendix I
- ------------------------------------------------------------------------------------------------ Product Distributor -------------------------------------------------------------- AXA Advisors -------------------------------------------------------------- Prospectus and Product Name SAI Dates Supplement Dates - ------------------------------------------------------------------------------------------------ Accumulator(R) Elite(SM) II N/A N/A - ------------------------------------------------------------------------------------------------ Accumulator(R) Elite(SM) 8/13/01(3) 9/1/01; 10/1/01(7); 12/14/01; 1/14/02; Accumulator(R) Elite(SM) (2002 2/22/02; 7/15/02; 8/20/02; 11/11/02; Series) 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07 -------------------------------------------------------------- 4/1/02(4) 4/3/02(5); 5/20/02(7); 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 12/6/02; 12/9/02; 1/6/03; 2/4/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07 -------------------------------------------------------------- 5/1/02(3) 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07 -------------------------------------------------------------- 5/1/02(4) 5/20/02(7); 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 12/6/02; 12/9/02; 1/6/03; 2/4/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07 - ------------------------------------------------------------------------------------------------ - ----------------------------------------------------------------------------------- Product Distributor ------------------------------------------------- AXA Distributors ------------------------------------------------- Prospectus and Product Name SAI Dates Supplement Dates - ----------------------------------------------------------------------------------- Accumulator(R) Elite(SM) II 10/1/01 10/1/01(7); 12/14/01; 1/14/02; 2/22/02 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - ----------------------------------------------------------------------------------- Accumulator(R) Elite(SM) 8/13/01(3) 9/1/01; 10/1/01(7); 12/14/01; Accumulator(R) Elite(SM) (2002 1/14/02; 2/22/02; 7/15/02; Series) 8/20/02; 11/11/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ------------------------------------------------- 4/1/02(4) 4/3/02(5); 5/20/02(7); 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 12/6/02; 12/9/02; 1/6/03; 2/4/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ------------------------------------------------- 5/1/02(3) 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ------------------------------------------------- 5/1/02(4) 5/20/02(7); 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 12/6/02; 12/9/02; 1/6/03; 2/4/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/10/04; 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - -----------------------------------------------------------------------------------
Appendix I 7
- --------------------------------------------------------------------------------------------- Product Distributor ----------------------------------------------------------- AXA Advisors ----------------------------------------------------------- Prospectus and Product Name SAI Dates Supplement Dates - --------------------------------------------------------------------------------------------- Accumulator(R) Elite(SM) 5/1/03(4) 5/15/03; 6/20/03; 8/15/03; 11/24/03; Accumulator(R) Elite(SM) (2002 2/1/04; 2/10/04; 8/4/04; 8/10/04; Series) 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ----------------------------------------------------------- 5/1/04(4) 8/4/04; 8/10/04; 10/25/04(5); 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - --------------------------------------------------------------------------------------------- Accumulator(R) Elite(SM) 9/15/03 9/15/03(10); 11/24/03; 12/5/03; (2004 Series) 1/23/04; 2/2/04; 2/10/04; 2/23/04(7); 8/4/04; 8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ----------------------------------------------------------- 5/1/04 7/1/04; 7/19/04; 8/4/04; 8/10/04; 10/25/04(11); 12/10/04(5); 12/13/04; 12/21/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 11/1/05(14); 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - --------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------- Product Distributor ------------------------------------------------- AXA Distributors ------------------------------------------------- Prospectus and Product Name SAI Dates Supplement Dates - ----------------------------------------------------------------------------------- Accumulator(R) Elite(SM) 5/1/03(4) 5/15/03; 6/20/03; 8/15/03; Accumulator(R) Elite(SM) (2002 11/24/03; 2/1/04; 2/10/04; Series) 4/23/04; 8/4/04;8/10/04; 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ------------------------------------------------- 5/1/04(4) 8/4/04; 8/10/04; 10/25/04(5); 12/13/04; 12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06;5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - ----------------------------------------------------------------------------------- Accumulator(R) Elite(SM) 9/15/03 9/15/0310); 11/24/03; 12/5/03; (2004 Series) 2/2/04; 1/23/04; 2/10/04; 2/23/04(7); 4/23/04; 8/4/04; 8/10/04; 12/13/04;12/31/04; 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 ------------------------------------------------- 5/1/04 7/1/04; 7/19/04; 8/4/04; 8/10/04; 10/25/04(11); 12/10/04(5); 12/13/04; 12/21/04; 12/31/04; 5/1/05(13); 5/9/05; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 11/1/05(14); 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07; 2/15/08 - -----------------------------------------------------------------------------------
8 Appendix I
- ------------------------------------------------------------------------------------------------------------------- Product Distributor ------------------------------------------------------------------------------------- AXA Advisors AXA Distributors ------------------------------------------------------------------------------------- Prospectus and Prospectus and Product Name SAI Dates Supplement Dates SAI Dates Supplement Dates - ------------------------------------------------------------------------------------------------------------------- Accumulator(R) Express(SM) N/A N/A 9/2/99 10/18/99 5/1/00 9/1/00; 9/6/00; 2/9/01; 7/30/01(5); 9/1/01; 12/14/01; 1/14/02; 2/22/02; 7/15/02; 8/20/02; 1/6/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 12/13/04; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07 ----------------------------------------------- 5/1/01 7/30/01(5); 9/1/01; 1/14/02; 2/22/02; 7/15/02; 8/20/02; 1/6/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/4/04; 12/13/04; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07 ----------------------------------------------- 5/1/03 5/15/03; 8/15/03; 11/24/03; 12/23/03; 2/1/04; 2/10/04; 8/4/04; 12/13/04; 6/10/05; 6/17/05; 7/25/05; 8/31/05; 12/2/05; 2/8/06; 8/25/06; 12/11/06; 5/1/07; 8/24/07; 9/19/07; 10/19/07 - -------------------------------------------------------------------------------------------------------------------
(1) applies to Accumulator(R) contracts issued in Oregon only. (2) applies to Accumulator(R) Select(SM) only. (3) applies to non-2002 Series only. (4) applies to 2002 Series only. (5) applies to contracts issued in Washington only. (6) applies to Accumulator(R) Select(SM) and Select(SM) II contracts issued in New York only. (7) applies to contracts issued in New York only. (8) applies to Accumulator(R) only. (9) There are two supplements dated 9/15/03 for Accumulator(R) and Accumulator(R) Select(SM). (10) There are three supplements dated 9/15/03 for Accumulator(R) Elite(SM). (11) There are three supplements dated 10/25/04 that apply to 2004 Series. (12) applies to Accumulator(R) Plus(SM) contracts issued in Oregon only. (13) There are two supplements dated 5/1/05 that apply for Accumulator(R) and Accumulator(R) Elite(SM). (14) applies to contracts issued 1/1/05 and later. Appendix I 9 Statement of additional information - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page Who is AXA Equitable? 2 Custodian and Independent Registered Public Accounting Firm 2 Distribution of the Contracts 2 Calculating Unit Values 2 Condensed Financial Information 3 Financial Statements 53 HOW TO OBTAIN AN ACCUMULATOR(R) STATEMENT OF ADDITIONAL INFORMATION Send this request form to: Accumulator(R) P.O. Box 1547 Secaucus, NJ 07096-1547 - -------------------------------------------------------------------------------- Please send me a combined Accumulator(R) series SAI dated May 1, 2008 - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City State Zip SAI 13A x01887 AXA Equitable Life Insurance Company SUPPLEMENT DATED MAY 1, 2008 TO THE MAY 1, 2008 PROSPECTUS FOR ACCUMULATOR(R), ACCUMULATOR(R) ELITE(SM), ACCUMULATOR(R) PLUS(SM) AND ACCUMULATOR(R) SELECT(SM) - -------------------------------------------------------------------------------- This Supplement modifies certain information in the above-referenced Prospectuses, dated May 1, 2008 (the "Prospectuses"). You should read this Supplement in conjunction with the Prospectuses and retain it for future reference. Unless otherwise indicated, all other information included in the Prospectuses remains unchanged. The terms and section headings we use in this Supplement have the same meaning as in the Prospectuses. We will send you another copy of any prospectus or supplement without charge upon request. Please contact the customer service group referenced in your prospectus. The purpose of this Supplement is to describe our new Guaranteed withdrawal benefit for life rider ("GWBL"). Subject to approval in your state, this new GWBL replaces the rider of the same name in your current Prospectus. Please speak with your financial professional regarding the availability of the new GWBL in your state. Unless otherwise indicated, all other references to the GWBL in your Prospectus remain unchanged. In "Fee table," the following replaces the corresponding section in your Prospectus: GUARANTEED WITHDRAWAL BENEFIT FOR LIFE BENEFIT CHARGE (calculated as a percentage of the GWBL benefit base. Deducted 0.65% for the Single Life option annually(2) on each contract date anniversary). 0.80% for the Joint Life option If your GWBL benefit base ratchets, we reserve the right to increase your charge up to: 0.80% for the Single Life option 0.95% for the Joint Life option
Please see "Guaranteed withdrawal benefit for life" in "Contract features and benefits" for more information about this feature, including its benefit base and the Annual Ratchet provision, and "Guaranteed withdrawal benefit for life benefit charge" in "Charges and expenses," both in your Prospectus. --------------------------------- In "Contract features and benefits," the following replaces the corresponding sections (and subsections) in your Prospectus: GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL") For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL") guarantees that you can take withdrawals up to a maximum amount per year (your "Guaranteed annual withdrawal amount"). GWBL is only available at issue. This benefit is not available at issue ages younger than 45. GWBL is not available if you have elected the Guaranteed minimum income benefit, the Earnings enhancement benefit or one of our Principal guarantee benefits, described in your prospectus. You may elect one of our automated payment plans or you may take partial withdrawals. All withdrawals reduce your account value and Guaranteed minimum death benefit. See "Accessing your money" in your Prospectus. For Accumulator(R) Plus(SM) and Accumulator(R) Select(SM) contracts, your investment options will be limited to the guaranteed interest option, the account for special money market dollar cost averaging and the permitted variable investment options. For Accumulator(R) and Accumulator(R) Elite(SM) contracts, your investment options will be limited to the guaranteed interest option, the account for special dollar cost averaging and the permitted variable investment options. See "What are your investment options under the contract?" in your Prospectus. You may buy this benefit on a single life ("Single life") or a joint life ("Joint life") basis. Under a Joint life contract, lifetime withdrawals are guaranteed for the life of both the owner and successor owner. For Joint life contracts, a successor owner may be named at contract issue only. The successor owner must be the owner's spouse. If you and the successor owner are no longer married, you may either: (i) drop the original successor owner or (ii) replace the original successor owner with your new spouse. This can only be done before the first withdrawal is made from the contract. After the first withdrawal, the successor owner can be dropped but cannot be replaced. If the successor owner is dropped after withdrawals begin, the charge will continue based on a Joint life basis. For NQ contracts, you have the option to designate the successor owner as a joint owner. For Joint life contracts owned by a non-natural owner, a joint annuitant may be named at contract issue only. The annuitant and joint annuitant must be spouses. If the annuitant and joint annuitant are no longer married, you may either: (i) drop the joint annuitant or (ii) replace the original joint annuitant with the annuitant's new spouse. This can only be done before the first withdrawal. After the first withdrawal, the joint annuitant may be dropped but cannot be replaced. If the joint annuitant is dropped after withdrawals begin, the charge continues based on a Joint life basis. Joint life QP and TSA contracts are not permitted. For Accumulator(R), Accumulator(R) Plus(SM) and Accumulator(R) Elite(SM) contracts, this benefit is not available under an Inherited IRA contract. If you are using this contract to fund a charitable remainder trust, you will have to take certain distribution amounts. You should consider split-funding so that those distributions do not adversely impact your guaranteed Accum 07.5/NewBiz/InForce x01979 withdrawal benefit for life. See "Owner and Annuitant requirements" in your Prospectus. The charge for the GWBL benefit will be deducted from your account value on each contract date anniversary. Please see "Guaranteed withdrawal benefit for life charge" later in this Supplement for a description of the charge. You should not purchase this benefit if: o You plan to take withdrawals in excess of your Guaranteed annual withdrawal amount because those withdrawals may significantly reduce or eliminate the value of the benefit (see "Effect of Excess withdrawals" below in this section); o You are not interested in taking withdrawals prior to the contract's maturity date; o You are using the contract to fund a Rollover TSA or QP contract where withdrawal restrictions will apply; or o You plan to use it for withdrawals prior to age 59-1/2, as the taxable amount of the withdrawal will be includible in income and subject to an additional 10% federal income tax penalty, as discussed in your Prospectus. For traditional IRAs, TSA and QP contracts, you may take your lifetime required minimum distributions ("RMDs") without losing the value of the GWBL benefit, provided you comply with the conditions described under "Lifetime required minimum distribution withdrawals" in "Accessing your money" in your Prospectus, including utilizing our Automatic RMD service. If you do not expect to comply with these conditions, this benefit may have limited usefulness for you and you should consider whether it is appropriate. Please consult your tax adviser. GWBL BENEFIT BASE At issue, your GWBL benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL benefit base increases by any subsequent contributions. o Your GWBL benefit base may be increased on each contract date anniversary, as described below under "Annual ratchet" and "7% deferral bonus." o Your GWBL benefit base may be increased by the 200% Initial GWBL benefit base guarantee, as described later in this Supplement. o Your GWBL benefit base is not reduced by withdrawals except those withdrawals that cause total withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess withdrawals" below in this section. GUARANTEED ANNUAL WITHDRAWAL AMOUNT Your initial Guaranteed annual withdrawal amount is equal to a percentage of the GWBL benefit base. The initial applicable percentage ("Applicable percentage") is based on the owner's age at the time of the first withdrawal. For Joint life contracts, the initial Applicable percentage is based on the age of the younger owner or successor owner at the time of the first withdrawal. If your GWBL benefit base ratchets, as described below in this section under "Annual ratchet," on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. The Applicable percentages are as follows: - -------------------------------------------------------- Age Applicable percentage - -------------------------------------------------------- 45-59 4.0% 60-75 5.0% 76-85 6.0% 86 and older 7.0% - -------------------------------------------------------- We will recalculate the Guaranteed annual withdrawal amount on each contract date anniversary and as of the date of any subsequent contribution or Excess withdrawal, as described below under "Effect of Excess withdrawals" and "Subsequent contributions." The withdrawal amount is guaranteed never to decrease as long as there are no Excess withdrawals. Your Guaranteed annual withdrawals are not cumulative. If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. The withdrawal charge, if applicable, is waived for withdrawals up to the Guaranteed annual withdrawal amount, but all withdrawals are counted toward your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses" in your Prospectus. EFFECT OF EXCESS WITHDRAWALS An Excess withdrawal is caused when you withdraw more than your Guaranteed annual withdrawal amount in any contract year. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, the entire amount of that withdrawal and each subsequent withdrawal in that contract year are considered Excess withdrawals. An Excess withdrawal can cause a significant reduction in both your GWBL benefit base and your Guaranteed annual withdrawal amount. If you make an Excess withdrawal, we will recalculate your GWBL benefit base and the Guaranteed annual withdrawal amount, as follows: o The GWBL benefit base is reset as of the date of the Excess withdrawal to equal the lesser of: (i) the GWBL benefit base immediately prior to the Excess withdrawal and (ii) the account value immediately following the Excess withdrawal. o The Guaranteed annual withdrawal amount is recalculated to equal the Applicable percentage multiplied by the reset GWBL benefit base. You should not purchase this contract if you plan to take withdrawals in excess of your Guaranteed annual withdrawal amount as such withdrawals may significantly reduce or eliminate the value of the GWBL benefit. If your account value is less than your GWBL benefit base (due, for example, to negative market performance), an Excess withdrawal, even one that is only slightly more than your Guaranteed annual withdrawal amount, can significantly reduce your GWBL benefit base and the Guaranteed annual withdrawal amount. 2 For example, assume your GWBL benefit base is $100,000 and your account value is $80,000 when you decide to begin taking withdrawals at age 65. Your Guaranteed annual withdrawal amount is equal to $5,000 (5.0% of $100,000). You take an initial withdrawal of $8,000. Since your GWBL benefit base is immediately reset to equal the lesser of your GWBL benefit base prior to the Excess withdrawal ($100,000) and your account value immediately following the Excess withdrawal ($80,000 minus $8,000), your GWBL benefit base is now $72,000. In addition, your Guaranteed annual withdrawal amount is reduced to $3,600 (5.0% of $72,000), instead of the original $5,000. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" later in this Supplement. Withdrawal charges, if applicable, are applied to the amount of the withdrawal that exceeds the greater of (i) the Guaranteed annual withdrawal amount or (ii) the 10% free withdrawal amount. A withdrawal charge would not be applied in the example above since the $8,000 withdrawal (equal to 10% of the contract's account value as of the beginning of the contract year) falls within the 10% free withdrawal amount. Under the example above, additional withdrawals during the same contract year could result in a further reduction of the GWBL benefit base and the Guaranteed annual withdrawal amount, as well as an application of withdrawal charges, if applicable. See "Withdrawal charge" in "Charges and expenses" in your Prospectus. You should note that an Excess withdrawal that reduces your account value to zero terminates the contract, including all benefits, without value. See "Insufficient account value" in "Determining your contract's value" in your Prospectus. In general, if you purchase this contract as a traditional IRA, QP or TSA and participate in our Automatic RMD service, an automatic withdrawal under that program will not cause an Excess withdrawal, even if it exceeds your Guaranteed annual withdrawal amount. For more information, see "Lifetime required minimum distribution withdrawals" in "Accessing your money" in your Prospectus. Loans are not available under Rollover TSA contracts if GWBL is elected. ANNUAL RATCHET Your GWBL benefit base is recalculated on each contract date anniversary to equal the greater of: (i) the account value and (ii) the most recent GWBL benefit base. If your account value is greater, we will ratchet up your GWBL benefit base to equal your account value. If your GWBL benefit base ratchets on any contract date anniversary after you begin taking withdrawals, your Applicable percentage may increase based on your attained age at the time of the ratchet. Your Guaranteed annual withdrawal amount will also be increased, if applicable, to equal your Applicable percentage times your new GWBL benefit base. If your GWBL benefit base ratchets, we may increase the charge for the benefit. Once we increase the charge, it is increased for the life of the contract. We will permit you to opt out of the ratchet if the charge increases. If you choose to opt out, your charge will stay the same but your GWBL benefit base will no longer ratchet. Upon request, we will permit you to accept a GWBL benefit base ratchet with the charge increase on a subsequent contract date anniversary. For a description of the charge increase, see "Guaranteed withdrawal benefit for life benefit charge" later in this Supplement. 7% DEFERRAL BONUS At no additional charge, in each contract year in which you have not taken a withdrawal, we will increase your GWBL benefit base by an amount equal to 7% of your total contributions. This 7% deferral bonus is applicable for the life of the contract, subject to certain restrictions. We will apply the 7% deferral bonus to your GWBL benefit base on each contract date anniversary until you make a withdrawal from your contract. In a contract year following an Annual Ratchet (described above), the deferral bonus will be applied to your GWBL benefit base on each contract date anniversary until you make a withdrawal. However, no deferral bonus is applied on a contract date anniversary on which an Annual Ratchet occurs. Once you make a withdrawal, we will not apply the deferral bonus in future years unless you meet one of the exceptions that would allow you to continue to receive the deferral bonus. Those exceptions are described as follows: o You are eligible to receive the 7% deferral bonus for any of your first ten contract years that you have not taken a withdrawal, even if you had taken a withdrawal in a prior year. For example, if you take your first withdrawal in the second contract year, you are still eligible to receive the deferral bonus in contract years three through ten. The deferral bonus is not applied in the contract year in which a withdrawal was made. o You are eligible to receive the 7% deferral bonus to your GWBL Benefit Base on a contract date anniversary during the ten years following an Annual Ratchet, as long as no withdrawal is made in the same contract year. If a withdrawal is made during this ten-year period, no deferral bonus is applied in the contract year in which the withdrawal was made. If the Annual Ratchet occurs on any contract date anniversary, for the next and subsequent contract years, the deferral bonus will be 7% of the most recent ratcheted GWBL benefit base, plus any subsequent contributions. If the GWBL benefit base is reduced due to an Excess withdrawal, the 7% deferral bonus will be calculated using the reset GWBL benefit base, plus any applicable contributions. The 7% deferral bonus generally excludes contributions made in the prior 12 months. In the first contract year, the deferral bonus is determined using all contributions received in the first 90 days of the contract year. On any contract date anniversary on which you are eligible for a 7% deferral bonus, we will calculate the applicable bonus amount. If, when added to the current GWBL benefit base, the amount is greater than your account value, that amount will become your new GWBL benefit base but, as this adjustment is the result of the 7% deferral bonus rather than the Annual Ratchet, a new ten-year period, as described above, is not started by this adjustment to the GWBL benefit base. If that amount is less than or equal to your account value, your GWBL benefit base will be ratcheted to equal your account value, and the 7% deferral bonus will not apply. If you opt out of the Annual Ratchet (as discussed immediately above), the 7% deferral bonus will still apply. 3 MATURITY DATE. The last deferral bonus will be applicable on the contract date anniversary that follows the contract's maturity date. (See "Annuity maturity date" under "Accessing your money" in your Prospectus.) 200% INITIAL GWBL BENEFIT BASE GUARANTEE If you have not taken a withdrawal from the contract before the later of (i) the tenth contract date anniversary, or (ii) the contract date anniversary following the owner's (or younger joint life's) attained age 70, the GWBL Benefit base will be increased to equal 200% of contributions made to the contract during the first 90 days, plus 100% of any subsequent contributions received after the first 90 days. There will be no increase if your GWBL benefit base already exceeds this initial GWBL Benefit base guarantee. This is the only time that this special increase to the GWBL Benefit base is available. However, you will continue to be eligible for the 7% deferral bonuses following this one-time increase. SUBSEQUENT CONTRIBUTIONS Subsequent contributions are not permitted after the later of: (i) the end of the first contract year and (ii) the date the first withdrawal is taken. Anytime you make an additional contribution, your GWBL benefit base will be increased by the amount of the contribution. Your Guaranteed annual withdrawal amount will be equal to the Applicable percentage of the increased GWBL benefit base. GWBL GUARANTEED MINIMUM DEATH BENEFIT There are two guaranteed minimum death benefits available if you elect the GWBL option: (i) the GWBL Standard death benefit, which is available at no additional charge for owner issue ages 45-85, and (ii) the GWBL Enhanced death benefit, which is available for an additional charge for owner issue ages 45-75. (See the "State contract availability and/or variations of certain features and benefits" Appendix in your Prospectus to see if these guaranteed benefits are available in your state.) The GWBL Standard death benefit is equal to the GWBL Standard death benefit base. The GWBL Standard death benefit base is equal to your initial contribution and any additional contributions less a deduction that reflects any withdrawals you make (see "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" later in this Supplement). The GWBL Enhanced death benefit is equal to the GWBL Enhanced death benefit base. Your initial GWBL Enhanced death benefit base is equal to your initial contribution and will increase or decrease, as follows: o Your GWBL Enhanced death benefit base increases by any subsequent contribution; o Your GWBL Enhanced death benefit base increases to equal your account value if your GWBL benefit base is ratcheted, as described above in this section; o Your GWBL Enhanced death benefit base increases by any 7% deferral bonus, as described above in this section; o Your GWBL Enhanced death benefit base increases by the one-time 200% Initial GWBL Benefit base guarantee, if applicable; o Your GWBL Enhanced death benefit base decreases by an amount which reflects any withdrawals you make. See "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" later in this Supplement. The death benefit is equal to your account value (without adjustment for any otherwise applicable market value adjustment but adjusted for any pro rata optional benefit charges) as of the date we receive satisfactory proof of death, any required instructions for method of payment, information and forms necessary to effect payment or the applicable GWBL Guaranteed minimum death benefit on the date of the owner's death (adjusted for any subsequent withdrawals and withdrawal charges), whichever provides a higher amount. For more information, see "Withdrawal charge" in "Charges and expenses" in your Prospectus. EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO If your account value falls to zero due to an Excess withdrawal, we will terminate your contract and you will receive no further payments or benefits. If an Excess withdrawal results in a withdrawal that equals more than 90% of your cash value or reduces your cash value to less than $500, we will treat your request as a surrender of your contract even if your GWBL benefit base is greater than zero. However, if your account value falls to zero, either due to a withdrawal or surrender that is not an Excess withdrawal or due to a deduction of charges, please note the following: o Your contract terminates and you will receive a supplementary life annuity contract setting forth your continuing benefits. The owner of the contract will be the owner and annuitant. The successor owner, if applicable, will be the joint annuitant. If the owner is non-natural, the annuitant and joint annuitant, if applicable, will be the same as under your contract. o No subsequent contributions will be permitted. o If you were taking withdrawals through the "Maximum payment plan," we will continue the scheduled withdrawal payments on the same basis. o If you were taking withdrawals through the "Customized payment plan" or in unscheduled partial withdrawals, we will pay the balance of the Guaranteed annual withdrawal amount for that contract year in a lump sum. Payment of the Guaranteed annual withdrawal amount will begin on the next contract date anniversary. o Payments will continue at the same frequency for Single or Joint life contracts, as applicable, or annually if automatic payments were not being made. o Any guaranteed minimum death benefit remaining under the original contract will be carried over to the supplementary life annuity contract. The death benefit will no longer grow and will be reduced on a dollar-for-dollar basis as payments are made. If there is any remaining death benefit upon the death of the owner and successor owner, if applicable, we will pay it to the beneficiary. 4 o The charge for the Guaranteed withdrawal benefit for life benefit and the GWBL Enhanced death benefit will no longer apply. o If at the time of your death the Guaranteed annual withdrawal amount was being paid to you as a supplementary life annuity contract, your beneficiary may not elect the Beneficiary continuation option. OTHER IMPORTANT CONSIDERATIONS o This benefit is not appropriate if you do not intend to take withdrawals prior to annuitization. o Amounts withdrawn in excess of your Guaranteed annual withdrawal amount may be subject to a withdrawal charge, if applicable, as described in "Charges and expenses" in your Prospectus. In addition, all withdrawals count toward your free withdrawal amount for that contract year. Excess withdrawals can significantly reduce or completely eliminate the value of the GWBL and GWBL Enhanced death benefit. See "Effect of Excess withdrawals" above in this section and "How withdrawals affect your GWBL and GWBL Guaranteed minimum death benefit" later in this Supplement. o Withdrawals are not considered as annuity payments for tax purposes, and may be subject to an additional 10% Federal income tax penalty before age 59-1/2. See "Tax information" in your Prospectus. o All withdrawals reduce your account value and Guaranteed minimum death benefit. See "How withdrawals are taken from your account value" and "How withdrawals affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit and Principal guarantee benefits" in "Accessing your money" in your Prospectus. o If you withdraw less than the Guaranteed annual withdrawal amount in any contract year, you may not add the remainder to your Guaranteed annual withdrawal amount in any subsequent year. o The GWBL benefit terminates if the contract is continued under the beneficiary continuation option or under the Spousal continuation feature if the spouse is not the successor owner. o If you surrender your contract to receive its cash value and your cash value is greater than your Guaranteed annual withdrawal amount, all benefits under the contract will terminate, including the GWBL benefit. o If you transfer ownership of this contract, you terminate the GWBL benefit. See "Transfers of ownership, collateral assignments, loans and borrowing" in "More information," in your Prospectus for more information. o Withdrawals are available under other annuity contracts we offer and this contract without purchasing a withdrawal benefit. o For IRA, QP and TSA contracts, if you have to take a required minimum distribution ('`RMD") and it is your first withdrawal under the contract, the RMD will be considered your "first withdrawal" for the purposes of establishing your GWBL Applicable percentage. o If you elect GWBL on a Joint life basis and subsequently get divorced, your divorce will not automatically terminate the contract. For both Joint life and Single life contracts, it is possible that the terms of your divorce decree could significantly reduce or completely eliminate the value of this benefit. o The Federal Defense of Marriage Act precludes same-sex married couples, domestic partners, and civil union partners from being considered married under federal law. Such individuals, therefore, are not entitled to the favorable tax treatment accorded spouses under federal tax law. As a result, mandatory distributions from the contract must be made after the death of the first individual. Accordingly, the GWBL will have little or no value to the surviving same-gender spouse or partner. You should consult with your tax adviser for more information on this subject. --------------------------------- In "Accessing your money," the following subsections are replaced under "Withdrawing your account value" in your Prospectus: AUTOMATIC PAYMENT PLANS (For contracts with GWBL only) You may take automatic withdrawals under either the Maximum payment plan or the Customized payment plan, as described below. Under either plan, you may take withdrawals on a monthly, quarterly or annual basis. You may change the payment frequency of your withdrawals at any time, and the change will become effective on the next contract date anniversary. You may elect either the Maximum payment plan or the Customized payment plan at any time. You must wait at least 28 days from contract issue before automatic payments begin. We will make the withdrawals on any day of the month that you select as long as it is not later than the 28th day of the month. MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will increase on contract date anniversaries with any Annual Ratchet, 7% deferral bonus or by the one-time 200% Initial GWBL Benefit base guarantee. If you elect the Maximum payment plan and start monthly or quarterly payments after the beginning of a contract year, the payments you take that year will be less than your Guaranteed annual withdrawal amount. If you take a partial withdrawal while the Maximum payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal amount in scheduled payments. The amount of the withdrawal will not be increased on contract date anniversaries with any Annual Ratchet, 7% deferral bonus or by the one-time 200% Initial GWBL Benefit base guarantee. You must elect to change the scheduled payment amount. It is important to note that if you elect the Customized payment plan and start monthly or quarterly withdrawals after the beginning of a 5 contract year, you could select scheduled payment amounts that would cause an Excess withdrawal. If your selected scheduled payment would cause an Excess withdrawal, we will notify you. As discussed earlier in this Supplement, Excess withdrawals may significantly reduce the value of the Guaranteed withdrawal benefit for life benefit. See "Effect of Excess withdrawals" in "Contract features and benefits" earlier in this Supplement. If you take a partial withdrawal while the Customized payment plan is in effect, we will terminate the plan. You may enroll in the plan again at any time, but the scheduled payments will not resume until the next contract date anniversary. In "Accessing your money," the following replaces the corresponding section in your Prospectus: HOW WITHDRAWALS AFFECT YOUR GWBL AND GWBL GUARANTEED MINIMUM DEATH BENEFIT Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes cumulative withdrawals in a contract year to exceed the Guaranteed annual withdrawal amount. Withdrawals that exceed the Guaranteed annual withdrawal amount, however, can significantly reduce your GWBL benefit base and GWBL Guaranteed annual withdrawal amount. For more information, see "Effect of Excess withdrawals" and "Other important considerations" under "Guaranteed withdrawal benefit for life ("GWBL") " in "Contract features and benefits" earlier in this Supplement. Your GWBL Standard death benefit base is reduced by any withdrawal on a pro rata basis. Your GWBL Enhanced death benefit base is reduced on a dollar-for-dollar basis by any withdrawal up to the Guaranteed annual withdrawal amount. Once a withdrawal causes cumulative withdrawals in a contract year to exceed your Guaranteed annual withdrawal amount, your GWBL Enhanced death benefit base will be reduced on a pro rata basis. If the reduced GWBL Enhanced death benefit base is greater than your account value (after the Excess withdrawal), we will further reduce your GWBL Enhanced death benefit base to equal your account value. For purposes of calculating your GWBL and GWBL Guaranteed minimum death benefit amount, the amount of the Excess withdrawal will include the withdrawal amount paid to you and the amount of the withdrawal charge deducted from your account value. For more information on calculation of the charge, see "Withdrawal charge" in your Prospectus. ANNUITY MATURITY DATE Your contract has a maturity date by which you must either take a lump sum payment or select an annuity payout option. The maturity date is based on the age of the original annuitant at contract issue and cannot be changed even if you name a new annuitant. The maturity date is generally the contract date anniversary that follows the annuitant's 95th birthday. We will send a notice with the annual statement one year prior to the maturity age. If you elect the Guaranteed withdrawal benefit for life and your contract is annuitized at maturity, we will offer an annuity payout option that guarantees you will receive payments for life that are at least equal to what you would have received under the Guaranteed withdrawal benefit for life. As described in "Contract features and benefits" under "Guaranteed withdrawal benefit for life," these payments will have the potential to increase with favorable investment performance. Any remaining Guaranteed minimum death benefit value will be transferred to the annuity payout contract as your "minimum death benefit." If the enhanced death benefit had been elected, its value as of the date the annuity payout contract is issued will become your minimum death benefit, and it will continue to ratchet annually if your account value is greater than your minimum death benefit base. The minimum death benefit will be reduced dollar-for-dollar by each payment, if it is based on the value of the enhanced death benefit, or it will be reduced pro rata by each payment, if it is based on the value of the standard death benefit. If you die while there is any minimum death benefit remaining, it will be paid to your beneficiary. Please see Appendix VII later in your Prospectus for variations that may apply in your state. In "Charges and expenses," the following replaces the corresponding sections in your Prospectus: GUARANTEED WITHDRAWAL BENEFIT FOR LIFE CHARGE If you elect the Guaranteed withdrawal benefit for life ("GWBL"), we deduct a charge annually as a percentage of your GWBL benefit base on each contract date anniversary. If you elect the Single Life option, the charge is equal to 0.65%. If you elect the Joint Life option, the charge is equal to 0.80%. We will deduct this charge from your value in the permitted variable investment options and the guaranteed interest option on a pro rata basis. (See the "State contract availability and/or variations of certain features and benefits" Appendix in your Prospectus to see if deducting this charge from the guaranteed interest option is permitted in your state.) For Accumulator(R) and Accumulator(R) Elite(SM) contracts, if those amounts are insufficient, we will deduct all or a portion of the charge from the account for special dollar cost averaging. For Accumulator(R) Plus(SM) and Accumulator(R) Select(SM) contracts, if those amounts are insufficient, we will deduct all or a portion of the charge from the account for special money market dollar cost averaging. If the contract is surrendered or annuitized, or a death benefit is paid on the date other than a contract date anniversary, we will deduct a pro rata portion of the charge for that year. 6 GWBL BENEFIT BASE ANNUAL RATCHET CHARGE. If your GWBL benefit base ratchets, we reserve the right to raise the charge at the time of an Annual Ratchet. The maximum charge for the Single Life option is 0.80%. The maximum charge for the Joint Life option is 0.95%. The increased charge, if any, will apply as of the contract date anniversary on which your GWBL benefit base ratchets and on all contract date anniversaries thereafter. We will permit you to opt out of the ratchet if the charge increases. For Joint Life contracts, if the successor owner or joint annuitant is dropped before you take your first withdrawal, we will adjust the charge at that time to reflect a Single Life. If the successor owner or joint annuitant is dropped after withdrawals begin, the charge will continue based on a Joint life. Accumulator(R) is issued by and is a registered service mark of AXA Equitable Life Insurance Company (AXA Equitable). Accumulator(R) Plus(SM), Accumulator(R) Select(SM) and Accumulator(R) Elite(SM) are servicemarks of AXA Equitable. Co-distributed by affiliates AXA Advisors, LLC and AXA Distributors, LLC. 1290 Avenue of the Americas, New York, NY 10104. Copyright 2008 AXA Equitable Life Insurance Company. All rights reserved. AXA Equitable Life Insurance Company 1290 Avenue of the Americas New York, NY 10104 212-554-1234 7 Income Manager(R) Payout annuity contracts PROSPECTUS DATED MAY 1, 2008 Please read and keep this prospectus for future reference. It contains important information that you should know before purchasing or taking any other action under your contract. - -------------------------------------------------------------------------------- WHAT IS INCOME MANAGER(R)? Income Manager(R) contracts are payout annuity contracts issued by AXA Equitable Life Insurance Company. They are designed to provide retirement income. We offer two versions of the Income Manager(R) payout annuity contract from which you may choose to receive your retirement income. You may choose to receive income payable for a specified period ("period certain"). Or, you may choose to receive lifetime income payable for at least a specified period ("life annuity with a period certain"). Under the life annuity with a period certain contract, you may choose whether payments are made on a single life or a joint and survivor life basis. In certain circumstances, the forms of annuity available under your Income Manager(R) contract may be limited. Types of contracts. We offer the contracts for use as: o A nonqualified annuity ("NQ") for after-tax contributions only. o A traditional individual retirement annuity ("IRA"). o A GMIB Income Manager(R) payout annuity issued upon exercise of the guaranteed minimum income benefit under an Accumulator(R) series contract ("GMIB Income Manager(R) contract"). A GMIB Income Manager(R) contract can be used as an NQ and a traditional IRA, as well as a Roth IRA contract ("Roth IRA"). Generally, a contribution of at least $10,000 is required to purchase a contract. Fixed maturity options. We allocate your contributions to a series of fixed maturity options to provide your income payments during the period certain. Amounts allocated to each fixed maturity option will receive a fixed rate of interest during the period certain. Interest is earned at a guaranteed rate we set ("rate to maturity"). We make a market value adjustment (up or down) if you make a withdrawal from a fixed maturity option before its maturity date. A registration statement relating to this offering has been filed with the Securities and Exchange Commission ("SEC"). This prospectus can be obtained from the SEC's website at www.sec.gov. THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER AGENCY. THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT BANK GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF PRINCIPAL. x01886 Contents of this prospectus - -------------------------------------------------------------------------------- INCOME MANAGER(R) - -------------------------------------------------------------------------------- Index of key words and phrases 4 Who is AXA Equitable? 5 How to reach us 6 Income Manager(R) at a glance -- key features 7 - -------------------------------------------------------------------------------- 1. CONTRACT FEATURES AND BENEFITS 9 - -------------------------------------------------------------------------------- How you can purchase and contribute to your contract 9 Source of contributions (not applicable to GMIB Income Manager(R) contract) 9 Owner and annuitant requirements 9 What are your investments under the contract? 9 What are your contract choices? 10 Life annuity with a period certain contract 10 Period certain contract (not available if you are purchasing a GMIB Income Manager(R) contract) 15 - -------------------------------------------------------------------------------- 2. OTHER BENEFITS AND FEATURES OF THE CONTRACTS 17 - -------------------------------------------------------------------------------- How you can make your contributions 17 Your right to cancel within a certain number of days 17 Surrendering your contract to receive its cash value 17 When to expect payments 18 - -------------------------------------------------------------------------------- 3. CHARGES 19 - -------------------------------------------------------------------------------- Withdrawal charges 19 Amounts applied from other contracts issued by AXA Equitable 19 Charges for state premium and other applicable taxes 19 Group or sponsored arrangements 19 Other distribution arrangements 20 - -------------------------------------------------------------------------------- 4. PAYMENT OF DEATH BENEFIT 21 - -------------------------------------------------------------------------------- Your beneficiary 21 Your annuity payout options (not including GMIB Income Manager(R) contracts) 21 - ---------------------- "We," "our" and "us" refer to AXA Equitable. "Financial professional" means the registered representative who is offering you this contract. When we address the reader of this prospectus with words such as "you" and "your," we mean the person who has the right or responsibility that the prospectus is discussing at that point. This is usually the contract owner. When we use the word "contract" it also includes certificates that are issued under group contracts in some states. 2 Contents of this prospectus - -------------------------------------------------------------------------------- 5. TAX INFORMATION 22 - -------------------------------------------------------------------------------- Overview 22 Taxation of nonqualified annuities 22 Special rules for NQ contracts issued in Puerto Rico 23 Individual retirement arrangements ("IRAs") 23 Traditional individual retirement annuities ("traditional IRAs") 24 Federal and state income tax withholding and information reporting 29 - -------------------------------------------------------------------------------- 6. MORE INFORMATION 30 - -------------------------------------------------------------------------------- About our fixed maturity options 30 About the separate account for the fixed maturity options 30 About our general account 30 Other methods of payment 30 About payments under period certain contracts 31 Dates and prices at which contract events occur 31 About legal proceedings 31 Transfers of ownership, collateral assignments, loans, and borrowing 31 Distribution of contracts 31 - -------------------------------------------------------------------------------- 7. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 33 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- APPENDIX: MARKET VALUE ADJUSTMENT EXAMPLE A-1 - -------------------------------------------------------------------------------- Contents of this prospectus 3 Index of key words and phrases - -------------------------------------------------------------------------------- This index should help you locate more information on the terms used in this prospectus. Page account value 13 annuitant 9 beneficiary 21 business day 17 cash value 17 contract date 8 contract date anniversary 8 contract year 8 contribution 9 deferral period 12 fixed maturity amount 9 fixed maturity options cover IRA cover IRS 22 joint and survivor 10 joint owners 9 life annuity with a period certain 10 life contingent annuity 11 market adjusted amount 10 market value adjustment 10 maturity value 10 off maturity date 10 NQ cover payout options 21 period certain 10 Processing Office 6 rate to maturity 10 Roth IRA cover SEC cover separate account 30 single life 10 traditional IRA cover To make this prospectus easier to read, we sometimes use different words than in the contract or supplemental materials. This is illustrated below. Although we use different words, they have the same meaning in the prospectus as in the contract or supplemental materials. Your financial professional can provide further explanation about your contract.
- -------------------------------------------------------------------------------- Prospectus Contract or Supplemental Materials - -------------------------------------------------------------------------------- fixed maturity amount Guaranteed Period Amount fixed maturity options Guarantee Periods (Guaranteed Interest Rate Options ("GIRO's") in supplemental materials) off maturity date payments Modal Payment Portion market adjusted amount annuity account value maturity date Expiration Date rate to maturity Guaranteed Rate
4 Index of key words and phrases Who is AXA Equitable? - -------------------------------------------------------------------------------- We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The Equitable Life Assurance Society of the United States), a New York stock life insurance corporation. We have been doing business since 1859. AXA Equitable is an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company, which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, and under its other arrangements with AXA Equitable and AXA Equitable's parent, AXA exercises significant influence over the operations and capital structure of AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a number of other intermediate holding companies, including Oudinot Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services, LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid under the contracts. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $888.6 billion in assets as of December 31, 2007. For more than 100 years AXA Equitable has been among the largest insurance companies in the United States. We are licensed to sell life insurance and annuities in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is located at 1290 Avenue of the Americas, New York, NY 10104. Who is AXA Equitable? 5 HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically, may be unavailable or delayed. For example, our facsimile service may not be available at all times and/or we may be unavailable due to emergency closing. In addition, the level and type of service available may be restricted based on criteria established by us. In order to avoid delays in processing, please send your correspondence and check to the appropriate location, as follows: - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CHECKS: - -------------------------------------------------------------------------------- FOR CONTRIBUTIONS SENT BY REGULAR MAIL: AXA Equitable Income Manager(R) P.O. Box 13014 Newark, NJ 07188-0014 FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY: AXA Equitable Income Manager(R) c/o JPMorgan Chase -- Remit One Lockbox Processing Lockbox No. 13014 4 Chase Metrotech Center, 7th Floor West Brooklyn, NY 11245-0001 Attn: Remit One Lockbox - -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CHECKS: - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL: AXA Equitable Income Manager(R) P.O. Box 1547 Secaucus, NJ 07096-1547 - -------------------------------------------------------------------------------- FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY: - -------------------------------------------------------------------------------- AXA Equitable Income Manager(R) 200 Plaza Drive, 1st Floor Secaucus, NJ 07094 Your correspondence will be picked up at the mailing address noted above and delivered to the appropriate processing office. Your correspondence, however, is not considered received by us until it is received at the appropriate processing office. Our processing office for correspondence with checks is Chase Metrotech Center, 7th Floor West, Brooklyn, NY. Our processing office for all other communications is 200 Plaza Drive, 1st Floor, Secaucus, NJ. - -------------------------------------------------------------------------------- CUSTOMER SERVICE REPRESENTATIVES: - -------------------------------------------------------------------------------- You may also use our toll-free number (1-800-789-7771) to speak with one of our customer service representatives. Our customer service representatives are available on each business day from 8:30 a.m. until 5:30 p.m., Eastern Time. - -------------------------------------------------------------------------------- REPORTS WE PROVIDE: - -------------------------------------------------------------------------------- o Statement of your contract values at the close of each calendar year and any calendar quarter in which there was a financial transaction; and o Written confirmation of financial transactions. You should send all contributions, required notices, and requests to exercise any of your rights or privileges to our Processing Office at the address above. WE HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF REQUESTS: (1) address changes; (2) beneficiary changes; (3) withdrawal requests; and (4) contract surrender. You must sign and date all these requests. Any written request that is not on one of our forms must include your name and your contract number along with adequate details about the notice you wish to give or the action you wish us to take. SIGNATURES: The proper person to sign forms, notices and requests is normally the owner. If there are joint owners, both must sign. 6 Who is AXA Equitable? Income Manager(R) at a glance -- key features
- -------------------------------------------------------------------------------- Income Manager(R) (life annuity with a period certain) - -------------------------------------------------------------------------------- Income payments NQ -- Level or increasing payments. IRA -- Level payments only. - -------------------------------------------------------------------------------- Period certain You will receive payments for periods ranging from 7 to 15 years depending on the age of the annuitant. - -------------------------------------------------------------------------------- Form of payment available Single life or joint and survivor. - -------------------------------------------------------------------------------- Payments after the end of Payments continue while the annuitant the period certain or joint annuitant is living. - -------------------------------------------------------------------------------- Contribution amounts: Initial minimum: o $10,000 Additional minimum: o $1,000 (subject to restrictions) Maximum contribution limitations may apply. - -------------------------------------------------------------------------------- Fixed maturity options o Up to 15 fixed maturity options with maturities generally ranging from approximately 1 to 15 years. o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity. o Principal guarantees. -- If you make withdrawals from a fixed maturity option before maturity, there will be a market value adjustment due to differences in interest rates. If you withdraw only a portion of a fixed maturity amount, this may increase or or decrease any value you have left in that fixed maturity option. If you surrender your contract, a market value adjustment may also apply. - -------------------------------------------------------------------------------- Taxes Generally, earnings will be taxed at your ordinary income tax rate when distributions are made from your contract. o NQ -- A portion of each payment is generally not considered taxable income until you have received a tax-free recovery of your investment in the contract. o IRA -- Generally, all amounts distributed from a traditional IRA are taxable. Amounts distributed from a Roth IRA are generally taxable on an income-last basis and may be eligible for tax-free treatment under certain circumstances. ------------------------------------------------ This contract is intended to be a payout annuity. However, there may be some instances where you can delay beginning payments, so IRS rules governing deferred annuity payments could apply. - -------------------------------------------------------------------------------- Death benefit A death benefit is provided if the annuitant dies before the first payment is made or if a single sum is elected within one year following the annuitant's death. There is no death benefit if the annuitant dies after the certain period. - -------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------- Income Manager(R) GMIB Income (period certain) Manager(R) Contract\ - ---------------------------------------------------------------------------------------------------------------------------- Income payments NQ and IRA -- Level payments only. NQ and IRA (traditional and Roth) -- Level payments only. o Certain NQ and IRA contracts may be eligible for increasing payments. - ---------------------------------------------------------------------------------------------------------------------------- Period certain You will receive payments for periods o Generally, you will receive at least ranging from 7 to 15 years depending 10 years of payments. Depending on the age of the annuitant. on the annuitant's age at GMIB exercise and the issue date and type of your Accumulator(R) contract, the period may be longer or shorter. o The period certain is specified in your Accumulator(R) contract and cannot be changed. - ---------------------------------------------------------------------------------------------------------------------------- Form of payment available Single life only. Single life or joint and survivor. - ---------------------------------------------------------------------------------------------------------------------------- Payments after the end of None Payments continue while the annuitant the period certain or joint annuitant is living. - ---------------------------------------------------------------------------------------------------------------------------- Contribution amounts: The annuity account value applied from your Accumulator(R) series Initial minimum: o $10,000 contract upon GMIB exercise. Additional contributions are not Additional minimum: o Not permitted permitted. Maximum contribution limitations may apply. - ---------------------------------------------------------------------------------------------------------------------------- Fixed maturity options o Up to 15 fixed maturity options with o Up to 15 fixed maturity options with maturities generally ranging from maturities generally ranging from approximately 1 to 15 years. approximately 1 to 15 years. o Each fixed maturity option offers a o Each fixed maturity option offers a guarantee of principal and interest guarantee of principal and interest rate rate if you hold it to maturity. if you hold it to maturity. o Principal guarantees. o Principal guarantees. -- If you make withdrawals from a fixed -- If you make withdrawals from a fixed maturity option before maturity, maturity option before maturity, there will be a market value there will be a market value adjustment due to differences in adjustment due to differences in interest rates. If you withdraw only interest rates. If you withdraw only a portion of a fixed maturity amount, a portion of a fixed maturity amount, this may increase or decrease this may increase or decrease any value you have left in that any value you have left in that fixed maturity option. If you fixed maturity option. If you surrender your contract, a market surrender your contract, a market value adjustment may also apply. value adjustment may also apply. - ---------------------------------------------------------------------------------------------------------------------------- Taxes Generally, earnings will be taxed at your Generally, earnings will be taxed at your ordinary income tax rate when distributions ordinary income tax rate when distributions are made from your contract. are made from your contract. o NQ -- A portion of each payment is o NQ -- A portion of each payment is generally not considered taxable income generally not considered taxable income until you have received a tax-free until you have received a tax-free recovery of your investment in the recovery of your investment in the contract. contract. o IRA -- Generally, all amounts distributed o IRA -- Generally, all amounts distributed from a traditional IRA are taxable. from a traditional IRA are taxable. Amounts distributed from a Roth IRA are Amounts distributed from a Roth IRA are generally taxable on an income-last basis generally taxable on an income-last basis and may be eligible for tax-free and may be eligible for tax-free treatment under certain circumstances. treatment under certain circumstances. -------------------------------------------------------------------------------------------- This contract is intended to be a payout This contract is intended to be a payout annuity. However, there may be some annuity. However, there may be some instances where you can delay beginning instances where you can delay beginning payments, so IRS rules governing deferred payments, so IRS rules governing deferred annuity payments could apply. annuity payments could apply. - ---------------------------------------------------------------------------------------------------------------------------- Death benefit A death benefit is provided if the A death benefit is provided if the annuitant dies before the end of the annuitant dies or if a single sum is period certain. elected within one year following the annuitant's death. There is no death benefit if the annuitant dies after the certain period. - ----------------------------------------------------------------------------------------------------------------------------
Income Manager(R) at a glance -- key features 7
- -------------------------------------------------------------------------------- Income Manager(R) (life annuity with a period certain) - -------------------------------------------------------------------------------- Access to your money during o Withdrawals (no withdrawals the period certain permitted during the first contract year). o Contract surrender. You may also incur income tax and a penalty tax. You cannot take a withdrawal from, or surrender, your life contingent annuity. Withdrawals are subject to market value adjustment and may reduce your remaining payments and shorten any remaining certain period. The payment start date under the life contingent annuity will be earlier. - -------------------------------------------------------------------------------- Charges o We deduct a charge designed to approximate certain taxes that may be imposed upon us, such as premium taxes in your state. We deduct this charge from your contributions. o During the first seven contract years following a contribution, a charge will be deducted from amounts that you withdraw that exceed 10% of your account value. We use the account value at the beginning of each contract year to calculate the 10% amount available. The charge begins at 7% in the first contract year following a contribution. It declines each year to 1% in the seventh contract year. There is no withdrawal charge in the eighth and later contract years following a contribution. - -------------------------------------------------------------------------------- The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." - -------------------------------------------------------------------------------- Annuitant NQ and IRA level payments: 45 - 83 issue ages NQ increasing payments: 53-1/2 - 83 Different ages may apply depending on when annuity payments start. - -------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------------ Income Manager(R) GMIB Income (period certain) Manager(R) Contract - ------------------------------------------------------------------------------------------------------------------------------------ Access to your money during o Withdrawals (no withdrawals permitted Withdrawals (no withdrawals permitted the period certain during the first contract year). during the first contract year). o Contract surrender. o Contract surrender. You may also incur income tax and a penalty tax. You may also incur income tax and a penalty tax. A market value adjustment may apply. You cannot take a withdrawal from, or surrender your life contingent annuity. Withdrawals are subject to market value adjustment and may reduce your remaining payments and shorten any remaining certain period. The payment start date under the life contingent annuity will be earlier. - ------------------------------------------------------------------------------------------------------------------------------------ Charges o We deduct a charge designed to approximate o We deduct a charge designed to approximate certain taxes that may be imposed upon us, certain taxes that may be imposed upon us, such as premium taxes in your state. We such as premium taxes in your state. We deduct this charge from your contributions. deduct this charge only to the extent that the annual income provided by this o During the first seven contract years, a contract after the deduction is at least charge will be deducted from amounts that equal to the income that would be provided you withdraw. The charge begins at 7% in by the application of your Accumulator(R) the first contract year. It declines each Benefit Base to guaranteed GMIB annuity year to 1% in the seventh contract year. purchase factors. There is no withdrawal charge in the eighth and later contract years. o There is no charge on amounts you withdraw. o There is no free withdrawal amount. - ------------------------------------------------------------------------------------------------------------------------------------ The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year." The end of each 12-month period is your "contract date anniversary." - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Annuitant 59-1/2 - 78 For contracts purchased in connection with the issue ages proceeds of an Accumulator(R) series contract that was issued:* pre-May 1997; 60-83 May 1997-pre-May 1999; 35-90 May 1999-March 2000; 35-83 March 2000 and later; 35-85 *Actual available issue ages vary depending on your Accumulator(R) series contract and the annuitant's age at the time of its issue. - ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the contract. In some cases restrictions or exceptions apply. Also, all features of the contract are not necessarily available in your state or at certain ages. For more detailed information we urge you to read the contents of this prospectus, as well as your contract. Please feel free to speak with your financial professional, or call us, if you have any questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund within a certain number of days. Please see "Your right to cancel within a certain number of days" later in this Prospectus for additional information. 8 Income Manager(R) at a glance -- key features 1. Contract features and benefits - -------------------------------------------------------------------------------- HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT o For GMIB Income Manager(R) contracts, you can only purchase a contract by exercising your GMIB benefit in accordance with your Accumulator(R) series contract, even if the Accumulator(R) account value is less than $10,000; no additional contributions are permitted. o For all other contracts, you may purchase your contract by making payments to us we call "contributions." We require a contribution of at least $10,000 for you to purchase a contract. Under life annuity with a period certain contracts, you may make additional contributions subject to the limitations as described under "Additional contributions" later in this Prospectus. SOURCE OF CONTRIBUTIONS (NOT APPLICABLE TO GMIB INCOME MANAGER(R) CONTRACT) NQ contracts. We will accept only contributions made with after-tax money. You may make your contributions by check or by transfer of your entire contract value in a tax-deferred exchange under Section 1035 of the Internal Revenue Code. Traditional IRA contracts. Contributions may be made from: o Eligible rollover distributions from 403(b) plans, qualified plans, and governmental employer 457(b) or "EDC" plans. o Rollovers from another traditional individual retirement arrangement. o Direct custodian-to-custodian transfers from another traditional individual retirement arrangement. See "Tax information" later in this Prospectus for a more detailed discussion of sources of contributions and contribution limitations. We may refuse to accept any contribution if the sum of all contributions under all Income Manager(R) contracts with the same owner or annuitant would then total more than $1,500,000. We may also refuse to accept any contributions if the sum of all contributions under all AXA Equitable annuity payout contracts that you own would then total more than $2,500,000. For information on when contributions are credited see "Dates and prices at which contract events occur" later in this Prospectus. OWNER AND ANNUITANT REQUIREMENTS NQ contracts. The annuitant can be different from the contract owner. A joint owner may also be named provided each owner is of legal age. Only natural persons can be joint owners. This means that an entity such as a corporation or a trust cannot be a joint owner. - -------------------------------------------------------------------------------- The "annuitant" is the person who is the measuring life for determining contract benefits. The annuitant is not necessarily the contract owner. For Income Manager(R) contracts only, where payments have not started; if you are not the annuitant and you have not named a specific successor owner, the beneficiary will become the successor owner upon your death. For GMIB Income Manager(R) contracts only, the owner and annuitant must be the same as under your Accumulator(R) series contract. - -------------------------------------------------------------------------------- IRA contracts. The owner and the annuitant must be the same person. Joint owners are not permitted. Your spouse may be named as joint annuitant. In some cases, an IRA contract may be held in a custodial individual retirement account for the benefit of the individual annuitant. WHAT ARE YOUR INVESTMENTS UNDER THE CONTRACT? FIXED MATURITY OPTIONS To provide your income payments during the period certain, we allocate your contributions to fixed maturity options that mature in consecutive date order. When we allocate your contributions to the fixed maturity options they become part of a non-unitized separate account. They accumulate interest at a rate to maturity for each fixed maturity option. The total amount allocated to and accumulated in each fixed maturity option is called the "fixed maturity amount." The rate to maturity you will receive for each fixed maturity amount is the interest rate in effect for new contributions allocated to that fixed maturity option on the date we apply your contribution. If you make any withdrawals from a fixed maturity option before the maturity date, we will make a market value adjustment that may increase or decrease any fixed maturity amount you have left in that fixed maturity option. We will discuss market value adjustment below and in greater detail under "More information" later in this Prospectus. For applications we receive under certain types of transactions, we may offer you the opportunity to lock in rates to maturity on contributions. On the maturity date of each of your fixed maturity options, your fixed maturity amount (assuming you have not made any withdrawals) will equal amounts originally allocated to each fixed maturity option plus interest, at the rate to maturity for that contribution, to the date of Contract features and benefits 9 calculation. This is the fixed maturity option's "maturity value." Before maturity, the current value we will report for your fixed maturity amount will reflect a market value adjustment. It will reflect the market value adjustment that we would make if you were to withdraw all of your fixed maturity amount on the date of the report. We call this your "market adjusted amount." Rates to maturity and price per $100 of maturity value. We can determine the amount required to be allocated to each fixed maturity option in order to produce specified maturity values. For example, we can tell you how much you need to allocate per $100 of maturity value. Guaranteed rates to maturity for new allocations as of February 15, 2008 and the related price per $100 of maturity value were as follows: - ---------------------------------------------------------- Fixed maturity options with February 15th Rate to Price maturity date of maturity as of per $100 of maturity year February 15, 2007 maturity value - ---------------------------------------------------------- 2009 3.00%* $97.08 2010 3.00%* $94.25 2011 3.00%* $91.51 2012 3.00%* $88.84 2013 3.00%* $86.25 2014 3.27% $82.43 2015 3.80% $77.01 2016 4.05% $72.77 2017 4.25% $68.73 2018 4.38% $65.11 2019 4.63% $60.76 2020 4.63% $58.07 2021 4.63% $55.49 2022 4.63% $53.04 2023 4.63% $50.69 - ---------------------------------------------------------- * Since these rates to maturity are 3%, no amounts could have been allocated to these options. Market value adjustment. If you make any withdrawals (including surrender of your contract or when we make deductions for withdrawal charges) from a fixed maturity option before it matures we will make a market value adjustment which will increase or decrease any fixed maturity amount you have in that fixed maturity option. The amount of the adjustment will depend on two factors: (a) the difference between the rate to maturity that applies to the amount being withdrawn and the rate to maturity in effect at that time for new allocations to that same fixed maturity option; and (b) the length of time remaining until the maturity date. In general, if interest rates rise from the time that we originally allocate an amount to a fixed maturity option to the time that you take a withdrawal, the market value adjustment will be negative. Likewise, if interest rates drop at the end of that time, the market value adjustment will be positive. Also, the amount of the market value adjustment, either up or down, will be greater the longer the time remaining until the fixed maturity option's maturity date. Therefore, it is possible that the market value adjustment could greatly reduce your value in the fixed maturity options, particularly in the fixed maturity options with later maturity dates. We provide an explanation of how we calculate the market value adjustment, and information concerning our general account under "More information" later in this Prospectus. We provide an example of how we calculate the market value adjustment in the Appendix at the end of this Prospectus. SEPARATE ACCOUNT FOR THE FIXED MATURITY OPTIONS Amounts allocated to the fixed maturity options are held in a "nonunitized" separate account we have established under the New York Insurance Law. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the fixed maturity options. We provide additional information about this separate account under "More information" later in this Prospectus. Off maturity date payments. Generally, your payments will be made on February 15th as each fixed maturity option matures. You may instead choose to have your payments made in a month other than February. We refer to payments we make annually in any month other than February as well as monthly or quarterly payments, as payments made "off maturity dates." If you choose to have your payments made off maturity dates, we will be required to begin making your payments before the maturity date of a fixed maturity option. In planning for these payments we will allocate a portion of your initial contribution to the separate account, but not to the fixed maturity options contained in the separate account. We will credit these amounts with interest at rates that will not be less than 3%. After that, as each fixed maturity option expires we will transfer your maturity value from the expired fixed maturity option and hold the maturity value in the separate account. We will credit interest to these amounts at the same rate as the rate to maturity that was credited in the expired fixed maturity option. These amounts will then be used to provide for payments off maturity dates during the period certain. - -------------------------------------------------------------------------------- Whether you choose monthly, quarterly, or annual payments, your payments will be made on the 15th day of the month. - -------------------------------------------------------------------------------- We will not make a market value adjustment to the amounts held in the separate account to provide for payments off maturity dates. WHAT ARE YOUR CONTRACT CHOICES? We offer two versions of the Income Manager(R) payout annuity contracts from which you may choose to receive your retirement income, a "life annuity with a period certain" and a "period certain" annuity. For GMIB Income Manager(R) contracts, a period certain annuity is not available. We discuss both versions below. LIFE ANNUITY WITH A PERIOD CERTAIN CONTRACT This payout annuity contract provides you with guaranteed payments during the period certain. When the period certain ends you will continue to receive payments for as long as an annuitant is living. Payments based solely on the life of one annuitant are called "single life" payments. You may also elect to receive "joint and survivor" payments that are based on the lives of an annuitant and a joint annuitant. These payments will continue as long as one of the annuitants is living. Payments during the period certain are designed to pay out your entire account value by the end of the period certain. 10 Contract features and benefits For GMIB Income Manager(R) contracts, if the annuitant's age at issue is 90 and there is no joint annuitant younger than age 90, a period certain is not available. Instead, you will receive payments for the life of the annuitant, only. - -------------------------------------------------------------------------------- "Single life" payments are made to you as long as the annuitant is living. "Joint and survivor" payments continue as long as either annuitant is living. For IRA contracts, if you are married, the joint annuitant must be your spouse. - -------------------------------------------------------------------------------- For annuitant ages at which the contracts are available see the chart under "Your period certain" below. ADDITIONAL CONTRIBUTIONS If your annuity payments are set to begin on February 14, 2009 or later, and the annuitant is age 78 or younger, you may make additional contributions of at least $1,000 at any time up until 15 days before your payments actually begin. If the annuitant is over age 78 you can make additional contributions only during the first contract year. Under IRA contracts we will accept additional contributions that are "regular" contributions, rollover contributions or direct transfers. Additional "regular" contributions may no longer be made after the year in which annuitant is age 70-1/2. If you make a direct transfer or rollover contribution after you turn age 70-1/2 you must have taken the required minimum distribution for the year before the contribution is applied to this contract. See "Tax information" later in this Prospectus. If you are using the proceeds from another type of contract issued by us to purchase this contract, including a GMIB Income Manager(R) contract, you will not be permitted to make additional contributions. HOW WE ALLOCATE YOUR CONTRIBUTIONS We determine the allocation of your contributions based on a number of factors. They are: o the amount of your contribution; o the form of payments; o the age and sex of the annuitant (and the age and sex of the joint annuitant, if joint and survivor annuity payments are elected); o the frequency of payments; and o the period certain. We then allocate your initial contribution among the fixed maturity options, the separate account if we need to make payments to you off maturity dates, and the "life contingent annuity." We will allocate your additional contributions in the same manner. Additional contributions will increase the level of all future payments. You may not change this allocation. - -------------------------------------------------------------------------------- The life contingent annuity continues the payments after the period certain ends. - -------------------------------------------------------------------------------- PAYMENTS NQ contracts. If you are age 45 (35 for GMIB Income Manager(R) contracts) or older, you may elect to receive level payments. You will receive level payments during the period certain and under the life contingent annuity. However, if you are younger than age 59-1/2, there are tax issues that you should consider before you purchase a contract. If you are age 53-1/2 or older you may instead elect to receive payments that increase. However, your payments may not start before you are age 59-1/2. Such payments will increase by 10% every three years during the period certain on each third anniversary of the date annuity payments begin. Deferral of payments is not available for GMIB Income Manager(R) contracts. If you are using the proceeds from an Accumulator(R) series contract issued in May 1997 or later to purchase an NQ GMIB Income Manager(R) contract, only level payments are available. After the end of the period certain, we will continue your payments under the life contingent annuity while the annuitant or joint annuitant is living. Payments continue throughout the annuitant's lifetime (or the lifetime of the joint annuitant, if joint and survivor payments are elected) on the same payment schedule (either monthly, quarterly, or annually) as the payments you received during the period certain. - -------------------------------------------------------------------------------- The portion of your contribution allocated to the life contingent annuity does not have a cash value or an account value and, therefore, does not provide for withdrawals or surrender. - -------------------------------------------------------------------------------- There is no death benefit provided under the life contingent annuity and payments are made to you only if the annuitant (or joint annuitant) is living when the payments are scheduled to begin. These payments are only made during the annuitant's lifetime and, if applicable, the lifetime of a joint annuitant. Therefore, you should consider the possibility that no payments will be made to you under the life contingent annuity if the annuitant (or joint annuitant) does not survive to the date payments are to begin. You may elect single life or joint and survivor payments. Joint and survivor payments are available on a 100%, one-half or two-thirds to survivor basis. If you elect increasing payments under NQ contracts, your first payment under the life contingent annuity will be 10% greater than the final payment under the period certain. After the period certain we will increase your payments annually on each anniversary of the payment start date under the life contingent annuity. We will base this increase on the annual increase in the Consumer Price Index, but it will never be greater than 3% per year. IRA and Roth IRA GMIB contracts. Generally, only level payments are available under IRA contracts. You will receive level payments during the period certain and under the life contingent annuity. If you are using the proceeds from an Accumulator(R) series contract issued prior to May 1997 to purchase a GMIB Income Manager(R) contract (traditional or Roth IRA), both increasing and level payments are currently available, however, increasing payments may not comply with current treasury regulations. See "Required minimum distributions" under "Individual retirement arrangements" in "Tax information." Please consult your tax adviser. If you elect increasing payments, during the period certain, payments are designed to increase by 10% every three years on each third anniversary of the payment start date. After the end of the period certain, your first payment under the life contingent Contract features and benefits 11 annuity will be 10% greater than the final payment made under the period certain. Thereafter, payments will increase annually on each anniversary of the payment start date under the life contingent annuity based on the annual increase, if any, in the Consumer Price Index, but in no event greater than 3% per year. For traditional IRA contracts, if at any time your payment would be less than the minimum amount required to be distributed under required minimum distribution rules, we will notify you of the difference. You will have the option to have an additional amount withdrawn from your contract. An adjustment will be made to future scheduled payments. Or, you may take the amount from other traditional IRA funds you may have. MODE (FREQUENCY) OF PAYMENT Under Income Manager(R) and GMIB Income Manager(R) contracts you may choose to receive payments monthly, quarterly or annually. Whether you choose monthly, quarterly or annual payments, you will usually begin receiving payments one payment period from the contract date, unless you elect otherwise as described under "Off maturity date payments" earlier in this Prospectus. Your payments will always be made on the 15th day of the month. For instance, if you choose annual payments, we make your first payment one year from the issue date of the Income Manager(R) contract. If you are at least age 59-1/2 you may elect to defer the date your payments will start. Generally, you may defer payments for a period of up to 72 months. This is called the deferral period. Deferral of the payment start date permits you to lock in rates at a time when you may consider current rates to be high, while permitting you to delay receiving payments if you have no immediate need to receive income under your contract. Deferral is not available under GMIB Income Manager(R) contracts or when the owner and annuitant are different under Income Manager(R) contracts, respectively. - -------------------------------------------------------------------------------- The deferral period together with the period certain may be referred to as a "liquidity period." Unlike traditional life annuities that provide periodic payments, you will be able to make withdrawals before the end of the period certain. You may also choose to surrender your contract for its cash value while keeping the life contingent annuity in effect. - -------------------------------------------------------------------------------- Before you decide to defer payments, you should consider the fact that the amount of income you purchase is based on the rates to maturity in effect on the date we allocate your contribution. Therefore, if rates rise during the deferral period, your payments may be less than they would have been if you had purchased a contract at a later date. Deferral of the payment start date is not available if the annuitant is older than age 80. Under IRA contracts, if your deferred payment start date is after you are age 70-1/2, you should consider the effect that deferral may have on your required minimum distributions. The ability to defer payments is not available in certain states. Please consult your financial professional for more information on the ability to defer payments in your state. YOUR PERIOD CERTAIN Level payments for NQ and IRA Income Manager(R) contracts. Under level payments, you may select a period certain of not less than 7 years nor more than 15 years. The maximum period certain available based on the age of the annuitant when your Income Manager(R) contract is issued is as follows: NQ CONTRACTS - -------------------------------------------------------------------------------- Annuitant's age at issue* Maximum period certain - -------------------------------------------------------------------------------- 45 through 70 15 years - -------------------------------------------------------------------------------- 71 through 75 85 less age at issue - -------------------------------------------------------------------------------- 76 through 80 10 years - -------------------------------------------------------------------------------- 81 through 83 90 less age at issue - -------------------------------------------------------------------------------- IRA CONTRACTS - -------------------------------------------------------------------------------- Annuitant's age at issue* Maximum period certain - -------------------------------------------------------------------------------- 45 through 70 15 years - -------------------------------------------------------------------------------- 71 through 78 85 less age at issue - -------------------------------------------------------------------------------- 79 through 83 7 years - -------------------------------------------------------------------------------- Level payments for NQ GMIB, IRA GMIB and Roth IRA GMIB Income Manager(R) contracts. Under level payments for these contracts, you may select a period certain of not less than 7 years nor more than 10 years. The maximum period certain available based on the age of the annuitant when your GMIB Income Manager(R) contract is issued is shown in the tables below. However, if the annuitant's age at issue is age 84 or older, the only period certain available is defined in the chart below. NQ GMIB INCOME MANAGER(R) CONTRACTS - -------------------------------------------------------------------------------- Contracts purchased in connection with the proceeds from a pre-May 1997 Accumulator(R) series contract - -------------------------------------------------------------------------------- Annuitant's age at issue* Maximum period certain - -------------------------------------------------------------------------------- 60 through 80 10 years - -------------------------------------------------------------------------------- 81 through 83 90 less issue age - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Contracts purchased in connection with the proceeds from a May 1997-pre-May 1999 Accumulator(R) series contract - -------------------------------------------------------------------------------- Annuitant's age at issue* Maximum period certain - -------------------------------------------------------------------------------- 35 through 80 10 years - -------------------------------------------------------------------------------- 81 through 90 90 less issue age - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Contracts purchased in connection with the proceeds from a May 1999-pre-March 2000 Accumulator(R) series contract - -------------------------------------------------------------------------------- Annuitant's age at issue* Maximum period certain - -------------------------------------------------------------------------------- 35 through 80 10 years - -------------------------------------------------------------------------------- 81 through 83 90 less issue age - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Contracts purchased in connection with the proceeds from a March 2000 and later contract - -------------------------------------------------------------------------------- Annuitant's age at issue* Maximum period certain - -------------------------------------------------------------------------------- 35 through 80 10 years - -------------------------------------------------------------------------------- 81 through 85 90 less issue age - -------------------------------------------------------------------------------- IRA AND ROTH IRA GMIB INCOME MANAGER(R) CONTRACTS - -------------------------------------------------------------------------------- Contracts purchased in connection with the proceeds from a pre-May 1997 Accumulator(R) series contract - -------------------------------------------------------------------------------- Annuitant's age at issue* Maximum period certain - -------------------------------------------------------------------------------- 60 through 75 10 years - -------------------------------------------------------------------------------- 76 through 78 85 less issue age - -------------------------------------------------------------------------------- 79 through 83 7 years - -------------------------------------------------------------------------------- 12 Contract features and benefits - -------------------------------------------------------------------------------- Contracts purchased in connection with the proceeds from a May 1997-pre-May 1999 Accumulator(R) series contract - -------------------------------------------------------------------------------- Annuitant's age at issue* Maximum period certain - -------------------------------------------------------------------------------- 35 through 75 10 years - -------------------------------------------------------------------------------- 76 through 77 85 less issue age - -------------------------------------------------------------------------------- 78 through 83 7 years - -------------------------------------------------------------------------------- 84 through 90 90 less issue age - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Contracts purchased in connection with the proceeds from a post May 1999-March 2000 or later Accumulator(R) series contract - -------------------------------------------------------------------------------- Annuitant's age at issue* Maximum period certain - -------------------------------------------------------------------------------- 35 through 75 10 years - -------------------------------------------------------------------------------- 76 through 77 85 less issue age - -------------------------------------------------------------------------------- 78 through 83 7 years - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Contracts purchased in connection with the proceeds from a March 2000 and later Accumulator(R) series contract - -------------------------------------------------------------------------------- Annuitant's age at issue* Maximum period certain - -------------------------------------------------------------------------------- 35 through 75 10 years - -------------------------------------------------------------------------------- 76 through 77 85 less issue age - -------------------------------------------------------------------------------- 78 through 83 7 years - -------------------------------------------------------------------------------- 84 through 85 90 less issue age - -------------------------------------------------------------------------------- * For joint and survivor payments, the period certain is based on the age of the younger annuitant. The minimum and maximum period certain will be reduced by each year you defer the date your payments will start. Deferral is not available under GMIB Income Manager(R) contracts. Increasing payments. Under NQ contracts (other than NQ GMIB Income Manager(R) contracts, where increasing payments are generally not available) if you elect increasing payments, you do not have a choice as to the period certain. Based on the age of the annuitant when your contract is issued, your period certain will be as follows: - -------------------------------------------------------------------------------- Annuitant's age at issue* Period certain - -------------------------------------------------------------------------------- 53-1/2 through 70 15 years 71 through 75 12 years 76 through 80 9 years 81 through 83 6 years - -------------------------------------------------------------------------------- If you elect increasing payments and defer the date payments will start, your period certain will be as follows: - -------------------------------------------------------------------------------- Period certain based on deferral period - -------------------------------------------------------------------------------- Annuitant's age 1-36 37-60 61-72 at issue* months months months - -------------------------------------------------------------------------------- 59-1/2 through 70 12 years 9 years 9 years - -------------------------------------------------------------------------------- 71 through 75 9 years 9 years n/a - -------------------------------------------------------------------------------- 76 through 80 6 years 6 years n/a - -------------------------------------------------------------------------------- 81 through 83 n/a n/a n/a - -------------------------------------------------------------------------------- For GMIB Income Manager(R) contracts (NQ, IRA and Roth IRA) issued with the proceeds from a pre-May 1997 Accumulator(R) series contract, increasing payments are currently available, as follows: - -------------------------------------------------------------------------------- Annuitant's age at issue* Maximum period certain - -------------------------------------------------------------------------------- 60 through 70 15 years - -------------------------------------------------------------------------------- 71 through 75 12 years - -------------------------------------------------------------------------------- 76 through 80 9 years - -------------------------------------------------------------------------------- 81 through 83 6 years - -------------------------------------------------------------------------------- For all other IRA, Roth IRA and GMIB Income Manager(R) contracts, increasing payments are not available. The annuitant ages at issue in the above table are also the annuitant ages for which the contracts are available. Different ages may apply if you purchase a contract by exercising a benefit under another type of contract that we issue. * For joint and survivor payments, the period certain is based on the age of the younger annuitant. PURCHASE RESTRICTIONS FOR JOINT AND SURVIVOR ANNUITY PAYMENTS If you elect payments on a joint and survivor basis; o the joint annuitant must also be the beneficiary under the contract. Under IRA contracts, the joint annuitant must be your spouse; o neither the annuitant nor the joint annuitant can be younger than age 45 (age 35 for GMIB Income Manager(R)), or over age 83 unless it is a GMIB Income Manager(R) contract, as described above then neither can be over the maximum age at issue shown; and o under level payments the joint and 100% to survivor form is only available for the longest period certain we permit. EXAMPLE OF PAYMENTS We provide the chart below to illustrate level payments under the contract using the following assumptions: (1) a male age 70 (who is both the contract owner and the annuitant); (2) single life annuity payments; (3) a contribution of $100,000; (4) no additional contributions; and (5) a period certain of 15 years. If you had a contract date of February 15, 2008, based on rates to maturity on that date, an election of either monthly, quarterly, or annual payments with payments starting one payment period from the contract date, the following level payments would be provided: - -------------------------------------------------------------------------------- Payment period Monthly Quarterly Annual - -------------------------------------------------------------------------------- Start date 3/15/08 5/15/08 2/15/09 - -------------------------------------------------------------------------------- Payment $616.23 $1,859.31 $7,632.11 - -------------------------------------------------------------------------------- WITHDRAWALS After the first contract year and before the end of the period certain, you may take withdrawals from your account value. You may take one withdrawal per contract year at any time during the contract year. The minimum amount you may withdraw at any time is $1,000. If you request to withdraw more than 90% of your current "cash value" we will treat it as a request to surrender your contract for its cash value. See "Surrendering your contract to receive its cash value" later in this Prospectus. - -------------------------------------------------------------------------------- Your account value is the sum of your market adjusted amounts in each fixed maturity option plus your amounts held in the separate account to provide for payments off maturity dates. Your cash value is equal to your account value minus any withdrawal charge. If the life contingent annuity is already in effect, you may not make any withdrawals. - -------------------------------------------------------------------------------- Withdrawals in excess of a 10% free withdrawal amount may be subject to a withdrawal charge. There is no free withdrawal amount if your Contract features and benefits 13 contract is surrendered for its cash value. For GMIB Income Manager(R) contracts, withdrawal charges do not apply, and, therefore, the free withdrawal amount is not applicable. Amounts withdrawn from a fixed maturity option before its maturity date will result in a market value adjustment. ALLOCATION OF WITHDRAWALS We will subtract your withdrawal from all remaining fixed maturity options to which your account value is allocated as well as from amounts held in the separate account to provide for payments off maturity dates. As a result we will reduce the amount of your payments and the length of your period certain. We will also begin making payments to you under the life contingent annuity at an earlier date. In order to achieve this result we will withdraw additional amounts over the amount of the withdrawal you requested. We will withdraw these amounts from the fixed maturity options and from amounts held in the separate account to provide for payments off maturity dates and allocate them to the life contingent annuity. The exact additional amount we withdraw will depend on how much is necessary to assure that the same pattern of payments will continue in reduced amounts for the annuitant's life, and if it applies, the life of the joint annuitant. If you have elected increasing payments, the first increase in your payments will take place no later than the date of the next planned increase. EXAMPLE The example below illustrates the effect of a withdrawal based on: (1) a single contribution of $100,000 made on February 15, 2008; (2) level annual payments of $7,137.23 to be made on February 15th of each year; (3) joint and two-thirds to survivor payments for a male and female, both age 70; (4) a period certain of 15 years; and (5) a withdrawal made at the beginning of the fourth contract year of 25% of an account value of $65,714.39 when the annuitants are age 73. The requested withdrawal amount would be $16,428.60 ($65,714.39 x .25). In this case, $6,571.44 ($65,714.39 x .10) would be the free withdrawal amount and could be withdrawn free of a withdrawal charge. The balance of $9,857.16 ($16,428.60 - $6,571.44) would be considered a withdrawal of a part of the contribution of $100,000. This contribution would be subject to a 4.0% withdrawal charge of $394.29 ($9,857.16 x .04). The account value after the withdrawal is $48,891.51 ($65,714.39 - $16,428.60 - $394.29). The payments would be reduced to $6,485.70 and the remaining period certain would be reduced to 4 years from 12. DEATH BENEFIT -- FOR ALL CONTRACTS OTHER THAN GMIB INCOME MANAGER(R) CONTRACTS When the annuitant dies before payments begin Generally, when we receive satisfactory proof of the annuitant's death before annuity payments begin we will pay the death benefit to the "beneficiary" named in your contract. See "Your beneficiary" later in this Prospectus. If the joint owner who is also the annuitant dies, we will consider the surviving owner to be the beneficiary, taking the place of any other beneficiary designations. We determine the amount of the death benefit payable to your beneficiary as of the date we receive satisfactory proof of the annuitant's death and any required instructions for the method of payment and any required forms necessary to effect payment. The death benefit is the greater of: (1) your account value; and (2) the sum of the fixed maturity amounts in each fixed maturity option plus any amounts held in the separate account to provide for payments off maturity dates. However, if you are the annuitant and your spouse is the joint owner or the designated beneficiary under the contract, your spouse may elect to receive the payments instead of taking the death benefit if payments have not been deferred, or payments are scheduled to begin within one year. The payments will then begin on the scheduled date. We will not make any payments under the life contingent annuity after the annuitant's death unless you have elected the joint and survivor form of payments. If you elect joint and one-half or joint and two-thirds to survivor payments, at the death of either annuitant, we will reduce the payments by one-half or one-third, whichever applies. - -------------------------------------------------------------------------------- A death benefit is never payable under the life contingent annuity. The death benefit applies only during the period certain. - -------------------------------------------------------------------------------- When the annuitant dies after the annuity payments begin If the annuitant dies after the payments begin, we will continue to make payments during the period certain to either the joint owner or the designated beneficiary, whichever applies. If payments continue to the beneficiary, he or she will be deemed the successor owner. If there is a joint owner, the surviving joint owner will be deemed the beneficiary, superseding any other beneficiary designation. The payments will be made on the same schedule that was in effect before the annuitant's death and will terminate at the end of the period certain. If you elected joint and survivor payments under the life contingent annuity, the payments will be made as long as one of the annuitants is living. If you elected joint and one-half or joint and two-thirds to survivor payments, at the death of either annuitant, we will reduce the payments by one-half or one-third, whichever applies. At the beneficiary's option, payments during the period certain may be discontinued and paid in a single sum. If the single sum is elected within one year after the annuitant's death, the single sum will be paid as a death benefit and will be equal to the greater of: (1) the account value; and (2) the sum of the fixed maturity amounts in each fixed maturity option, plus any amounts held in the separate account to provide for payments off maturity dates. If a single sum is elected and there is a joint annuitant, we will begin making payments to you under the life contingent annuity at an earlier date. These payments will be made in reduced amounts to 14 Contract features and benefits compensate for the earlier start date. If you elected joint and one-half or joint and two-thirds to survivor payments, at the death of either annuitant, we will reduce the payments by one-half or one-third, whichever applies. When the NQ contract owner who is not the annuitant dies after the annuity payments begin. If your death occurs after annuity payments begin, payments will continue to be made during the period certain to the designated beneficiary, or in the case of joint owners, to the surviving owner. In either case this person becomes the new contract owner. The payments will be made on the same payment schedule that was in effect before your death. After the period certain, lifetime payments will be made under the life contingent annuity for as long as the annuitant (or joint annuitant) is living. If a single sum is elected, we will begin making payments to you under the life contingent annuity at an earlier date. The lump sum is treated as a withdrawal. See the discussion of withdrawals earlier in this section. These payments will be made in reduced amounts to compensate for the earlier start date. When the life contingent annuity is in effect and one of the joint annuitants dies, if you elected joint and one-half or joint and two-thirds to survivor payments, at the death of either annuitant, we will reduce the payments by one-half or one-third, whichever applies. DEATH BENEFIT -- FOR ALL GMIB INCOME MANAGER(R) CONTRACTS For purposes of determining the death benefit in connection with any GMIB Income Manager(R) contract, the annuity payments are considered to have begun at issue of the contract. When the annuitant dies In general, we will continue to make payments during the period certain as described earlier in this section under "Death benefit -- for all contracts other than the GMIB Income Manager(R) contracts" under "When the annuitant dies after the annuity payments begin." However, if there is a non-owner joint annuitant, we will continue to make payments to the original owner until the death of the joint annuitant. Payments during the period certain may be discontinued and paid in a single sum. If there is a joint annuitant, we will begin making payments to you under the life contingent annuity at an earlier date. The lump sum is treated as a withdrawal. See the discussion of withdrawals earlier in this section. These payments will be made in reduced amounts to compensate for the earlier start date. When the NQ GMIB contract owner who is not the annuitant dies We will continue to make annuity payments during the period certain as described earlier in this section under "Death benefit -- for all contracts other than the GMIB Income Manager(R) contracts" under "When the NQ contract owner who is not the annuitant dies after the annuity payments begin." SURRENDERING YOUR LIFE ANNUITY WITH PERIOD CERTAIN CONTRACT You may surrender your contract for its cash value at any time during the period certain and receive lifetime payments after that under the life contingent annuity. Once your contract is surrendered, the date your payments are to start under the life contingent annuity will be moved forward to the date when you were supposed to receive the next payment under the period certain. However, your payments will be made in reduced amounts. Once your contract is surrendered, we will return it to you with a notation that the life contingent annuity is still in effect. You may not surrender the life contingent annuity. PERIOD CERTAIN CONTRACT (NOT AVAILABLE IF YOU ARE PURCHASING A GMIB INCOME MANAGER(R) CONTRACT) You may purchase the period certain contract if you are age 59-1/2 or older. The annuitant must be at least age 59-1/2, but not older than age 78. This contract provides you with level guaranteed payments for a period certain that you select. The minimum period certain you may select is 7 years and the maximum period certain is 15 years. If the annuitant is over age 70 when the contract is issued, the maximum period certain you may select is 85 less the annuitant's age when the contract is issued. ADDITIONAL CONTRIBUTIONS Additional contributions are not permitted under the contract. HOW WE ALLOCATE YOUR CONTRIBUTIONS Based on the amount of your single contribution and the period certain you select, we allocate your contribution among the fixed maturity options and, if necessary, to the separate account to provide for payments off maturity dates. You may not change this allocation. See "More information" later in this Prospectus for an example of payments. PAYMENTS Whether you choose monthly, quarterly or annual payments, your payments normally will start one payment period from the contract date unless you elect otherwise as described under "Off maturity date payments" earlier in this Prospectus. Your payments will always be made on the 15th day of the month. - -------------------------------------------------------------------------------- The period certain may also be referred to as the "liquidity period" because you have access to your money through withdrawals or surrender of your contract. - -------------------------------------------------------------------------------- WITHDRAWALS After the first contract year you may take withdrawals from your account value. You may take one withdrawal per contract year at any time during the contract year. The minimum amount you may withdraw at any time is $2,000 or 25% of your current cash value if it produces a larger amount. If you request to withdraw more than 90% of your current cash value we will treat it as a request for surrender of the contract for its cash value. See "Surrendering your contract to receive its cash value" later in this Prospectus. Any amounts withdrawn from a fixed maturity option, before its maturity date, will result in a market value adjustment. See "Market value adjustment" earlier in this Prospectus. Withdrawals made during the first seven contract Contract features and benefits 15 years may be subject to a withdrawal charge. There is no free withdrawal amount under the period certain contracts. ALLOCATION OF WITHDRAWALS We will subtract your withdrawals pro rata from all remaining fixed maturity options to which your account value is allocated as well as from amounts held in the separate account to provide for payments off maturity dates. As a result, your payments will continue in reduced level amounts over the remaining term of the period certain. DEATH BENEFIT When the annuitant dies before payments begin Generally, when we receive satisfactory proof of the annuitant's death before annuity payments begin we will pay the death benefit to the beneficiary named in your contract. See "Your beneficiary" later in this Prospectus. If the joint owner who is also the annuitant dies, we will consider the surviving owner to be the beneficiary, taking the place of any other beneficiary designations. We determine the amount of the death benefit payable to your beneficiary as of the date we receive satisfactory proof of the annuitant's death and any required instructions for the method of payment and any required forms necessary to effect payment. The death benefit is the greater of: (1) your account value; and (2) the sum of the fixed maturity amounts in each fixed maturity option plus any amounts held in the separate account to provide for payments off maturity dates. However, if you are the annuitant and your spouse is the joint owner or the designated beneficiary under the contract, your spouse may elect to receive the payments instead of taking the death benefit. The payments will then begin on the scheduled date. When the annuitant dies after the annuity payments begin If the annuitant dies after the payments begin, payments will continue to be made during the period certain to either the joint owner or the designated beneficiary, whichever applies. The payments will be made on the same schedule that was in effect before the annuitant's death. At the beneficiary's option, payments may be discontinued and paid in a single sum. If the single sum is elected within one year after the annuitant's death, the single sum will be equal to the greater of: (1) the account value; and (2) the sum of the fixed maturity amounts in each fixed maturity option plus any amounts held in the separate account to provide for payments off maturity dates. When the NQ contract owner who is not the annuitant dies after the annuity payments begin If your death occurs after annuity payments begin, payments will continue to be made during the period certain to the designated beneficiary or in the case of joint owners to the surviving owner. In either case, this person becomes the new contract owner and receives the payments. 16 Contract features and benefits 2. Other benefits and features of the contracts - -------------------------------------------------------------------------------- HOW YOU CAN MAKE YOUR CONTRIBUTIONS Except as noted below, contributions must be by check drawn on a U.S. bank in U.S. dollars, and made payable to AXA Equitable. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. For GMIB Income Manager(R) contracts, you can only purchase a contract by exercising your GMIB benefit in accordance with your Accumulator(R) series contract, even if the Accumulator(R) account value is less than $10,000; no additional contributions are permitted. For your convenience, we will accept initial and additional contributions, if applicable, by wire transmittal from certain broker-dealers who have agreements with us for this purpose. These methods of payment are discussed in detail under "More information" later in this Prospectus. Your initial contribution must generally be accompanied by an application and any other form we need to process the payments. If any information is missing or unclear, we will try to obtain that information. If we are unable to obtain all of the information we require within five business days, we will inform the financial professional submitting the application, on your behalf. We will then return the contribution to you unless you specifically direct us to keep your contribution until we receive the required information. - -------------------------------------------------------------------------------- Generally our "business day" is any day on which the New York Stock Exchange is open for trading. A business day does not include any day we choose not to open due to emergency conditions. We may also close early due to emergency conditions. Our business day generally ends at 4:00 p.m., Eastern Time for the purposes of determining the date when contributions are applied and other transaction requests are processed. - -------------------------------------------------------------------------------- SECTION 1035 EXCHANGES You may apply the entire value of an existing nonqualified deferred annuity contract (or life insurance or endowment contract) to purchase an Income Manager(R) NQ contract in a tax-deferred exchange if you follow certain procedures as shown in the form that we require you to use. Section 1035 exchanges are generally not available after the death of the individual who is the measuring life on the exchanged contract (owner or annuitant). Please note that the IRS may not apply tax-free treatment to partial 1035 exchanges. Also see "Tax information" later in this Prospectus. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If for any reason you are not satisfied with your contract, you may return it to us for a refund. To exercise this cancellation right you must mail the contract directly to our Processing Office within 10 days after you receive it. In some states, this "free look" period may be longer. Generally, your refund will equal your account value under the contract. Your account value reflects any positive or negative market value adjustments in the fixed maturity options through the date we receive your contract. Under the life annuity with a period certain your refund will also include any amount applied to the life contingent annuity. However, some states require that we refund the full amount of your contribution (not including any investment gain or loss). For IRA contracts returned to us within seven days after you receive it, we are required to refund the full amount of your contribution. If you cancel your GMIB Income Manager(R) contracts within the free look period, we will reinstate your Accumulator(R) series contract as of the date you exercised your GMIB. Upon reinstatement, the value applied to the GMIB Income Manager(R) contract plus any charges that were deducted will be returned to your Accumulator(R) series contract in accordance with the allocations that were in effect on said date. If you cancel your contract during the free look period, we may require that you wait six months before you may apply for a contract with us again. For California residents, if you are age 60 or older at the time the contract is issued, you may return your contract within 30 days from the date that you receive it and receive a refund as described below. Your refund will equal your contributions, less any payments you may have received under the Income Manager(R) payout annuity contract or, if greater, your account value, computed on the date we receive your Income Manager(R) payout annuity contract along with your request to cancel at our processing office. The 30-day cancellation and refund policy as described above applies to Income Manager(R) payout annuity contracts only. If you have a GMIB Income Manager(R) contract please refer to its free look period and refund policy, as described above. Please see "Tax information" later in this Prospectus for possible consequences of cancelling your contract. SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE You may surrender your contract to receive its cash value at any time during the period certain. Your cash value is equal to your account value minus any withdrawal charge. There is no free withdrawal amount if you surrender your contract. For GMIB Income Manager(R) contracts, there are no withdrawal charges, and, therefore, no free withdrawal amount applies. For a surrender to be effective, we must receive your written request and your contract at our Processing Office. We will determine your cash value on the date we receive the required information. All benefits under your contract will terminate as of that date unless you have elected the life contingent annuity. See "Surrendering your life annuity with a period certain contract" earlier in this Prospectus. Other benefits and features of the contracts 17 WHEN TO EXPECT PAYMENTS Generally, we will fulfill requests for payments within seven days of the transaction to which the request relates. We can defer payment of any portion of the account value (other than for death benefits) for up to six months while you are living. We also may defer payments for any reasonable amount of time (not to exceed 15 days) while we are waiting for a contribution check to clear. 18 Other benefits and features of the contracts 3. Charges - -------------------------------------------------------------------------------- WITHDRAWAL CHARGES A withdrawal charge applies in two circumstances: (1) if you make a withdrawal during a contract year and it exceeds any applicable free withdrawal amount, described below, or (2) if you surrender your contract to receive its cash value. For GMIB Income Manager(R) contracts, withdrawal charges do not apply. The withdrawal charge equals a percentage of each contribution (or single contribution) withdrawn. The percentage that applies depends on how long each contribution has been invested in the contract. We determine the withdrawal charge separately for each contribution according to the following table: - -------------------------------------------------------------------------------- Contract Year - -------------------------------------------------------------------------------- 1 2 3 4 5 6 7 8+ - -------------------------------------------------------------------------------- Percentage of Contribution 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% - -------------------------------------------------------------------------------- For purposes of calculating the withdrawal charge, we treat the contract year in which we receive a contribution as "contract year 1." Amounts withdrawn up to the free withdrawal amount are not considered withdrawal of any contribution. We also treat contributions that have been invested the longest as being withdrawn first. We treat contributions as withdrawn before earnings for purposes of calculating the withdrawal charge. However, federal income tax rules treat earnings under your contract as withdrawn first. See "Tax information" later in this Prospectus. We deduct the withdrawal charge from your account value in proportion to the amount withdrawn from each fixed maturity option and any amounts held in the separate account to provide for payments off maturity dates. In order to give you the exact dollar amount of the withdrawal you request, we deduct the amount of the withdrawal and the amount of the withdrawal charge from your account value. Any amount deducted to pay a withdrawal charge is also subject to a withdrawal charge. The withdrawal charge does not apply to the 10% free withdrawal amount described below. The 10% free withdrawal amount applies only to life annuity with a period certain contracts (not including GMIB Income Manager(R) contracts since there are no withdrawal charges). It does not apply to your period certain contract or if you surrender your contract to receive its cash value. Under life annuity with a period certain contracts, each contract year you can withdraw up to 10% of your account value without paying a withdrawal charge. This 10% free withdrawal amount is determined using your account value at the beginning of each contract year. AMOUNTS APPLIED FROM OTHER CONTRACTS ISSUED BY AXA EQUITABLE Life annuity with a period certain contract. If you own certain types of contracts that we issue, you may apply the entire account value under those contracts to purchase the life annuity with a period certain contract provided the issue age and payment restrictions for the new contract are met. Depending upon the provisions of your Accumulator(R) contract, the amount used to purchase the GMIB Income Manager(R) may be reduced by the remaining withdrawal charges on any Accumulator(R) series contract being surrendered. If the Accumulator(R) contract is a rollover TSA, we will also deduct the amount of any outstanding loan balance, including any accrued unpaid interest. If you apply your account value at a time when the dollar amount of the withdrawal charge under such other contract is greater than 2% of remaining contributions (after withdrawals), we reserve the right to waive the remaining withdrawal charge. However, a new withdrawal charge schedule will apply under the new contract. For purposes of the withdrawal charge schedule, the year in which your account value is applied under the life annuity with a period certain contract will be "contract year 1." If you apply your account value when the dollar amount of the withdrawal charge is 2% or less, we reserve the right to waive the withdrawal charges under the new contract. You should consider the timing of your purchase as it relates to the potential for withdrawal charges under the life annuity with a period certain contract. Period certain contract. If you own certain types of contracts that we issue, you may apply your entire account value to purchase the period certain contract once any withdrawal charges are no longer in effect under the other contracts. No withdrawal charges will apply under the period certain contract. To purchase any Income Manager(R) contract we require that you return your original contract to us. A new Income Manager(R) contract will be issued putting this annuity into effect. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed upon us, such as premium taxes in your state. We deduct the charge from your contributions. The current tax charge that might be imposed varies by jurisdiction and ranges from 0% to 3.5%. This deduction may not apply for certain GMIB Income Manager(R) contracts. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce the withdrawal charge or change the minimum initial contribution requirements. We also may increase the rates to maturity for the fixed maturity options and reduce purchase rates for the life contingent annuity. Group arrangements include those in which a trustee or an employer, for example, purchases contracts covering a group of individuals on a group basis. Sponsored arrangements include those in which an employer allows us to sell contracts to its employees or retirees on an individual basis. IRA contracts are not available for group arrangements. Charges 19 Our costs for sales, administration, and mortality generally vary with the size and stability of the group or sponsoring organization, among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, such as requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy contracts or that have been in existence less than six months will not qualify for reduced charges. We will make these and any similar reductions according to our rules in effect when we approve a contract for issue. We may change these rules from time to time. Any variation in the withdrawal charge will reflect differences in costs or services and will not be unfairly discriminatory. Group or sponsored arrangements may be governed by federal income tax rules, the Employee Retirement Income Security Act of 1974, or both. We make no representations with regard to the impact of these and other applicable laws on such programs. We recommend that employers, trustees, and others purchasing or making contracts available for purchase under such programs seek the advice of their own legal and benefits advisers. OTHER DISTRIBUTION ARRANGEMENTS We may reduce or eliminate withdrawal charges when sales are made in a manner that results in savings of sales and administrative expenses. This may include sales through persons who are compensated by clients for recommending investments and who receive no commission or reduced commissions in connection with the sale of the contracts. We will not permit a reduction or elimination of the withdrawal charge where it will be unfairly discriminatory. 20 Charges 4. Payment of death benefit - -------------------------------------------------------------------------------- YOUR BENEFICIARY You designate your beneficiary when you apply for your contract. You may change your beneficiary at any time. The change will be effective on the date the written request for change is signed. For Income Manager(R) contracts only, where payments have not started; and you are not the annuitant; and you have not named a specific successor owner, the beneficiary will become the successor owner upon your death. YOUR ANNUITY PAYOUT OPTIONS (NOT INCLUDING GMIB INCOME MANAGER(R) CONTRACTS) If the annuitant dies before annuity payments begin, your beneficiary may elect to apply the death benefit to an annuity payout option. We offer several annuity payout options to choose from. Restrictions apply, depending on the type of contract you own. Please see "Contract features and benefits" under the "Death benefit" sections earlier in this Prospectus for more information. ANNUITY PAYOUT OPTIONS Your beneficiary can choose from among the following death benefit annuity payout options: o Life annuity: An annuity that guarantees payments for the rest of the annuitant's life. Payments end with the last payment before the annuitant's death. Because there is no death benefit with this payout option, it provides the highest payment of any of the life annuity options, so long as the annuitant is living. o Life annuity -- period certain: An annuity that guarantees payments for the rest of the annuitant's life, and, if the annuitant dies before the end of a selected period of time ("period certain"), payments to the beneficiary will continue for the balance of the period certain. o Life annuity -- refund certain: An annuity that guarantees payments for the rest of the annuitant's life. If the annuitant dies before the amount applied to purchase the annuity option has been recovered, payments continue to the beneficiary until that amount has been recovered. o Period certain annuity: An annuity that guarantees payments for a specific period of time, usually 5, 10, 15 or 20 years. This option does not guarantee payments for the rest of the annuitant's life. It does not permit any repayment of the unpaid principal, so you cannot elect to receive part of the payments as a single sum payment with the rest paid in monthly annuity payments. The life annuity; life annuity -- period certain and the life annuity -- refund certain are available on either single life or joint and survivor life basis. The joint and survivor life annuity guarantees payments for the rest of the annuitant's life and, after the annuitant's death, continuation of payments to the survivor. All of the above annuity payout options are available as fixed annuities. With fixed annuities, we guarantee fixed annuity payments that will be based either on the tables of guaranteed annuity payments in your contract or on our then current annuity rates, whichever is more favorable for the annuitant. When the beneficiary selects a payout option, we will issue a separate written agreement confirming the beneficiary's right to receive annuity payments. We require the return of the contract before annuity payments begin. The amount of the annuity payments will depend on the amount applied to purchase the annuity, the type of annuity chosen and, in the case of a life annuity, the annuitant's age (or the annuitant's and joint annuitant's ages) and in certain instances, the sex of the annuitant(s). Once a payout option has been chosen and payments begin, no change can be made. The amount of each annuity payment will be less with a greater frequency of payments or with a longer duration of a non-life contingent annuity or the certain period of a life contingent annuity. Your financial professional can provide you with additional information about your annuity payment options. At the time that the beneficiary elects a payout option if the amount to be applied is less than $2,000, or the initial payment under the form elected is less than $20 monthly, we reserve the right to pay the account value in a single sum rather than as payments under the payout option chosen. Payment of death benefit 21 5. Tax information - -------------------------------------------------------------------------------- OVERVIEW In this part of the prospectus, we discuss the current federal income tax rules that generally apply to Income Manager(R) contracts owned by United States individual taxpayers. We discuss the tax aspects of each type of contract separately because the tax rules differ, depending on: o the type of contract, whether NQ, traditional IRA, or Roth IRA, o how you acquired your Income Manager(R) contract, whether by purchase or exercising your GMIB benefit in accordance with your Accumulator(R) series contract, and o whether you have deferred your annuity payout start date. The Income Manager(R) contract is intended to be a payout annuity. However, except for GMIB Income Manager(R) contracts, you may be able to delay beginning payments, and certain rules governing deferred annuity contracts indicated below could apply. The ability to defer payments is not available in certain states. Federal income tax rules include the United States laws in the Internal Revenue Code and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of a contract. We cannot predict what, if any, legislation will actually be proposed or enacted. We cannot provide detailed information on all tax aspects of the contracts. Moreover, the tax aspects that apply to a particular person's contract may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the contract, rights or values under the contract, or payments under the contract, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate or inheritance taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. TAXATION OF NONQUALIFIED ANNUITIES CONTRIBUTIONS You may not deduct the amount of your contributions to a nonqualified annuity contract. CONTRACT EARNINGS Generally, you are not taxed on contract earnings until you receive a distribution from your contract, whether as a withdrawal, or as an annuity payment. Earnings in a deferred annuity contract are taxable even without a distribution if you transfer a contract, for example, as a gift to someone other than your spouse (or former spouse). Federal tax law requires that all nonqualified deferred annuity contracts that AXA Equitable and its affiliates issue to you during the same calendar year be linked together and treated as one contract when figuring out the taxable amount of any distribution from any of those contracts. Corporations, partnerships, trusts and other non-natural persons generally cannot defer the taxation of current income credited to the contract unless an exception under the federal income tax rules apply. There is an exception for immediate annuities. - -------------------------------------------------------------------------------- Immediate annuities are generally annuities in which payments begin within one year from purchase and provide for a series of substantially equal payments made at least annually. - -------------------------------------------------------------------------------- Please note that a payout contract purchased through a 1035 exchange may not be treated as an immediate annuity. ANNUITY PAYMENTS In order to get annuity payment tax treatment described here, all amounts under the contract must be applied to an annuity payout option; we do not "partially annuitize" nonqualified deferred annuity contracts. Once annuity payments begin, a portion of each payment is taxable as ordinary income. You get the remaining portion without paying taxes on it. This is your "investment in the contract." Generally, your investment in the contract equals the contributions you made, less any amounts you previously withdrew that were not taxable. The tax-free portion of each payment is determined by (1) dividing your investment in the contract by the total amount you are expected to receive out of the contract, and (2) multiplying the result by the amount of the payment. Once you have received the amount of your investment in the contract, all payments after that are fully taxable. If payments under a life annuity stop because the annuitant dies, there is an income tax deduction for any unrecovered investment in the contract. - -------------------------------------------------------------------------------- The section below, "Withdrawals made before annuity payments begin," applies to NQ contracts which are deferred and does not apply to GMIB Income Manager(R) contracts. - -------------------------------------------------------------------------------- WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN If you make withdrawals before annuity payments begin under your contract, they are taxable to you as ordinary income if there are earnings in the contract. Generally, earnings are your account value less your investment in the contract. If you withdraw an amount which is more than the earnings in the contract as of the date of the 22 Tax information withdrawal, the balance of the distribution is treated as a return of your investment in the contract and is not taxable. - -------------------------------------------------------------------------------- The section below, "Contracts purchased through exchanges," applies to NQ contracts which are deferred and does not apply to GMIB Income Manager(R) contracts. - -------------------------------------------------------------------------------- CONTRACTS PURCHASED THROUGH EXCHANGES You may purchase your NQ contract through an exchange of another contract. Normally, exchanges of contracts are taxable events. The exchange will not be taxable under Section 1035 of the Internal Revenue Code if: o The contract which is the source of the funds you are using to purchase the NQ contract is another nonqualified deferred annuity contract or life insurance or endowment contract. o The owner and the annuitant are the same under the source contract and the Income Manager(R) contract. If you are using a life insurance or endowment contract the owner and the insured must be the same on both sides of the exchange transaction. Section 1035 exchanges are generally not available after the death of the individual who is the measuring life on the exchanged contract (owner or annuitant). The tax basis of the source contract carries over to the Income Manager(R) NQ contract. An owner may direct the proceeds of a partial withdrawal from one nonqualified deferred annuity contract to a different insurer to purchase a new nonqualified deferred annuity contract on a tax-deferred basis. Special forms, agreement between the carriers, and provision of cost basis information may be required to process this type of an exchange. You should also note that the Internal Revenue Service has announced its intention to challenge transactions where taxpayers enter into serial partial exchanges and annuitizations in order to avoid income or penalties applicable to annuity contracts. Although the IRS has not yet issued specific guidance on this point, you should discuss with your tax adviser before you purchase an Income Manager(R) contract, intended to be a payout annuity, with partial 1035 exchange proceeds. SURRENDERS If you surrender or cancel the NQ contract, the distribution is taxable as ordinary income (not capital gain) to the extent it exceeds your investment in the contract. Withdrawals made after annuity payments begin If you make a withdrawal that terminates all periodic payments due, it will be taxable as a complete surrender as discussed above. If you make a withdrawal that does not terminate all periodic payments due, then the withdrawal will generally be taxable. Also, a portion of the remaining reduced payments will be eligible for tax-free recovery of investment. DEATH BENEFIT PAYMENT MADE TO A BENEFICIARY AFTER YOUR DEATH For the rules applicable to death benefits, see "Payment of death benefit" earlier in this Prospectus. The tax treatment of a death benefit taken as a single sum is generally the same as the tax treatment of a withdrawal from or surrender of your contract. The tax treatment of a death benefit taken as annuity payments is generally the same as the tax treatment of annuity payments under your contract. EARLY DISTRIBUTION PENALTY TAX If you take distributions before you are age 59-1/2 a penalty tax of 10% of the taxable portion of your distribution applies in addition to the income tax. The extra penalty tax does not apply to pre-age 59-1/2 distributions made: o on or after your death; or o because you are disabled (special federal income tax definition); or o in the form of substantially equal periodic annuity payments for your life (or life expectancy), or the joint lives (or joint life expectancies) of you and a beneficiary, in accordance with IRS formulas; or o payments under an immediate annuity. Periodic annuity payments we make to you from the life annuity with a period certain while you are under age 59-1/2 should qualify for the "substantially equal payments for life" exception noted above. However, this exception may not apply if you take a withdrawal, surrender your contract or change the payment pattern in any way. Please note that a payout contract purchased through a 1035 exchange may not be treated as an immediate annuity. SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is subject to U.S. taxation on such U.S. source income. Only Puerto Rico-source income of Puerto Rico residents is excludable from U.S. taxation. Income from NQ contracts is also subject to Puerto Rico tax. The computation of the taxable portion of amounts distributed from a contract may differ in the two jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax returns, showing different amounts of income from the contract for each tax return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S. tax paid. Depending on your personal situation and the timing of the different tax liabilities, you may not be able to take full advantage of this credit. INDIVIDUAL RETIREMENT ARRANGEMENTS ("IRAS") GENERAL "IRA" stands for individual retirement arrangement. There are two basic types of such arrangements, individual retirement accounts and individual retirement annuities. In an individual retirement account, a trustee or custodian holds the assets for the benefit of the IRA owner. The assets typically include mutual funds and/or individual stocks and securities in a custodial account and bank certificates of deposit in a trusteed account. In an individual retirement annuity, an insurance company issues an annuity contract that serves as the IRA. There are two basic types of IRAs, as follows: o Traditional IRAs, typically funded on a pre-tax basis; and Tax information 23 o Roth IRAs, funded on an after-tax basis. We offer the Income Manager(R) contract for purchase only in traditional IRA form. We offer the GMIB Income Manager(R) contract in traditional IRA form or Roth IRA form, depending on the status of your Accumulator(R) series contract. Regardless of the type of IRA, your ownership interest in the IRA cannot be forfeited. You or your beneficiaries who survive you are the only ones who can receive the IRA's benefits or payments. All types of IRAs qualify for tax deferral, regardless of the funding vehicle selected. You can hold your IRA assets in as many different accounts and annuities as you would like, as long as you meet the rules for setting up and making contributions to IRAs. However, if you own multiple IRAs, you may be required to combine IRA values or contributions for tax purposes. For further information about individual retirement arrangements, you can read Internal Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)"). This Publication is usually updated annually, and can be obtained from any IRS district office or the IRS website (www.irs.gov). AXA Equitable designs its traditional IRA contracts to qualify as individual retirement annuities under Section 408(b) of the Internal Revenue Code. This prospectus contains the information that the IRS requires you to have before you purchase an IRA. This section of the prospectus covers some of the special tax rules that apply to IRAs. We have not submitted to the IRS a request for an opinion letter to approve the form of the Income Manager(R) traditional IRA contract for use as a traditional IRA contract. This IRS approval is a determination only as to the form of the annuity. It does not represent a determination of the merits of the annuity as an investment. CANCELLATION You can cancel an Income Manager(R) IRA contract by following the directions under "Your right to cancel within a certain number of days" earlier in the Prospectus. If you cancel an IRA contract, we may have to withhold tax, and we must report the transaction to the IRS. A contract cancellation could have an unfavorable tax impact. TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES ("TRADITIONAL IRAS") - -------------------------------------------------------------------------------- The sections, "Contributions to traditional IRAs," "Rollover and transfer contributions to traditional IRAs," "Rollovers from eligible retirement plans other than traditional IRAs," "Rollovers of after-tax contributions from eligible retirement plans other than traditional IRAs," "Rollovers from traditional IRAs to traditional IRAs," "Spousal rollovers and divorce-related direct transfers," and "Excess contributions" do not apply to GMIB Income Manager(R) contracts. If you are acquiring your GMIB Income Manager(R) contract by exercising your GMIB benefit in accordance with your Accumulator(R) series contract, go to "Withdrawals, payments and transfers of funds out of traditional IRAs," below; the sections pertaining to contributions to traditional IRAs in the prospectus are generally intended for individuals who acquire the Income Manager(R) traditional IRA contract by purchase. - -------------------------------------------------------------------------------- CONTRIBUTIONS TO TRADITIONAL IRAS Individuals may make three different types of contributions to purchase a traditional IRA or as subsequent contributions to an existing IRA: o "regular" contributions out of earned income or compensation; or o tax-free "rollover" contributions; or o direct custodian-to-custodian transfers from other traditional IRAs ("direct transfers"). We require that your initial contribution to the Income Manager(R) traditional IRA contract must be either a rollover or a direct custodian-to-custodian transfer. See "Rollover and transfer contributions to traditional IRAs" below. If you defer your annuity payout starting date you may be able to make additional contributions. Any additional contributions you make may be any of rollover, direct transfer or regular contributions. Regular contributions to IRAs are subject to a number of technical rules that differ depending on the year, your age, whether you are an active participant in an employer-sponsored plan, and your compensation. If you make subsequent regular contributions to this contract, please consult your tax adviser or IRS Publication 590 for the applicable rules. ROLLOVER AND TRANSFER CONTRIBUTIONS TO TRADITIONAL IRAS Rollover contributions may be made to a traditional IRA from these "eligible retirement plans": o qualified plans; o governmental employer 457(b) plans; o 403(b) plans (including Internal Revenue Code Section 403(b)(7) custodial accounts); and o other traditional IRAs. Direct transfer contributions may only be made directly from one traditional IRA to another. Any amount contributed to a traditional IRA after you reach age 70-1/2 must be net of your required minimum distribution for the year in which the rollover or direct transfer contribution is made. ROLLOVERS FROM "ELIGIBLE RETIREMENT PLANS" OTHER THAN TRADITIONAL IRAS Your plan administrator will tell you whether or not your distribution is eligible to be rolled over. Spousal beneficiaries and spousal alternate payees under qualified domestic relations orders may roll over funds on the same basis as the plan participant. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. There are two ways to do rollovers: o Do it yourself: You actually receive a distribution that can be rolled over and you roll it over to a traditional IRA within 60 days after the date you receive the funds. The distribution from your qualified plan or TSA will be net of 20% mandatory federal income tax withholding. If you want, you can replace the withheld funds yourself and roll over the full amount. o Direct rollover: You tell the plan trustee or custodian of the eligible retirement plan 24 Tax information to send the distribution directly to your traditional IRA issuer. Direct rollovers are not subject to mandatory federal income tax withholding. All distributions from a TSA, qualified plan or governmental employer 457(b) plan are eligible rollover distributions, unless the distributions are: o "required minimum distributions" after age 70-1/2 or retirement from service with the employer; or o substantially equal periodic payments made at least annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary; or o substantially equal periodic payments made for a specified period of 10 years or more; or o hardship withdrawals; or o corrective distributions which fit specified technical tax rules; or o loans that are treated as distributions; or o death benefit payments to a beneficiary who is not your surviving spouse; or o qualified domestic relations order distributions to a beneficiary who is not your current spouse or former spouse. You should discuss with your tax adviser whether you should consider rolling over funds from one type of tax qualified retirement plan to another, because the funds will generally be subject to the rules of the recipient plan. For example, funds in a governmental employer 457(b) plan are not subject to the additional 10% federal income tax penalty for premature distributions, but they may become subject to this penalty if you roll the funds to a different type of eligible retirement plan such as a traditional IRA, and subsequently take a premature distribution. ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN TRADITIONAL IRAS Any non-Roth after-tax contributions you have made to a qualified plan or 403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to a traditional IRA (either in a direct rollover or a rollover you do yourself). When the recipient plan is a traditional IRA, you are responsible for record keeping and calculating the taxable amount of any distributions you take from that traditional IRA. See "Taxation of Payments" later in this Prospectus under "Withdrawals, payments and transfers of funds out of traditional IRAs." After-tax contributions in a traditional IRA cannot be rolled over from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS You may roll over amounts from one traditional IRA to one or more of your other traditional IRAs if you complete the transaction within 60 days after you receive the funds. You may make such a rollover only once in every 12-month period for the same funds. Trustee-to-trustee or custodian-to-custodian direct transfers are not rollover transactions. You can make these more frequently than once in every 12-month period. SPOUSAL ROLLOVER AND DIVORCE-RELATED DIRECT TRANSFERS The surviving spouse beneficiary of a deceased individual can roll over funds from, or directly transfer funds from, an inherited traditional IRA to one or more other traditional IRAs. A non-spousal death beneficiary may also be able to make a direct rollover to an inherited traditional IRA under certain circumstances. Also, in some cases, traditional IRAs can be transferred on a tax-free basis between spouses or former spouses as a result of a court ordered divorce or separation decree. EXCESS CONTRIBUTIONS Excess contributions to IRAs are subject to a 6% excise tax for the year in which made and for each year after until withdrawn. The following are excess contributions to IRAs: o regular contributions of more than the maximum regular contribution amount for the applicable taxable year; o regular contributions to a traditional IRA made after you reach age 70-1/2; and o rollover contributions of amounts which are not eligible to be rolled over, for example, minimum distributions required to be made after age 70-1/2. You can avoid the excise tax by withdrawing an excess contribution (rollover or regular) before the due date (including extensions) for filing your federal income tax return for the year. If it is an excess regular traditional IRA contribution, you cannot take a tax deduction for the amount withdrawn. You do not have to include the excess contribution withdrawn as part of your income. It is also not subject to the 10% additional penalty tax on early distributions discussed under "Early distribution penalty tax" later in this Prospectus. You do have to withdraw any earnings that are attributed to the excess contribution. The withdrawn earnings would be included in your gross income and could be subject to the 10% penalty tax. Even after the due date for filing your return, you may withdraw an excess rollover contribution, without income inclusion or 10% penalty, if: (1) the rollover was from an eligible retirement plan to a traditional IRA; (2) the excess contribution was due to incorrect information that the plan provided; and (3) you took no tax deduction for the excess contribution. WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or all of your funds from a traditional IRA at any time. You do not need to wait for a special event like retirement. TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal income tax until you or your beneficiary receive them. Taxable payments or distributions include withdrawals from your contract, surrender of your contract and annuity payments from your contract. Death benefits are also taxable. Tax information 25 Except as discussed below, the total amount of any distribution from a traditional IRA must be included in your gross income as ordinary income. We report all payments from traditional IRA contracts on IRS Form 1099-R as fully taxable. If you have ever made nondeductible IRA contributions to any traditional IRA (it does not have to be to this particular traditional IRA contract), those contributions are recovered tax free when you get distributions from any traditional IRA. It is your responsibility to keep permanent tax records of all your nondeductible contributions to traditional IRAs so that you can correctly report the taxable amount of any distribution on your own tax return. At the end of any year in which you have received a distribution from any traditional IRA, you calculate the ratio of your total nondeductible traditional IRA contributions (less any amounts previously withdrawn tax free) to the total account balances of all traditional IRAs you own at the end of the year plus all traditional IRA distributions made during the year. Multiply this by all distributions from the traditional IRA during the year to determine the nontaxable portion of each distribution. A distribution from a traditional IRA is not taxable if: o the amount received is a withdrawal of excess contributions, as described under "Excess contributions" above; or o the entire amount received is rolled over to another traditional IRA or other eligible retirement plan which agrees to accept the funds, (See "Rollovers from eligible retirement plans other than traditional IRAs" under "Rollover and transfer contributions to traditional IRAs" above). The following are eligible to receive rollovers of distributions from a traditional IRA: a qualified plan, a 403(b) plan or a governmental employer 457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from your traditional IRA into, or back into, a qualified plan, 403(b) plan or governmental employer 457(b) plan. Before you decide to roll over a distribution from a traditional IRA to another eligible retirement plan, you should check with the administrator of that plan about whether the plan accepts rollovers and, if so, the types it accepts. You should also check with the administrator of the receiving plan about any documents required to be completed before it will accept a rollover. Since the Income Manager(R) annuity is intended to be a payout contract, it may not be an appropriate contract if you intend to roll over funds later. Allocation of funds to the life contingent annuity may make it difficult for you to roll the contract over to another eligible retirement plan. Distributions from a traditional IRA are not eligible for favorable ten-year averaging and long-term capital gain treatment available to distributions from qualified plans. If you might be eligible for such tax treatment from your qualified plan, you may be able to preserve such tax treatment even though an eligible rollover from a qualified plan is temporarily rolled into a "conduit IRA" before being rolled back into a qualified plan. See your tax adviser. REQUIRED MINIMUM DISTRIBUTIONS BACKGROUND ON REGULATIONS--REQUIRED MINIMUM DISTRIBUTIONS Distributions must be made from traditional IRAs according to the rules contained in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations require that the actuarial present value of additional annuity contract benefits be added to the dollar amount credited for purposes of calculating certain types of required minimum distributions from individual retirement annuity contracts. This could increase the annual amount required to be distributed from these contracts. Generally, these provisions will not apply to Income Manager(R) contracts. They could apply if you defer your payment start dates, and if account-based withdrawals, as discussed below, are done before annuitization. In addition, other provisions of the Treasury Regulations may adversely affect increasing payment GMIB Income Manager(R) IRAs beginning in 2006. You should consult with your tax adviser before you elect to take increasing payments from GMIB Income Manager(R) IRAs. LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual distributions from your traditional IRAs for the year in which you turn age 70-1/2. WHEN YOU HAVE TO TAKE THE FIRST LIFETIME REQUIRED MINIMUM DISTRIBUTION. The first required minimum distribution is for the calendar year in which you turn age 70-1/2. You have the choice to take this first required minimum distribution during the calendar year you actually reach age 70-1/2, or to delay taking it until the first three-month period in the next calendar year (January 1 - April 1). Distributions must start no later than your "Required Beginning Date," which is April 1st of the calendar year after the calendar year in which you turn age 70-1/2. If you choose to delay taking the first annual minimum distribution, then you will have to take two minimum distributions in that year -- the delayed one for the first year and the one actually for that year. Once minimum distributions begin, they must be made at some time each year. HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches to taking required minimum distributions -- "account-based" or "annuity-based." If you are acquiring your GMIB Income Manager(R) contract by exercising your GMIB benefit in accordance with your Accumulator(R) series contract, and generally for Income Manager(R) contracts where the payout starting date is not deferred, the annuity-based method applies. Account-based method. If you choose an account-based method, you divide the value of your traditional IRA as of December 31st of the past calendar year by a number corresponding to your age from an IRS table. This gives you the required minimum distribution amount for that particular IRA for that year. If your spouse is your sole beneficiary and more than 10 years younger than you, the dividing number you use may be from another IRS table and may produce a smaller lifetime required minimum distribution amount. Regardless of the table used, the required minimum distribution amount will vary each year as the account value, the actuarial present value of additional annuity contract benefits, if applicable, and the divisor change. If you initially choose an account-based method, you may later apply your traditional IRA funds to a life annuity-based payout with any certain period not exceeding remaining life expectancy, determined in accordance with IRS tables. Annuity-based method. If you choose an annuity-based method, you do not have to do annual calculations. You apply the account value to an annuity payout for your life or the joint lives of you and a 26 Tax information designated beneficiary, or for a period certain not extending beyond applicable life expectancies, determined in accordance with IRS tables. DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No. If you want, you can choose a different method for each of your traditional IRAs and other retirement plans. For example, you can choose an annuity payout from one IRA, a different annuity payout from a qualified plan, and an account-based annual withdrawal from another IRA. WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON THE METHOD YOU CHOOSE? No, we do not automatically make distributions from your contract before your annuity payments begin. We will calculate the amount of an account-based required minimum distribution withdrawal for you, if you so request in writing. However, in that case you will be responsible for asking us to pay the required minimum distribution withdrawal to you. Also, the IRS will let you calculate the required minimum distribution for each traditional IRA that you maintain, using the method that you picked for that particular IRA. You can add these required minimum distribution amount calculations together. As long as the total amount you take out every year satisfies your overall traditional IRA required minimum distribution amount, you may choose to take your annual required minimum distribution from any one or more traditional IRAs that you own. WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum distribution amount for your traditional IRAs is calculated on a year-by-year basis. There are no carry-back or carry-forward provisions. Also, you cannot apply required minimum distribution amounts you take from your qualified plans to the amounts you have to take from your traditional IRAs and vice versa. WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be disqualified, and you could have to pay tax on the entire value. Even if your IRA is not disqualified, you could have to pay a 50% penalty tax on the shortfall (required amount for traditional IRAs less amount actually taken). It is your responsibility to meet the required minimum distribution rules. We will remind you when our records show that you are within the age group which must take lifetime required minimum distributions. If you do not select a method with us, we will assume you are taking your required minimum distribution from another traditional IRA that you own. WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could vary depending on whether you die before or after your Required Beginning Date for lifetime required minimum distribution payments, and the status of your beneficiary. The following assumes that you have not yet elected an annuity-based payout at the time of your death. If you elect an annuity-based payout, payments (if any) after your death must be made at least as rapidly as when you were alive. INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the owner's death and reduces that number by one each subsequent year. If you die before your Required Beginning Date, the rules permit any individual beneficiary, including a spousal beneficiary, to elect instead to apply the "5-year rule." Under this rule, instead of annual payments having to be made beginning with the first in the year following the owner's death, the entire account must be distributed by the end of the calendar year which contains the fifth anniversary of the owner's death. No distribution is required before that fifth year. SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is your surviving spouse, your spouse has a number of choices. Post-death distributions may be made over your spouse's single life expectancy. Any amounts distributed after that surviving spouse's death are made over the spouse's life expectancy calculated in the year of his/her death, reduced by one for each subsequent year. In some circumstances, your surviving spouse may elect to become the owner of the traditional IRA and halt distributions until he or she reaches age 70-1/2, or roll over amounts from your traditional IRA into his/her own traditional IRA or other eligible retirement plan. If you die before your Required Beginning Date, and the death beneficiary is your surviving spouse, the rules permit the spouse to delay starting payments over his/her life expectancy until the year in which you would have attained age 70-1/2. NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and your death beneficiary is a non-individual, such as the estate, the rules permit the beneficiary to calculate post-death required minimum distribution amounts based on the owner's life expectancy in the year of death. However, note that we need an individual annuitant to keep an annuity contract/certificate in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. If you die before your Required Beginning Date for lifetime required minimum distribution payments, and the death beneficiary is a non-individual, such as the estate, the rules continue to apply the 5-year rule discussed above under "Individual beneficiary." Please note that we need an individual annuitant to keep an annuity contract/certificate in force. If the beneficiary is not an individual, we must distribute amounts remaining in the annuity contract after the death of the annuitant. IMPORTANT INFORMATION ABOUT MINIMUM DISTRIBUTIONS UNDER YOUR CONTRACT Although the life contingent annuity portion of the life annuity with a period certain does not have a cash value, it will be assigned a value for tax purposes. This value will generally be changed each year. If you are using the account-based withdrawal method because you have deferred the payment start date for example, when you determine the amount of account-based required minimum distributions from your IRA this value must be included. This must be done before annuity payments begin even though the life contingent annuity may not be providing a source of funds to satisfy the required minimum distributions. Tax information 27 If you surrender your contract, or withdraw any remaining account value before your annuity payments begin, it may be necessary for you to satisfy your required minimum distribution by moving forward the start date of payments under your life contingent annuity. Or to the extent available, you have to take distributions from other IRA funds you may have. Or, you may convert your IRA life contingent annuity under the IRA contract to a nonqualified life contingent annuity. This would be viewed as a distribution of the value of the life contingent annuity from your IRA, and therefore, would be a taxable event. However, since the life contingent annuity would no longer be part of the IRA, you would not have to include its value when determining future required minimum distributions. If you have elected a joint and survivor form of the life contingent annuity, the joint annuitant must be your spouse. In the event of your death or the death of your spouse the value of such annuity will change. For this reason, it is important that someone tell us if you or your spouse dies before the life contingent annuity has started payments so that a lower valuation can be made. Otherwise, a higher tax value may result in an overstatement of the amount that would be necessary to satisfy your required minimum distribution amount. SUCCESSOR ANNUITANT AND OWNER If your spouse is the sole primary beneficiary and elects to become the successor annuitant and owner, no death benefit is payable until your surviving spouse's death. The required minimum distribution rules are applied as if your surviving spouse is the contract owner. PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH IRA death benefits are taxed the same as IRA distributions. BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS You cannot get loans from a traditional IRA. You cannot use a traditional IRA as collateral for a loan or other obligation. If you borrow against your IRA or use it as collateral, its tax-favored status will be lost as of the first day of the tax year in which this prohibited event occurs. If this happens, you must include the value of the traditional IRA in your federal gross income. Also, the early distribution penalty tax of 10% may apply if you have not reached age 59-1/2 before the first day of that tax year. EARLY DISTRIBUTION PENALTY TAX A penalty tax of 10% of the taxable portion of a distribution applies to distributions from a traditional IRA made before you reach age 59-1/2. Some of the available exceptions to the pre-age 59-1/2 penalty tax include distributions made: o on or after your death; o because you are disabled (special federal income tax definition); o used to pay certain extraordinary medical expenses (special federal income tax definition); o used to pay medical insurance premiums for unemployed individuals (special federal income tax definition); o used to pay certain first-time home buyer expenses (special federal income tax definition; $10,000 lifetime total limit for these distributions from all your traditional and Roth IRAs); o used to pay certain higher education expenses (special federal income tax definition); or o in the form of substantially equal periodic payments made at least annually over your life (or your life expectancy), or over the joint lives of you and your beneficiary (or your joint life expectancy) using an IRS-approved distribution method. WILL PAYMENTS WE MAKE TO YOU FROM THE LIFE ANNUITY WITH A PERIOD CERTAIN WHILE YOU ARE UNDER AGE 59-1/2 QUALIFY AS SUBSTANTIALLY EQUAL PAYMENTS FOR LIFE? Same as nonqualified annuities under "Early distribution penalty tax." ROTH IRA GMIB INCOME MANAGER(R) CONTRACTS Before you exercise your GMIB benefit in accordance with your Accumulator(R) series Roth IRA contract, you should discuss with your tax adviser the tax consequences of distributions from a Roth IRA which may apply to your personal situation. Payments from traditional IRAs and Roth IRAs are taxed differently. Payments from traditional IRAs are generally fully taxable, as discussed earlier in this prospectus. In any event, the issuer of the traditional IRA is entitled to report distributions from traditional IRAs as fully taxable and it is the IRA owner's responsibility to calculate the taxable and tax-free portions of any traditional IRA payments on the owner's tax return. Distributions from Roth IRAs generally receive return of contribution treatment first under federal income tax calculation rules before any income is taxable. Certain distributions from Roth IRAs may qualify for fully tax-free treatment. These are distributions after you reach age 59-1/2, die, become disabled or meet a qualified first-time homebuyer tax rule. You also have to meet a five-year aging period, which begins when you first contribute funds to any Roth IRA. For example, if you purchased an Accumulator(R) series traditional IRA contract in 2002 and did not convert it into a Roth IRA until 2004, and if your Accumulator(R) series contract is your sole Roth IRA, you have not yet met the five-year aging period if you exercise your GMIB benefit in 2008. In that case, payments received before the five-year aging period is met are treated first as a recovery of contributions to the Roth IRA, and next as ordinary income, after all contributions are recovered. Taxable withdrawals or distributions from Roth IRAs may be subject to an additional 10% penalty tax if you are under age 59-1/2, unless an exception applies. Since federal income rules require Roth IRA owners to aggregate all of their Roth IRAs together to determine the tax treatment and taxable amount, if any, of distributions and payments from Roth IRAs, the issuer of any Roth IRA contract generally reports on IRS Form 1099-R only the amount of distributions and payments it makes for the year as "taxable amount not determined." It is your responsibility to calculate on your tax return the tax-free, contribution recovery, or taxable income amounts as applicable. 28 Tax information As discussed earlier in this prospectus, traditional IRAs are subject to required minimum distribution rules which require that amounts begin to be distributed in a prescribed manner from the IRA after the owner reaches age 70-1/2. These rules also require distributions after the owner's death. No distributions are required to be made from Roth IRAs until after the Roth IRA owner's death, but then the required minimum distribution rules apply. As in the case of a traditional IRA, borrowing and loans are prohibited transactions for a Roth IRA. FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING We must withhold federal income tax from distributions from annuity contracts. You may be able to elect out of this income tax withholding in some cases. Generally, we do not have to withhold if your distributions are not taxable. The rate of withholding required depends on the type of distribution and, in certain cases, the amount of a distribution. Any income tax withheld is a credit against your income tax liability. If you do not have sufficient income tax withheld or do not make sufficient estimated income tax payments, you may incur penalties under the estimated income tax rules. Note that we are required to withhold on the gross amount of a distribution from a Roth IRA to the extent it is reasonable for us to believe that a distribution is includable in your gross income. This may result in tax being withheld even though the Roth IRA distribution is ultimately not taxable. You may elect out of withholding as described below. You must file your request not to withhold in writing before the payment or distribution is made. Our Processing Office will provide forms for this purpose. You cannot elect out of withholding unless you provide us with your correct Taxpayer Identification Number and a United States residence address. You cannot elect out of withholding if we are sending the payment out of the United States. We might have to withhold and/or report on amounts we pay under a free look or cancellation. Special withholding rules apply to foreign recipients and United States citizens residing outside the United States. We do not discuss these rules here in detail. However, we may require additional documentation in the case of payments made to non-United States persons and United States persons living abroad prior to processing any requested transaction. Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. In some states, you may elect out of state withholding, even if federal withholding applies. Generally, an election out of federal withholding will also be considered an election out of state withholding. If you need more information concerning a particular state or any required forms, call our Processing Office at their toll-free number. If you are receiving periodic and/or non-periodic payments, you will be notified of the withholding requirements and of your right to make withholding elections. FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS Federal tax rules require payors to withhold differently on "periodic" and "non-periodic" payments. Payors are to withhold from periodic annuity payments as if the payments were wages. The annuity contract owner is to specify marital status and the number of withholding exemptions claimed on an IRS Form W-4P or similar substitute election form. If the owner does not claim a different number of withholding exemptions or maritial status, the payor is to withhold assuming that the owner is married and claiming three withholding exemptions. Based on the assumption that an annuity contract owner is married and claiming three withholding exemptions, periodic annuity payments totaling less than $18,720 in 2008 will generally be exempt from federal income tax withholding. If the owner does not provide the owner's correct Taxpayer Identification Number a payor is to withhold from periodic annuity payments as if the owner were single with no exemptions. A contract owner's withholding election remains effective unless and until the owner revokes it. The contract owner may revoke or change a withholding election at any time. FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS) Non-periodic distributions include partial withdrawals, total surrenders and death benefits. Payors generally withhold federal income tax at a flat 10% rate from (i) the taxable amount in the case of nonqualified contracts, and (ii) the payment amount in the case of traditional IRAs and Roth IRAs where it is reasonable to assume an amount is includable in gross income. Tax information 29 6. More information - -------------------------------------------------------------------------------- ABOUT OUR FIXED MATURITY OPTIONS How we determine the market value adjustment. We use the following procedure to calculate the market value adjustment (positive or negative) we make if you withdraw all of your value from a fixed maturity option before its maturity date. (1) We determine the market adjusted amount on the date of the withdrawal as follows: (a) We determine the fixed maturity amount that would be payable on the maturity date, using the rate to maturity for the fixed maturity option. (b) We determine the period remaining in your fixed maturity option (based on the withdrawal date) and convert it to fractional years based on a 365-day year. For example, three years and 12 days becomes 3.0329. (c) We determine the current rate to maturity that applies on the withdrawal date to new allocations to the same fixed maturity option. (d) We determine the present value of the fixed maturity amount payable at the maturity date, using the period determined in (b) and the rate determined in (c). (2) We determine the fixed maturity amount as of the current date. (3) We subtract (2) from the result in (1)(d). The result is the market value adjustment applicable to such fixed maturity option, which may be positive or negative. - -------------------------------------------------------------------------------- Your market adjusted amount is the present value of the maturity value discounted at the rate to maturity in effect for new contributions to that same fixed maturity option on the date of the calculation. - -------------------------------------------------------------------------------- For purposes of calculating the rate to maturity for new allocations to a fixed maturity option (see (1)(c) above), we use the rate we have in effect for new allocations to that fixed maturity option. We use this rate even if new allocations to that option would not be accepted at that time. This rate will not be less than 3%. If we do not have a rate to maturity in effect for a fixed maturity option to which the "current rate to maturity" in (1)(c) would apply, we will use the rate at the next closest maturity date. If we are no longer offering new fixed maturity options, the "current rate to maturity" will be determined in accordance with our procedures then in effect. We reserve the right to add up to 0.25% to the current rate in (1)(c) above for purposes of calculating the market value adjustment only. ABOUT THE SEPARATE ACCOUNT FOR THE FIXED MATURITY OPTIONS Investments. Under New York Insurance law, the portion of the separate account assets equal to the reserves and other contract liabilities relating to the contracts are not chargeable with liabilities from any other business we may conduct. We own the assets of the separate account, as well as any favorable investment performance on those assets. You do not participate in the performance of the assets held in this separate account. We may, subject to state law which applies, transfer all assets allocated to the separate account to our general account. We guarantee all benefits relating to your account value in the fixed maturity options regardless of whether assets supporting fixed maturity options are held in a separate account or our general account. We have no specific formula for establishing the rates to maturity for the fixed maturity options. We expect the rates to be influenced by, but not necessarily correspond to, among other things, the yields that we can expect to realize on the separate account's investments from time to time. Our current plans are to invest in fixed-income obligations, including corporate bonds, mortgage-backed and asset-backed securities and government and agency issues having durations in the aggregate consistent with those of the fixed maturity options. Although the above generally describes our plans for investing the assets supporting our obligations under the fixed maturity options, we are not obligated to invest those assets according to any particular plan except as we may be required to by state insurance laws. We will not determine the rates to maturity we establish by the performance of the nonunitized separate account. ABOUT OUR GENERAL ACCOUNT Our general account supports all of our policy and contract guarantees, including those that apply to the fixed maturity options, as well as our general obligations. Amounts applied under the life contingent annuity become part of our general account. The general account is subject to regulation and supervision by the Insurance Department of the State of New York and to the insurance laws and regulations of all jurisdictions where we are authorized to do business. Interests under the contracts in the general account have not been registered and are not required to be registered under the Securities Act of 1933 because of exemptions and exclusionary provisions that apply. The general account is not required to register as an investment company under the Investment Company Act of 1940 and it is not registered as an investment company under the Investment Company Act of 1940. The market value adjustment interests under the contracts, which are held in a separate account, are issued by AXA Equitable and are registered under the Securities Act of 1933. The contract is a "covered security" under the federal securities laws. We have been advised that the staff of the SEC has not made a review of the disclosure that is included in the prospectus for your information that relates to the general account and the life contingent annuity. The disclosure, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. OTHER METHODS OF PAYMENT WIRE TRANSMITTALS We accept initial contributions sent by wire to our Processing Office by agreement with certain broker-dealers. The transmittals must be 30 More information accompanied by information we require to allocate your contribution. Wire orders not accompanied by complete information may be retained as described under "How you can make your contributions" in "Other benefits and features of the contracts" earlier in this prospectus. Even if we accept the wire order and essential information, a contract generally will not be issued until we receive and accept a properly completed application. In certain cases we may issue a contract based on information forwarded electronically. Where we require a signed application, no financial transactions will be permitted until we receive the signed application and have issued the contract. After your contract has been issued, additional contributions under the life annuity with a period certain contract may be transmitted by wire. ABOUT PAYMENTS UNDER PERIOD CERTAIN CONTRACTS The following example illustrates a ten-year level stream of annual payments, each in the amount of $10,000, purchased on February 15, 2008 with the first payment on February 14, 2009. To achieve this result, a single contribution of $82,398.22 is required, and is allocated among the fixed maturity options as indicated below. - ----------------------------------------------------------------------- Price per $100 February 15th of of maturity Allocation of calendar year Payment value contribution - ----------------------------------------------------------------------- 2009 $10,000 $97.08 $9,707.95 - ----------------------------------------------------------------------- 2010 $10,000 $94.25 $9,425.20 - ----------------------------------------------------------------------- 2011 $10,000 $91.51 $9,150.68 - ----------------------------------------------------------------------- 2012 $10,000 $88.84 $8,884.15 - ----------------------------------------------------------------------- 2013 $10,000 $86.25 $8,624.69 - ----------------------------------------------------------------------- 2014 $10,000 $82.43 $8,242.87 - ----------------------------------------------------------------------- 2015 $10,000 $77.01 $7,700.69 - ----------------------------------------------------------------------- 2016 $10,000 $72.77 $7,277.28 - ----------------------------------------------------------------------- 2017 $10,000 $68.73 $6,873.32 - ----------------------------------------------------------------------- 2018 $10,000 $65.11 $6,511.40 - ----------------------------------------------------------------------- Total $ 82,398.22 - ----------------------------------------------------------------------- DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR BUSINESS DAY Our "business day" is generally any day the New York Stock Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A business day does not include a day on which we are not open due to emergency conditions determined by the Securities and Exchange Commission. We may also close early due to such emergency conditions. Contributions will be applied and any other transaction requests will be processed when they are received along with all the required information unless another date applies as indicated below. o If your contribution, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: - on a non-business day; - after 4:00 p.m. Eastern Time on a business day; or - after an early close of regular trading on the NYSE on a business day. CONTRIBUTIONS o Contributions allocated to the fixed maturity options will receive the rate to maturity in effect for that fixed maturity option on that business day. o Contributions allocated to the separate account to provide for payments off maturity dates will receive the interest rate in effect on that business day or the same rate as the rate to maturity that applied to the expired fixed maturity option. o Contributions allocated to the life contingent annuity will be invested at the purchase rates in effect on that business day. If you are purchasing the Income Manager(R) (life with a period certain) option in connection with your guaranteed minimum income benefit under certain contracts, you should note that the purchase rates used are more conservative (and therefore your payments may be smaller) than those we use for other Income Manager(R) contracts. ABOUT LEGAL PROCEEDINGS AXA Equitable and its affiliates are parties to various legal proceedings. In our view, none of these proceedings is likely to have a material adverse effect upon our obligations under the contracts, or the distribution of the contracts. TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS, AND BORROWING The contracts may not be assigned except through surrender to us. They may not be borrowed against or used as collateral for a loan or other obligation. DISTRIBUTION OF CONTRACTS The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC ("AXA Distributors") (together the "Distributors"). AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Distributors are under the common control of AXA Financial, Inc. Their principal business address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors are registered with the SEC as broker-dealers and are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as distributors for other AXA Equitable life and annuity products. Under a distribution agreement between AXA Distributors, AXA Equitable, and certain of AXA Equitable's separate accounts, including the separate account that contains the fixed maturity options, AXA Equitable paid AXA Distributors distribution fees of $1,007,208,067 for 2007, $694,578,570 for 2006, and $561,166,840 for 2005, as the distributor of certain contracts, including these contracts, and as the principal underwriter of several AXA Equitable separate accounts, including the separate account that contains the fixed maturity options. Of these amounts for each of these three years, AXA Distributors retained $95,562,846, $88,941,713, and $120,349,631, respectively. Under a distribution and services agreement between AXA Advisors, AXA Equitable and certain of AXA Equitable's separate accounts, More information 31 including the separate account that contains the fixed maturity options, AXA Equitable paid AXA Advisors a fee of $325,380 for each of the years 2007, 2006, and 2005. AXA Equitable paid AXA Advisors as the distributor for certain contracts, including these contracts $731,929,627 in 2007, $672,531,658 in 2006, and $588,734,659 in 2005. Of these amounts, AXA Advisors retained $345,884,328, $339,484,801, and $293,075,553, respectively. The contracts are sold by financial professionals of AXA Advisors and its affiliates and by financial professionals of both affiliated and unaffiliated broker-dealers that have entered into selling agreements with the Distributors ("Selling broker-dealers"). AXA Equitable pays sales compensation to both Distributors based on contracts sold. In general, the Distributors will pay all or a portion of the sales compensation they receive from AXA Equitable to individual financial representatives or Selling broker-dealers. Selling broker-dealers will, in turn, pay all or a portion of the compensation they receive from the Distributors to individual financial representatives as commissions related to the sale of the contracts. Sales compensation paid to AXA Advisors will generally not exceed 8.50% of the total contributions made under the contracts. Sales compensation paid to AXA Distributors will generally not exceed 5.00% of the total contributions made under the contracts. The Distributors may pay certain affiliated and/or unaffiliated Selling broker-dealers and other financial intermediaries additional compensation in recognition of certain expenses that may be incurred by them or on their behalf. The Distributors may also pay certain broker-dealers or other financial intermediaries additional compensation for enhanced marketing opportunities and other services (commonly referred to as "marketing allowances"). Services for which such payments are made may include, but are not limited to, the preferred placement of AXA Equitable and/or Income Manager(R) on a company and/or product list; sales personnel training; product training; business reporting; technological support; due diligence and related costs; advertising, marketing and related services; conferences; and/or other support services, including some that may benefit the contract owner. Payments may be based on the amount of assets or purchase payments attributable to contracts sold through a Selling broker-dealer or such payments may be a fixed amount. The Distributors may also make fixed payments to Selling broker-dealers in connection with the initiation of a new relationship or the introduction of a new product. These payments may serve as an incentive for Selling broker-dealers to promote the sale of particular products. Additionally, as an incentive for financial professionals of Selling broker-dealers to promote the sale of AXA Equitable products, the Distributors may increase the sales compensation paid to the Selling broker-dealer for a period of time (commonly referred to as "compensation enhancements"). Marketing allowances and sales incentives are made out of the Distributors' assets. Not all Selling broker-dealers receive these kinds of payments. For more information about any such arrangements, ask your financial professional. The Distributors receive 12b-1 fees from certain portfolios for providing certain distribution and/or shareholder support services. The Distributors or their affiliates may also receive payments from the advisers of the portfolios or their affiliates to help defray expenses for sales meetings or seminar sponsorships that may relate to the contracts and/or the advisers' respective portfolios. In an effort to promote the sale of our products, AXA Advisors may provide its financial professionals and managerial personnel with a higher percentage of sales commissions and/or cash compensation for the sale of an affiliated variable product than it would the sale of an unaffiliated product. Such practice is known as providing "differential compensation." In addition, managerial personnel may receive expense reimbursements, marketing allowances and commission-based payments known as "overrides." Certain components of the compensation of financial professionals who are managers are based on the sale of affiliated variable products. Managers earn higher compensation (and credits toward awards and bonuses) if those they manage sell more affiliated variable products. AXA Advisors may provide other forms of compensation to its financial professionals, including health and retirement benefits. For tax reasons, AXA Advisors financial professionals qualify for health and retirement benefits based solely on their sales of our affiliated products. These payments and differential compensation (together, the "payments") can vary in amount based on the applicable product and/or entity or individual involved. As with any incentive, such payments may cause the financial professional to show preference in recommending the purchase or sale of AXA Equitable products. However, under applicable rules of the FINRA, AXA Advisors may only recommend to you products that they reasonably believe are suitable for you based on facts that you have disclosed as to your other security holdings, financial situation and needs. In making any recommendation, financial professionals of AXA Advisors may nonetheless face conflicts of interest because of the differences in compensation from one product category to another, and because of differences in compensation between products in the same category. In addition AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sale of both affiliated and unaffiliated products which provide non-cash compensation such as stock options awards and/or stock appreciation rights, expense-paid trips, expense-paid educational seminars and merchandise. Although AXA Equitable takes all of its costs into account in establishing the level of fees and expenses in its products, any compensation paid by AXA Equitable to the Distributors will not result in any separate charge to you under your contract. All payments made will be in compliance with all applicable FINRA rules and other laws and regulations. 32 More information 7. Incorporation of certain documents by reference - -------------------------------------------------------------------------------- AXA Equitable's Annual Report on Form 10-K for the period ended December 31, 2007 (the "Annual Report") is considered to be part of this Prospectus because it is incorporated by reference. The Company intends to send Owners account statements and other such legally-required reports. The Company does not anticipate such reports will include periodic financial statements or information concerning the Company. The Company files reports and other information with the SEC, as required by law. You may read and copy this information at the SEC's public reference facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by accessing the SEC's website at www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Under the Securities Act of 1933, the Company has filed with the SEC a registration statement relating to the Market Value Adjustment (the "Registration Statement"). This prospectus has been filed as part of the Registration Statement and does not contain all of the information set forth in the Registration Statement. Please see the Registration Statement for additional information concerning the Market Value Adjustment. The Annual Report includes the audited consolidated financial statements of AXA Equitable at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 (the "AXA Equitable Financial Statements"). The AXA Equitable Financial Statements are included in the Annual Report and incorporated by reference into this Prospectus in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm. The AXA Equitable Financial Statements are also included in the Annual Report and incorporated by reference into this Prospectus in reliance on the reports of KPMG LLP, an independent registered public accounting firm, on the (i) Consolidated Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein L.P. and (ii) the Statements of Income, Changes in Partners' Capital and Comprehensive Income, and Cash Flows of AllianceBernstein Holding L.P. (together "AllianceBernstein", formerly "Alliance") for the year ended December 31, 2005. The reports are given on the authority of said firms as experts in auditing and accounting. KPMG LLP was AllianceBernstein's independent registered public accounting firm for the year ended December 31, 2005. On March 8, 2006, KPMG LLP was terminated, and PricewaterhouseCoopers LLP was appointed as AllianceBernstein's independent registered public accounting firm, as disclosed on AXA Equitable's Report on Form 8-K filed on March 13, 2006. AllianceBernstein Corporation, an indirect wholly owned subsidiary of AXA Equitable, is the general partner of both AllianceBernstein L.P. and AllianceBernstein Holding L.P. PricewaterhouseCoopers LLP provides independent audit services and certain other non-audit services to AXA Equitable as permitted by the applicable SEC independence rules, and as disclosed in AXA Equitable's Form 10-K. PricewaterhouseCoopers LLP's address is 300 Madison Avenue, New York, New York 10017. Any statement contained in a document that is, or becomes part of this Prospectus, will be considered changed or replaced for purposes of this Prospectus if a statement contained in this Prospectus changes or is replaced. Any statement that is considered to be a part of this Prospectus because of its incorporation will be considered changed or replaced for the purpose of this Prospectus if a statement contained in any other subsequently filed document that is considered to be part of this Prospectus changes or replaces that statement. After that, only the statement that is changed or replaced will be considered to be part of this Prospectus. We file our Exchange Act documents and reports, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR under CIK No. 0000727920. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. Upon written or oral request, we will provide, free of charge, to each person to whom this Prospectus is delivered, a copy of any or all of the documents considered to be part of this Prospectus because they are incorporated herein. This does not include exhibits not specifically incorporated by reference into the text of such documents. Requests for documents should be directed to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You can also find our annual report on Form 10-K on our website at www.axa- equitable.com. Incorporation of certain documents by reference 33 Appendix: Market value adjustment example - -------------------------------------------------------------------------------- The example below shows how the market value adjustment would be determined and how it would be applied to a withdrawal, assuming that $100,000 was allocated on February 15, 2008 to a fixed maturity option with a maturity date of February 15, 2016 (eight years later) at a hypothetical rate to maturity of 7.00%(h), resulting in a maturity value of $171,882 on the maturity date. We further assume that a withdrawal of $50,000, including any applicable withdrawal charge, is made four years later on February 15, 2012(a).
- ---------------------------------------------------------------------------------------------------------------------------- Hypothetical assumed rate to maturity(j) February 15, 2012 -------------------------------------------- 5.00% 9.00% - ---------------------------------------------------------------------------------------------------------------------------- As of February 15, 2012 before withdrawal - ---------------------------------------------------------------------------------------------------------------------------- (1) Market adjusted amount(b) $141,389 $121,737 - ---------------------------------------------------------------------------------------------------------------------------- (2) Fixed maturity amount(c) $131,104 $131,104 - ---------------------------------------------------------------------------------------------------------------------------- (3) Market value adjustment: (1) - (2) $ 10,285 $ (9,367) - ---------------------------------------------------------------------------------------------------------------------------- On February 15, 2012 after $50,000 withdrawal - ---------------------------------------------------------------------------------------------------------------------------- (4) Portion of market value adjustment associated with the withdrawal: (3) x [$50,000/(1)] $ 3,637 $ (3,847) - ---------------------------------------------------------------------------------------------------------------------------- (5) Portion of fixed maturity associated with the withdrawal: $50,000 - (4) $ 46,363 $ 53,847 - ---------------------------------------------------------------------------------------------------------------------------- (6) Market adjusted amount: (1) - $50,000 $ 91,389 $ 71,737 - ---------------------------------------------------------------------------------------------------------------------------- (7) Fixed maturity amount: (2) - (5) $ 84,741 $ 77,257 - ---------------------------------------------------------------------------------------------------------------------------- (8) Maturity value(d) $111,099 $101,287 - ----------------------------------------------------------------------------------------------------------------------------
You should note that in this example, if a withdrawal is made when rates have increased from 7.00% to 9.00% (right column), a portion of a negative market value adjustment is realized. On the other hand, if a withdrawal is made when rates have decreased from 7.00% to 5.00% (left column), a portion of a positive market value adjustment is realized. Notes: (a) Number of days from the withdrawal date to the maturity date = D = 1,461 (b) Market adjusted amount is based on the following calculation: Maturity value $171,882 -------------- = --------- where j is either 5% or 9% (1+j)(D/365) (1+j)(1,461/365) (c) Fixed maturity amount is based on the following calculation: Maturity value $171,882 -------------- = -------- (1+h)(D/365) (1+0.07)(1,461/365) (d) Maturity value is based on the following calculation: Fixed maturity amount X (1+h)(D/365) = ($84,741 or $77,257) X (1+0.07)(1,461/365))
A-1 Appendix: Market value adjustment example AXA Equitable Life Insurance Company SUPPLEMENT DATED MAY 1, 2008 TO THE CURRENT PROSPECTUSES FOR: ACCUMULATOR(R) ACCUMULATOR(R) ELITE(SM) ACCUMULATOR(R) PLUS(SM) ACCUMULATOR(R) SELECT(SM) - -------------------------------------------------------------------------------- FOR DELIVERY TO SMITH BARNEY CUSTOMERS This supplement modifies certain information in the above-referenced Prospectuses, Supplements to Prospectuses and Statements of Additional Information ("SAIs"), (together, the "Prospectuses"). Unless otherwise indicated, all other information included in the Prospectuses remains unchanged. The terms and section headings we use in this supplement have the same meaning as in the Prospectuses. You should keep this supplement with your Prospectuses. Please note the following information: ELECTRONIC APPLICATIONS AND INITIAL CONTRIBUTIONS Your Accumulator(R) Series contract date will generally be the business day Smith Barney receives your initial contribution and all information needed to process your application, along with any required documents, and transmits your order to us in accordance with our processing procedures. We may reject your application and return your contribution or issue your contract on a later date if any of the limitations described below apply. SUBSEQUENT CONTRIBUTIONS Any additional contributions you may make will generally be applied to your contract on the business day Smith Barney receives the additional contribution from you and transmits your order to us in accordance with our processing procedures. We may reject your order and return your additional contribution or credit your additional contribution to your contract at a later date if any of the limitations described below apply. LIMITATIONS We consider Smith Barney to be a "processing office" for the purpose of receiving applications and contributions as described above. The procedures described above are not available for Section 1035 exchanges or other replacement transactions; other types of transactions may also be excluded. You must provide all information and documents we require with respect to your initial or additional contribution. The amount of the initial or additional contribution you are making must be permitted under your contract. Your application and contribution must be made in accordance with all the other terms and conditions described in our Prospectus. After receiving your contribution, together with all required information and documents, from you, Smith Barney must deliver them to us in accordance with our processing arrangements with Smith Barney. Smith Barney may establish a "closing time" for receipt of applications and contribution requests under the above arrangement that is earlier than the end of the business day. Any such earlier closing time may be established without prior notice to you. Also, while we are generally open on the same business days as Smith Barney, a business day for the purposes of this supplement will be our business day. We or Smith Barney may change or discontinue these arrangements at any time without prior notice. If you change Smith Barney as your broker-dealer of record on your contract, the above procedures will no longer apply, although we may have similar arrangements with your new broker-dealer. You may always make subsequent contributions under your contract by any other method described in the Accumulator(R) Series Prospectus for your contract, as supplemented from time to time. All applications and contributions are subject to acceptance. These arrangements may not be available in every state. YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If you reside in the state of California and you are age 60 and older at the time the contract is issued, you may return your variable annuity contract within 30 days from the date that you receive it and receive a refund as described below. This is also referred to as the "free look" period. At the time of application, you will instruct your Smith Barney financial professional as to how your initial contribution and any subsequent contributions should be treated for the purpose of maintaining your free look right under the contract. o You may choose to immediately allocate your contributions to one or more of the variable investment options. In the event you choose to exercise your free look right under the contract, you will receive a refund as described in the Prospectus. o You may also choose "return of contribution" free look treatment of your contract. If chosen, we will allocate your entire contribution and any SOLSB05-04 (5/08) x01897 Acc. `04 (NY), `06/'06.5, '07 CAT NO. 133518 (5/08) subsequent contributions made during the 40 day period following the Contract Date, to the EQ/Money Market investment option. In the event you choose to exercise your free look right under the contract, you will receive a refund equal to your contributions. If you choose the "return of contribution" free look treatment and your contract is still in effect on the 40th day (or next Business Day) following the Contract Date, we will automatically reallocate your account value to the investment options chosen on your application. Any transfers made prior to the expiration of the 30 day free look will terminate your right to "return of contribution" treatment in the event you choose to exercise your free look right under the contract. Any transfer made prior to the 40th day following the Contract Date will cancel the automatic reallocation on the 40th day (or next Business Day) following the Contract Date described above. If you do not want AXA Equitable to perform this scheduled one-time reallocation, you must call one of our customer service representatives at 1 (800) 789-7771 before the 40th day following the Contract Date to cancel. Accumulator(R) is issued by and is a registered service mark of AXA Equitable Life Insurance Company (AXA Equitable). Accumulator(R) Plus(SM), Accumulator(R) Select(SM) and Accumulator(R) Elite(SM) are servicemarks of AXA Equitable. Co-distributed by affiliates AXA Advisors, LLC and AXA Distributors, LLC. 1290 Avenue of the Americas, New York, NY 10104. Copyright 2008 AXA Equitable Life Insurance Company. All rights reserved. AXA Equitable Life Insurance Company 1290 Avenue of the Americas New York, NY 10104 (212) 554-1234 2 AXA Equitable Life Insurance Company SUPPLEMENT DATED MAY 1, 2008 TO THE CURRENT PROSPECTUSES FOR: ACCUMULATOR(R) ACCUMULATOR(R) ELITE(SM) - -------------------------------------------------------------------------------- FOR DELIVERY TO MORGAN STANLEY CUSTOMERS This supplement modifies certain information in the above-referenced Prospectuses, Supplements to Prospectuses and Statements of Additional Information ("SAIs"), (together, the "Prospectuses"), in the State of California only. Unless otherwise indicated, all other information included in the Prospectuses remains unchanged. The terms and section headings we use in this supplement have the same meaning as in the Prospectuses. You should keep this supplement with your Prospectuses. Please note the following information: YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If you reside in the state of California and you are age 60 and older at the time the contract is issued, you may return your variable annuity contract within 30 days from the date that you receive it and receive a refund as described below. This is also referred to as the "free look" period. At the time of application, you will instruct your Morgan Stanley financial professional as to how your initial contribution and any subsequent contributions should be treated for the purpose of maintaining your free look right under the contract. o You may choose to immediately allocate your contributions to one or more of the variable investment options. In the event you choose to exercise your free look right under the contract, you will receive a refund as described in the Prospectus. o You may also choose "return of contribution" free look treatment of your contract. If chosen, we will allocate your entire contribution and any subsequent contributions made during the 40 day period following the Contract Date, to the EQ/Money Market investment option. In the event you choose to exercise your free look right under the contract, you will receive a refund equal to your contributions. If you choose the "return of contribution" free look treatment and your contract is still in effect on the 40th day (or next Business Day) following the Contract Date, we will automatically reallocate your account value to the investment options chosen on your application. Any transfers made prior to the expiration of the 30 day free look will terminate your right to "return of contribution" treatment in the event you choose to exercise your free look right under the contract. Any transfer made prior to the 40th day following the Contract Date will cancel the automatic reallocation on the 40th day (or next Business Day) following the Contract Date described above. If you do not want AXA Equitable to perform this scheduled one-time reallocation, you must call one of our customer service representatives at 1 (800) 789-7771 before the 40th day following the Contract Date to cancel. Accumulator(R) is issued by and is a registered service mark of AXA Equitable Life Insurance Company (AXA Equitable). Accumulator(R) and Accumulator(R) Elite(SM) are servicemarks of AXA Equitable. Co-distributed by affiliates AXA Advisors, LLC and AXA Distributors, LLC. 1290 Avenue of the Americas, New York, NY 10104. Copyright 2008 AXA Equitable Life Insurance Company. All rights reserved. AXA Equitable Life Insurance Company 1290 Avenue of the Americas New York, NY 10104 (212) 554-1234 Acc. Core `06.5, Elite '07-New Business x01898 IM-04-34SUPP (5/08) CAT NO 134934 (5/08) AXA Equitable Life Insurance Company SUPPLEMENT DATED MAY 1, 2008 TO THE CURRENT PROSPECTUSES FOR: ACCUMULATOR(R) ACCUMULATOR(R) ELITE(SM) ACCUMULATOR(R) PLUS(SM) ACCUMULATOR(R) SELECT(SM) - -------------------------------------------------------------------------------- FOR DELIVERY TO PCA/RAYMOND JAMES CUSTOMERS This supplement modifies certain information in the above-referenced Prospectuses, Supplements to Prospectuses and Statements of Additional Information ("SAIs"), (together, the "Prospectuses"), in the State of California only. Unless otherwise indicated, all other information included in the Prospectuses remains unchanged. The terms and section headings we use in this supplement have the same meaning as in the Prospectuses. You should keep this supplement with your Prospectuses. Please note the following information: YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS If you reside in the state of California and you are age 60 and older at the time the contract is issued, you may return your variable annuity contract within 30 days from the date that you receive it and receive a refund as described below. This is also referred to as the "free look" period. At the time of application, you will instruct your PCA/Raymond James financial professional as to how your initial contribution and any subsequent contributions should be treated for the purpose of maintaining your free look right under the contract. o You may choose to immediately allocate your contributions to one or more of the variable investment options. In the event you choose to exercise your free look right under the contract, you will receive a refund as described in the Prospectus. o You may also choose "return of contribution" free look treatment of your contract. If chosen, we will allocate your entire contribution and any subsequent contributions made during the 40 day period following the Contract Date, to the EQ/Money Market investment option. In the event you choose to exercise your free look right under the contract, you will receive a refund equal to your contributions. If you choose the "return of contribution" free look treatment and your contract is still in effect on the 40th day (or next Business Day) following the Contract Date, we will automatically reallocate your account value to the investment options chosen on your application. Any transfers made prior to the expiration of the 30 day free look will terminate your right to "return of contribution" treatment in the event you choose to exercise your free look right under the contract. Any transfer made prior to the 40th day following the Contract Date will cancel the automatic reallocation on the 40th day (or next Business Day) following the Contract Date described above. If you do not want AXA Equitable to perform this scheduled one-time reallocation, you must call one of our customer service representatives at 1 (800) 789-7771 before the 40th day following the Contract Date to cancel. Accumulator(R) is issued by and is a registered service mark of AXA Equitable Life Insurance Company (AXA Equitable). Accumulator(R), Accumulator(R) Plus(SM), Accumulator(R) Select(SM), and Accumulator(R) Elite(SM) are servicemarks of AXA Equitable. Co-distributed by affiliates AXA Advisors, LLC and AXA Distributors, LLC. 1290 Avenue of the Americas, New York, NY 10104. Copyright 2008 AXA Equitable Life Insurance Company. All rights reserved. AXA Equitable Life Insurance Company 1290 Avenue of the Americas New York, NY 10104 (212) 554-1234 IM-06-01 (5/08) PCA/RAYMOND JAMES Cat. no. 136087 (5/08) Acc. '06.5, '07 -- New Business x01899 PART II INFORMATION NOT REQUIRED IN PROSPECTUS ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION ESTIMATED ITEM OF EXPENSE EXPENSE - --------------------------------------------------------------- --------- Registration fees $ 0.00 Federal taxes N/A State taxes and fees (based on 50 state average) N/A Trustees' fees N/A Transfer agents' fees N/A Printing and filing fees $50,000* Legal fees N/A Accounting fees N/A Audit fees $20,000* Engineering fees N/A Directors and officers insurance premium paid by Registrant N/A - ------------- * Estimated expense. ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS The by-laws of AXA Equitable Life Insurance Company ("AXA Equitable") provide, in Article VII, as follows: 7.4 Indemnification of Directors, Officers and Employees. (a) To the extent permitted by the law of the State of New York and subject to all applicable requirements thereof: (i) any person made or threatened to be made a party to any action or proceeding, whether civil or criminal, by reason of the fact that he or she, or his or her testator or intestate, is or was a director, officer or employee of the Company shall be indemnified by the Company; (ii) any person made or threatened to be made a party to any action or proceeding, whether civil or criminal, by reason of the fact that he or she, or his or her testator or intestate serves or served any other organization in any capacity at the request of the Company may be indemnified by the Company; and (iii) the related expenses of any such person in any of said categories may be advanced by the Company. (b) To the extent permitted by the law of the State of New York, the Company may provide for further indemnification or advancement of expenses by resolution of shareholders of the Company or the Board of Directors, by amendment of these By-Laws, or by agreement. {Business Corporation Law ss.ss. 721-726; Insurance Law ss.1216} The directors and officers of AXA Equitable are insured under policies issued by X. L. Insurance Company, Arch Insurance Company, Endurance Insurance Company, U.S. Specialty Insurance, St. Paul Travelers and ACE Insurance Company. The annual limit on such policies is $150 million, and the policies insure the officers and directors against certain liabilities arising out of their conduct in such capacities. II-1 ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES None. ITEM 16. EXHIBITS Exhibits No. (1) (a) Form of Distribution Agreement by and among Equitable Distributors, Inc., Separate Account Nos. 45 and 49 of Equitable Life and Equitable Life Assurance Society of the United States, incorporated by reference to Exhibit 1(a) to the Registration Statement on Form S-3 (File No. 33-88456), filed June 7, 1996. (b) Form of Distribution Agreement dated as of January 1, 1998 among The Equitable Life Assurance Society of the United States for itself and as depositor on behalf of certain separate accounts and Equitable Distributors, Inc., incorporated herein by reference to Exhibit 3(b) to the Registration Statement on Form N-4 (File No. 333-05593) on May 1, 1998. (c) Distribution and Servicing Agreement among Equico Securities (now AXA Advisors, LLC), The Equitable Life Assurance Society of the United States, and Equitable Variable Life Insurance Company, dated as of May 1, 1994, incorporated herein by reference to Exhibit 3(c) to the Registration Statement on Form N-4 File No. 2-30070, refiled electronically July 10, 1998. (d) Letter of Agreement for Distribution Agreement among The Equitable Life Assurance Society of the United States and EQ Financial Consultants, Inc. (now AXA Advisors, LLC), dated April 20, 1998, incorporated herein by reference to Exhibit No. 3(c) to Registration Statement (File No. 33-83750), filed on May 1, 1998. (e) Participation Agreement among EQ Advisors Trust, The Equitable Life Assurance Society of the United States, Equitable Distributors, Inc. and EQ Financial Consultants, Inc. (now AXA Advisors, LLC) dated as of the 14th day of April 1997, incorporated by reference to the Registration Statement of EQ Advisors Trust, (File No. 333-17217) on Form N-1A, August 28, 1997. (f) Form of Participation Agreement among AXA Premier VIP Trust, Equitable Distributors, Inc., AXA Distributors, LLC, and AXA Advisors, LLC, previously filed with this Registration Statement File No. 333-81501 on December 5, 2001. (g) Form of Participation Agreement among The Equitable Life Assurance Society of the United States, The Universal Institutional Funds, Inc. and Morgan Stanley Investment Management Inc., incorporated herein by reference to Exhibit No. 1-A(9)(d) to Registration Statement on Form S-6, File No. 333-17641, filed on October 8, 2002. (h) Form of Particiption Agreement among BARR Rosenberg Variable Insurance Trust, BARR ROSENBERG FUNDS DISTRIBUTOR, INC., AXA ROSENBERG INVESTMENT MANAGEMENT LLC, and the Equitable Life Assurance Company of the United States, previously filed with this Registration Statement, File No. 333-81501 on Form N-4, on August 5, 2003. (i) Distribution Agreement for services by The Equitable Life Assurance Society of the United States to AXA Network, LLC and its subsidiaries dated January 1, 2000 incorporated herein by reference to Exhibit 3(d) to Registration Statement File No. 33-83750 filed April 25, 2001. (j) Distribution Agreement for services by AXA Network, LLC and its subsidiaries to The Equitable Life Assurance Society of the United States dated January 1, 2000 incorporated herein by reference to Exhibit 3(e) to Registration Statement File No. 33-83750 filed April 25, 2001. (k) General Agent Sales Agreement dated January 1, 2000 between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries, incorporated herein by reference to Exhibit 3(h) to the Registration Statement on Form N-4, File No. 2-30070, filed April 19, 2004. (l) First Amendment to General Agent Sales Agreement dated January 1, 2000 between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries, incorporated herein by reference to Exhibit 3(i) to the Registration Statement on Form N-4, File No. 2-30070, filed April 19, 2004. (m) Second Amendment to General Agent Sales Agreement dated January 1, 2000 between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries, incorporated herein by reference to Exhibit 3(j) to the Registration Statement on Form N-4, File No. 2-30070, filed April 19, 2004. (n) Form of Brokerage General Agent Sales Agreement with Schedule and Amendment to Brokerage General Agent Sales Agreement among [Brokerage General Agent] and AXA Distributors, LLC, AXA Distributors Insurance Agency, LLC, AXA Distributors Insurance Agency of Alabama, LLC, and AXA Distributors Insurance Agency of Massachusetts, LLC, incorporated herein by reference to Exhibit No. 3.(i) to Registration Statement (File No. 333-05593) on Form N-4, filed on April 20, 2005. (o) Form of Wholesale Broker-Dealer Supervisory and Sales Agreement among [Broker-Dealer] and AXA Distributors, LLC, incorporated herein by reference to Exhibit No. 3.(j) to Registration Statement (File No. 333-05593) on Form N-4, filed on April 20, 2005. (p) Form of Participation Agreement among EQ Advisors Trust, Equitable, AXA Distributors LLC and AXA Advisors, LLC, incorporated herein by reference to Exhibit 23.(h)(4)(ix) to Post-Effective Amendment No. 27 to Registration Statement on Form N-1A to the Registration Statement of EQ Advisors Trust on Form N-1A (File Nos. 333-17217 and 811-07953), filed on January 15, 2004. (q) Third Amendment to General Agent Sales Agreement dated as of January 1, 2000 by and between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-127445), filed on August 11, 2005. (r) Fourth Amendment to General Agent Sales Agreement dated as of January 1, 2000 by and between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-127445), filed on August 11, 2005. (s) Fifth Amendment, dated as of November 1, 2006, to General Agent Sales Agreement dated as of January 1, 2000 by and between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries incorporated herein by reference Exhibit 4(p) to the Registration Statement on Form N-4 (File No. 2-30070), filed on April 24, 2007. II-2 (3) (a) Restated Charter of AXA Equitable, as amended December 6, 2004, incorporated herein by reference to Exhibit No.3.2 to Form 10-K, (File No. 000-20501), filed on March 31, 2005. (b) By-Laws of AXA Equitable, as amended September 7, 2004, incorporated herein by reference to Exhibit No. 6.(c) to Registration Statement on Form N-4, (File No. 333-05593), filed on April 20, 2006. (4) (a) Form of group annuity contract no. 1050-94IC, incorporated herein by reference to Exhibit No. 4(a) to the Registration Statement on Form S-3 (File No. 333-24009) filed on March 6, 1998. (b) Form of group annuity certificate nos. 94ICA and 94ICB, incorporated herein by reference to Exhibit No. 4(b) to the Registration Statement on Form S-3 (File No. 333-24009) filed on March 6, 1998. (b)(i) Form of Data pages for Equitable Accumulator TSA, incorporated by reference to Exhibit No. 4(s) to the Registration Statement on Form N-4 (File No. 33-05593) filed on May 22, 1998. (c) Forms of Endorsement Nos. 94ENIRAI, 94ENNQI and 94ENMVAI to contract no. 1050-94IC and data pages no. 94ICA/BIM(IRA), (NQ), (NQ Plan A) and (NQ Plan B), incorporated herein by reference to Exhibit No. 4(c) to the Registration Statement on Form S-3 (File No. 333-24009) filed on March 6, 1998. (c)(i) Form of Data Pages for Equitable Accumulator Select TSA, incorporated by reference to Exhibit 4(k) to the Registration Statement on Form N-4 (File No. 333-31131) filed on May 22, 1998. (d) Forms of Application used with the IRA, NQ and Fixed Annuity Markets, incorporated herein by reference to Exhibit No. 4(d) to the Statement on Form S-3 (File No. 333-24009) filed on March 6, 1998. (d)(i) Form of Data Pages for Equitable Accumulator TSA, incorporated by reference to Exhibit No. 4(v) to the Registration Statement on Form N-4 (File No. 33-83750) filed on May 22, 1998. (e) Form of Endorsement no. 95ENLCAI to contract no. 1050-94IC and data pages no. 94ICA/BLCA, incorporated herein by reference to Exhibit No. 4(e) to the Registration Statement on Form S-3 (File No. 333-24009) filed on March 6, 1998. (e)(i) Form of Endorsement Applicable to TSA Certificates, incorporated by reference to Exhibit 4(t) to the Registration Statement on Form N-4 (File No. 333-05593) filed on May 22, 1998. (f) Forms of Data Pages for Rollover IRA, IRA Assured Payment Option, IRA Assured Payment Option Plus, Accumulator, Assured Growth Plan, Assured Growth Plan (Flexible Income Program), Assured Payment Plan (Period Certain) and Assured Payment Plan (Life with a Period Certain), incorporated by reference to Exhibit 4(f) to the Registration Statement on Form S-3 (File No. 33-88456) filed August 31, 1995. (f)(i) Form of Enrollment Form/Application for Equitable Accumulator (IRA, NQ, QF and TSA), incorporated by reference to Exhibit No. 5(f) to the Registration Statement on Form N-4 (File No. 333-05593) filed on May 22, 1998. II-3 Exhibits No. (g) Forms of Data Pages for Rollover IRA, IRA Assured Payment Option, IRA Assured Payment Option Plus, Accumulator, Assured Growth Plan and Assured Payment Plan (Life Annuity with a Period Certain), incorporated by reference to Exhibit 4(g) to the Registration Statement on Form S-3 (File No. 33-88456), filed on April 23, 1996. (h) Form of Separate Account Insulation Endorsement for the Endorsement Applicable to Market Value Adjustment Terms, incorporated by reference to Exhibit 4(h) to the Registration Statement on Form S-3 (File No. 33-88456), filed on April 23, 1996. (i) Forms of Guaranteed Minimum Income Benefit Endorsements (and applicable data page for Rollover IRA) for Endorsement Applicable to Market Value Adjustment Terms and for the Life Contingent Annuity Endorsement, incorporated by reference to Exhibit 4(i) to the Registration Statement on Form S-3 (File No. 33-88456), filed on April 23, 1996. (j) Forms of Enrollment Form/Application for Rollover IRA, Choice Income Plan, Assured Growth Plan, Accumulator and Assured Payment Plan, incorporated by reference to Exhibit 4(j) to the Registration Statement on Form S-3 (File No. 33-88456), filed on April 23, 1996. (k) Forms of Data Pages for the Accumulator, incorporated by reference to Exhibit 4(k) to the Registration Statement on Form S-3 (File No. 33-88456), filed June 7, 1996. (l) Forms of Data Pages for the Rollover IRA, incorporated by reference to Exhibit 4(l) to the Registration Statement on Form S-3 (File No. 33-88456), filed June 7, 1996. (m) Forms of Data Pages for the Accumulator and Rollover IRA, incorporated by reference to Exhibit 4(m) to the Registration Statement on Form S-3 (File No. 33-88456), filed October 9, 1996. (n) Forms of Data Pages for Accumulator and Rollover IRA, incorporated by reference to Exhibit 4(n) to the Registration Statement on Form S-3 (File No. 33-88456), filed October 16, 1996. (o) Forms of Data Pages for the Accumulator, Rollover IRA, Income Manager Accumulator, Income Manager Rollover IRA, Equitable Accumulator, Income Manager (IRA and NQ) and MVA Annuity (IRA and NQ), incorporated herein by reference to Exhibit No. 4(o) to the Registration Statement on Form S-3 (File No. 333-24009) filed on April 30, 1997. (p) Forms of Enrollment Form/Application for Income Manager Accumulator, Income Manager Rollover IRA, Equitable Accumulator, Income Manager (IRA and NQ) and MVA Annuity (IRA and NQ), incorporated herein by reference to Exhibit No. 4(p) to the Registration Statement on Form S-3 (File No. 333-24009) filed on April 30, 1997. (q) Forms of Data Pages for Equitable Accumulator Select (IRA) and Equitable Accumulator Select (NQ), incorporated herein by reference to Exhibit No. 4(q) to the Registration Statement on Form S-3 (File No. 333-24009) filed on September 18, 1997. (r) Forms of Enrollment Form/Application for Equitable Accumulator Select (IRA and NQ), incorporated herein by reference to Exhibit No. 4(r) to the Registration Statement on Form S-3 (File No. 333-24009) filed on September 18, 1997. (s) Form of Data Pages No. 94ICB and 94ICBMVA for Equitable Accumulator (IRA) Certificates, incorporated by reference to Exhibit 4(m) to the Registration Statement on Form N-4 (File No. 33-83750) on February 27, 1998. (t) Form of Data Pages No. 94ICB and 94ICBMVA for Equitable Accumulator (NQ) Certificates, incorporated by reference to Exhibit 4(n) to the Registration Statement on Form N-4 (File No. 33-83750) on February 27, 1998. (u) Form of Data Pages No. 94ICB and 94ICBMVA for Equitable Accumulator (QP) Certificates, incorporated by reference to Exhibit 4(o) to the Registration Statement on Form N-4 (File No. 33-83750) on February 27, 1998. (v) Form of Data Pages No. 94ICB, 94ICBMVA and 94ICBLCA for Assured Payment Option Certificates, incorporated by reference to Exhibit 4(p) to the Registration Statement on Form N-4 (File No. 33-83750) on February 27, 1998. (w) Form of Data Pages No. 94ICB, 94ICBMVA and 94ICBLCA for APO Plus Certificates, incorporated by reference to Exhibit 4(q) to the Registration Statement on Form N-4 (File No. 33-83750) on February 27, 1998. (x) Form of Endorsement applicable to Defined Benefit Qualified Plan Certificates No. 98ENDQPI incorporated by reference to Exhibit 4(r) to the Registration Statement on Form N-4 (File No. 33-83750) on February 27, 1998. (y) Form of Endorsement applicable to Non-Qualified Certificates No. 98ENJONQI, incorporated by reference to Exhibit 4(s) to the Registration Statement on Form N-4 (File No. 33-83750) on February 27, 1998. (z) Form of Endorsement applicable to Charitable Remainder Trusts No. 97ENCRTI, incorporated by reference to Exhibit 4(t) to the Registration Statement on Form N-4 (File No. 33-83750) on February 27, 1998. (a)(a) Form of Enrollment Form/Application No. 126737 (5/98) for Equitable Accumulator (IRA, NQ and QP), incorporated by reference to Exhibit 5(e) to the Registration Statement on Form N-4 (File No. 33-83750) on February 27, 1998. (b)(b) Form of Endorsement for Extra Credit Annuity Form No. 98ECENDI and Data Pages 94ICA/B, incorporated herein by reference to Exhibit No. 4(j) to the Registration Statement File No. 333-64749 on Form N-4, filed September 30, 1998. (c)(c) Form of Endorsement for Extra Credit Annuity Form No. 98ECENDI and Data Pages 94ICA/B, incorporated herein by reference to Exhibit No. 4(k) to the Registration Statement File No. 333-64751 on Form N-4, filed September 30, 1998. (d)(d) Form of Endorsement applicable to Defined Contribution Qualified Plan Certificates No. 97ENQPI and Data Pages 94ICA/B, incorporated herein by reference to Exhibit No. 4 (k) to the Registration Statement File No. 333-64749 on Form N-4, filed September 30, 1998. (e)(e) Form of Endorsement applicable to Defined Contribution Qualified Plan Certificates No. 97ENQPI and Data Pages 94ICA/B, incorporated herein by reference to Exhibit No. 4(l) to the Registration Statement File No. 333-64751 on Form N-4, filed September 30, 1998. (f)(f) Form of Data Pages for Equitable Accumulator Express, incorporated herein by reference to Exhibit No. 4(h) to Registration Statement File No. 333-79379 on Form N-4, filed on May 26, 1999. (g)(g) Form of Enrollment Form/Application for Equitable Accumulator Express, incorporated herein by reference to Exhibit No. 5 to Registration Statement File No. 333-79379 on Form N-4, filed on May 26, 1999. (h)(h) Form of Data Pages for new version of Equitable Accumulator, incorporated herein by reference to Exhibit 4(z) to Registration Statement File No. 333-05593 on Form N-4, filed on November 23, 1999. (i)(i) Form of Data Pages for new version of Equitable Accumulator, incorporated herein by reference to Exhibit 4(c)(c) to Registration Statement File No. 33-83750 on Form N-4, filed on December 3, 1999. (j)(j) Form of Endorsement (Form No. 2000 ENRAI-IM) -- Beneficiary Continuation Option for use with IRA contracts incorporated herein by reference to Exhibit No. 4(j)(j) to the Registration Statement on Form S-3 File No. 333-24009 filed on April 26, 2000. (k)(k) Form of data pages for Equitable Accumulator Select baseBUILDER incorporated herein by reference to Registration Statement File No. 333-73121, filed on April 25, 2000. (l)(l) Form of Endorsement applicable to Roth IRA Contracts, Form No. 1M-ROTHBCO-1 incorporated herein by reference to Registration Statement File No. 33-83750 on Form N-4, filed April 25, 2001. (m)(m) Revised Form of Endorsement applicable to IRA Certificates, Form 2000EN/RAI-IM incorporated herein by reference to Registration Statement File No. 33-83750 on Form N-4, filed April 25, 2001. (n)(n) Form of Endorsement applicable to Non-Qualified Certificates Form No. 99ENNQ-G incorporated herein by reference to Registration Statement File No. 33-83750 on Form N-4, filed April 25, 2001. (o)(o) Form of Optional Death Benefit Rider, Form No. 2000PPDB incorporated herein by reference to Registration Statement File No. 33-83750 on Form N-4, filed April 25, 2001. (p)(p) Form of Data Pages for Equitable Accumulator incorporated herein by reference to Exhibit 4(i)(i) to Registration Statement File No. 33-83750 on Form N-4, filed April 25, 2001. (r)(r) Form of Data Pages for Equitable Accumulator Select incorporated herein by reference to Exhibit 4(v) to Registration Statement File No. 333-73121 on Form N-4, filed April 25, 2001. (s)(s) Form of Data Pages for Equitable Accumulator Advisor incorporated herein by reference to Exhibit 4(l) to Registration Statement File No. 333-44996 on Form N-4, filed April 25, 2001. (t)(t) Form of Data Pages for Equitable Accumulator incorporated herein by reference to Exhibit 4(f)(f) to Registration Statement File No. 333-05593 on Form N-4, filed April 25, 2001. (u)(u) Form of Data Pages for Equitable Accumulator Select incorporated herein by reference to Exhibit 4(w) to Registration Statement File No. 333-31131 on Form N-4, filed April 25, 2001. (w)(w) Form of Data Pages for Equitable Accumulator Advisor incorporated herein by reference to Exhibit 4(m) to Registration Statement File No. 333-96177 on Form N-4, filed April 25, 2001. (x)(x) Form of Amendment to Certificate Form No. 941CB, Form No. 2000 BENE-G incorporated herein by reference to Exhibit 4(j)(j) to Registration Statement File No. 33-83750 on Form N-4, filed April 25, 2001. (y)(y) Form of Endorsement applicable to Non-Qualified Certificates incorporated herein by reference to Exhibit 4(k)(k) to Registration Statement File No. 33-83750 on Form N-4, filed April 25, 2001. (z)(z) Form of Enrollment Form/Application for Equitable Accumulator Select II incorporated herein by reference to Exhibit 5(a) to Registration Statement File No. 811-07659 (amendment No. 50) on Form N-4 filed on May 11, 2001. (a)(b) Form of Data Pages for Equitable Accumulator Select II (NQ) incorporated herein by reference to Exhibit 4(e) to Registration Statement File No. 811-07659 (amendment No. 50) on Form N-4 filed on May 11, 2001. (a)(c) Form of Data Pages for Equitable Accumulator Select II (NQ) Certificates incorporated herein by reference to Exhibit 4(k) to Registration Statement File No. 811-08754 (amendment No. 41) on Form N-4 filed on May 22, 2001. (a)(d) Form of Enrollment Form/Application for Equitable Accumulator Select II incorporated herein by reference to Exhibit 5(a) to Registration Statement File No. 811-08754 (amendment No. 41) on Form N-4 filed on May 22, 2001. (a)(e) Form of Endorsement (No. 2002 NQBCO) applicable to non-qualified contract/certificates with beneficiary continuation option, incorporated herein by reference to Registration Statement File No. 333-05593, filed on April 24, 2003. (a)(f) Form of Guaranteed Minimum Death Benefit Rider (No. 2002 GMDB-6% Rollup), annual ratchet to age 85, incorporated herein by reference to Registration Statement File No. 333-05593, filed on April 24, 2003. (a)(g) Form of Guaranteed Minimum Death Benefit Rider (No. 2002 GMDB-6% Rollup), [6%] Rollup to age 85,incorporated herein by reference to Registration Statement File No. 333-05593, filed on April 24, 2003. (a)(h) Form of Guaranteed Minimum Death Benefit Rider (No. 2002 GMDB-6% or AR) greater of [6%] Rollup to Age [85] GMDB or Annual Ratchet to age [85] GMDB, incorporated herein by reference to Registration Statement File No. 333-05593, filed on April 24, 2003. (a)(i) Form of Guaranteed Minimum Income Benefit Rider (also known as the Living Benefit) (No. 2002 GMIB), incorporated herein by reference to Registration Statement File No. 333-05593, filed on April 24, 2003. (a)(j) Form of Protection Plus Optional Death Benefit Rider (No. 2002 PPDB), incorporated herein by reference to Registration Statement File No. 333-05593, filed on April 24, 2003. (a)(k) Form of Endorsement, Form No. 2002 DP (GIA/SEL), incorporated herein by reference to Registration Statement File No. 333-31131 filed on April 24, 2003. (a)(l) Form of Data Pages for (No. 2003 DPSelect), incorporated by reference to Exhibit No. 4(i)(i)(i) to Registration Statement File No. 333-31131, filed on May 8, 2003. (a)(m) Form of Data Pages (Inherited IRA) (No. 2003 DPTOBCO-Select) incorporated by reference to Exhibit No. 4(j)(j)(j) to Registration Statement File No. 333-31131, filed on May 8, 2003. (a)(n) Form of Guaranteed Minimum Death Benefit ("GMDB") Rider (No. 2003 GMDB-RUorAR) incorporated by reference to Exhibit No. 4(a)(i) to Registration Statement File No. 333-05593, filed on May 8, 2003. (a)(o) Form of Guaranteed Minimum Death Benefit ("GMDB") Rider (No. 2003 GMDB-AR) incorporated by reference to Exhibit No. 4(a)(j) to Registration Statement File No. 333-05593, filed on May 8, 2003. (a)(p) Form of Guaranteed Minimum Income Benefit ("GMIB") Rider (No. 2003 GMIB) incorporated by reference to Exhibit No. 4(a)(k) to Registration Statement File No. 333-05593, filed on May 8, 2003. (a)(q) Form of Protection Plus Optional Death Benefit Rider (No. 2003 PPDB) incorporated by reference to Exhibit No. 4(a)(l) to Registration Statement File No. 333-05593, filed on May 8, 2003. (a)(r) Form of Enhanced Guaranteed Principal Benefit ("Enhanced GPB") Rider (No. 2003 GPB) incorporated by reference to Exhibit No. 4(a)(m) to Registration Statement File No. 333-05593, filed on May 8, 2003. (a)(s) Form of Spousal Protection Rider (No. 2003 SPPRO) incorporated by reference to Exhibit No. 4(a)(n) to Registration Statement File No. 333-05593, filed on May 8, 2003. (a)(t) Form of Data Pages (No. 2003 DPTOBCO) incorporated by reference to Exhibit No. 4(a)(o) to Registration Statement File No. 333-05593, filed on May 8, 2003. (a)(u) Form of Data Pages (No. 2003 DP) incorporated by reference to Exhibit No. 4(a)(p) to Registration Statement File No. 333-05593, filed on May 8, 2003. (a)(v) Form of Data Pages (No. 2003 DPCORE) incorporated by reference to Exhibit No. 4(a)(q) to Registration Statement File No. 333-05593, filed on May 8, 2003. (a)(w) Form of Data Pages (No. 2003 DPElite) incorporated by reference to Exhibit No. 4(z)(z) to Registration Statement File No. 333-60730, filed on May 8, 2003. (a)(x) Form of Data Pages (No. 2003 DPPlus) incorporated by reference to Exhibit No. 4(c)(c)(c) to Registration Statement File No. 333-64749, filed on May 8, 2003. (a)(y) Form of Guaranteed Withdrawal Benefit ("GWB") Rider (No. 2004 GWB-A) incorporated by reference to Exhibit No. 4(a)(r) to Registration Statement File No. 333-05593, filed May 3, 2004. (a)(z) Form of Guaranteed Withdrawal Benefit ("GWB") Rider (No. 2004 GWB-B) incorporated by reference to Exhibit No. 4(a)(s) to Registration Statement File No. 333-05593, filed May 3, 2004. (a)(z)(a) Form of Data Pages (2004DPGWB) incorporated by reference to Exhibit No. 4(a)(t) to Registration Statement File No. 333-05593, filed May 3, 2004. (a)(z)(b) Form of Guaranteed Withdrawal Benefit ("GWB") Rider [also known as "Principal Protector"] (2004GWB-A (rev 2/05)) incorporated by reference to Exhibit 4(a)(u) to Registration Statement (File No. 333-05593) on Form N-4, Filed April 20, 2005. (a)(z)(c) Form of Guaranteed Withdrawal Benefit ("GWB") Rider [also known as "Principal Protector"] (2004GWB-B (rev 2/05)) incorporated by reference to Exhibit 4(a)(v) to Registration Statement (File No. 333-05593) on Form N-4, Filed April 20, 2005. (a)(z)(d) Form of Guaranteed Withdrawal Benefit ("GWB") Rider [also known as "Principal Protector"] (2004GWB-A1 (rev 2/05)) incorporated by reference to Exhibit 4(a)(w) to Registration Statement (File No. 333-05593) on Form N-4, Filed April 20, 2005. (a)(z)(e) Form of Guaranteed Withdrawal Benefit ("GWB") Rider [also known as "Principal Protector"] (2004GWB-B1 (rev 2/05)) incorporated by reference to Exhibit 4(a)(x) to Registration Statement (File No. 333-05593) on Form N-4, Filed April 20, 2005. (a)(z)(f) Form of Change of Ownership Endorsement (2004COO) incorporated by reference to Exhibit 4(a)(y) to Registration Statement (File No. 333-05593) on Form N-4, Filed April 20, 2005. (a)(z)(g) Form of Endorsement Applicable to TSA Contracts (2004TSA) incorporated by reference to Exhibit 4(a)(z) to Registration Statement (File No. 333-05593) on Form N-4, Filed April 20, 2005. (a)(z)(h) Form of Guaranteed Minimum Income Benefit ("GMIB") Rider (No. 2003 GMIB revised 11/05 NLG) (also known as the Living Benefit) (a)(z)(i) Form of Guaranteed Minimum Income Benefit ("GMIB") Rider (No. 2003 GMIB revised 11/05 OPR) (also known as the Living Benefit) (a)(z)(j) Form of Guaranteed Minimum Death Benefit ("GMDB") Rider (No. 2003 GMDB revised 11/05 OPR) (Greater of 6% Roll up to Age 85 GMDB or Annual Ratchet to Age 85 GMDB) (a)(z)(k) Form of application for Accumulator(R) Select(SM), Form No. 2004 App 02, incorporated herein by reference to Exhibit 5.(j) to the Registration Statement on Form N-4 (File No. 333-31131), filed April 20, 2006. (a)(z)(l) Form of application for Accumulator(R) Advisor(SM), Form No. 2004 App 02, incorporated herein by reference to Exhibit 5.(b) to the Registration Statement on Form N-4 (File No. 333-96177), filed April 20, 2006. (a)(z)(m) Form of endorsement for Accumulator(R) Plus(SM), No. 2005TRBNS, incorporated herein by reference to Exhibit 4.(p)(p)(p) to the Registration Statement on Form N-4 (File No. 333-64749), filed April 20, 2006. (a)(z)(n) Form of application for Accumulator(R) Plus(SM), Form No. 2004 App 02, incorporated herein by reference to Exhibit 5.(d) to the Registration Statement on Form N-4 (File No. 333-64749), filed April 20, 2006. (a)(z)(o) Form of application for Accumulator(R) Elite(SM), Form No. 2004 App 02, incorporated herein by reference to Exhibit 5.(d) to the Registration Statement on Form N-4 (File No. 333-60730), filed April 20, 2006. (a)(z)(p) Revisions to 2005IML-I, 2005IML, and 2005IML DP, incorporated herein by reference to Exhibit 4.(h) to the Registration Statement on Form N-4 (File No. 333-127445), filed April 20, 2006. (a)(z)(q) Form of application for Accumulator(R), Form No. 2004 App 02, incorporated herein by reference to Exhibit 5.(l) to the Registration Statement on Form N-4 (File No. 333-05593), filed April 20, 2006. (a)(z)(r) Form of Contract for Individual Fixed and Variable Annuity (2007DPElite), is incorporated herein by reference to Exhibit (a)(b)(p) to the Registration Statement (File No. 333-60730) filed on May 15, 2007. (a)(z)(s) Form of Data Page for Individual Fixed and Variable Annuity (2007DP), incorporated herein by reference to Exhibit 4 (a)(a)(g) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(z)(t) Form of Data Page for Individual Fixed and Variable Annuity (2007GWBL DP), incorporated herein by reference to Exhibit 4 (a)(a)(h) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(z)(u) Form of Data Page for Individual Fixed and Variable Annuity (2007DPTOBCO), incorporated herein by reference to Exhibit 4 (a)(a)(i) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(z)(v) Form of Rider for Individual Fixed and Variable Annuity (2007GMIB), incorporated herein by reference to Exhibit 4 (a)(a)(n) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(z)(w) Form of Rider for Individual Fixed and Variable Annuity (2007GMIBOPR), incorporated herein by reference to Exhibit 4 (a)(a)(o) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(z)(x) Form of Rider for Individual Fixed and Variable Annuity (2007GMIBOPR-R), incorporated herein by reference to Exhibit 4 (a)(a)(p) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(z)(y) Form of Rider for Individual Fixed and Variable Annuity (2007GMDB-GR-6), incorporated herein by reference to Exhibit 4 (a)(a)(q) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(z)(z) Form of Rider for Individual Fixed and Variable Annuity (2007GMDB-GR-3), incorporated herein by reference to Exhibit 4 (a)(a)(r) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(a) Form of Rider for Individual Fixed and Variable Annuity (2007GMDBOPR), incorporated herein by reference to Exhibit 4 (a)(a)(s) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(b) Form of Rider for Individual Fixed and Variable Annuity (2007GMDB-AR), incorporated herein by reference to Exhibit 4 (a)(a)(t) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(c) Form of Rider for Individual Fixed and Variable Annuity (2006GWB - rev 5-07 NQ), incorporated herein by reference to Exhibit 4 (a)(a)(u) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(d) Form of Endorsement for Individual Fixed and Variable Annuity (2007DB-ACC), incorporated herein by reference to Exhibit 4 (a)(a)(v) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(e) Form of Endorsement for Individual Fixed and Variable Annuity (2007DB-GWB), incorporated herein by reference to Exhibit 4 (a)(a)(w) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(f) Form of Endorsement for Individual Fixed and Variable Annuity (2007NQ-ACC), incorporated herein by reference to Exhibit 4 (a)(a)(x) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(g) Form of Endorsement for Individual Fixed and Variable Annuity (2007NQ-GWB), incorporated herein by reference to Exhibit 4 (a)(a)(y) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(h) Form of Endorsement for Individual Fixed and Variable Annuity (2006IRA-ACC-rev 5-07), incorporated herein by reference to Exhibit 4 (a)(a)(z) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(i) Form of Endorsement for Individual Fixed and Variable Annuity (2006IRA-GWB - rev 5-07), incorporated herein by reference to Exhibit 4 (a)(b)(a) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(j) Form of Endorsement for Individual Fixed and Variable Annuity (2006ROTH-ACC - rev 5-07), incorporated herein by reference to Exhibit 4 (a)(b)(b) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(k) Form of Endorsement for Individual Fixed and Variable Annuity (2006ROTH-GWB - rev 5-07), incorporated herein by reference to Exhibit 4 (a)(b)(c) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(l) Form of Endorsement for Individual Fixed and Variable Annuity (2007COO), incorporated herein by reference to Exhibit 4 (a)(b)(e) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(m) Form of Endorsement for Individual Fixed and Variable Annuity (2007PREDB), incorporated herein by reference to Exhibit 4 (a)(b)(f) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(n) Form of Application for Accumulator (2007App 01), incorporated herein by reference to Exhibit 5 (o) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(o) Form of Application for Accumulator (2007App 02), incorporated herein by reference to Exhibit 5 (p) to the Registration Statement (File No. 333-05593), filed January 30, 2007. (a)(c)(p) Form of Contract for Individual Fixed and Variable Annuity (2007DPPlus), is incorporated herein by reference to Exhibit 4.(a)(a)(r) to the Registration Statement (File No. 333-64749) filed on May 15, 2007. (a)(c)(q) Form of Contract for Individual Fixed and Variable Annuity (2007DPSelect), is incorporated herein by reference to Exhibit 4.(a)(a)(z) to the Registration Statement (File No. 333-31131) filed on May 15, 2007. (a)(c)(r) Form of Contract for Individual Fixed and Variable Annuity (2007DPElite), is incorporated herein by reference to Exhibit 4.(a)(b)(p) to the Registration Statement (File No. 333-60730) filed on May 15, 2007. (a)(c)(s) Form of Guaranteed Withdrawal Benefit (("GWB") (rev0208)) is incorporated herein by reference to Exhibit 4.(a)(b)(g) to the Registration Statement (File No. 333-05593) filed on October 15, 2007. (a)(c)(t) Form of Data Page Rider for Individual Fixed and Variable Annuity (2007GWBL DP (rev 0208) is incorporated herein by reference to Exhibit 4.(a)(b)(h) to the Registration Statement (File No. 333-05593) filed on April 23, 2008. II-4 (a)(i) Participation Agreement among EQ Advisors Trust, The Equitable Life Assurance Society of the United States, Equitable Distributors, Inc., and EQ Financial Consultants, Inc. (now AXA Advisors, LLC), dated as of the 14th day of April 1997, incorporated by reference to the Registration Statement of EQ Advisors Trust (File No. 333-17217) on Form N-1A filed August 28, 1997. (a)(ii) Form of Participation Agreement among EQ Advisors Trust, Equitable, AXA Distributors LLC and AXA Advisors, LLC, incorporated herein by reference to Exhibit 23. (h)(4)(ix) to Post-Effective Amendment No. 27 to Registration Statement on Form N-1A to the Registration Statement of EQ Advisors Trust on Form N-1A (File Nos. 333-17217 and 811-07953), filed on January 15, 2004. (b) Form of Participation Agreement among AXA Premier VIP Trust, Equitable Distributors, Inc., AXA Distributors, LLC, and AXA Advisors, LLC, previously filed with this Registration Statement File No. 333-58950 on December 5, 2001. (c) Form of Participation Agreement among The Equitable Life Assurance Society of the United States, The Universal Institutional Funds, Inc. and Morgan Stanley Investment Management Inc., incorporated herein by reference to Exhibit No. 1-A(9)(d) to Registration Statement on Form S-6, File No. 333-17641, filed on October 8, 2002. (d) Form of Participation Agreement among BARR Rosenberg Variable Insurance Trust, BARR ROSENBERG FUNDS DISTRIBUTOR, INC., AXA ROSENBERG INVESTMENT MANAGEMENT LLC, and the Equitable Life Assurance Company of the United States, previously filed with this Registration Statement, File No. 33-58950 on Form N-4, on August 5, 2003. II-5 Exhibits No. (5) (a) Opinion and Consent of Robin Wagner, Vice President and Counsel, as to the legality of the securities being offered, previously filed with this Registration Statement File No. 333-104713 on April 23, 2003. (b) Opinion and Consent of Dodie Kent, Esq., Vice President and Counsel of Equitable, as to the legality of the securities being registered, previously filed with this Registration Statement No. 333-142408 on April 24, 2007. (c) Copy of the Internal Revenue Service determination letter regarding qualification under Section 401 of the Internal Revenue Code, incorporated by reference to Exhibit 5(b) to the Registration Statement on Form S-3 (File No. 33-88456), filed August 31, 1995. (d) Opinion and Consent of Dodie Kent, Esq., Vice President and Associate General Counsel of AXA Equitable, as to the legality of the securities being registered is filed herewith. (e) Letter regarding change in certifying accountant by KPMG, dated March 13, 2006, incorporated herein by reference to Exhibit No. 16.1 to Form 8-K (File No. 000- 20501) filed on March 13, 2006. (23) (a)(i) Consent of PricewaterhouseCoopers LLP is filed herewith. (a)(ii) Consent of KPMG LLP is filed herewith. (b) Consent of Counsel. See Exhibit 5(b). (c) Consent of Counsel. See Exhibit 5(d). (24) (a) Powers of Attorney incorporated herein by reference to Exhibit No. 23(c) to the Registration Statement (File No. 333-24009) filed on April 26, 2000. (b) Powers of Attorney, incorporated herein by reference to Exhibit No. 7(a) to Registration Statement on Form S-6, File No. 333-17663, filed on April 28, 2000. (c) Powers of Attorney, incorporated herein by reference to Exhibit No. 27(n)(iii) to Registration Statement on Form N-6, File No. 333-103199, filed on April 4, 2003. (d) Powers of Attorney, incorporated herein by reference to Exhibit 10.(a) Registration Statement File No. 2-30070 on Form N-4, filed on April 19, 2004. (e) Powers of Attorney, incorporated herein by reference to Exhibit 10.(d) to Registration Statement File No. 333-05593 on Form N-4, filed on August 4, 2004. (f) Powers of Attorney, incorporated herein by reference to Exhibit 10.(f) to Registration Statement File No. 333-05593 on Form N-4, filed on April 20, 2005. (g) Powers of Attorney, incorporated herein by reference to Exhibit 10.(g) to Registration Statement File No. 333-05593 on Form N-4, filed on October 14, 2005. (h) Power of Attorney for Alvin H. Fenichel dated October 19, 2005 incorporated herein by reference to Exhibit 10.(c) to Registration Statement File No. 333-127445 on Form N-4, filed on November 16, 2005. (i) Powers of Attorney, previously filed with this Registration Statement No. 333-104713 on April 20, 2006. (j) Powers of Attorney, previously filed with this Registration Statement No. 333-142408 on April 26, 2007. (k) Powers of Attorney are filed herewith. II-6 ITEM 17. UNDERTAKINGS (a) The undersigned registrant hereby undertakes: (1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: (i) to include any prospectus required by section 10(a)(3) of the Securities Act of 1933; (ii) to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; (iii) to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement; provided, however, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or 15(d) of the Securities Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of this Registration Statement. (2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. (3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. (4) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. (5) That, for the purpose of determining liability of the Registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned Registrant undertakes that in a primary offering of securities of the undersigned Registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: (i) Any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424; (ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred to by the undersigned Registrant; (iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned Registrant; and (iv) Any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser. (b) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant's annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. II-7 (c) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. II-8 SIGNATURES Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-1 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City and State of New York, on this 23rd day of April, 2008. AXA EQUITABLE LIFE INSURANCE COMPANY (Registrant) By: /s/ Dodie Kent ------------------ Dodie Kent Vice President and Associate General Counsel AXA Equitable Life Insurance Company As required by the Securities Act of 1933, this amendment to the Registration Statement has been signed by the following persons in the capacities and on the date indicated: PRINCIPAL EXECUTIVE OFFICERS: *Christopher M. Condron Chairman of the Board, President, Chief Executive Officer and Director PRINCIPAL FINANCIAL OFFICER: *Richard Dziadzio Executive Vice President and Chief Financial Officer PRINCIPAL ACCOUNTING OFFICER: *Alvin H. Fenichel Senior Vice President and Controller *DIRECTORS: Bruce W. Calvert Mary R. (Nina) Henderson Joseph H. Moglia Christopher M. Condron Anthony Hamilton Lorie A. Slutsky Henri de Castries James F. Higgins Ezra Suleiman Denis Duverne Scott D. Miller Peter J. Tobin Charlynn Goins *By: /s/ Dodie Kent ------------------------ Dodie Kent Attorney-in-Fact April 23, 2008 EXHIBIT INDEX EXHIBIT NO. TAG VALUE 5(d) Opinion and Consent of Counsel EX-5.d 23(a)(i) Consent of PricewaterhouseCoopers LLP EX-23.ai 23(a)(ii) Consent of KPMG LLP EX-23.aii 24(k) Powers of Attorney EX-24.k EX-5.D 3 e9924_ex-5d.txt OPINION AND CONSENT OF COUNSEL DODIE KENT Vice President and Associate General Counsel (212) 314-3970 (212) 707-1791 [AXA EQUITABLE -- MEMBER OF THE GLOBAL AXA GROUP LOGO] LAW DEPARTMENT April 23, 2008 AXA Equitable Life Insurance Company 1290 Avenue of the Americas New York, NY 10104 Dear Sirs: This opinion is furnished in connection with the filing by AXA Equitable Life Insurance Company ("AXA Equitable") of a Form S-1 Registration Statement of AXA Equitable for the purpose of registering Market Value Adjustment Interests under Flexible Premium Annuity contracts ("Interests") under the Securities Act of 1933. The Interests are purchased with contributions received under individual variable annuity contracts and certificates AXA Equitable offers under group annuity contracts (collectively, the "Certificates"). As described in the prospectuses included in the Registration Statement, the Certificates are designed to provide for retirement income benefits. I have examined such corporate records of AXA Equitable and provisions of the New York insurance law as are relevant to authorization and issuance of the Certificates and such other documents and laws as I consider appropriate. On the basis of such examination, it is my opinion that: 1. AXA Equitable is a corporation duly organized and validly existing under the laws of the State of New York. 2. The Certificates (including any Interests credited thereunder) will be duly authorized and when issued in accordance with applicable regulatory approvals will represent validly issued and binding obligations of AXA Equitable. I hereby consent to the use of this opinion as an exhibit to the Registration Statement. Very truly yours, /s/ Dodie Kent ------------------- Dodie Kent cc: Christopher E. Palmer, Esq. EX-23.AI 4 e9924_ex-23ai.txt CONSENT OF PRICEWATERHOUSECOOPERS LLP CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We hereby consent to the incorporation by reference in this Post-Effective Amendment No. 1 to Registration Statement File No. 333-142408 on Form S-1 of our report dated March 12, 2008 relating to the consolidated financial statements of AXA Equitable Life Insurance Company for the year ended December 31, 2007. We also consent to the incorporation by reference of our report dated March 12, 2008 relating to the consolidated financial statement schedules, which appear on page F-57 of such Annual Report on Form 10-K. We also consent to the reference to us under the heading "Incorporation of certain documents by reference" in the Prospectuses and Supplement. /s/PricewaterhouseCoopers LLP New York, New York April 23, 2008 EX-23.AII 5 e9924_ex-23aii.txt CONSENT OF KPMG LLP CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The General Partner and Unitholders AllianceBernstein L.P. AllianceBernstein Holding L.P. We consent to the use in the Post-Effective Amendment No. 1 to AXA Equitable Life Insurance Company's Registration Statement File No. 333-142408 on Form S-1 of our reports dated February 24, 2006, with respect to the consolidated statements of income, changes in partners' capital and comprehensive income and cash flows of AllianceBernstein L.P. for the year ended December 31, 2005, and the statements of income, changes in partners' capital and comprehensive income and cash flows of AllianceBernstein Holding L.P. for the year ended December 31, 2005. We also consent to the incorporation by reference in the Prospectuses and Supplement of our reports dated February 24, 2006 appearing in AXA Equitable Life Insurance Company's Annual Report on Form 10-K for the year ended December 31, 2007 and to the reference of our firm under the heading "Incorporation of certain documents by reference" in the Prospectuses and Supplement. /s/ KPMG LLP New York, New York April 21, 2008 EX-24.K 6 e9924_ex-24k.txt POWER OF ATTORNEY POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM) Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 11th day of March, 2008. /s/ Henri de Castries ---------------------------- Henri de Castries POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM) Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 21st day of February, 2008. /s/ Denis Duverne --------------------------- Denis Duverne POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM) Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 21st day of February, 2008. /s/ Mary R. (Nina) Henderson ----------------------------------- Mary R. (Nina) Henderson POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM) Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 21st day of February, 2008. /s/ James F. Higgins ------------------------------ James F. Higgins POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM) Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form F-1 or F-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form F-1 or F-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 21st day of February, 2008. /s/ Scott D. Miller --------------------------- Scott D. Miller POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM)Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Stateument to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form F-1 or F-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form F-1 or F-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 21st day of February, 2008. /s/ Joseph H. Moglia -------------------------- Joseph H. Moglia POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM) Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 21st day of February, 2008. /s/ Peter J. Tobin --------------------------- Peter J. Tobin POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM) Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 21st day of February, 2008. /s/ Bruce Calvert --------------------------- Bruce Calvert POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM) Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 21st day of February, 2008. /s/ Christopher M. Condron ------------------------------- Christopher M. Condron POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM) Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 21st day of February, 2008. /s/ Ezra Suleiman ------------------------- Ezra Suleiman POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM) Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 21st day of February, 2008. /s/ Anthony Hamilton --------------------------- Anthony Hamilton POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM) Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 21st day of February, 2008. /s/ Charlynn Goins ------------------------ Charlynn Goins POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VESTsm Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 22nd day of February, 2008. /s/ Lorie A. Slutsky ------------------------- Lorie A. Slutsky POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Barbara Goodstein, Stuart L. Faust, Anne M. Katcher, Karen Field Hazin, Naomi J. Weinstein, Mildred Oliver, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, Sun Jin Moon, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all reports (and amendments thereto) by the Company under the Securities Exchange Act of 1934 (including but not limited to any reports on Forms 10-K, 10-Q or 8-K) and any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM) Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms S-1, S-3, N-3 and N-4 Registration Statements to be filed as necessary. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products issued by AXA Equitable Life Insurance Company. Form S-1 or S-3 registration statement to be filed as necessary for Market Value Adjustment interests and to effect the parent guarantee of Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products issued by AXA Equitable Life Insurance Company. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 22nd day of February, 2008. /s/ Richard Dziadzio ------------------------------------- Richard Dziadzio, Executive Vice President and Chief Financial Officer POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or Director of AXA Equitable Life Insurance Company (the "Company"), a New York stock life insurance company, hereby constitutes and appoints Richard V. Silver, Stuart L. Faust, Karen Field Hazin, Edward Marron, Kathleen De Celie, Dodie Kent, William J. Evers, and each of them (with full power to each of them to act alone), his or her true and lawful attorney-in-fact and agent for him or her and on his or her behalf and in his or her name, place and stead, to execute and file any and all registration statements (and amendments thereto) by the Company or its separate accounts relating to annuity contracts and life insurance policies under the Securities Act of 1933 and/or the Investment Company Act of 1940, including but not limited to the "Registration Statements," as defined below, with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents being empowered to act with or without the others, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof. The "Registration Statements" covered by the Power of Attorney are defined to include the registration statements listed below: Separate Account No. 45 of AXA Equitable Life Insurance Company (811-08754) --------------------------------------------------------------------------- 33-83750 333-64751 333-73121 333-61380 333-44996 Form N-4 Registration Statements to be filed as necessary. Separate Account No. 49 of AXA Equitable Life Insurance Company (811-07659) --------------------------------------------------------------------------- 333-05593 333-64749 333-31131 333-60730 333-79379 333-96177 333-127445 333-137206 333-142414 Form N-4 Registration Statements to be filed as necessary. Separate Account A of AXA Equitable Life Insurance Company (811-01705) ---------------------------------------------------------------------- 2-30070 333-81393 333-130988 333-81501 33-47949 33-58950 333-19925 333-137052 333-141082 333-141292 333-146143 Form N-4 registration statements for EQUI-VEST(SM) contracts currently included in Reg. No. 2-30070 (EQUI-VEST(SM) Individual, EQUI-VEST(SM) Employer Sponsored, EQUI-VEST(SM) Vantage(SM), EQUI-VEST(SM) TSA Advantage(SM)) Form N-4 Registration Statements to be filed as necessary. AXA Equitable Life Insurance Company ------------------------------------ 333-142407 333-142408 333-142453 333-142454 333-142455 333-142456 333-142457 333-142458 333-142459 333-142461 Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the Accumulator(R) line of variable annuity products. Form S-1 or S-3 Registration Statement to be filed as necessary for Market Value Adjustment interests under certain flexible annuity contracts of the EQUI-VEST(SM) line of variable annuity products. Forms N-3 and N-4 Registration Statements to be filed as necessary. Separate Account 301 of AXA Equitable Life Insurance Company (811-03301) ------------------------------------------------------------------------ 2-74667 Form N-4 Registration Statements to be filed as necessary. Separate Account FP of AXA Equitable Life Insurance Company (811-04335) ----------------------------------------------------------------------- 333-103199 333-132200 333-103202 333-115985 333-76130 333-17665 333-17669 333-17663 333-17641 333-17671 333-17639 333-134307 Form N-6 Registration Statements to be filed as necessary. Separate Account I of AXA Equitable Life Insurance Company (811-02581) ---------------------------------------------------------------------- 333-17633 Form N-6 Registration Statements to be filed as necessary. IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this 29th day of February, 2008. /s/ Alvin H. Fenichel ------------------------------- Alvin H. Fenichel, Senior Vice President and Controller -----END PRIVACY-ENHANCED MESSAGE-----